TLDR
- Celsius Holdings reported Q3 earnings of $0.42 per share, crushing analyst estimates of $0.28, with revenue hitting $725.1 million versus expected $715.7 million
- Stock plunged 11.5% premarket as core CELSIUS brand retail sales grew only 13% and market share dropped 0.5 points to 11.2%
- Alani Nu acquisition proved the growth driver with 114% retail sales surge, while Rockstar Energy fell 9%
- Gross margin expanded to 51.3% from 46.0% year-over-year due to reduced promotional spending and improved product mix
- Company recorded $246.7 million in distributor termination costs for Alani Nu’s PepsiCo system transition, fully funded by PepsiCo
Celsius Holdings delivered third-quarter earnings that crushed Wall Street forecasts. But the market didn’t care.
Shares dropped 11.5% in premarket trading on November 6, 2025. Investors zeroed in on troubling trends beneath the headline numbers.
The company reported adjusted earnings of $0.42 per share. That’s 50% higher than the $0.28 analyst consensus.
Revenue reached $725.1 million, topping estimates of $715.7 million. The figure represents a 173% increase from last year’s $265.7 million.
Here’s the problem. The growth came almost entirely from acquisitions, not organic performance.
CELSIUS Brand Loses Ground
The flagship CELSIUS brand managed just 13% retail sales growth year-over-year. Market share in the U.S. ready-to-drink energy category slipped 0.5 percentage points to 11.2%.
Those numbers raised red flags for investors expecting stronger core brand performance.
Alani Nu, acquired in April, carried the portfolio. The brand exploded with 114% retail sales growth year-over-year.
Rockstar Energy, purchased in August, moved in the opposite direction. Sales declined 9% compared to last year.
Total portfolio retail sales grew 31% year-over-year. Strip out Alani Nu’s contribution, and the picture looks far less impressive.
CEO John Fieldly highlighted the company’s strategic moves. “The third quarter marked another important step in Celsius Holdings’ transformation,” he said.
The company unified CELSIUS, Alani Nu, and Rockstar Energy under one portfolio. It also deepened its partnership with PepsiCo during the quarter.
Financial Performance Shows Strength
Gross margin improved to 51.3% from 46.0% in the prior year period. Lower promotional spending, better product mix, and economies of scale drove the expansion.
International revenue climbed 24% to $23.1 million. The segment offers growth opportunities as Celsius expands globally.
The company booked $246.7 million in distributor termination costs. These fees relate to shifting Alani Nu’s distribution to the PepsiCo network.
PepsiCo committed to funding these costs. The arrangement keeps Celsius’s cash position neutral.
Management added new executive talent during the quarter. Rishi Daing joined as Chief Marketing Officer as part of the leadership refresh.
The total revenue beat came in at $9.4 million above expectations. Earnings per share exceeded forecasts by $0.14.
But investors focused on the core brand’s performance. The 13% growth rate trails the overall energy drink market expansion.
Market share losses to competitors added to concerns about CELSIUS’s competitive position. The brand faces pressure from established players and emerging challengers in the crowded energy drink space.
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