At a glance (Q3 2025)
- Revenue:$725.1M (+173% YoY)
- Gross margin:51.3% (vs. 46.0% LY)
- GAAP diluted EPS:$(0.27) (driven by distribution transition charges)
- Adjusted diluted EPS:$0.42
- U.S. RTD energy dollar share (portfolio):20.8%
- North America revenue:$702.0M | International:$23.1M
Figures from the company’s Q3 release. [1]
Earnings headline: Big top‑line, accounting headwinds on the bottom line
Celsius Holdings reported $725.1 million in Q3 sales, up 173% year over year, as the company’s broadened energy portfolio and expanded distribution powered growth. GAAP results swung to a $(0.27) diluted loss per share, primarily due to $246.7 million in distributor termination costs tied to moving Alani Nu into the PepsiCo system—costs that PepsiCo will fund in cash but which must be expensed up‑front under GAAP (with reimbursements amortized over the life of the agreement). On a non‑GAAP basis, adjusted EPS was $0.42. [2]
Segment mix and margins
North America contributed $702.0 million; international revenue was $23.1 million (+24% YoY). Gross margin expanded to 51.3%, helped by mix and scale, partly offset by the margin profile of recently added brands. [3]
Stock reaction today (Nov. 6)
CELH shares were volatile around the print—down double‑digits premarket despite the revenue beat and adjusted EPS upside, reflecting debate over organic vs. acquired growth and the timing of transition charges. As of publication, the live price above reflects intraday trading on Nov. 6. [4]
The strategy behind the numbers: PepsiCo partnership, portfolio expansion
Today’s quarter is the first to reflect Celsius’s “total energy portfolio” strategy at scale:
- Alani Nu acquisition: Celsius closed its $1.8B purchase of Alani Nutrition (net price $1.65B including tax assets) on April 1, 2025. Management said Alani Nu delivered record Q3 sales of $332M and led portfolio growth. [5]
- Rockstar Energy (U.S./Canada) acquisition: On Aug. 28–29, 2025, Celsius acquired the Rockstar Energy brand rights in the U.S. and Canada, while PepsiCo retained Rockstar internationally—part of a broader alignment that designates Celsius as PepsiCo’s strategic energy lead in the U.S. [6]
- PepsiCo investment increased: PepsiCo also purchased $585M of newly issued convertible preferred shares, lifting its stake to ~11% on an as‑converted basis and adding a board nominee. An SEC filing and company materials detail the structure. [7]
Market share and retail trends to watch
Celsius said its combined portfolio (CELSIUS®, Alani Nu, Rockstar) reached 20.8% U.S. dollar share in ready‑to‑drink energy for the 13 weeks ended Sept. 28, 2025. Within that, CELSIUS brand retail sales rose 13%, Alani Nu surged 114%, while Rockstar declined 9% year over year, reflecting brand turnarounds still in early innings. [8]
Why GAAP EPS went negative while cash stays intact
The $(0.27) GAAP loss was dominated by the one‑time distributor termination expense to transition Alani Nu into PepsiCo distribution. PepsiCo will fund those fees, but accounting recognizes the expense immediately while the reimbursement sits on the balance sheet and amortizes over the agreement term—creating a timing mismatch in reported earnings vs. cash. [9]
Management call and materials
Management hosted a webcast at 8:00 a.m. ET today to discuss results and posted an investor presentation; a replay and slides are available on the company’s IR site. The company also filed an 8‑K with the press release and presentation links. [10]
Key numbers (quick reference)
- Revenue: $725.1M (+173% YoY)
- Gross margin: 51.3%
- GAAP diluted EPS: $(0.27)
- Adjusted diluted EPS: $0.42
- North America revenue: $702.0M
- International revenue: $23.1M
- U.S. RTD energy share (portfolio): 20.8%
- Alani Nu Q3 sales: $332.0M
Sources: company Q3 press release; Yahoo Finance summary of the release. [11]
What this means for investors
The bull case: A wider portfolio, deeper PepsiCo tie‑up (distribution + capital), and improving gross margins position Celsius to keep gaining share in U.S. energy and accelerate international expansion. Adjusted profitability suggests underlying earnings power despite the accounting charge. [12]
The bear case: Some of the growth is acquisition‑driven, Rockstar remains a turnaround, and the CELSIUS brand’s scanner growth (+13%) trails the headline revenue increase—implying inventory and transition dynamics that may normalize in coming quarters. [13]
Bottom line: Q3 shows the scale Celsius sought through M&A and partnership. Execution now hinges on Rockstar stabilization, Alani Nu’s distribution migration, and international ramp—all while sustaining double‑digit CELSIUS brand growth.
Notes & sources for today (Nov. 6, 2025)
- Q3 results, margins, portfolio shares, charges, and webcast info: Company press release. [14]
- IR/SEC confirmation of today’s release:Form 8‑K. [15]
- North America vs. International breakdown: Yahoo Finance recap of the release. [16]
- Premarket reaction and intraday volatility: Investing.com, MarketBeat extended-hours snapshot. [17]
- Background on Aug. partnership and stake increase: Reuters and FoodDive; Celsius designated PepsiCo’s strategic energy lead in the U.S. and acquired U.S./Canada rights to Rockstar. [18]
This article is for informational purposes only and does not constitute investment advice.
References
1. www.businesswire.com, 2. www.businesswire.com, 3. www.businesswire.com, 4. www.investing.com, 5. ir.celsiusholdingsinc.com, 6. www.fooddive.com, 7. www.sec.gov, 8. www.businesswire.com, 9. www.businesswire.com, 10. www.sec.gov, 11. www.businesswire.com, 12. www.reuters.com, 13. www.businesswire.com, 14. www.businesswire.com, 15. www.sec.gov, 16. finance.yahoo.com, 17. www.investing.com, 18. www.reuters.com
