Celsius Holdings (CELH) Earnings Date & Reports
Celsius Holdings operates in the energy drink subsegment of the global nonalcoholic beverage market, with 95% of revenue concentrated in North America... Show more
CELH is expected to report earnings to rise 6.51% to 43 cents per share on August 11
Celsius Holdings (CELH) Q1 2026 Earnings Recap: Record Revenue Powers Past Expectations
Key Takeaways
- Celsius Holdings reported record Q1 2026 revenue of $782.6 million, up 138% year-over-year, beating consensus estimates of approximately $763 million.
- Adjusted diluted EPS came in at $0.41, surpassing expectations of $0.29 by 41%, driven by strong portfolio performance.
- Gross margin was 48.3%, down 400 basis points year-over-year due to acquisitions, but adjusted EBITDA rose 181% to $195.5 million.
- The company's energy portfolio captured 20.9% U.S. dollar share in the RTD energy category, with contributions from CELSIUS, Alani Nu, and Rockstar.
- Share repurchases totaled $24.1 million in the quarter, with $236.1 million remaining authorized.
- North America revenue surged 144% to $747.3 million, while international grew 55% to $35.3 million.
Earnings Context and Why It Matters
Celsius Holdings, Inc. (CELH), a leader in functional energy drinks, released its first quarter 2026 results for the three months ended March 31, 2026, on May 7, 2026. This report is pivotal as it reflects the early integration of key acquisitions—Alani Nu (acquired April 1, 2025) and Rockstar Energy (acquired August 28, 2025)—within PepsiCo's distribution system. Amid a competitive energy drink market, these results highlight CELH's ability to scale its "Modern Energy" portfolio, capturing significant U.S. market share. For investors, the beat on revenue and earnings underscores execution strength, while margin dynamics signal ongoing optimization efforts. Broader industry growth in zero-sugar and fitness-oriented beverages amplifies the importance of CELH's performance.
Celsius Holdings delivered standout Q1 2026 results, with revenue reaching a record $782.6 million, a 138% increase from $329.3 million in the prior year, exceeding analyst consensus of around $763 million. North America drove the growth at $747.3 million (up 144%), fueled by Alani Nu (~$368 million) and Rockstar (~$67 million), while the flagship CELSIUS brand grew ~6%. International revenue rose 55% to $35.3 million.
Adjusted diluted EPS hit $0.41, up 128% year-over-year and beating estimates of $0.29, with GAAP diluted EPS at $0.33. Net income attributable to common shareholders climbed 147% to $85.1 million. Gross margin dipped to 48.3% from 52.3%, reflecting lower-margin acquired brands, but adjusted EBITDA soared 181% to $195.5 million (25.0% margin). The portfolio's 20.9% U.S. RTD energy dollar share (Circana data) marked a key win, contributing 45% to zero-sugar category growth.
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Market Reaction and Investor Sentiment
Following the May 7 release, CELH shares rose 4.45% to close at $34.26, reflecting initial enthusiasm for the record results and earnings beat. Some reports noted premarket gains up to 7.2%, though subsequent trading showed moderation amid concerns over gross margin compression and commodity costs. Investor sentiment remains mixed: positive on portfolio scale and market share gains, cautious on integration timelines for Rockstar (a "stabilization year") and near-term margin pressures. Year-to-date, the stock has declined ~28%, trading below recent highs despite strong fundamentals.
Forward Outlook and Key Factors to Monitor
Celsius Holdings emphasized positive momentum from its Modern Energy portfolio, with no specific numerical guidance but a focus on margin expansion toward the low 50s over time. Management anticipates Q2 gross margins flat to Q1's 48.3% ("sidestep"), with step-ups in Q3 and Q4 driven by the "orbit model" for inventory optimization, freight improvements, raw material alignment across brands, and price-pack enhancements. Elevated aluminum premiums and freight costs could delay this trajectory if persistent.
Shelf space gains are planned: ~17% for CELSIUS and over 100% for Alani Nu in Q2. Rockstar integration targets completion in H1 2026, prioritizing core SKU velocity in a stabilization phase. Innovation, PepsiCo alignment, and a new North Carolina manufacturing line (ramping back-half 2026, full benefits 2027) support long-term growth.
Key monitors include gross margin progression (Q2 print critical), U.S. energy share (targeting further gains), international expansion, and capital allocation ($549 million cash, ongoing buybacks). Commodity trends and consumer demand in zero-sugar/fitness segments will shape execution.
Disclaimer
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General Information
a company which engages in development, marketing of beverages
Industry BeveragesNonAlcoholic