Celsius Holdings (CELH) Stock Falls 16% After Q2 Earnings Miss
Key Takeaways
- ā¢Celsius Holdings reported second-quarter revenue of $817.9 million and adjusted EPS of $0.36, both falling short of analyst consensus estimates.
- ā¢The core Celsius brand experienced an 11.7% revenue decline due to higher promotional spending, inventory rebalancing, softness in the club channel, and SKU optimization related to acquisition integration.
- ā¢Alani Nu emerged as the portfolio's top performer, generating $364.4 million in quarterly sales with retail sales surging 55.7% year-over-year following its integration into the PepsiCo distribution system.
- ā¢Gross margin contracted to 48.1% from 51.5% a year earlier, driven by increased promotional activity, channel mix shifts, and aluminum cost inflation.
- ā¢The company's portfolio held approximately 20.1% dollar share of the U.S. ready-to-drink energy category, with strategic support from PepsiCo's 11% equity stake and distribution partnership.
Celsius Holdings (CELH) dropped more than 16% in premarket trading on Thursday after the company reported second-quarter results that fell short of Wall Street expectations on both revenue and earnings.
The stock was trading around $24.27 premarket, well below its 52-week high of $66.74. Celsius had been one of the strongest-performing consumer stocks in recent years, surging from a penny stock to a large-cap contender as its fitness-oriented energy drinks disrupted a category long dominated by Monster Beverage (MNST) and Red Bull. Thursday's selloff underscored how elevated investor expectations have become, with even double-digit revenue growth insufficient to satisfy the Street.
Adjusted earnings per share came in at $0.36, missing the analyst consensus of $0.43 by $0.07. Revenue reached $817.9 million, below the $885.98 million estimate, though still representing 11% growth from $739.3 million in the same period a year earlier.
CELSIUS HOLDINGS $CELH Q2'26 EARNINGS HIGHLIGHTS š¹ Revenue: $817.9M (Est. $870M) š“; +11% YoY š¹ Adj. EPS: $0.36 (Est. $0.42) š“; -23% YoY š¹ Adjusted EBITDA: $184.2M (Est. $196M) š“; -12% YoY š¹ Portfolio Retail Sales: +31.0% YoY š¹ Gross Margin: 48.1%; -340 bps YoY Other Q2ā¦ pic.twitter.com/42xrRhzYqe ā Wall St Engine (@wallstengine) August 6, 2026
Adjusted EBITDA declined 12% year-over-year to $184.2 million, also missing the $198.4 million consensus.
Celsius Brand Struggles Amid Promotional Spending and Inventory Adjustments
The namesake Celsius brand faced headwinds during the quarter. Revenue fell 11.7% year-over-year, weighed down by higher trade and promotional spending, shipment timing related to inventory rebalancing, softness in the club channel, and SKU optimization tied to recent acquisition integration.
The increased promotional spending and inventory rebalancing point to a maturing of the core Celsius brand within the U.S. convenience and club channels, where competition for shelf space has intensified as both legacy players and new entrants push sugar-free and functional beverage offerings.
Celsius brand retail sales were down 2% for the quarter, while Rockstar Energy retail sales slipped 13%.
Alani Nu Drives Portfolio Growth
Alani Nu emerged as the portfolio's standout performer, generating $364.4 million in sales during the quarter. The brand benefited from strong consumer demand and increased orders as it transitioned into the PepsiCo (PEP) distribution system. Celsius completed its acquisition of Alani Nu, a fast-growing lifestyle and wellness beverage brand particularly popular among younger female consumers, broadening the portfolio beyond its original fitness-centric customer base.
Alani Nu retail sales surged 55.7% year-over-year. The limited-time Purple Cotton Candy flavor also contributed to the brand's momentum during the period.
Rockstar Energy added $66.5 million in revenue for the quarter.
Gross margin contracted to 48.1%, down from 51.5% in the same quarter last year. The company attributed the decline to higher promotional activity, channel mix shifts, and aluminum cost inflation.
International Expansion Continues
International revenue rose 10% to $27.2 million, with Nordic markets and newer expansion territories including the UK, Ireland, France, and Australia driving the gains. North America revenue increased 11% to $790.7 million.
CEO John Fieldly emphasized the portfolio's broader positioning: "With two billion-dollar brands and roughly one in five energy drinks sold in the United States coming from our portfolio, we are a key growth engine for the category."
Market Position and Shareholdings
The company's portfolio held approximately 20.1% dollar share in the U.S. ready-to-drink energy category during the quarter. CELH also contributed roughly 30% of the zero-sugar U.S. energy category's $640 million growth in the period.
PepsiCo, which holds an 11% stake in CELH, was up 0.5% in premarket trading following the report. The distribution partnership with PepsiCo has been a cornerstone of Celsius's retail expansion strategy, giving the company access to PepsiCo's vast direct-store-delivery network across U.S. convenience stores and other channels.
