Celsius Q3 Earnings Call Highlights

Key Points

• Revenue rose 17% to approximately $847 million, driven by Alani Nu’s record sales, which offset declines in the Celsius and Rockstar brands. Alani Nu net sales grew 24% to about $410 million.
• Profitability faced cost pressure: gross margin fell to 46.8% from 51.3% a year earlier, with higher aluminum and diesel costs contributing. Celsius expects full-year gross margin in the high 40s and says its target of low-50s margins will take longer to reach.
• Fourth-quarter reported revenue growth is expected to slow because shipments shifted into Q3 and a prior-year inventory benefit will not repeat. For 2027, the company plans new products and international Alani Nu launches, while aiming for the Celsius brand to return to growth.

Celsius NASDAQ: CELH reported third-quarter 2026 revenue of approximately $847 million, up 17% from a year earlier, as record sales at Alani Nu helped offset a decline in the company’s namesake energy drink brand.

Chairman and CEO John Fieldly said Alani Nu’s Witch’s Brew was the largest limited-time offer in the company’s portfolio history. At the same time, Celsius expects a tougher reported revenue comparison in the fourth quarter, partly because shipments planned for that period moved into the third quarter.

The company’s combined portfolio held approximately 21% of U.S. energy-drink dollar sales in tracked channels during the quarter, Fieldly said. Portfolio retail sales in those channels rose approximately 15% year over year.

Alani Nu Leads Growth as Celsius Brand Declines

Alani Nu generated approximately $410 million in net sales, up 24% from a year earlier. Its retail sales in tracked channels rose approximately 58%, and its category share reached approximately 9.8%, nearly three percentage points higher than a year earlier.

Witch’s Brew produced more than $130 million in retail sales across traditional retail and club channels, Fieldly said. Excluding the promotion, core Alani Nu retail sales in tracked channels grew approximately 50% year over year.

The Celsius brand’s reported net sales fell approximately 6%, while its tracked retail sales declined approximately 7%. CFO Jarrod Langhans said U.S. orders ran below retail scans as the distribution system worked through inventory, although international and powder growth provided an offset.

Fieldly said he expects the brand to return to growth during 2027 as it moves past assortment reductions and introduces more products. On the call, he said weekly tracked sales have been running at roughly $50 million to $55 million and could return to slight growth or break even in some weeks at year-end if they hold near $50 million.

Rockstar posted approximately $80 million in net sales, up from $67 million in the second quarter, partly because of the timing of Canadian orders. Its total tracked retail sales fell approximately 13% year over year, largely reflecting products the company discontinued. Langhans said the remaining assortment was becoming more productive but added that the company was not yet calling a return to growth.

Margins Under Pressure

Gross margin narrowed to 46.8% from 51.3% a year earlier and 48.1% in the second quarter. Langhans cited higher aluminum and diesel costs, while noting that freight improvements largely offset the increase in diesel. The company expects full-year gross margin in the high 40s, depending on commodity fluctuations.

Adjusted earnings before interest, taxes, depreciation and amortization were approximately $199 million, or 23.4% of revenue, compared with $184 million, or 22.5% of revenue, in the second quarter. Selling, general and administrative expenses were $221 million, or 26.1% of revenue, down from 29% in the preceding quarter.

Langhans said Celsius plans to use pricing, pack sizes and promotions across its brands to improve trade investment as a percentage of gross sales, with benefits expected to build through 2027 and into 2028. He said commodity pressures would make the company’s goal of gross margins in the low 50s take longer to reach than anticipated a year ago.

Fourth-Quarter Comparison and 2027 Plans

Celsius expects fourth-quarter reported revenue growth to be below the rate delivered through the first three quarters. Langhans said a roughly $25 million net inventory benefit in the year-earlier quarter will not recur, while approximately $20 million to $25 million of shipments moved into the third quarter from the fourth.

Some shipments of products planned for 2027 will partially offset those effects, he said. Langhans also noted that fourth-quarter growth will no longer have the same benefit from additional quarters of acquired brands included in the results.

For 2027, Fieldly pointed to new flavors, product lines and pack sizes across Celsius and Alani Nu. He said the Celsius growth plan is not entirely dependent on Energy+, a new offering intended to reach additional consumption occasions.

Outside the U.S., revenue rose approximately 56% year over year in the third quarter. The company is finalizing selected international markets for Alani Nu launches in 2027 and expects non-U.S. markets to account for more than 15% of total revenue over the next five years.

Celsius also announced three brand-led business units: Celsius, Alani Nu, and Rockstar and Emerging Growth. Alex Zigliara will lead the Celsius brand in the U.S., while Chief Marketing Officer Rishi Daing will transition to lead Rockstar and Emerging Growth as the new structure is implemented.

About Celsius (NASDAQ:CELH)

Celsius Holdings, Inc NASDAQ: CELH develops, markets and distributes functional beverages designed to support active lifestyles. Its flagship CELSIUS brand offers carbonated and non-carbonated energy drinks, including products positioned around energy, fitness and wellness. The company also markets CELSIUS Essentials, CELSIUS Vibe and powdered drink mixes, with product formulations that commonly feature ingredients such as caffeine, vitamins and other functional components.

Founded in 2004, Celsius has expanded from a niche fitness beverage business into a broader energy-drink platform.

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