Celsius Shares Crash As Revenue Misses Estimates
Celsius Holdings, the Florida-based beverage company with a portfolio of some of America's top-performing energy drinks, reported weaker-than-expected second-quarter results, as revenue, adjusted earnings, and profitability missed Wall Street estimates.
Second-quarter adjusted earnings fell to 36 cents per share from 47 cents a year earlier, below the 41-cent Bloomberg Consensus estimate. Revenue increased 11% to $817.9 million but missed the $872.6 million estimate, with North American sales of $790.7 million also falling short.
Profitability deteriorated despite sales growth. Gross margin narrowed to 48.1% from 51.5% as promotional activity, channel mix, and aluminum inflation weighed on results. Net income fell 45% to $55.3 million, while adjusted earnings declined to 36 cents per share from 47 cents. Adjusted EBITDA dropped 12% to $184.2 million.
2Q Earnings Snapshot:
Adjusted EPS 36c vs. 47c y/y, estimate 41c (Bloomberg Consensus)
EPS 14c vs. 33c y/y, estimate 40c
Revenue $817.9 million, +11% y/y, estimate $872.6 million
- North America revenue $790.7 million, +11% y/y, estimate $847.3 million
- International revenue $27.2 million, +9.7% y/y
Gross margin 48.1% vs. 51.5% y/y, estimate 48.6%
Adjusted Ebitda $184.2 million, -12% y/y, estimate $198.4 million
Celsius shares plunged 16% in premarket trading.
"During the second quarter of 2026, we made meaningful progress in advancing Celsius Holdings as a scaled portfolio of leading brands. We delivered a double-digit increase in second-quarter revenue, completed the Rockstar integration, and maintained gross margin near first-quarter levels despite a challenging commodity environment," CEO John Fieldly wrote in a press release.
Celsius Holdings' portfolio, which includes CELSIUS, Alani Nu, and the U.S. and Canadian Rockstar Energy business, accounts for about 20% of U.S. ready-to-drink energy sales. PepsiCo serves as the company's primary distribution partner.
Notably, the national average price for regular 87-octane gasoline remained mostly above $4 per gallon in the quarter, a key threshold at which consumer behavior begins to shift through trade-downs and reduced discretionary purchases. Goldman Sachs analyst Bonnie Herzog previously flagged a slowdown in energy-drink demand beginning in mid-May. Read the full note here.