Celsius Holdings, Inc. Q4 2025 Earnings Call Summary Moby Intelligence Fri, February 27, 2026 at 5:32 AM GMT+8 3 min read In this article: - CELH -0.94% PEP +1.29%
Celsius Holdings, Inc. Q4 2025 Earnings Call Summary - Moby Strategic Execution and Portfolio Scaling
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Achieved record full-year revenue of $2.5 billion by transitioning from a single-brand focus to a diversified modern energy platform including CELSIUS, Alani Nu, and Rockstar Energy.
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The portfolio now commands approximately 1/5 of the U.S. energy market in tracked channels, validated by the presence of two billion-dollar brands.
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Performance attribution for the CELSIUS brand was driven by a 7.5% year-over-year revenue increase, supported by a disciplined focus on SKU productivity and revenue growth management.
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Alani Nu's integration into the PepsiCo DSD system reached a major milestone with the U.S. transition substantially complete by year-end 2025.
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Strategic positioning is increasingly focused on the female consumer and expanding usage occasions, such as social 'mocktail' moments, to offset headwinds in the alcohol category.
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The creation of an in-house 'brand studio' aims to centralize creative execution, ensuring speed and consistency across all consumer touchpoints for the multi-brand portfolio.
2026 Outlook and Integration Milestones
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Management expects to complete the Alani Nu integration by the end of Q1 2026 and the Rockstar Energy integration in the first half of 2026.
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Anticipate significant shelf space gains in 2026, including a 17% increase for CELSIUS and triple-digit space gains for Alani Nu as spring resets finalize.
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International expansion will follow a 'focused market selection' strategy led by a new President of International, prioritizing profitable entry over rapid market volume.
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Gross margins are expected to expand throughout 2026 and reach a normalized low-50% range in the second half of the year as one-time integration costs subside and supply chain efficiencies take hold.
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The 2026 innovation roadmap emphasizes 'Fizz-Free' national availability and a disciplined cadence of Limited Time Offers (LTOs) to drive incremental trial.
Integration Dynamics and Financial Adjustments
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Rockstar Energy accounting treatment required $6 million of Q4 revenue to be recorded in 'other income' due to ongoing integration; the U.S. portion is expected to transition to the finished goods model in Q1 2026, while the Canadian portion is expected to resolve in the first half of 2026.
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A net benefit of approximately $25 million was realized in Q4 results from the combined effect of Alani Nu load-ins and CELSIUS inventory movements within the Pepsi network.
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Q4 gross margin of 47.4% was diluted by one-time transition costs, higher aluminum costs, and tariffs, though partially offset by improved outbound freight.
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The company reduced debt by approximately $200 million in Q4 while maintaining $260 million in remaining share repurchase authorization.
Q&A Session Insights
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Timing of shelf space gains and consumption alignment-
Management expects the largest distribution gains to materialize by the end of spring, particularly in the convenience channel for Alani Nu.
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While Q4 GAAP sales for CELSIUS declined 7.7% due to inventory timing, 2026 orders are aligning more closely with the 12.8% scanner data growth.
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The goal is to reach the low 50s as the company moves into the back half of the year, which is viewed as a near-term target for the next handful of years as Alani Nu and Rockstar adopt the CELSIUS cost structure.
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Margin expansion will be driven by the 'orbit' freight model and vertical integration, despite headwinds from the Midwest premium and tariffs.
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Management acknowledged that expanding into new regions and channels typically results in lower initial velocity as the brand builds a daily consumer routine.
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Retailers are reportedly carving out space for energy drinks by optimizing underperforming categories like beer, juice, and premium water.
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