Celsius Holdings reported record fourth‑quarter revenue of $721.6 million, a 117% year‑over‑year increase from $332.2 million in the same period last year. Adjusted diluted earnings per share rose to $0.26 from $0.14, while GAAP diluted EPS was $0.04 versus a loss of $0.11 a year earlier. Gross margin for the quarter fell to 47.4% from 50.2% in 2024, reflecting one‑time integration and distribution transition costs associated with Alani Nu and Rockstar Energy. North America sales grew 124% to $699.5 million, and international sales increased 9% to $22.1 million, bringing total portfolio revenue to $2.52 billion for the year, an 85.5% jump from $1.36 billion in 2024.
The revenue surge was driven largely by Alani Nu, which generated $370 million in the quarter and $1.001 billion for the year, and by Rockstar Energy, which contributed $45 million in the quarter and $55.6 million for the year. The combined performance of the three brands helped Celsius capture an approximate 20% dollar share of the U.S. energy drink category in Q4 2025, underscoring the company’s expanding multi‑brand platform and its progress toward market‑share gains.
The adjusted EPS beat expectations by $0.07, a 37% lift over the consensus estimate of $0.19, largely because the company maintained strong pricing power and disciplined cost management amid a period of integration‑related expenses. The GAAP EPS, however, remained modest at $0.04, reflecting the impact of one‑time charges and the lower margin profile of Rockstar Energy, which has a blended gross margin lower than Celsius’s core brand.
Gross margin compression in the quarter was driven by integration and distribution transition costs, tariffs, and the lower margin profile of Rockstar Energy. Management noted that “the slight dip in gross margin is due to integration and distribution transition costs particularly with Alani Nu and Rockstar Energy.” The company expects these costs to be absorbed as the Alani Nu U.S. DSD transition completes by the end of Q1 2026 and the Rockstar integration finishes in H1 2026, which should unlock operational efficiencies and margin benefits.
Management emphasized the strength of the multi‑brand strategy, stating, “2025 was a defining year for Celsius Holdings as we delivered record full‑year revenue of $2.5 billion, underscoring the power of our brands and the strength of our growth model.” They added, “With CELSIUS, Alani Nu, and Rockstar Energy, we’re building a scaled Modern Energy portfolio with distinct roles, recruiting new consumers and expanding consumption occasions.” “As PepsiCo’s energy category captain in the U.S. and with an aligned commercial strategy, we reached an approximate 20% dollar share of the U.S. energy drink category in Q4 2025.” “With an evolved operating model and our brand integration firmly on track, we are entering 2026 with positive momentum, scale and confidence in our ability to deliver sustainable, long‑term shareholder value.” “As integrations progress and ongoing initiatives take hold, we expect margins to expand across 2026 and return to a more normalized profile, with gross margins in the low fifties, driven by savings across raw materials, scrap, manufacturing tolling fees, freight, and package and brand mix, offset in part by tariffs and aluminum costs.”
The company’s outlook remains positive, with management confident that the integration of Alani Nu and Rockstar Energy will continue to drive revenue growth and margin recovery in 2026. The completion of the distribution transition and integration milestones is expected to unlock operational efficiencies, positioning Celsius to sustain its accelerated growth trajectory and strengthen its competitive position in the energy drink market.
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