Celsius Holdings Inc (NASDAQ:CELH) Reports Strong Q3 2025 Revenue Growth and Adjusted EPS Beat Amidst Acquisition Costs

CELSIUS HOLDINGS INC (NASDAQ:CELH) reported third quarter 2025 financial results that showcased significant revenue growth, though profitability metrics presented a more complex picture following recent acquisitions. The company's performance against analyst expectations and its subsequent market reaction highlight both the opportunities and challenges in its current expansion phase.

Earnings vs. Estimates

The company delivered a strong top-line performance for the third quarter, exceeding revenue expectations while demonstrating substantial operational growth on adjusted metrics.

• Revenue: $725.1 million reported versus $724.0 million estimated
• Adjusted EPS: $0.42 reported versus $0.28 estimated
• Year-Over-Year Revenue Growth: 173% increase from $265.7 million in Q3 2024

The revenue beat, though modest in percentage terms, occurred on an exceptionally expanded base, largely driven by the inclusion of recently acquired brands. More notably, the company's adjusted EPS significantly outperformed expectations by nearly 50%, suggesting stronger underlying profitability than headline GAAP figures might indicate.

Market Reaction

Despite the earnings beat, the stock faced significant selling pressure in premarket trading, declining approximately 11.5%. This negative price action appears to reflect investor focus on the company's GAAP profitability measures and the substantial one-time costs associated with its acquisition strategy and distribution restructuring.

The disconnect between the positive adjusted earnings and the negative market reaction suggests investors are carefully weighing the short-term financial impacts of Celsius's aggressive expansion against its long-term growth potential.

Quarterly Performance Highlights

The third quarter results reveal a company undergoing rapid transformation through acquisitions and distribution partnerships.

• Revenue Drivers: The 173% revenue surge was primarily fueled by the acquisitions of Alani Nu (April 1, 2025) and Rockstar Energy (August 28, 2025). The core CELSIUS brand itself grew 44% year-over-year.
• Profitability Metrics: Gross margin improved to 51.3% from 46.0% in the prior-year period, driven by lower promotional spending and favorable product mix.
• Significant Charges: The quarter included $246.7 million in distributor termination costs related to moving Alani Nu distribution to the PepsiCo system, resulting in a GAAP net loss of $61.0 million.
• Operational Strength: Adjusted EBITDA reached $205.6 million, representing massive growth from $4.4 million in the same quarter last year.

Portfolio and Market Position

The company's expanded brand portfolio showed varied performance in the retail market, contributing to its overall market position.

• Combined Portfolio: CELSIUS, Alani Nu, and Rockstar Energy together grew 31% in U.S. tracked channels, nearly double the growth rate of the broader energy drink category.
• Market Share: The combined portfolio held a 20.8% dollar share in the U.S. ready-to-drink energy category, a 2.1-point year-over-year increase.
• Brand Performance: While Alani Nu saw remarkable 114% growth in retail sales, the core CELSIUS brand grew 13%, and the newly acquired Rockstar Energy declined 9%.

Forward Outlook and Analyst Expectations

Looking ahead, analysts project continued growth, with estimates for the full year 2025 reaching approximately $2.51 billion in sales. For the fourth quarter of 2025, expectations stand around $689.96 million in revenue. The company's ongoing integration of acquired brands and distribution optimization through the PepsiCo partnership will be critical factors in meeting these expectations.

The market's reaction to Celsius Holdings' earnings reflects the complex interplay between impressive revenue growth and significant acquisition-related costs. While the company demonstrated strong operational performance on adjusted metrics, investors appear focused on the substantial investments required to integrate recent acquisitions and optimize distribution.

For detailed historical earnings data and future analyst estimates, visit the CELH earnings and estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security or investment strategy. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.