Celsius Holdings, Inc.

Second-quarter revenue was $818 million, up approximately 11% year over year. Brand CELSIUS net sales were down approximately 12% year over year, with tracked-channel retail sales down 2%; Alani Nu net sales were approximately $364 million, up approximately 21% year over year, with retail sales up approximately 56%; Rockstar net sales were approximately $66 million. Gross margin was approximately 48%, in line with the first quarter, and adjusted EBITDA was $184 million, or approximately 22.5% of revenue, versus $210 million in the prior-year quarter. For the first half, adjusted EBITDA was $380 million, up 36% year over year. Management said Q3 should look a lot like Q2 for brand CELSIUS, gross margin should remain in the high 40s, Alani momentum should continue, and the company intends to keep using its $300 million share repurchase authorization this year.

John Fieldly framed the quarter as one of portfolio repositioning rather than broad demand weakness, emphasizing the completed Rockstar integration, Alani Nu’s scale-up and the push to rationalize CELSIUS into a stronger core assortment. He said CELSIUS will likely stay soft through Q3, but expects the brand to exit the year back into growth as the retail resets, permanent space, and 2027 innovation flow through. His tone was confident about the long-term setup, repeatedly pointing to retailer interest, category growth and a portfolio that now has two billion-dollar brands and a clearer role for Rockstar.

Jarrod Langhans said the quarter’s reported numbers were affected by inventory rebalancing, higher trade and promotional investment, softer club performance and mix effects, especially in brand CELSIUS. He noted that gross margin was about 48% and said outbound freight improvements and supply-chain integration offset ongoing commodity inflation, mainly aluminum; he expects Q3 gross margin to remain in the high 40s. He also highlighted SG&A of $238 million, essentially flat year over year, adjusted SG&A at 28.6% of revenue, first-half adjusted EBITDA of $380 million, and $100 million of stock repurchased in Q2, bringing first-half repurchases to $124 million.

Analysts pressed on why CELSIUS remains weak despite shelf-space plans and whether the SKU rationalization went too far. Management acknowledged it likely cut too deeply and that they would not have removed as many SKUs in hindsight, but said the core brand is healthy and that innovation, permanent space and retailer resets should support a return to growth. Questions also focused on the timing of Q4 recovery, Alani’s tougher comp against last year’s inventory build, and the $8 million distributor-related charge; management said sequencing is still being mapped with the DSD partner and that more detail will come on the next call.