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Celsius Holdings’ Earnings Call: Record Growth Amid Margin Concerns

Celsius Holdings’ Earnings Call: Record Growth Amid Margin Concerns

Celsius Holdings ((CELH)) has held its Q2 earnings call. Read on for the main highlights of the call.

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Celsius Holdings’ recent earnings call painted a picture of robust growth and strategic expansion, underpinned by the successful acquisition of Alani Nu and international market penetration. While the company celebrated significant achievements, there were also notes of caution regarding future margin pressures due to rising input costs and tariffs.

Record Revenue Growth

Celsius Holdings reported an impressive revenue of $739.3 million for the second quarter of 2025, marking an 84% increase compared to the previous year. This remarkable growth was largely fueled by the Alani Nu brand, which contributed $301.2 million, while the Celsius brand itself brought in $438.1 million.

Alani Nu Brand Performance

The Alani Nu brand had a standout quarter, with dollar sales surging by 129%. This made Alani Nu the largest share gainer in the ready-to-drink (RTD) energy sector, achieving a 6.3 market share for the 13 weeks ending June 29.

Adjusted EBITDA Record

Celsius Holdings achieved a record adjusted EBITDA of over $200 million in Q2 2025, representing a 109% increase from the previous year. This underscores the strong integration and synergy realization from the Alani Nu acquisition.

Strong International Performance

Internationally, Celsius Holdings saw a 27% year-over-year increase in revenue for the second quarter, with significant contributions from markets in Australia, the U.K., and France.

Increased Household Penetration

The company’s portfolio reached a 43% household penetration, with the Celsius brand at 34% and the Alani Nu brand at 22%. Both brands demonstrated strong repeat purchase rates exceeding 65%.

Gross Margin Pressure

The consolidated gross margin for Q2 was 51.5%, a slight decrease of 50 basis points year-over-year. The company anticipates further margin pressure in the latter half of the year due to higher input costs.

G&A Expense Increase

General and administrative expenses rose to $86 million, accounting for 11.7% of revenue, up from 6% last year. This increase was attributed to acquisition-related costs and adjustments in contingent considerations.

Tariff and Input Cost Concerns

Celsius Holdings expressed concerns about the impact of tariffs on its overall margin profile, expecting increased raw material costs to affect Q3 and Q4.

Forward-Looking Guidance

Looking ahead, Celsius Holdings remains optimistic about its growth trajectory, with a robust financial performance in Q2 2025. The company aims to maintain its leading position in the RTD energy category, having surpassed $4 billion in retail sales over the past 52 weeks. Despite the challenges posed by Alani Nu’s lower margin profile, favorable material costs and improved production yields are expected to sustain the gross margin at 51.5%.

In summary, Celsius Holdings’ earnings call highlighted a period of significant growth and strategic achievements, particularly with the Alani Nu acquisition and international expansion. While the company is poised for continued success, it remains vigilant about potential margin pressures from rising input costs and tariffs.

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