Celsius Q2 Revenue Tops $818M, but EPS Disappoints as Core Brand Sales Slide 12%
CELH is trading near its 52-week low of $26.54 (9.1% below the low).
Summary
Celsius Holdings reported Q2 2026 revenue of $818 million, up 11%, but core CELSIUS brand sales fell 12% and margins compressed. Net income dropped 45% to $55.3 million, with significant one-time charges from distributor terminations and legal settlements.
Key Events · Earnings and Guidance · CELH
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Record Q2 Revenue, but Core Brand Weakens
Total revenue reached $817.9M (+11% YoY), fueled by Alani Nu ($364.4M) and Rockstar ($66.5M). However, the flagship CELSIUS brand revenue declined 11.7% due to SKU optimization, promotional spending, and softness in the club channel.
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Profitability Under Pressure
Net income fell 45% to $55.3M, and diluted EPS dropped to $0.14 from $0.33. Gross margin contracted 340 bps to 48.1%, driven by higher promotional activity and channel mix. Adjusted EBITDA declined 12% to $184.2M.
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Significant One-Time Charges
The quarter included $80.9M in distributor termination fees and $24.6M in legal settlement costs (H1), weighing on GAAP earnings. Excluding these, adjusted diluted EPS was $0.36 vs. $0.47 a year ago.
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Aggressive Share Repurchases
Celsius repurchased approximately $100.4M of its own stock in Q2, bringing H1 buybacks to $124.5M, signaling management confidence despite operational headwinds.
Analysis · CELH · Manufacturing
Celsius Holdings posted record Q2 revenue of $818 million, an 11% year-over-year increase, powered by robust contributions from Alani Nu and Rockstar. Yet the flagship CELSIUS brand saw revenue contract 11.7% amid SKU optimization and promotional spending, while gross margin narrowed 340 basis points to 48.1%. Net income tumbled 45% to $55.3 million, and adjusted EBITDA fell 12% to $184.2 million. The quarter also carried $80.9 million in distributor termination fees, and the first half included $24.6 million in legal settlement costs. With the stock trading near a 52-week low and the Texas AG probe unresolved, the mixed results—top-line growth overshadowed by brand-specific weakness and margin erosion—are likely to dampen investor sentiment.
At the time of this filing, CELH was trading at $24.14 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $7.5B. The 52-week trading range was $26.54 to $66.74. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.