We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Celsius Adjusted EBITDA Doubles in Q2: How Durable Are Cost Synergies?
Read MoreHide Full Article
Key Takeaways
Celsius doubled adjusted EBITDA in Q2 2025 to $210.3M, up from $100.4M a year earlier.
Growth was driven by Alani Nu's strong performance and $50M planned cost synergies.
Gross margin held at 51.5%, but higher input costs may pressure margins later this year.
Celsius Holdings, Inc. ((CELH - Free Report) ) reported a staggering 109% increase in adjusted EBITDA in the second quarter of 2025, reaching $210.3 million compared with $100.4 million in the same period a year prior. This significant growth was primarily driven by the strong performance of its recently acquired Alani Nu brand and operational efficiencies across the business.
The question of “how durable are these cost synergies” is central to understanding the sustainability of this metric. Celsius' management has a clear plan, expecting $50 million in run-rate cost synergies to be achieved in two years, following the Alani Nu acquisition. These synergies are already beginning to materialize with the company noting that Alani Nu’s gross margin improved sequentially, driven by a favorable product mix and cost efficiencies.
The company's overall gross margin of 51.5% for the second quarter remained relatively steady, supported by lower material costs, an improved price mix and a favorable channel and portfolio mix. However, it is important to note that the company anticipates margin pressure in the second half of the year due to expected higher input costs. While the initial signs of cost synergies are encouraging, the anticipated rise in input costs could serve as a test of how sustainable the company’s profitability gains prove to be in the coming quarters.
How PepsiCo & Coca-Cola Stack Up Against Celsius
PepsiCo ((PEP - Free Report) ) is also focused on cost optimization. With management expecting to deliver 70% more productivity in the second half of the year, PepsiCo is undergoing a multi-year effort to improve its cost structure. This strategic initiative for PepsiCo, which includes procurement savings, is aimed at reducing costs across its entire enterprise and sustaining profitability for the long term.
The Coca-Cola Company ((KO - Free Report) ) demonstrated comparable operating margin expansion driven by effective cost management. To optimize its product and pricing mix, Coca-Cola's strategy focuses on end-to-end revenue growth management capabilities. Coca-Cola’s approach highlights a broad, system-wide effort to grow transactions ahead of volume, a strategy that has consistently generated positive mix benefits.
CELH’s Price Performance, Valuation & Estimates
Celsius’ shares have gained 43% in a month compared with the industry’s 1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 47.82X compared with the industry’s average of 15.7X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CELH’s 2025 and 2026 EPS indicates year-over-year growth of 55.7% and 27.4%, respectively.
Image: Bigstock
Celsius Adjusted EBITDA Doubles in Q2: How Durable Are Cost Synergies?
Key Takeaways
Celsius Holdings, Inc. ((CELH - Free Report) ) reported a staggering 109% increase in adjusted EBITDA in the second quarter of 2025, reaching $210.3 million compared with $100.4 million in the same period a year prior. This significant growth was primarily driven by the strong performance of its recently acquired Alani Nu brand and operational efficiencies across the business.
The question of “how durable are these cost synergies” is central to understanding the sustainability of this metric. Celsius' management has a clear plan, expecting $50 million in run-rate cost synergies to be achieved in two years, following the Alani Nu acquisition. These synergies are already beginning to materialize with the company noting that Alani Nu’s gross margin improved sequentially, driven by a favorable product mix and cost efficiencies.
The company's overall gross margin of 51.5% for the second quarter remained relatively steady, supported by lower material costs, an improved price mix and a favorable channel and portfolio mix. However, it is important to note that the company anticipates margin pressure in the second half of the year due to expected higher input costs. While the initial signs of cost synergies are encouraging, the anticipated rise in input costs could serve as a test of how sustainable the company’s profitability gains prove to be in the coming quarters.
How PepsiCo & Coca-Cola Stack Up Against Celsius
PepsiCo ((PEP - Free Report) ) is also focused on cost optimization. With management expecting to deliver 70% more productivity in the second half of the year, PepsiCo is undergoing a multi-year effort to improve its cost structure. This strategic initiative for PepsiCo, which includes procurement savings, is aimed at reducing costs across its entire enterprise and sustaining profitability for the long term.
The Coca-Cola Company ((KO - Free Report) ) demonstrated comparable operating margin expansion driven by effective cost management. To optimize its product and pricing mix, Coca-Cola's strategy focuses on end-to-end revenue growth management capabilities. Coca-Cola’s approach highlights a broad, system-wide effort to grow transactions ahead of volume, a strategy that has consistently generated positive mix benefits.
CELH’s Price Performance, Valuation & Estimates
Celsius’ shares have gained 43% in a month compared with the industry’s 1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 47.82X compared with the industry’s average of 15.7X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CELH’s 2025 and 2026 EPS indicates year-over-year growth of 55.7% and 27.4%, respectively.
Image Source: Zacks Investment Research
Celsius sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.