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Does Celsius Holdings' Buyback Plan Signal Stronger Growth Ahead?
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Key Takeaways
Celsius Holdings authorizes a $300M share repurchase, backed by strong financial momentum.
Revenues jumped 173% on the Alani Nu and Rockstar deals and continued Celsius brand growth.
Cash reached $806M as margins expanded and debt dropped by $200M, lowering future interest costs.
Celsius Holdings, Inc. (CELH - Free Report) recently announced a new $300 million share repurchase authorization, signaling strong confidence in its financial position and long-term fundamentals. The company noted that solid cash generation and a healthy balance sheet give it sufficient flexibility to make share repurchases while continuing to invest in its multi-brand energy portfolio.
The announcement follows a robust third-quarter 2025 show, in which revenues surged 173% year over year, driven by the Alani Nu and Rockstar acquisitions and continued growth in the Celsius brand. CELH ended the quarter with nearly $806 million in cash, supported by strong operating cash flow and a healthy liquidity position despite an active acquisition year. Gross margin expanded 530 basis points to 51.3%, providing additional internal funding capacity.
Balance-sheet flexibility also improved. Following quarter-end, CELH reduced debt by $200 million, lowering total debt to about $700 million and cutting its term loan rate by 75 basis points, which is expected to reduce annual interest expense by about $20 million starting in 2026.
While the fourth quarter of 2025 is expected to be uneven due to the timing of Alani Nu’s transition into PepsiCo, Inc.’s (PEP - Free Report) DSD network, CELH’s underlying performance remains healthy. Against this backdrop of strong cash reserves, expanding margins and ongoing debt reduction, Celsius Holdings’ decision to authorize a $300 million buyback reflects confidence in its long-term earnings trajectory and its ability to balance growth investments with shareholder returns.
How PEP & MNST’s Buybacks Signal Strength
PepsiCo expects to return nearly $8.6 billion to its shareholders in 2025, through share buybacks of $1.0 billion and dividends of $7.6 billion, per its third-quarter earnings release. This underscores that buybacks are a deliberate part of the company’s capital allocation, courtesy of its healthy liquidity position. PepsiCo’s net cash from operating activities amounted to $5,468 million for the 36 weeks ended Sept. 6, 2025.
Monster Beverage (MNST - Free Report) delivered a strong third quarter, with net sales rising 16.8% to $2.20 billion and net income growing 41.4% to $524.5 million. While the company did not repurchase any shares during the quarter, it has approximately $500 million remaining under its authorized buyback program. Monster Beverage’s healthy financial status leaves ample room for share repurchases.
Image: Bigstock
Does Celsius Holdings' Buyback Plan Signal Stronger Growth Ahead?
Key Takeaways
Celsius Holdings, Inc. (CELH - Free Report) recently announced a new $300 million share repurchase authorization, signaling strong confidence in its financial position and long-term fundamentals. The company noted that solid cash generation and a healthy balance sheet give it sufficient flexibility to make share repurchases while continuing to invest in its multi-brand energy portfolio.
The announcement follows a robust third-quarter 2025 show, in which revenues surged 173% year over year, driven by the Alani Nu and Rockstar acquisitions and continued growth in the Celsius brand. CELH ended the quarter with nearly $806 million in cash, supported by strong operating cash flow and a healthy liquidity position despite an active acquisition year. Gross margin expanded 530 basis points to 51.3%, providing additional internal funding capacity.
Balance-sheet flexibility also improved. Following quarter-end, CELH reduced debt by $200 million, lowering total debt to about $700 million and cutting its term loan rate by 75 basis points, which is expected to reduce annual interest expense by about $20 million starting in 2026.
While the fourth quarter of 2025 is expected to be uneven due to the timing of Alani Nu’s transition into PepsiCo, Inc.’s (PEP - Free Report) DSD network, CELH’s underlying performance remains healthy. Against this backdrop of strong cash reserves, expanding margins and ongoing debt reduction, Celsius Holdings’ decision to authorize a $300 million buyback reflects confidence in its long-term earnings trajectory and its ability to balance growth investments with shareholder returns.
How PEP & MNST’s Buybacks Signal Strength
PepsiCo expects to return nearly $8.6 billion to its shareholders in 2025, through share buybacks of $1.0 billion and dividends of $7.6 billion, per its third-quarter earnings release. This underscores that buybacks are a deliberate part of the company’s capital allocation, courtesy of its healthy liquidity position. PepsiCo’s net cash from operating activities amounted to $5,468 million for the 36 weeks ended Sept. 6, 2025.
Monster Beverage (MNST - Free Report) delivered a strong third quarter, with net sales rising 16.8% to $2.20 billion and net income growing 41.4% to $524.5 million. While the company did not repurchase any shares during the quarter, it has approximately $500 million remaining under its authorized buyback program. Monster Beverage’s healthy financial status leaves ample room for share repurchases.
CELH Stock’s Price Performance, Valuation & Estimates
Shares of Celsius Holdings have rallied 56.4% year to date against the industry’s decline of 14.7%.
CELH’s Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 27.68, much higher than the industry’s average of 14.5.
CELH’s Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings implies year-over-year growth of 80% and 20.7%, respectively.
Celsius Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.