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CELH Q2 Results Test Whether Alani Nu Can Offset Core Brand Weakness
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Key Takeaways
Alani Nu drove CELH's Q2 growth as revenues rose 21% and tracked-channel retail sales jumped 55.7%.
CELSIUS brand revenues fell 11.7% as SKU cuts, softer retail trends and inventory rebalancing weighed.
CELH's gross margin fell 340 basis points to 48.1%, while adjusted EBITDA declined 12% to $184.2 million.
Celsius Holdings, Inc. (CELH - Free Report) reported a second-quarter earnings miss even as its broader beverage portfolio continued to expand. Revenues rose 10.6% year over year to $817.9 million, supported by Alani Nu and Rockstar, but adjusted earnings fell 23% to 36 cents per share.
The quarter sharpened the divide inside the portfolio. Alani Nu is adding consumers, distribution and innovation-driven growth, while the flagship CELSIUS brand is working through SKU rationalization, softer retail trends and inventory rebalancing. Contracting margins add another hurdle, making the next phase of the story less about portfolio scale and more about whether that scale can translate into better earnings.
CELH Q2 Miss Exposes a Split Portfolio
Adjusted earnings of 36 cents per share missed the Zacks Consensus Estimate of 42 cents. Revenues of $817.9 million also fell short of the $883 million consensus mark, although the top line increased 10.6% from the prior-year quarter.
The growth came from a broader portfolio rather than uniform brand momentum. Alani Nu contributed $364.4 million in second-quarter revenues and Rockstar added about $66.5 million, while CELSIUS brand revenues declined 11.7%. That mix helped consolidated revenues grow despite weakness in the company’s flagship franchise.
Portfolio retail trends were stronger than reported revenues. U.S. tracked-channel retail sales across CELSIUS, Alani Nu and Rockstar increased 31% in the quarter, and the portfolio held about 20.1% of the U.S. ready-to-drink energy category. The gap between portfolio growth and core-brand performance remains the key issue after the report.
Celsius Holdings Inc. Price, Consensus and EPS Surprise
Alani Nu remains Celsius Holdings’ clearest near-term growth engine. The brand generated about $364.4 million in second-quarter revenues, up roughly 21% year over year, while tracked-channel retail sales advanced 55.7%. Its U.S. ready-to-drink energy dollar share reached about 8.7%.
Innovation is helping sustain that momentum. Purple Cotton Candy became Alani Nu’s top-selling new flavor during the quarter, following launches such as Cherry Bomb and Lime Slush. Management said successful limited-time flavors can graduate into permanent placements, which can help expand the brand’s core assortment as it scales. Monster Beverage Corporation (MNST - Free Report) is a relevant industry benchmark, with its Monster Energy Drinks segment posting 27.6% net-sales growth in the first quarter of 2026.
Core Celsius Needs a 2027 Recovery
CELSIUS brand revenues fell 11.7% year over year in the second quarter, while tracked-channel retail sales declined 2%. The brand’s U.S. ready-to-drink energy dollar share was about 9.5%, down from roughly 9.9% in the first quarter.
Management tied the pressure to SKU optimization, delayed installation of targeted retail space, limited innovation, increased trade and promotional spending, softness in the club channel and distributor inventory rebalancing. The rationalization reduced distribution points before all planned shelf and cooler gains were in place. PepsiCo, Inc. (PEP - Free Report) remains central to execution because its direct-store-delivery system distributes CELSIUS, Alani Nu and Rockstar in the United States.
There are early productivity signs. Dollars per point of distribution increased about 16% from the first quarter to the second despite roughly 7% fewer distribution points. Fizz-Free tracked-channel dollar sales also rose more than 20% sequentially.
Those improvements have not yet restored brand growth. Management expects the third quarter to look similar to the second before CELSIUS returns to growth exiting 2026, with additional 16-ounce innovation planned for early 2027. That timing makes the next several quarters an execution test rather than a confirmed recovery.
CELH Margin Pressure Deepens the Earnings Impact
Gross margin declined 340 basis points year over year to 48.1% in the second quarter. Higher promotional activity and direct-store-delivery channel mix pressured profitability, while aluminum and fuel costs offset some benefits from freight optimization and acquisition integration.
Adjusted EBITDA fell 12% to $184.2 million, with adjusted EBITDA margin dropping to 22.5% from 28.4%. The margin contraction explains why double-digit revenue growth did not translate into higher adjusted earnings.
Celsius Holdings is pursuing several offsets, including a second North Carolina manufacturing line, direct sourcing, freight improvements and price-pack architecture. Still, management expects third-quarter gross margin to remain in the high 40s at current diesel and aluminum levels.
The earnings recovery could therefore lag revenue growth even if portfolio sales remain healthy.
Rockstar Adds Scale but Not Yet Demand Momentum
Rockstar contributed about $66.5 million in second-quarter revenues, but consumer demand remains soft. Tracked-channel retail sales declined 13% year over year, and the brand held about 1.9% of U.S. ready-to-drink energy dollar share.
The integration was completed in June, shifting the focus from operational transition to demand stabilization. Management has cited early velocity gains after SKU rationalization and said Rockstar is tracking in line with the sales expectations set at acquisition. The company is also refreshing packaging and focusing marketing around motorsports, music and gaming.
The key issue is timing. Management continues to position 2026 as a stabilization year and Rockstar for a stronger 2027. Until retail growth improves, the brand adds scale to CELH’s portfolio but does not provide the same demand momentum as Alani Nu.
Image Source: Zacks Investment Research
CELH Signals Keep the Q2 Reset in Focus
The second-quarter report showed that Alani Nu can offset part of the weakness in the CELSIUS brand, but it has not yet fully offset the earnings impact of softer core trends and lower margins. That distinction matters because consolidated revenue growth can remain healthy while profitability stays under pressure.
CELH currently carries a Zacks Rank #5 (Strong Sell). The stock also has a Growth Score of A, Momentum Score of B, Value Score of D and VGM Score of B. The favorable Growth and Momentum Scores highlight the portfolio’s expansion potential, but the Zacks Rank remains the more important near-term signal because it incorporates the direction of earnings-estimate revisions.
For investors evaluating the Q2 event, the next proof points are clear: CELSIUS brand growth needs to stabilize, margin initiatives need to overcome commodity and promotional pressure, and Rockstar needs to show better retail demand. Until those trends improve, Alani Nu is carrying more of the portfolio’s growth burden than the headline revenue increase alone suggests.
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CELH Q2 Results Test Whether Alani Nu Can Offset Core Brand Weakness
Key Takeaways
Celsius Holdings, Inc. (CELH - Free Report) reported a second-quarter earnings miss even as its broader beverage portfolio continued to expand. Revenues rose 10.6% year over year to $817.9 million, supported by Alani Nu and Rockstar, but adjusted earnings fell 23% to 36 cents per share.
The quarter sharpened the divide inside the portfolio. Alani Nu is adding consumers, distribution and innovation-driven growth, while the flagship CELSIUS brand is working through SKU rationalization, softer retail trends and inventory rebalancing. Contracting margins add another hurdle, making the next phase of the story less about portfolio scale and more about whether that scale can translate into better earnings.
CELH Q2 Miss Exposes a Split Portfolio
Adjusted earnings of 36 cents per share missed the Zacks Consensus Estimate of 42 cents. Revenues of $817.9 million also fell short of the $883 million consensus mark, although the top line increased 10.6% from the prior-year quarter.
The growth came from a broader portfolio rather than uniform brand momentum. Alani Nu contributed $364.4 million in second-quarter revenues and Rockstar added about $66.5 million, while CELSIUS brand revenues declined 11.7%. That mix helped consolidated revenues grow despite weakness in the company’s flagship franchise.
Portfolio retail trends were stronger than reported revenues. U.S. tracked-channel retail sales across CELSIUS, Alani Nu and Rockstar increased 31% in the quarter, and the portfolio held about 20.1% of the U.S. ready-to-drink energy category. The gap between portfolio growth and core-brand performance remains the key issue after the report.
Celsius Holdings Inc. Price, Consensus and EPS Surprise
Celsius Holdings Inc. price-consensus-eps-surprise-chart | Celsius Holdings Inc. Quote
Alani Nu Carries CELH's Near-Term Growth
Alani Nu remains Celsius Holdings’ clearest near-term growth engine. The brand generated about $364.4 million in second-quarter revenues, up roughly 21% year over year, while tracked-channel retail sales advanced 55.7%. Its U.S. ready-to-drink energy dollar share reached about 8.7%.
Innovation is helping sustain that momentum. Purple Cotton Candy became Alani Nu’s top-selling new flavor during the quarter, following launches such as Cherry Bomb and Lime Slush. Management said successful limited-time flavors can graduate into permanent placements, which can help expand the brand’s core assortment as it scales. Monster Beverage Corporation (MNST - Free Report) is a relevant industry benchmark, with its Monster Energy Drinks segment posting 27.6% net-sales growth in the first quarter of 2026.
Core Celsius Needs a 2027 Recovery
CELSIUS brand revenues fell 11.7% year over year in the second quarter, while tracked-channel retail sales declined 2%. The brand’s U.S. ready-to-drink energy dollar share was about 9.5%, down from roughly 9.9% in the first quarter.
Management tied the pressure to SKU optimization, delayed installation of targeted retail space, limited innovation, increased trade and promotional spending, softness in the club channel and distributor inventory rebalancing. The rationalization reduced distribution points before all planned shelf and cooler gains were in place. PepsiCo, Inc. (PEP - Free Report) remains central to execution because its direct-store-delivery system distributes CELSIUS, Alani Nu and Rockstar in the United States.
There are early productivity signs. Dollars per point of distribution increased about 16% from the first quarter to the second despite roughly 7% fewer distribution points. Fizz-Free tracked-channel dollar sales also rose more than 20% sequentially.
Those improvements have not yet restored brand growth. Management expects the third quarter to look similar to the second before CELSIUS returns to growth exiting 2026, with additional 16-ounce innovation planned for early 2027. That timing makes the next several quarters an execution test rather than a confirmed recovery.
CELH Margin Pressure Deepens the Earnings Impact
Gross margin declined 340 basis points year over year to 48.1% in the second quarter. Higher promotional activity and direct-store-delivery channel mix pressured profitability, while aluminum and fuel costs offset some benefits from freight optimization and acquisition integration.
Adjusted EBITDA fell 12% to $184.2 million, with adjusted EBITDA margin dropping to 22.5% from 28.4%. The margin contraction explains why double-digit revenue growth did not translate into higher adjusted earnings.
Celsius Holdings is pursuing several offsets, including a second North Carolina manufacturing line, direct sourcing, freight improvements and price-pack architecture. Still, management expects third-quarter gross margin to remain in the high 40s at current diesel and aluminum levels.
The earnings recovery could therefore lag revenue growth even if portfolio sales remain healthy.
Rockstar Adds Scale but Not Yet Demand Momentum
Rockstar contributed about $66.5 million in second-quarter revenues, but consumer demand remains soft. Tracked-channel retail sales declined 13% year over year, and the brand held about 1.9% of U.S. ready-to-drink energy dollar share.
The integration was completed in June, shifting the focus from operational transition to demand stabilization. Management has cited early velocity gains after SKU rationalization and said Rockstar is tracking in line with the sales expectations set at acquisition. The company is also refreshing packaging and focusing marketing around motorsports, music and gaming.
The key issue is timing. Management continues to position 2026 as a stabilization year and Rockstar for a stronger 2027. Until retail growth improves, the brand adds scale to CELH’s portfolio but does not provide the same demand momentum as Alani Nu.
Image Source: Zacks Investment Research
CELH Signals Keep the Q2 Reset in Focus
The second-quarter report showed that Alani Nu can offset part of the weakness in the CELSIUS brand, but it has not yet fully offset the earnings impact of softer core trends and lower margins. That distinction matters because consolidated revenue growth can remain healthy while profitability stays under pressure.
CELH currently carries a Zacks Rank #5 (Strong Sell). The stock also has a Growth Score of A, Momentum Score of B, Value Score of D and VGM Score of B. The favorable Growth and Momentum Scores highlight the portfolio’s expansion potential, but the Zacks Rank remains the more important near-term signal because it incorporates the direction of earnings-estimate revisions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For investors evaluating the Q2 event, the next proof points are clear: CELSIUS brand growth needs to stabilize, margin initiatives need to overcome commodity and promotional pressure, and Rockstar needs to show better retail demand. Until those trends improve, Alani Nu is carrying more of the portfolio’s growth burden than the headline revenue increase alone suggests.