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CELH Q3 Earnings Call Highlights Alani Nu Growth and Margin Pressure
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Key Takeaways
CELH's Q3 revenues rose 17% to $847.2M, beating estimates, while adjusted earnings slipped to 41 cents.
Alani Nu revenues jumped 24% to $410M, Celsius targets a flagship-brand recovery through 2027 innovation.
Gross margin fell 450 basis points to 46.8%, commodity costs and shipment timing weigh on the Q4 outlook.
Celsius Holdings, Inc. (CELH - Free Report) emphasized its multi-brand strategy, Alani Nu's strong performance and plans to revive its flagship CELSIUS brand during its third-quarter 2026 earnings call.
Management outlined opportunities from product innovation, international expansion and improved pricing execution. However, commodity inflation, softer flagship-brand sales and challenging fourth-quarter comparisons remain important considerations heading into 2027.
CELH's Q3 Earnings and Revenues Beat Estimates
Celsius reported third-quarter 2026 adjusted earnings of 41 cents per share, exceeding the Zacks Consensus Estimate of 34 cents. However, adjusted earnings declined from 42 cents per share in the year-ago quarter.
Revenues increased 17% year over year to $847.23 million, surpassing the Zacks Consensus Estimate of $805.8 million.
Celsius Holdings Inc. Price, Consensus and EPS Surprise
Chief financial officer Jarrod Langhans explained that approximately $20-$25 million of shipments originally expected in the fourth quarter shifted into the third quarter, benefiting reported revenues.
Celsius Targets a Flagship Brand Recovery in 2027
Chairman and chief executive officer John Fieldly acknowledged continued weakness in the CELSIUS brand. Retail sales declined approximately 7% year over year, reflecting comparisons with earlier innovation launches.
Fieldly emphasized that 2026 focused on simplifying product assortments and improving shelf productivity. Management expects renewed innovation to support the brand's return to growth during 2027.
During the Q&A, a UBS analyst questioned the recovery timeline. Fieldly explained that consumption improvements should become more visible through 2027 as new products gain distribution and earlier assortment reductions are cycled.
CELH Sees Alani Nu as a Major Growth Driver
Alani Nu generated approximately $410 million in quarterly revenues, increasing 24% year over year. Retail sales advanced approximately 58%, supported by distribution expansion and product innovation.
Fieldly highlighted Witch's Brew, which generated more than $130 million in retail sales across traditional retail and club channels. Excluding that promotion, core Alani Nu retail sales increased approximately 50%.
Management plans additional permanent products and seasonal offerings while expanding distribution through PepsiCo's direct-store-delivery network. Alani Nu's category share reached approximately 9.8%.
Celsius Focuses on Stabilizing Rockstar Energy
Rockstar generated approximately $80 million in third-quarter revenues, increasing from roughly $67 million sequentially.
Langhans explained that retail sales declined approximately 13% year over year, primarily reflecting discontinued products. However, sales productivity per distribution point improved approximately 14% sequentially.
Fieldly outlined plans to strengthen core-product distribution and consumer engagement through music, motorsports and college-focused initiatives. Management maintained that Rockstar remains in a stabilization phase rather than declaring a return to growth.
CELH Faces Commodity Costs and Margin Pressure
Gross margin contracted 450 basis points year over year to 46.8%, reflecting higher aluminum and fuel costs alongside increased direct-store-delivery sales.
During the Q&A, a Goldman Sachs analyst questioned margin recovery and pricing. Langhans explained that Celsius intends to follow broader category pricing trends while optimizing packaging, promotions and trade investments.
The CFO expects the expanded revenue growth management program to deliver benefits throughout 2027 and into 2028. Manufacturing efficiencies and direct sourcing remain additional priorities, although elevated commodities have delayed the anticipated margin recovery.
Celsius Flags a Difficult Fourth-Quarter Comparison
Langhans cautioned that fourth-quarter reported revenue growth would fall below the rate achieved during the first nine months of 2026.
The outlook reflects approximately $25 million in favorable inventory-related timing from the prior-year quarter that will not recur, alongside shipments pulled forward into the third quarter of 2026.
Management expects some offset from upcoming innovation launches. Full-year gross margin is projected in the high-40% range, depending on commodity fluctuations.
CELH Emphasizes Portfolio Execution and Expansion
Fieldly highlighted the establishment of dedicated brand-led business units to strengthen accountability and execution across CELSIUS, Alani Nu and Rockstar.
International expansion remains another priority. Management outlined plans to introduce Alani Nu into selected overseas markets during 2027 while continuing to develop CELSIUS distribution.
The company's near-term focus remains restoring flagship-brand growth, stabilizing Rockstar and improving profitability through operational efficiencies and coordinated portfolio management.
Celsius' Zacks Rank and Style Scores Signal Caution
CELH currently carries a Zacks Rank #4 (Sell), reflecting an unfavorable near-term earnings estimate revision outlook. Its Growth Score of A indicates attractive growth characteristics, while its Value Score of D points to less favorable valuation attributes.
The Momentum Score of D indicates weak momentum characteristics, while the VGM Score of C reflects a mixed combined profile. Despite its strong Growth Score, the stock's Zacks Rank #4 limits the appeal of that favorable individual indicator under the Zacks framework.
The Zacks Rank can change as analysts revise earnings estimates following the recently reported quarterly results.
View the Zacks #1 Rank List
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CELH Q3 Earnings Call Highlights Alani Nu Growth and Margin Pressure
Key Takeaways
Celsius Holdings, Inc. (CELH - Free Report) emphasized its multi-brand strategy, Alani Nu's strong performance and plans to revive its flagship CELSIUS brand during its third-quarter 2026 earnings call.
Management outlined opportunities from product innovation, international expansion and improved pricing execution. However, commodity inflation, softer flagship-brand sales and challenging fourth-quarter comparisons remain important considerations heading into 2027.
CELH's Q3 Earnings and Revenues Beat Estimates
Celsius reported third-quarter 2026 adjusted earnings of 41 cents per share, exceeding the Zacks Consensus Estimate of 34 cents. However, adjusted earnings declined from 42 cents per share in the year-ago quarter.
Revenues increased 17% year over year to $847.23 million, surpassing the Zacks Consensus Estimate of $805.8 million.
Celsius Holdings Inc. Price, Consensus and EPS Surprise
Celsius Holdings Inc. price-consensus-eps-surprise-chart | Celsius Holdings Inc. Quote
Chief financial officer Jarrod Langhans explained that approximately $20-$25 million of shipments originally expected in the fourth quarter shifted into the third quarter, benefiting reported revenues.
Celsius Targets a Flagship Brand Recovery in 2027
Chairman and chief executive officer John Fieldly acknowledged continued weakness in the CELSIUS brand. Retail sales declined approximately 7% year over year, reflecting comparisons with earlier innovation launches.
Fieldly emphasized that 2026 focused on simplifying product assortments and improving shelf productivity. Management expects renewed innovation to support the brand's return to growth during 2027.
During the Q&A, a UBS analyst questioned the recovery timeline. Fieldly explained that consumption improvements should become more visible through 2027 as new products gain distribution and earlier assortment reductions are cycled.
CELH Sees Alani Nu as a Major Growth Driver
Alani Nu generated approximately $410 million in quarterly revenues, increasing 24% year over year. Retail sales advanced approximately 58%, supported by distribution expansion and product innovation.
Fieldly highlighted Witch's Brew, which generated more than $130 million in retail sales across traditional retail and club channels. Excluding that promotion, core Alani Nu retail sales increased approximately 50%.
Management plans additional permanent products and seasonal offerings while expanding distribution through PepsiCo's direct-store-delivery network. Alani Nu's category share reached approximately 9.8%.
Celsius Focuses on Stabilizing Rockstar Energy
Rockstar generated approximately $80 million in third-quarter revenues, increasing from roughly $67 million sequentially.
Langhans explained that retail sales declined approximately 13% year over year, primarily reflecting discontinued products. However, sales productivity per distribution point improved approximately 14% sequentially.
Fieldly outlined plans to strengthen core-product distribution and consumer engagement through music, motorsports and college-focused initiatives. Management maintained that Rockstar remains in a stabilization phase rather than declaring a return to growth.
CELH Faces Commodity Costs and Margin Pressure
Gross margin contracted 450 basis points year over year to 46.8%, reflecting higher aluminum and fuel costs alongside increased direct-store-delivery sales.
During the Q&A, a Goldman Sachs analyst questioned margin recovery and pricing. Langhans explained that Celsius intends to follow broader category pricing trends while optimizing packaging, promotions and trade investments.
The CFO expects the expanded revenue growth management program to deliver benefits throughout 2027 and into 2028. Manufacturing efficiencies and direct sourcing remain additional priorities, although elevated commodities have delayed the anticipated margin recovery.
Celsius Flags a Difficult Fourth-Quarter Comparison
Langhans cautioned that fourth-quarter reported revenue growth would fall below the rate achieved during the first nine months of 2026.
The outlook reflects approximately $25 million in favorable inventory-related timing from the prior-year quarter that will not recur, alongside shipments pulled forward into the third quarter of 2026.
Management expects some offset from upcoming innovation launches. Full-year gross margin is projected in the high-40% range, depending on commodity fluctuations.
CELH Emphasizes Portfolio Execution and Expansion
Fieldly highlighted the establishment of dedicated brand-led business units to strengthen accountability and execution across CELSIUS, Alani Nu and Rockstar.
International expansion remains another priority. Management outlined plans to introduce Alani Nu into selected overseas markets during 2027 while continuing to develop CELSIUS distribution.
The company's near-term focus remains restoring flagship-brand growth, stabilizing Rockstar and improving profitability through operational efficiencies and coordinated portfolio management.
Celsius' Zacks Rank and Style Scores Signal Caution
CELH currently carries a Zacks Rank #4 (Sell), reflecting an unfavorable near-term earnings estimate revision outlook. Its Growth Score of A indicates attractive growth characteristics, while its Value Score of D points to less favorable valuation attributes.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Momentum Score of D indicates weak momentum characteristics, while the VGM Score of C reflects a mixed combined profile. Despite its strong Growth Score, the stock's Zacks Rank #4 limits the appeal of that favorable individual indicator under the Zacks framework.
The Zacks Rank can change as analysts revise earnings estimates following the recently reported quarterly results.