Celsius Holdings, Inc. (CELH Quick QuoteCELH - Free Report) delivered third-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. While net sales increased year over year, adjusted earnings declined slightly. Strong Alani Nu demand, Rockstar Energy contributions and international expansion supported the top line, partially offset by weakness in the CELSIUS brand.

The company benefited from robust retail demand, with portfolio sales in U.S. tracked channels increasing 14.7% year over year. Celsius Holdings maintained a 20.7% dollar share of the U.S. ready-to-drink (RTD) energy category.

CELH's Quarterly Performance: Key Insights

Celsius Holdings' adjusted earnings of 41 cents per share beat the Zacks Consensus Estimate of 34 cents. However, the bottom line declined 2.4% from the year-ago quarter's adjusted earnings of 42 cents.

Total revenues of $847.2 million surpassed the Zacks Consensus Estimate of $806 million. The top line increased 16.8% year over year from $725.1 million. Results benefited from approximately $20-$25 million of shipments shifting into the third quarter from the fourth quarter.

Celsius Holdings' Brand and Regional Sales Trends

CELSIUS brand revenues decreased approximately 6% year over year to $356.8 million from $381 million. The decline reflected SKU optimization initiatives, inventory rebalancing and softness in the club channel. Reduced innovation activity also weighed on the brand's performance.

Alani Nu generated $410.1 million in third-quarter revenues, reflecting approximately 24% year-over-year growth. Results benefited from expanded distribution through PepsiCo's direct-store-delivery (DSD) network and strong consumer demand. The limited-time Witch's Brew offering generated more than $130 million in retail sales, becoming the portfolio's most successful limited-time launch. Higher DSD-related trade investments and the discontinuation of certain non-RTD products partially offset growth.

Rockstar Energy contributed $80.3 million in revenues compared with approximately $66.5 million in the preceding quarter. Performance benefited from shipment timing in Canada, while management continued efforts to stabilize the brand through assortment optimization and improved distribution productivity.

North America revenues increased approximately 15% year over year to $806.2 million from $702 million. International revenues surged 78% to $41 million from $23.1 million, supported by established Nordic markets and expansion across Iberia, the United Kingdom, Ireland, France, Australia, New Zealand and Benelux.

CELH's Margin and Expense Performance

Gross profit increased 6.4% year over year to $396.3 million. However, gross margin contracted 450 basis points to 46.8%, reflecting higher aluminum and fuel costs and a greater proportion of sales through the DSD network. Supply-chain integration efficiencies partially offset these pressures.

Selling, general and administrative expenses rose 7.3% to $220.7 million, representing 26.1% of revenues compared with 28.4% in the year-ago quarter. Adjusted SG&A represented 25.5% of revenues.

Adjusted EBITDA declined 3.4% to $198.6 million from $205.6 million. Adjusted EBITDA margin contracted to 23.4% from 28.4%, reflecting commodity inflation and continued brand investments.

Celsius Holdings' Retail Performance

CELSIUS brand retail sales decreased 7% year over year in U.S. tracked channels, with its category dollar share reaching 9.1%. Portfolio optimization and tougher comparisons contributed to the decline.

Alani Nu retail sales jumped 57.9%, capturing a 9.8% category dollar share. Excluding Witch's Brew, core retail sales advanced approximately 50%, highlighting underlying demand. Rockstar Energy retail sales declined 13.2% following planned SKU reductions, while its category share stood at 1.8%.

The combined portfolio contributed approximately 28% of the zero-sugar U.S. energy category's $773 million growth during the quarter.

CELH's Financial Health and Capital Deployment

The company ended the quarter with cash and cash equivalents of $700.6 million, up from $398.9 million at the end of 2025. Total stockholders' equity stood at $1,275.4 million compared with $1,181.5 million at 2025-end.

During the quarter, Celsius Holdings repurchased approximately $44.5 million of shares under its $300-million authorization, bringing year-to-date repurchases to $168.8 million. Management continues to prioritize brand investments, balance sheet strength and shareholder returns.

Celsius Holdings' Outlook and Growth Priorities

For the fourth quarter, management expects reported revenue growth to moderate below the pace recorded during the first three quarters. Tough prior-year comparisons, shipment timing and higher trade investments are expected to weigh on reported growth. The company anticipates full-year gross margin in the high-40% range.

Looking ahead to 2027, management expects the CELSIUS brand to return to growth through renewed innovation and improved retail execution. Alani Nu's distribution opportunities and Rockstar's stabilization efforts remain key priorities. Revenue growth management, pricing and pack optimization, and supply-chain efficiencies are expected to support margin improvement through 2027 and into 2028.

The Zacks Rank #4 (Sell) stock has tumbled 27.6% over the past year compared with the industry’s decline of 9.6%.

Stocks to Consider

Lamb Weston Holdings, Inc. (LW Quick QuoteLW - Free Report) , a leading global manufacturer, marketer and distributor of value-added frozen potato products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year EPS implies growth of 7.6% from the year-ago figure. LW delivered a trailing four-quarter earnings surprise of 22.1%, on average.

The J.M. Smucker Company (SJM Quick QuoteSJM - Free Report) , a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products, currently carries a Zacks Rank #2 (Buy). SJM delivered a trailing four-quarter earnings surprise of 13.8%, on average.

The Zacks Consensus Estimate for The J.M. Smucker’s current fiscal-year EPS implies growth of 17.1% from the year-ago figure. 

Altria Group, Inc. (MO Quick QuoteMO - Free Report) , a leading U.S. tobacco and nicotine company, currently carries a Zacks Rank of 2. MO delivered a trailing four-quarter earnings surprise of 1.3%, on average.

The Zacks Consensus Estimate for Altria Group’s current fiscal-year sales and EPS indicates an increase of 3% and 5.2%, respectively, from the year-ago period.