Celsius Holdings Q1 2025 Earnings Summary
Headline Results:
• Revenue: $329.3 million, down 7% year-over-year
o North America: $306.5 million (–10%)
o International: $22.8 million (+41%)
• Gross margin: 52.3%, up 110 basis points
• Net income: $44.4 million (–43%)
• EPS:
o GAAP diluted EPS: $0.15 (vs. $0.27 in Q1 2024)
o Adjusted diluted EPS: $0.18 (–33%)
• Adjusted EBITDA: $69.7 million (–21%), margin of 21.2%
Key Factors Behind Revenue Decline:
• Shift in timing and structure of U.S. distributor incentives
• Higher retail promotional allowances late in the quarter
• Unfavorable comparison to Q1 2024, which had multiple promotional activations and a new product launch (16 oz CELSIUS ESSENTIALS®)
International Strength:
• 41% increase in international revenue, with growth in legacy EMEA and new markets (UK, Ireland, France, Australia, New Zealand)
• 9% growth excluding new markets
Retail Market Share (U.S. Tracked Channels - MULO+):
• CELSIUS®: 10.9% share (–140 bps YoY)
• Alani Nu®: 5.3% share (+221 bps YoY)
• Combined portfolio: 16.2% market share (+81 bps YoY)
Alani Nu Acquisition:
• Closed April 1, 2025
• Alani Nu reached over $1B in trailing 12-month retail sales
• Expected to enhance Celsius’ functional beverage portfolio significantly
Balance Sheet Highlights (as of March 31, 2025):
• Cash: $977 million
• Accounts receivable: $256 million
• Inventories: $141 million
• Total assets: $1.86 billion
• Mezzanine equity (Series A preferred): $824 million
• Stockholders’ equity: $443 million
Key Expense Notes:
• SG&A increased 22% to $120.3 million, largely from acquisition costs and headcount investment
• Promotional allowance accrued: $151.3 million, up from $135.9 million at year-end
Adjusted Metrics (Non-GAAP Reconciliation):
• Adjusted EBITDA adds back acquisition costs ($9.1M), stock compensation ($5M), and other items
• Adjusted diluted EPS of $0.18 includes a $0.03 add-back for acquisition-related expenses
WS News2025-05-06
