Is Celsius Holdings' Strong 1H25 Revenue Growth Built to Last?

Celsius Holdings, Inc. CELH turned in a strong first half of 2025, reporting $1.07 billion in revenues, up 41% from last year. The second quarter alone brought in $739.3 million, with $301.2 million coming from the newly acquired Alani Nu brand. This kind of growth is eye-catching, but the bigger question is whether it can last.

Per the second-quarter 2025 earnings release, Celsius Holdings’ products are now sold in more than 240,000 tracked U.S. retail outlets, and the company’s portfolio reaches about 43% of U.S. households. Repeat purchases remain strong, and both Celsius and Alani Nu stood out during Amazon Prime Day with leading shares in online energy drink sales. New flavors and limited-time offers helped fuel momentum, showing that consumer demand is broad and consistent. Management also outlined a $50 million cost-savings target from integrating Alani Nu. 

However, Alani Nu’s margin profile is lower than Celsius’, and the second quarter of 2025 included a $21.7 million non-cash inventory adjustment associated with the acquisition. Management also warned of aluminum cost inflation and tariffs weighing on the second half.

The first half growth story is strong, driven by wide distribution and consumer enthusiasm. While the revenue gains look promising, it depends on whether Celsius can turn scale and consumer momentum into consistent, profitable results.

Assessing Revenue Trends Among Key Competitors

Monster Beverage Corporation MNST posted strong first-half 2025 growth, with net sales up 4.4% to $3.97 billion and second-quarter revenues climbing 11.1% to $2.11 billion. Monster Beverage’s revenue growth was fueled by pricing actions, supply-chain efficiencies and continued product innovation, particularly in the Monster Energy and Strategic Brands portfolios. International demand also played a key role, with sales outside the United States reaching 41% of total revenues. While innovation and category expansion underpin Monster Beverage’s momentum, sustaining double-digit growth may hinge on continued global energy drink adoption.

The Coca-Cola Company KO delivered flat first-half net revenues of $23.7 billion while achieving 5% organic growth. In the second quarter of 2025, net revenues rose 1% to $12.5 billion, driven by a 6% price/mix benefit despite a 1% volume decline. Strong pricing, coupled with targeted marketing and innovation campaigns, has supported KO’s revenue expansion. Coca-Cola’s growth appears robust, though ongoing volume softness may act as a constraint.

CELH Stock’s Price Performance, Valuation & Estimates

Shares of Celsius Holdings have surged 74.3% in the past year against the industry’s decline of 17%.

CELH Price Performance Versus Industry

From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 44.56, higher than the industry’s average of 15.67.

CELH Valuation Compared to Industry

The Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings implies year-over-year growth of 54.3% and 28.6%, respectively.
 

Celsius Holdings currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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