CELH to Report Q3 Earnings: Buy, Sell or Hold the Stock Now?

Celsius Holdings, Inc. (CELH) is scheduled to report its third-quarter 2025 earnings on Nov. 6. While strong execution, brand relevance and sustained category tailwinds position Celsius Holdings for another solid quarter, cost inflation and integration complexity remain factors to watch.

The Zacks Consensus Estimate for third-quarter revenues stands at $720.7 million, indicating an increase of 171.2% from the same period last year. The consensus mark for earnings has risen by a penny in the past 30 days to 28 cents per share, marking a substantial rise from the breakeven results in the year-ago quarter.

Celsius Holdings has a trailing four-quarter average earnings surprise of 5.4%. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 104.4%.

What the Zacks Model Predicts About CELH’s Q3 Earnings

As investors prepare for CELH’s quarterly announcement, the question looms regarding earnings beat or miss. Our proven model doesn’t conclusively predict an earnings beat for Celsius Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Celsius Holdings has a Zacks Rank #3 and an Earnings ESP of -6.55% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

What’s Shaping Celsius Holdings’ Q3 Earnings?

Momentum from Celsius Holdings’ strong second quarter of 2025 is likely to have extended into the third, supported by continued brand strength and expanding retail distribution. The integration of Alani Nu is expanding CELH’s consumer reach, particularly among female and Gen Z demographics — key segments driving energy drink category growth.

New product launches and flavor extensions, coupled with strong marketing execution, are expected to have fueled incremental household penetration and reinforced brand visibility. Broader wellness trends and growing consumer preference for functional, zero-sugar beverages continue to favor Celsius’ portfolio positioning. Apart from this, improved retail execution across e-commerce, convenience, club, and foodservice channels points to ongoing volume momentum and category share gains.

However, management noted that the gross margin could face some pressure in the second half of 2025, reflecting the inclusion of Alani Nu’s lower margin profile and integration-related costs. While favorable mix and pricing initiatives may help offset some of these impacts, continued investments in marketing, distribution and brand expansion are likely to keep costs elevated through the remainder of the year.

CELH Stock Price Performance

Over the past year, Celsius Holdings stock has surged 96.8% against the Zacks Food – Miscellaneous industry’s decline of 18.6% and the Zacks Consumer Staples sector’s drop of 5.9%. CELH also outpaced the S&P 500’s 17.9% growth during the same period.

In the said time frame, Celsius Holdings surpassed other beverage players such as PepsiCo (PEP), Coca-Cola (KO) and Monster Beverage (MNST). While PepsiCo shares have declined 13% over the past year, Coca-Cola and Monster Beverage rallied 7.8% and 22.9%, respectively.

Celsius Holdings’ Valuation Picture

From a valuation perspective, Celsius Holdings shares are trading at a premium relative to the industry average. With a forward 12-month price-to-earnings ratio of 42.31, much above the industry’s average of 14.65, the stock looks expensive and could face pressure if growth slows.

This valuation gap becomes even more pronounced when compared to other beverage peers. PEP trades at a P/E ratio of 16.92, KO stands at 21.35, and MNST trades at 31.6 — all lower than CELH’s multiple.

How Should Investors Play CELH Stock Now?

Celsius Holdings is set to report its third-quarter results on a solid footing, supported by strong brand momentum, retail expansion and sustained category growth. However, cost pressures tied to the Alani Nu integration and higher marketing spend may temper near-term margins. With robust fundamentals balanced by elevated valuation and execution risks, CELH appears reasonably positioned for investors to hold ahead of results.

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

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