Celsius Holdings, Inc. (NASDAQ:CELH) shares rose in Thursday trading after the company delivered an upbeat quarterly update and pointed to continued momentum in its energy portfolio.
Investors also weighed management's comments on market-share gains and distribution progress, alongside fresh analyst support.
The company reported fourth-quarter adjusted earnings per share of 26 cents, beating the analyst consensus estimate of 20 cents. Quarterly sales of $721.628 million (+117% year over year) outpaced the Street view of $640.834 million.
"As PepsiCo's energy category captain in the U.S. and with an aligned commercial strategy, we reached an approximate 20% dollar share of the U.S. energy drink category in Q4 2025," said CEO John Fieldly.
North America sales gained 124% to $699.5 million, while International sales rose 9% to $22.1 million.
Retail Performance
Celsius Holdings' portfolio retail sales (CELSIUS, Alani Nu and Rockstar Energy) rose 24.4% in U.S. tracked channels.
CELSIUS brand retail sales increased 12.8% year over year for the period.
Alani Nu retail sales jumped 76.9% year over year for the period. Celsius acquired Alani Nu on Apr. 1, 2025.
Rockstar Energy retail sales declined 10.3% year over year for the period. Celsius acquired Rockstar Energy in the U.S. and Canada on Aug. 28, 2025.
Quarterly Metrics
For the three months ended Dec. 31, 2025, gross profit increased by $175.1 million to $341.8 million from $166.7 million for the prior-year period.
Quarterly gross margin slumped 280 basis points to 47.4%. Gross margin was impacted by several one-time integration and distribution transition costs associated with the timing of integrating Alani Nu and Rockstar Energy as well as transitioning Alani Nu into the PepsiCo distribution system.
Quarterly adjusted EBITDA gained 113% to $134.1 million.
"With CELSIUS, Alani Nu, and Rockstar Energy, we're building a scaled Modern Energy portfolio with distinct roles, recruiting new consumers and expanding consumption occasions," Fieldly added.
Celsius exited the quarter with cash and equivalents worth $398.866 million.
The company recorded additional costs associated with distributor terminations following the Alani Nu acquisition and its shift to PepsiCo's distribution network.
The total buyout obligation reached about $327.5 million as of quarter-end, including $246.7 million booked in the third quarter and $80.8 million added in the fourth quarter.
Analyst's Take
Goldman Sachs' analyst Bonnie Herzog reiterated the Buy rating on the stock, with a price forecast of $72.
Herzog said the firm still offers a favorable risk-reward, with upside from share gains and margin expansion.
He added that this potential could drive a continued re-rating as investors underestimate growth over the next few years.
The analyst called the valuation attractive, noting the stock trades at about 33.9 times his FY26 earnings estimate. That represents a 44% premium to beverage peers and a 10% discount to Monster, he said.
Those levels remain below CELH's three-year average premiums of 66% and 50%, respectively.
The analyst reiterated a Buy rating, citing underappreciated growth prospects and improving margins.
CELH Price Action: Celsius Holdings shares were up 6.42% at $53.86 at the time of publication on Thursday, according to Benzinga Pro data.
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