Monster Beverage Q4 Earnings Beat Estimates, Sales Increase Y/Y

Monster Beverage Corporation MNST delivered solid fourth-quarter 2025 earnings, wherein the bottom and top lines beat the Zacks Consensus Estimate and increased year over year.

The company delivered a strong fourth-quarter 2025 performance, with solid year-over-year growth in net sales and earnings, driven by continued momentum in its core energy drink portfolio and robust international expansion. Gross margins improved on the back of pricing actions and supply-chain efficiencies, while innovation and demand for zero-sugar offerings remained key growth contributors.

Looking ahead to 2026, management remains optimistic about sustained demand, product innovation and geographic expansion opportunities, though it expects some near-term cost pressures related to input and packaging expenses. Overall, the company enters 2026 with healthy momentum supported by brand strength and global growth initiatives.

Monster Beverage’s adjusted earnings of 51 cents per share beat the Zacks Consensus Estimate of 49 cents and increased 30.4% from the year ago number. Net sales of $2.13 billion topped the Zacks Consensus Estimate of $2.05 billion. The top line increased 17.6% year over year. Net changes in foreign currency exchange rates had a positive impact of $27.7 million on net sales in the reported quarter. Net sales on a foreign-currency adjusted basis rose 16.1%. Excluding the Alcohol Brands segment, net sales, on a foreign-currency adjusted basis, rose 16.7% in the fourth quarter.

Monster Beverage Corporation Price, Consensus and EPS Surprise

Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote

Monster Beverage’s shares have gained 15.5% in the past three months compared with the industry’s 12.6% rise.

MNST Stock's Price Performance

A Sneak Peek Into MNST’s Q4 Performance

In Europe, the Middle East and Africa (EMEA), net sales increased 32.6%, while in Asia-Pacific (APAC), sales rose 11.5%. Sales in Latin America, including Mexico and the Caribbean, jumped 90.8% in dollars and increased 15.1% on a currency-neutral basis as compared to the same period in 2024. Per Nielsen, in the United States, for the reported 13-week period through Feb. 14, 2026, sales in dollars in the energy drink category comprising energy shots, for the entire outlets combined, with convenience, grocery, drug and mass merchandisers, jumped 12.9% year over year.

Within EMEA, affordable brands are also gaining traction in Africa, with Fury performing well in Egypt and Predator seeing growth in Kenya, Nigeria and Morocco. Together, Predator and Fury have become the leading energy drink brands by value in key African countries. New product launches such as Juiced Monster Rio Punch, Monster Energy Lando Norris Zero Sugar and Monster Energy Ultra Strawberry Greens also supported performance. The company additionally launched Bang in Spain during the quarter as a more affordable option.

Net sales in the United States and Canada in the fourth quarter jumped 13.3% year over year in dollars, thanks to the solid execution across channels, momentum from innovations and strength of the Monster Energy Ultra family. Per the Nielsen reports for the 13 weeks ended Feb. 12, 2026, in the United States, the Monster Energy Ultra Family rose 24% year over year, backed by its flagship ultrawide energy drink growing 32% over the same period.

Net sales to customers outside the United States climbed 26.9% to $903.3 million, representing about 42% of the total net sales. On a currency-adjusted basis, sales to customers outside the United States jumped 23.1% to $875.6 million.

Insights Into MNST’s Segmental Performance

Monster Energy Drinks: Sales of this segment, which includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks, Reign Storm total wellness energy drinks and Bang Energy drinks, jumped 18.9% year over year to $1.99 billion. The segment’s sales included a favorable impact of $24.4 million from foreign currency exchange rates. On a currency-adjusted basis, net sales for the segment rose 17.5%.

Strategic Brands: The segment includes a range of energy drink brands acquired from Coca-Cola, as well as the company’s affordable energy brands, Predator and Fury. The segment’s net sales jumped 7.8% year over year to $110 million. The segment’s sales included a favorable impact of $3.2 million from foreign currency exchange rates. On a currency-adjusted basis, net sales for the segment increased 4.7%.

Alcohol Brands: Net sales for the segment, which includes several craft beers, flavored malt beverages and hard seltzers, dropped 16.8% year over year to $29 million.

Other: Net sales for the segment, which includes some products of American Fruits & Flavors, LLC, sold to independent third parties (AFF Third-Party Products), increased 15.1% year over year to $5.9 million.

MNST’s Costs & Margins

The cost of sales was $947.72 million, up 17.1% year over year. The company’s gross margin expanded 20 basis points (bps) year over year to 55.5%, buoyed by pricing, supply-chain optimization and product sales mix, partly offset by geographical sales mix, elevated aluminum can costs and increased promotional allowances.

Adjusted operating expenses increased 21.4% to $561.6 million, while the metric, as a percentage of net sales, was 26.7%, expanding 70 bps from the year-earlier quarter. Distribution expenses increased 14.6% to $88.9 million and, as a percentage of net sales, contracted 10 bps to 4.2%.

Selling expenses inched up 13.6% to $219.7 million, but fell 50 bps to 10.3% as a percentage of net sales. General and administrative expenses for the fourth quarter were $332.1 million, down 5.2% from the year-ago quarter.

Adjusted operating income jumped 16% to $617.6 million.

MNST’s Financial Health

This Zacks Rank #3 (Hold) company ended 2025 with cash and cash equivalents of $2.09 billion and total stockholders' equity of $8.3 billion.

During the reported quarter, MNST did not repurchase any shares under its current share repurchase program. As of Feb. 26, 2025, roughly $500 million was available for buyback under its existing share repurchase program.

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