Celsius Holdings (CELH) surged as much as 10% in premarket trading Thursday after the energy-drink company delivered first-quarter results that exceeded Wall Street expectations. The company reported record revenue of $782.6 million, a 138% increase from $329.3 million in the prior-year period, and adjusted diluted earnings per share of $0.41, topping analyst estimates.
Record Revenue and Earnings Beat
Net income for the quarter reached $110.1 million, or $0.33 per diluted share, compared to $39.1 million, or $0.15 per share, a year earlier. The adjusted EPS figure of $0.41 excludes certain one-time items. Analysts had forecast revenue of $764.4 million, making the beat particularly notable given recent market skepticism.
Alani Nu and Rockstar Drive Growth
The strong performance was fueled by the company's recent acquisitions. Alani Nu, acquired in April 2025 for $1.8 billion in cash and stock, contributed $368.1 million in sales during the quarter. Rockstar Energy, whose U.S. and Canadian operations were acquired in August 2025, added $66.6 million. The flagship CELSIUS brand posted growth of approximately 6%.
CEO John Fieldly described the period as a "defining moment" for the company, emphasizing that brand integration is "firmly on track." The combined portfolio captured a 20.9% dollar share of the U.S. energy-drink market during the quarter, according to the company.
Margin Pressure and Integration Costs
Despite the top-line strength, gross margin contracted by four percentage points to 48.3%, down from 52.3% a year ago. Celsius attributed the decline to integration costs associated with Alani Nu and Rockstar, both of which carry thinner margins, as well as higher commodity prices. Management noted that raw material costs have eased from the fourth quarter, thanks to improved procurement strategies.
Retail sales data presented a mixed picture. The overall portfolio saw a 29.8% jump in tracked U.S. retail sales for the 13 weeks ending March 29. Alani Nu sales doubled, while CELSIUS brand sales rose 6%. Rockstar Energy, however, experienced a 13% decline in the same period.
International Expansion and North America Dominance
International revenue climbed 55% to $35.3 million, driven by strong results in the Nordics, UK, Ireland, France, Australia, New Zealand, and Benelux. North America remained the primary revenue driver, generating $747.3 million in the quarter.
The company repurchased approximately $24.1 million worth of its shares during the quarter. Executives planned to discuss the results in detail during an 8 a.m. ET webcast with investors.
Market Context and Analyst Views
JPMorgan analyst Andrea Teixeira had trimmed the firm's price target on Celsius to $67 from $77 ahead of the earnings release but maintained an Overweight rating, noting that sentiment was already subdued heading into the report. The results provided investors with evidence that Celsius is successfully integrating its acquisitions under the PepsiCo distribution umbrella, rather than adding complexity.
The energy-drink market remains highly competitive, with Red Bull and Monster Beverage maintaining strong positions. Celsius's expanded portfolio, supported by PepsiCo's naming it as the U.S. energy "captain," has bolstered its shelf space and promotional power, according to Jefferies analysts.
