Celsius Holdings, Inc. Q3 FY2025 earnings call

• Partnership with PepsiCo: Expanded long-term partnership, with Celsius as PepsiCo's U.S. Strategic Energy Drink Captain, enhancing distribution and planogram control. Alani Nu's U.S. DSD network joined PepsiCo's distribution network starting December 1, 2025.
• Acquisition of Rockstar Energy: Added Rockstar to the total energy portfolio, expanding reach into new consumer segments.
• Portfolio growth: Combined portfolio had over 20% share of U.S. energy drink market in tracked channels, grew 31% y/y, with Celsius at 13% retail sales growth, Alani Nu at 115% y/y growth, and Rockstar starting sales.
• Retail partnerships: Expanded space and distribution across major retailers, with Celsius portfolio gaining over 2 share points in Walmart, Alani Nu having best sales week in August, and Celsius launching Spritz Vibe.
• Marketing and culture: Seasonal flavor offerings successful, Celsius Live Fit Go campaign strengthening brand awareness, and leadership team expanded with new CMO, President of International, and CHRO.
• International expansion: Australia performance exceeded expectations, U.K. learned lessons for 2026, and refreshing Celsius Fizz Free line and incorporating limited time offers.

Consolidated revenue for the quarter ended September 30, 2025 was approximately $725 million, up 173% from the prior year. The Celsius brand had a 13% U.S. scanner growth rate in Q3 2025. Alani Nu revenue nearly doubled, up 99%, driven by strong limited time offerings. Rockstar Energy contributed roughly $18 million in Q3, with ~$11 million in revenue in its first month under Celsius ownership and the rest in other income. The Celsius brand's revenue growth was 44% year-over-year, Alani Nu's was 99%, and Rockstar's initial contribution was ~$18M. The combined portfolio represented over 20% share of the U.S. energy drink market in tracked channels and grew 31% year-over-year, with Celsius at 13% growth, Alani Nu at 99% growth, and Rockstar contributing to the total portfolio.

• Q4 expected to be noisy due to year-end timing effects, promotions, integration activities, and cash management from larger customers, with potential margin pressure due to promotions, scrap, freight, and tariffs.
• Sales and marketing expected to represent 23%-25% of sales in Q4 as continuing to invest in Celsius Live Fit Go campaign and complete Alani Nu transition.
• Alani Nu's distribution in Pepsi system expected to realize financial benefit in Q1 2026 due to phased load-in.
• Focus on stabilizing Rockstar Energy by optimizing product assortment and reestablishing brand identity, with expectations of growth in Celsius and Alani Nu going forward.

• Tariff impacts: Anticipated larger tariff impacts in Q4, which could pressure margins.
• Inventory transitions: Challenges with inventory rollover, returns, and logistical movements during Alani Nu's transition into PepsiCo's network, leading to potential margin pressure and noise in financial results.
• Margin pressure: Potential for more margin pressure in Q4 2025 relative to prior quarters due to various integration and promotional factors.

Q: Gerald Pascarelli asked about the variance between Celsius' 44% revenue growth and 13% U.S. scanner growth.

A: Jarrod Langhans said it's due to numerous factors like mix changes, promos, timing, and inventory movements, with Q4 expected to be noisy.

Q: Kaumil Gajrawala inquired about pricing strategy for Celsius, Alani, and Rockstar.

A: John Fieldly said they are contemplating pricing, evaluating promotional strategies, and building out a revenue management team but no formal announcements today.

Q: Michael Lavery asked about inventory optimization and Alani growth.

A: Jarrod Langhans and John Fieldly discussed inventory rollover noise, Alani's growth driven by LTOs, and future growth potential leveraging PepsiCo distribution and key accounts.

Q: Eric Serotta asked about sequential inventory changes and Alani's future growth.

A: Jarrod Langhans said they've discussed inventory noise, and John Fieldly highlighted Alani's growth potential and LTO timing impact.

Q: Bonnie Herzog asked about gross margin puts and takes, tariffs, and hedging.

A: John Fieldly and Jarrod Langhans discussed tariff impacts, Midwest premium, and future efficiency opportunities through integration and co-packer expansion, with no long-term hedging currently in place.

Q: Sean McGowan asked about international plans for Alani and Rockstar.

A: John Fieldly talked about international expansion opportunities, key learnings, and strategic investments in markets like Australia and Europe.

Q: Jon Andersen asked about Alani Nu's distribution ramp and collaboration with PepsiCo.

A: Jarrod Langhans and John Fieldly discussed Alani's distribution potential, learnings from Celsius' integration, and collaborative efforts with PepsiCo to ensure smooth inventory flow.