Celsius Holdings Q2 2026 earnings: profit and sales miss forecasts as core brand slumps
Celsius Holdings' quarterly profit and revenue both fell short of Wall Street forecasts, and shares dropped sharply as the flagship Celsius brand's sales declined.
| Q2 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $0.36 | $0.43 | -17.1% |
| Revenue | $817.9M | $888.4M | -7.9% |
Key takeaways
- Both earnings and revenue came in below what analysts expected, and the stock dropped as much as 18% before the market opened in reaction to the report.
- The company now sells three energy drink brands together — Celsius, Alani Nu, and Rockstar (acquired in August 2025) — and total combined revenue still grew about 11% from a year earlier, even though the results missed forecasts.
- The original Celsius-brand drinks, which used to be the whole business, saw sales fall roughly 12% from a year ago, showing the flagship brand is still losing ground with consumers even as the company’s other brands pick up the slack.
- Alani Nu, a female-oriented energy drink brand Celsius acquired, was the bright spot: its net sales rose about 21% and retail sales (purchases actually rung up in stores) jumped 56%, helped by wider distribution through PepsiCo’s delivery network.
- Rockstar Energy, the newest addition to the portfolio, added about $66 million in revenue for the quarter, but its own retail sales were down 13% from a year ago, suggesting that brand also needs a turnaround.
- Gross margin held around 48%, roughly flat with the prior quarter — meaning the company is keeping a similar share of each sales dollar after production costs, even as overall growth slows. The wider TTM gross margin of about 49.6% and TTM net profit margin near 5.9% show the combined company is still profitable overall, just growing more slowly and less predictably than before.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization — a common measure of core operating profit) was $184 million, down from $210 million a year earlier, meaning core profitability shrank even as the top line grew, largely because the legacy Celsius brand’s decline offset gains elsewhere.
- Management said it expects the Celsius brand’s sales to remain weak in the third quarter, similar to Q2, before returning to growth by the end of the year, pointing to retailer negotiations and new product plans — including a new 16-ounce can size — slated for 2027 as reasons for the expected turnaround.
Q2 2026 in context
| Metric | Jun 2026 | Jun 2025 | Change |
|---|---|---|---|
| Revenue | $818M | $739M | +10.6% |
| Net income | $55M | $100M | -44.6% |
| Free cash flow | $205M | $35M | +479.4% |
| Diluted EPS | $0.14 | $0.33 | -57.6% |
| Gross margin | 48.1% | 51.5% | -3.4 pts |
| Operating margin | 9.2% | 19.3% | -10.1 pts |
| Net margin | 6.8% | 13.5% | -6.7 pts |
Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC.
How the stock took it
Celsius Holdings Inc closed at $29.15 on Aug 5, 2026, the last session before the report, and at $27.77 on Aug 7, 2026, the first session after it — -4.7% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| May 7, 2026 | $32.80 | $32.29 | -1.6% |
| Nov 7, 2025 | $45.06 | $44.56 | -1.1% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 49.6% | Trailing 12 months |
| Operating margin | 7.7% | Trailing 12 months |
| Net profit margin | 5.8% | Trailing 12 months |
| Pretax margin | 6.8% | Trailing 12 months |
| EPS | $0.67 | Trailing 12 months |
| Revenue growth (YoY) | 123.3% | Trailing 12 months |
| EPS growth (YoY) | 41.0% | Trailing 12 months |
| Return on equity | 6.3% | Trailing 12 months |
Sources: Yahoo Finance · StockTitan · GuruFocus via Investing.com