The quarter fell short of a high bar. Published expectations were roughly $890 million of revenue and $0.42 of adjusted EPS; Celsius delivered $817.9 million and $0.36, misses of approximately 8% and 14%, respectively.
| $ millions, except EPS | 2Q 2026 | 2Q 2025 | Change | Published expectation |
|---|---|---|---|---|
| Revenue | $817.9 | $739.3 | 11% | ~$890 |
| Gross margin | 48.1% | 51.5% | -340 bps | — |
| Net income attributable to common shareholders | $36.4 | $85.7 | -57% | — |
| Diluted EPS | $0.14 | $0.33 | -58% | — |
| Adjusted diluted EPS | $0.36 | $0.47 | -23% | ~$0.42 |
| Adjusted EBITDA | $184.2 | $210.3 | -12% | — |
| Adjusted EBITDA margin | 22.5% | 28.4% | -590 bps | — |
The reported growth is being carried by acquisitions and Alani Nu, not the legacy CELSIUS brand. Alani Nu generated $364.4 million of quarterly sales, while Rockstar added $66.5 million; meanwhile, CELSIUS brand revenue fell 11.7% year over year. Retail sales were somewhat better than reported revenue, with CELSIUS down 2%, but the brand still lost roughly 7% of points of distribution even as productivity per remaining point improved 16% (Brand revenue discussion; Retail sales commentary).
Profitability was weaker than the headline revenue growth suggests. Gross margin declined to 48.1% from 51.5%, while adjusted EBITDA margin fell to 22.5% from 28.4%. Management said gross margin was in line with its own expectations and stable sequentially at approximately 48%, but that was not enough to offset promotional spending, channel mix, commodity inflation and the weaker earnings conversion (Gross margin discussion; Non-GAAP Adjusted EBITDA reconciliation).
The quarter contains a real integration benefit, but it does not yet repair the core-brand problem. Adjusted SG&A improved to 28.6% of revenue from 28.1% a year ago, and the company completed the Rockstar integration. Yet $80.9 million of distributor termination costs were excluded from adjusted results, and the underlying earnings miss remains after that adjustment (Income Statement; Non-GAAP Adjusted EBITDA reconciliation). The $100.4 million share repurchase is supportive capital allocation, but it does not change the operating shortfall (Capital allocation commentary).
Net read: materially worse than expected, with the portfolio masking deterioration in the original growth engine. Alani Nu and the acquired Rockstar business drove reported scale, but the market was expecting substantially more revenue and adjusted earnings. Management's optimization plan may improve assortment productivity over time, but this filing provides no evidence yet that CELSIUS has returned to sustainable growth; instead, it shows the turnaround still depends on future execution (Brand revenue discussion; Retail sales commentary).
Read the original 8-K on SEC EDGAR ↗