Celsius Holdings, Inc. (NASDAQ:CELH) reported fourth-quarter financial results before the market open on Thursday. The transcript from the company’s fourth-quarter earnings call has been provided below.
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Operator
Hello everyone. Thank you for joining us and welcome to the Celsius holdings fourth quarter 2025 earnings conference call. After today’s prepared remarks, we will host a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. To withdraw your question, press Star one again. I will now hand the call over to Paul Wiseman and Investor Relations. Please go ahead.
Paul Wiseman (Investor Relations)
Good morning and thank you for joining Celsius Holdings 2025 earnings webcast. With me today are John Fieldley, Chairman and CEO, Jared Langens, Chief Financial Officer and Toby David, Chief of Staff. We’ll take questions following the prepared remarks. Our fourth quarter and full year 2025 earnings press release was issued this morning with all materials available on our website ir.celsiusholdingsinc.com and on the SEC’s website SEC.gov an audio replay of this webcast will also be accessible later today. Today’s discussion includes forward looking statements based on our current expectations and information. These statements involve risks and uncertainties, many beyond the company’s control. Celsius holdings disclaims any duty to update forward looking statements except as required by law. Please review our safe harbor statements and risk factors in today’s press release and in our most recent filings with the SEC, which contain additional information and a description of risks that may result in actual results differing materially from those contemplated by our forward looking statements. We will present results on both a GAAP and non GAAP basis. Non GAAP measures like adjusted EBITDA, adjusted EBITDA margin, adjusted Diluted earnings per share, adjusted SG&A and adjusted SG&A as a percentage of revenue and their GAAP reconciliations are detailed in our Q4 and full year earnings release and non GAAP financial measures should not be used as a substitute for our results reported in accordance with GAAP. With that, I’ll turn it over to John.
John Fieldly (Chairman and CEO)
Thank you Paul Good morning everyone and thank you for joining us today to discuss our fourth quarter and full year results for fiscal year 2025. As I look back on 2025, the message is clear. We continue to execute with momentum and operating discipline and we are reinforcing the scale of our platform as we build a modern energy portfolio. One of the reasons we feel good about the progress is that we delivered full year record revenue of 2.5 billion reflecting our disciplined approach to growth and the material scale we’ve accomplished. At the core, our focus is straightforward, we stay close to the consumer and we execute with consistency alongside Pepsi and our retail partners which creates the opportunity to grow in a sustainable and profitable way over time. With that as context, let me start with the portfolio. What we see across Celsius, Alani Nu and Rockstar Energy Drink across the portfolio, we continue to manage and invest in Celsius, Alani Nu and and Rockstar Energy Drink with the intent to broaden our reach. Our combined portfolio represents approximately one fifth of the US Energy market in track channels for the full year, which we believe to be very impressive both on an absolute basis and relatively. In addition, Our portfolio includes $2 billion brands validating that sustainability and scale of our portfolio. Each brand can win in its own way and our focus is to enable that to happen more and more. We operate with precision, making sure that we are present where it counts, bringing the right innovation and activating demand in a way that strengthens our core, not just the moment. When you look at the Celsius brand, the opportunity is about strengthening momentum and executing in a way that positions us to outgrow the category over time. We are focused on the fundamentals that drive that outcome, staying disciplined with skew productivity, sharpening revenue growth management and promotional efficiency, maintaining a consistent innovation cadence and elevating market execution. With Pepsi and our retail partners, particularly during key priority periods, Live Fit Go continues to be the core part of how we connect with consumers and we remain focused on the long term Runway and household penetration, expanding reach while also driving frequency and loyalty. As modern energy becomes more embedded in daily routines for Aulani, we continue to see momentum supported by the strength of our core brand and the opportunity to expand distribution. As the brand transitions into the PepsiCo system, we are focused on what is complete, what remains in motion and what improves as the transition finishes. We saw the momentum with Cherry Bomb as the first limited time offer in the PepsiCo system. We are taking those key learnings forward and with Rockstar, our integration remains on track and we expect to complete the remaining integration in the first half of 2026. Importantly, this is not just about completing one integration, it’s about strengthening our growing operations. We are building repeatable processes, executing transitions with discipline and refining a playbook that improves how we manage complexity across our growing portfolio. On that note, let me give you a quick update on the integration and transition progress across the portfolio. Starting with Alani Nu, we are making strong progress moving the business into the PepsiCo system. As of year end, we are substantially complete on the US DSDSD transition. The way we’re approaching the remaining work is intentional and methodical and is designed to make sure we set up the portfolio the right way with Pepsi and our retail partners and they are brought in on this too. We believe we are set up for success and we continue to expect the Aulani implementation and integration to be completed by the end of the first quarter of 2026. With Rockstar, we are progressing through the remaining integration steps and staying focused on the work required to fully bring the brand into our operating model. We are executing against a clear plan and remain on track to complete the integration in the first half of 2026. And when you talk about success it is very clear it is consistent execution, a more focused skew set and improving the margin structure over time as we bring the brand further into our platform. As we think about brand health and durability, our view is rooted in what drives loyalty and relevance across the portfolio. We continue to differentiate through sugar free and flavor innovation and we believe the category continues to support brands that stay closely aligned with evolving consumer preferences. Looking at 2026, our focus is on making sure that that loyalty and brand relevance remains durable. That means staying consistent on what each brand stands for, continuing to bring innovation that creates trial and drives frequency and executing with that kind of operational discipline that protects the long term value of our business. We kicked off 2026 by making our Fizz Free line available nationally and we see a meaningful opportunity as there is many consumers that prefer beverages without carbonation or like the optionality of FIS or fizz free. Across 2026 you will see a more intentional innovation and a limited time offer cadence supported by broader distribution and strong end market execution. For Aulani that also includes expanding distribution of the core SKUs. As we complete the transition into the PepsiCo system, International represents a meaningful long term growth opportunity for us to Today we are present in approximately 10 markets while international remains a smaller portion of the total business. We see a significant Runway as global consumer trends increasingly mirror what we’re seeing in the US particularly around fitness, wellness and better for you energy. Our approach to expansion is intentional. We are prioritizing focused market selection, clear entry plans and ensure the right execution model is in place before we scale. This is not about entering as many markets as possible, it’s about building our brands the right way with strong local partnerships, disciplined launch plans and sustained marketing and distribution support. To support this next phase, we brought on Garrett Quigley as President of International. Garrett brings deep experience scaling beverage brands globally and is building a dedicated international sales and marketing organization to expand our footprint in a thoughtful and profitable manner. As global consumer behaviors continue to shift towards zero sugar functional energy that fits into daily routines, we believe our portfolio is well positioned to participate in that structural growth. We will continue to prioritize strong execution and long term value creation as we build our international presence. That same focus on execution and scale also shapes how we’re evolving our marketing capabilities. On marketing, we’re continuing to sharpen how we tell our story and activate demand across the portfolio. Historically, our brands use separate creative teams across different companies, a key step forward in the creation of our new brand studio, a full service in house agency built to drive brand growth with speed, consistency and sophistication. More than a creative team, a brand studio is a strategic engine that will shape, produce and scale how our brands show up across every consumer touchpoint from packaging and campaigns to digital first content and 3D motion graphics. And importantly, this strengthens our ability to run the portfolio in a more intentional way, helping us reach more consumers and connect awareness to trial and ultimately to retail activation. The scale of our portfolio allows us to leverage the team maintain clear control of each brand’s voice. Innovation remains central to how we grow the portfolio. That includes leaning into consumer preferences like fizz-free while also deploying limited time offers in a disciplined way. For us, limited-time offers are not about chasing short term spikes. They are about expanding the funnel driving incremental trial, reinforcing the strength of the core portfolio. When executed with the right distribution and retail alignment, they can become a repeatable lever within our broader growth framework. Energy remains one of the most attractive growth areas in beverage with zero sugar offerings leading expansion. We believe our positioning allows us to help grow the category, not just participates in it by staying relevant to consumers and executing with discipline across both mature and white space markets. And that matters because it speaks to the Runway. In more mature markets the work is about consistency, innovation and driving frequency. In white space markets the focus is on building awareness, expanding distribution and scaling trial all while staying disciplined to how we execute. Our partnerships and activations are part of how we do that. We continue to leverage partnerships and others to connect awareness to trial and then the retail activation. These programs are designed to put the brands in motion, in real consumer moments and to convert that energy into band where consumers shop. Through our social media community building as well as our macro and micro influencer bases, we are building excitement, brand brand awareness and loyalty to further grow the brands. And we’re also proud to see a Lonnie new recognized by BevNet’s 2025 brand of the Year. Congratulations to all of our team members. That recognition reflects the strength of our brand and the momentum we’re building as we expand reach and execution. Finally, as we look ahead, we have a clear strategy of priorities for 2026 and believe they will support sustainable, profitable growth. Our focus on continuing the strength in the platform we have built, executing with discipline across the portfolio and staying closely aligned with consumers as the category continues to evolve across each of these priorities, our intent is the same execute consistently strengthen our operating system and create long term value. With that, I’ll turn it over to Jared to walk through our financials. He’ll begin with some context around the Rockstar accounting treatment, then cover full year and quarterly results.
Jarrod Langhans (Chief Financial Officer)
Thanks John and good morning everyone. From a financial perspective, we have a lot to cover. As John noted, I’ll begin with Rockstar given the accounting treatment during the integration, then move to Alani and brand Celsius to walk through the components of our consolidated results beginning with Rockstar. During the quarter, we were actively integrating the brand into our supply chain, back office and commercial organization, which impacted how certain sales activities reflected under generally accepted accounting principles. As a result, some components were required to be recorded in other income rather than net sales. For the quarter, $45 million was recorded within net sales and an additional $6 million was recorded in other income. As we move into the first quarter, we expect to fully transition the US Portion of the business to the finished goods model and we expect that only the Canadian portion will remain in the other income. We expect the Canadian portion to transition to the finished goods model in the first half of 2026. On a full year basis, we recorded $56 million in net sales for Rockstar and an additional $13 million in other income. And as we sit here six to eight weeks into 2026, we remain confident the brand continues to resonate with many consumers and we have a plan to stabilize the business and move it back into growth and over the next handful of years. As previously discussed. Turning to Alani New during the fourth quarter, Alani achieved record net sales of $370 million, benefiting from significant ongoing customer demand, increased distribution points and increased orders as we move the …