Celsius Holdings stock tumbles on earnings miss

Investing.com -- Celsius Holdings Inc. (NASDAQ: CELH) reported second quarter results that fell short of Wall Street expectations, sending shares plunging premarket.

Adjusted earnings per share of $0.36 missed the analyst consensus of $0.43 by $0.07. Revenue reached $817.92 million, below the $885.98 million estimate, though up 11% from $739.3 million in the prior year period.

The company's multi-brand portfolio, which includes Celsius, Alani Nu, and Rockstar Energy, faced headwinds during the quarter. Celsius brand revenue declined 11.7% YoY due to increased trade and promotional investment, shipment timing related to inventory rebalancing, softness in the club channel, and SKU optimization initiatives. Alani Nu generated sales of $364.4 million, while Rockstar Energy contributed $66.5 million. Shares fell 16.8% following the announcement.

Gross margin contracted to 48.1% from 51.5% in the prior year period, driven by higher promotional activity and channel mix, though the company maintained margin levels consistent with the first quarter despite commodity inflation, particularly in aluminum costs.

"During the second quarter of 2026, we made meaningful progress in advancing Celsius Holdings as a scaled portfolio of leading brands," said John Fieldly, Chairman and CEO. "With CELSIUS, Alani Nu, and Rockstar Energy, we're building a scaled Modern Energy portfolio with distinct roles, attracting new consumers and expanding consumption occasions."

The company's portfolio held approximately 20.1% dollar share in the U.S. ready-to-drink energy category and contributed roughly 30% of the zero-sugar U.S. energy category's $640 million growth during the quarter. Alani Nu retail sales surged 55.7% YoY, while Celsius brand retail sales declined 2% and Rockstar fell 13%.

International revenue increased 10% to $27.2 million, driven by growth in Nordic markets and expansion territories including the UK, Ireland, France, and Australia.

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