Celsius (CELH 17.36%), the energy drink company known for its focus on fitness and health-oriented beverages, released its second-quarter 2025 results on August 7, 2025. The most significant takeaway from the release is the substantial GAAP revenue and non-GAAP earnings beat, driven by both organic growth and the first full-quarter contribution from the newly acquired Alani Nu brand. GAAP revenue was $739.3 million, far exceeding the analyst expectation of $655.7 million in GAAP revenue, while adjusted diluted earnings per share reached $0.47, well above the $0.21 non-GAAP estimate. This quarter marks a significant upturn after a challenging 2024, but also reveals early signs of slower growth in Celsius’s core brand and higher operating costs tied to acquisitions and expansion earlier in 2025.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted Diluted EPS (Non-GAAP) | $0.47 | $0.21 | $0.28 | 68% |
| Revenue | $739.3 million | $655.7 million | $402.0 million | 84% |
| Gross Margin | 51.5% | 52.0% | (0.5) pp | |
| Adjusted EBITDA | $210.3 million | $100.4 million | 109.4% | |
| Net Income | $99.9 million | $79.8 million | 25.1% |
Source: Analyst estimates for the quarter provided by FactSet.
What Celsius Does—and Where It’s Focusing
Celsius is a beverage company specializing in energy drinks that claim fitness and functional benefits, using ingredients like green tea extract, ginger, and a proprietary MetaPlus formulation. Its flagship products are functional energy beverages that aim to attract health-conscious consumers looking for “better-for-you” alternatives in the fast-growing energy category.
The company’s main focus areas include expanding its distribution, especially through major partners like PepsiCo, driving product innovation and differentiation, and growing both domestically and internationally. Its recent, high-profile acquisition of the Alani Nu brand—targeting a younger, often female demographic—brings additional scale and new product lines. Success hinges on leveraging these partnerships, keeping up the pace of product launches, and maintaining strong shelf presence in a competitive category.
Inside the Quarter: Key Drivers and Trends
Q2 2025 was a transformative period for Celsius, driven by the inclusion of Alani Nu revenue and continued retail momentum. GAAP revenue of $739.3 million marked an 84% increase over the prior year. Of that, $301.2 million came from Alani Nu—a reflection of the lasting impact of the brand’s acquisition, closed April 1, 2025.
North America continues to be the dominant region, generating $714.5 million in GAAP sales (up 87% from a year ago). International sales reached $24.8 million, a 27% increase, with expansion underway in new markets such as the UK, France, Australia, and New Zealand. Globally, the combined Celsius and Alani Nu brands now command 17.3% of the U.S. ready-to-drink energy market share for the 13-week period ended June 29, 2025, up 1.8 percentage points year-over-year.
Gross margin (GAAP) was 51.5%, down slightly from 52.0% in Q2 2024. This shift is mainly due to the lower margin profile of Alani Nu, as well as a $21.7 million one-time inventory “step-up” adjustment related to the acquisition. However, cost savings, portfolio mix shifts, and lower raw material prices offset some of these effects. Operating income was $142.965 million, up 51.7% from the prior year. Adjusted EBITDA—a measure of core profitability excluding certain one-time items—reached $210.3 million, more than double last year’s result.
While headline numbers set records, some caution flags emerged. Selling, general and administrative expenses more than doubled compared to last year ($237.9 million, up from $114.9 million). Higher costs were attributed to the Alani Nu integration, additional marketing investment, and acquisition-transaction expenses. SG&A, as a percentage of revenue, rose to 32.2%. The core Celsius brand’s year-over-year revenue growth slowed to 9%, showing the new revenue base depends on both organic gains and acquired brands.
Innovation and merchandising remain front and center for Celsius. New limited-time flavors for the CELSIUS energy drink line (like Playa Vibe, Retro Vibe, and Mango Lemonade) contributed to shelf space and display expansion, especially for cold placements at retail checkout. Alani Nu brand retail sales increased 129% year-over-year for the 13-week period ended June 29, 2025, marking one of the fastest accelerations in the category and underscoring the brand’s resonance with younger, more diverse energy consumers. Internationally, the company’s push into multiple new countries continued.
A critical partnership remains with PepsiCo, which accounted for 54.7% of Celsius’s GAAP revenue in 2024. While not discussed in detail in the latest quarter, this relationship is central to Celsius’s North American footprint. Additionally, management noted increasing investments in multipack formats and promotional activity to sustain customer momentum, especially as consumer habits shift from single purchases to value-oriented packs.
The company pays dividends to preferred shareholders.
Looking Ahead: Guidance and Key Watchpoints
Company leadership did not provide a quantitative financial forecast for fiscal 2025 or for the rest of the year. This means investors and market watchers have to focus on trends already in place and the potential impacts of integration risks and cost structures following the Alani Nu acquisition.
Key areas to watch include ongoing SG&A expense trends, further integration of Alani Nu and its effect on margins, and sustained market share in the U.S. energy category. Management is planning to boost marketing spend in the second half as part of its “Live. Fit. Go.” campaign.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
