Shares of Celsius Holdings (CELH 0.31%) have been as bubbly as its namesake sparkling functional beverages. The beverage stock is up an effervescent 37% this year, more than doubling the S&P 500's comparable 16% return. Celsius stock was trading even higher at one point but has recently pulled back by a third from its peak value.
A lot has gone right for Celsius in 2025. It scored a timely acquisition of an ascending lifestyle brand, widening its market while also naturally propping up its top line. The story actually got better from there, but that turnaround tale is so 2025. With the new year around the corner, let's take a look at what Celsius investors will want to watch in 2026.
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Keeping the bubbles going
One of the smartest deals in 2025 is the $1.8 billion acquisition of Alani Nu, which Celsius announced in February. The purchase -- at a net price of just $1.65 billion after accounting for a one-time tax benefit -- closed at the start of the second quarter.
It was a great asset. Alani Nu's popularity was on the rise at a time when Celsius' own sales were declining. It also opened a new market demographic in the functional space, as Alani Nu was a lifestyle brand consumed largely by female-identifying drinkers. It was an even better price, coming at a discount to Celsius' own trailing sales and projected earnings before interest, taxes, depreciation, and amortization (EBITDA).
The assumption following the deal closing in the spring was that sales would explode, but the bottom line would be dragged down for the reasons that made Alani Nu so cheap to acquire for Celsius. Thankfully for investors, it hasn't played out that way. After three quarters of declining revenue, tossing Alani Nu into the mix resulted in an 84% jump in the second quarter and a 173% surge in its latest report. The bigger surprise is the bottom line, as positive earnings growth has far exceeded analyst expectations in back-to-back quarters.
NASDAQ: CELH
Key Data Points
The second quarter will be crucial
The first quarter of 2026 is expected to benefit from the addition of Alani Nu. Analysts are modeling a 114% increase in revenue, given that Alani Nu wasn't on its books during the first quarter of last year. The rebound in sales for the flagship Celsius brand will also help.
The second quarter is when the training wheels come off. Things will return to an apples-to-apples -- or Alani Nu-to-Alani Nu -- basis. When Wall Street pros model $3.2 billion in consolidated revenue for 2026, the 32% increase assumes that the first quarter will do the heavy lifting, with growth in the high single digits or low teens through the balance of the year.
The second quarter that Celsius will report next summer will be either a dose of cruel reality for growth-stock investors or the pleasant surprise that sends the stock even higher. Momentum suggests it could be the latter -- and that's why I remain a Celsius investor -- but there's going to be a lot to prove in 2026.
