CELH - Celsius Holdings, Inc.

Celsius Holdings makes Celsius-branded functional energy drinks, marketed as fitness and lifestyle beverages with thermogenic ingredients like green tea extract and ginger. The business model is consumer packaged goods sold through retail and e-commerce channels, with PepsiCo serving as the primary U.S. distribution partner since 2022. Revenue was approximately $1.3B in 2024, with North America as the dominant market and international expansion underway in Europe and Asia-Pacific. The company sells direct-to-retailer and through distributor agreements, targeting health-conscious consumers aged 18-35.

Past Year Trends

• CELH acquired Alani Nu in April 2025 and Rockstar Energy in August 2025, driving FY2025 revenue to $2,520M—an 86% YoY increase from $1,355.6M in FY2024—transforming the company from a single-brand challenger into a multi-brand energy portfolio. (Bullish)
• Full-year FY2025 EPS declined 44% to $0.25 from $0.45 in FY2024 despite near-doubling revenue, as acquisition integration costs and margin compression caused net profit margin to collapse from 7.9% to 2.5%. (Bearish)
• A federal securities class action lawsuit (Abraham v. Celsius Holdings, No. 25-cv-80053, S.D. Fla.) was filed alleging CELH oversold inventory to PepsiCo beyond actual consumer demand during the class period of February 29–September 4, 2024, causing the stock to fall over 11% on the news and initiating a decline to roughly $28.82 from a March 2024 peak of $96.11. (Bearish)

Next Year Trends

• The securities class action lawsuit (Abraham v. Celsius Holdings) is advancing through federal court in the Southern District of Florida, and any adverse ruling or settlement payment would create a direct cash liability and extend management distraction during a critical post-acquisition integration phase. (Bearish)
• CELH's combined portfolio of Celsius, Alani Nu, and Rockstar—now distributed through PepsiCo's network of 241,000+ U.S. retail outlets—contributed 45% of $800M in zero-sugar U.S. energy category growth in Q1 2026, and management is targeting a further 15–20% expansion in distribution points, which would be the primary organic revenue driver absent additional acquisitions. (Bullish)
• Gross margin is expected to remain compressed at 47–49% in FY2025 versus 50.2% in FY2024, as the company absorbs Rockstar's lower-margin cost structure and incurs Alani Nu integration expenses; failure to achieve synergies within the next four quarters would sustain the 44% EPS decline trend into FY2026. (Bearish)

Red Flags

[Securities Fraud / Investigation] Multiple securities fraud class action lawsuits were filed against Celsius Holdings, Inc. (CELH) on behalf of investors alleging the company made materially false or misleading statements that caused investor losses. — Schall Law Firm / Glancy Prongay & Murray LLP, December 2024 – January 2025