CELH

Celsius Holdings has seen its share price fall sharply over the past year. That slide puts a spotlight on a simple question for you as an investor: Is the current valuation supported by the earnings power the business is generating today? - The stock is down 54.0% over the past year, which puts extra weight on whether the present market value still lines up with what the company earns. - Recent coverage has highlighted that revenue growth sits alongside pressure on earnings and margins, which can influence how much investors are prepared to pay for each dollar of profit. - Your read on Celsius Holdings is one view; the desks covering it have another. See what analysts think Celsius Holdings's shares could be worth. The issue now is whether Celsius Holdings' current share price can be justified by its earnings profile once you look closely at the numbers behind the story. If you are weighing Celsius Holdings against other opportunities tied to earnings power, it can help to line it up beside 33 high quality undervalued stocks. P/E suits Celsius Holdings because the discussion is really about how much investors pay for each dollar of profit. On that measure, the shares trade on about 109.6x earnings, which is far above the Beverage industry average of 16.6x and also well ahead of the peer group at roughly 35.8x. In simple terms, the current quote builds in a far richer earnings tag than is typical for similar beverage businesses. The Fair Ratio model, which blends factors like growth expectations, margins, size and risk into a tailored benchmark, flags Celsius Holdings as overvalued on this metric and indicates an extreme gap between the present P/E and what the framework would usually assign. Because recent coverage has pointed to pressure on earnings and margins, that premium multiple suggests the stock price already bakes in a lot of faith in future profit delivery. Despite the attention on new brands and operational efficiencies, the valuation still prices Celsius Holdings at a heavy premium to what its earnings currently show. Explore the numbers behind Celsius Holdings's P/E valuation. Simply Wall St Narratives for Celsius Holdings pick up exactly where this valuation puzzle leaves you. They spell out what future paths for growth, margins and earnings would need to look like for the stock to trade meaningfully higher or lower than today. Rather than a single multiple or model output, each framework lays out the key levers behind its view of fair value so you can compare those assumptions with the actual results as they come through on Simply Wall St's Community page. The community is split on Celsius Holdings, with some users seeing a reset opportunity while others think the valuation already bakes in plenty of optimism. Bull case: 49% undervalued "The ones who understood what actually happened in 2024 and why the crash was a channel inventory problem, not a brand problem, had the best entry point in a decade..." Discover why this Narrative puts Celsius Holdings at 49% undervalued. Bear case: 9% overvalued "Although Celsius Holdings highlights resilient retail scanner trends for the Celsius brand, the roughly 12% decline in Q2 2026 net sales combined with expectations for similar pressure in Q3 suggests the SKU rationalization and club channel softness could persist longer than planned and weigh on revenue and earnings if shelf space and shipment timing do not recover as anticipated..." Explore why this Narrative puts Celsius Holdings at 9% overvalued. Price tags on earnings only tell part of the story, because the people steering Celsius Holdings and the way their pay is structured can tilt risk and reward in ways the headline multiples never show. See who runs Celsius Holdings and how they are paid. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CELH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Investors are watching Celsius Holdings (CELH) ahead of its upcoming earnings release, after analysts flagged expectations for lower year-over-year profit even as full-year revenue estimates point to continued business expansion. Recent trading has been choppy for Celsius Holdings, with the share price falling 5.51% over the last day to US$28.31. This follows a 4.20% 7 day share price return and a modest 1.03% 30 day gain. However, the year to date share price return is down 40.71% and the 1 year total shareholder return has declined 54.04%, suggesting momentum has faded and investors are reassessing both growth potential and risk ahead of earnings. Scan beyond Celsius Holdings and compare its setup to a curated list of consumer-focused stocks on the move with 21 high quality undiscovered gems. Celsius Holdings now trades well below both intrinsic value estimates and published analyst targets after a steep reset in expectations. Is that discount a genuine opportunity, or is the market simply pricing in real earnings risk? At a last close of $28.31, Celsius Holdings is set against a widely followed fair value narrative of $47.37, which points to a steep discount and raises the question of whether the reset in expectations has gone too far. I believe Celsius Holdings stock can reach a price of $47.00 per share (+42%) over the next two months, with potential to reach $71.00 per share within the next few years. This will be driven by continued earnings and revenue gains, international expansion, and the long-term integration of Alani Nu and Rockstar, which were both recent acquisitions. See why 11 investors see Celsius Holdings as 40% undervalued. Result: Fair Value of $47.37 (UNDERVALUED) Still, Celsius Holdings faces real pressure if legal issues deepen or the Pepsi distribution partnership underdelivers. This could challenge bullish fair value assumptions. Find out about the key risks to this Celsius Holdings narrative. The headline story on Celsius Holdings is a big discount to fair value, with the stock trading 53.8% below an estimate of future cash flow value at $61.22. A second lens tells a different story once you look at what investors are paying for current earnings. On an earnings multiple basis, CELH looks expensive. The P/E ratio sits at 109.6x compared with 16.6x for the global beverage group and 35.8x for closer peers, while the fair ratio points to 29.1x. That gap suggests real risk if sentiment cools before profits catch up. How much conviction do you have that future earnings will justify such a premium? See what the numbers say about this price — find out in our valuation breakdown. Conflicted about the mixed signals around Celsius Holdings and the split between risk and reward? Move quickly, review the data for yourself, then weigh the 2 key rewards and 2 important warning signs. If Celsius Holdings has you rethinking your watchlist, do not stop here. Broadening your opportunity set now could make a real difference later. - Target resilient balance sheets and steady fundamentals by scanning our list of solid balance sheet and fundamentals (25 results) that highlight companies built to handle tougher conditions. - Hunt for quality at a discount and see which businesses screen as potential value opportunities in the 33 high quality undervalued stocks that filter. - Lock in potential income streams by reviewing the 7 dividend fortresses that focus on higher yielding companies with significant payout potential. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CELH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Celsius Holdings, Inc. (NASDAQ:CELH) now controls three prominent energy-drink brands, but its valuation increasingly depends on something less visible than shelf space: how much of that portfolio's growth reaches shareholders as earnings. The company's August second-quarter results showed the contradiction. Revenue rose 11% to approximately $818 million, helped by Alani Nu and Rockstar, while the flagship CELSIUS brand contracted and adjusted EBITDA fell. Expanding distribution can create scale, but promotions, input costs, and integration decisions can also consume the incremental profit. The comparison with other discounted companies is instructive. Celsius Holdings, Inc. (NASDAQ:CELH) ranks ninth among the 10 best undervalued stocks to buy now according to Reddit, but the ranking includes businesses facing very different tests of earnings quality. Which company attracted the most hedge funds, and does Celsius Holdings, Inc.'s multi-brand opportunity offset the challenges already visible in its results? The second quarter exposed a split between consumer demand and reported revenue. Management said flagship CELSIUS net sales fell about 12%, while retail sales in tracked channels declined only 2%. Distributors were reducing inventories during SKU rationalization, trade spending weighed on realized revenue, and the club channel remained soft. Management also acknowledged that it cut too deeply into the assortment before replacement shelf space was ready. Those explanations suggest some pressure is transitional, but the extent of the recovery remains unproven. Alani Nu offers a counterweight: its quarterly net sales were approximately $364 million, up 21%, and tracked retail sales rose 56%. Rockstar added about $66 million after its integration was completed in June. Management said the portfolio accounted for roughly one-fifth of energy-drink sales in tracked U.S. channels. Yet Alani's retail growth translates into a smaller reported-revenue increase because of distribution-system allowances, channel mix, and promotional spending. Treating the 56% retail gain as the consolidated company's earnings growth rate would therefore overstate the near-term economics. Gross margin was approximately 48% in the quarter, compared with 51.5% a year earlier, while adjusted EBITDA slipped to $184 million from $210 million. The resulting 22.5% adjusted EBITDA margin illustrates why the company's expanding sales base has not automatically produced operating leverage. Management expects benefits from combined purchasing, improved freight routes, its second North Carolina manufacturing line and more disciplined price-pack architecture, but said higher diesel and aluminum costs could largely offset improvements in the near term. This is where the multiple matters. The Seeking Alpha data shows Celsius Holdings, Inc. (NASDAQ:CELH) at 107.83 times trailing GAAP earnings and 22.72 times forward GAAP earnings, compared with a 16.69-times sector median on the forward measure. The same dataset puts forward enterprise value at 12.36 times EBITDA, above the sector's 9.49 times. A low-looking forward P/E relative to the trailing figure thus reflects a significant projected earnings recovery, not a demonstrated bargain. The accompanying consensus trajectory projects 2026 EPS growth of 378.38%, followed by 35.48% in 2027 and 19.66% in 2028, with estimated P/E ratios declining from 22.72 times in 2026 to 16.77 times in 2027 and 14.01 times in 2028 based on current share price. Those are estimates, not achieved results. They require the flagship brand to stabilize and integration savings to emerge faster than ongoing spending and commodity pressure. That execution problem is not hypothetical. In an October discussion, Jim Cramer praised part of Celsius Holdings, Inc.'s acquisition story but questioned management's delivery. What, precisely, did Cramer think was missing from an otherwise attractive energy-drink portfolio? His distinction between acquired growth and the performance of the original brand closely mirrors the valuation issue. Celsius Holdings, Inc. (NASDAQ:CELH) repurchased approximately $100 million of shares in the second quarter, bringing first-half repurchases to about $124 million under its $300 million authorization. The company's financial snapshot also shows roughly $631 million of cash against roughly $670 million of debt. Buybacks may support per-share earnings, but they do not replace an improvement in operating profitability, particularly when management is simultaneously investing in brands and distribution. Insider Monkey's Q2 2026 filings data show hedge fund holders falling to 49 from 52. As of September 30, short interest stood at 30.96 million shares, or 12.45% of the float, up from 28.91 million shares at the end of August. These figures are not real-time votes on the next quarter, but they demonstrate why investors may demand evidence beyond acquisition-driven sales expansion. The near-term test is whether reduced inventory disruption and better retail placement move CELSIUS sell-through back into reported revenue without another round of expensive promotions. Even management's own expectation of high-40s gross margins in the third quarter suggests that a rapid return to the old margin structure is not assured. The comparison with another embattled consumer franchise shows why a lower valuation multiple alone may not establish value. For Celsius Holdings, Inc. (NASDAQ:CELH), a sustained margin recovery alongside renewed organic brand growth would make the forward earnings assumptions more credible; without it, the apparent compression in the P/E multiple is largely a forecast. While we acknowledge the potential of CELH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: PepsiCo's Dividend Keeps Growing, but this Key Metric Deserves Attention and 10 Fastest Growing Consumer Stocks to Buy Now Disclosure: None. Follow Insider Monkey on Google News.

The Boston Beer Company, Inc. SAM is likely to register growth in its bottom line when it reports third-quarter 2026 results on Oct. 22, 2026, after market close. The company's top line is expected to have declined year over year. The Zacks Consensus Estimate for revenues is pegged at $523.4 million, implying a 2.6% drop from the prior-year quarter's reported figure. The consensus mark for earnings has been stable in the past 30 days at $4.30 per share. This implies a rise of 1.2% from the year-ago quarter. In the last reported quarter, the company delivered a negative earnings surprise of 23.5%. SAM has a trailing four-quarter negative earnings surprise of 3.4%, on average. Boston Beer's quarterly performance is likely to have been influenced by brand trends, consumer spending, cost pressures and the effectiveness of its growth initiatives. Weakness in Twisted Tea and Truly, along with declines in Samuel Adams and Dogfish Head, is likely to have weighed on volumes and market share. Competitive pressure from spirits-based ready-to-drink (RTD) beverages and softer consumer demand remain key concerns. Persistent inflation, higher gasoline prices and reduced discretionary spending could further pressure alcoholic beverage demand. Meanwhile, rising aluminum, energy, freight and tariff costs may constrain profitability. Boston Beer expects 2026 tariff expenses of $20-$30 million. Boston Beer has been witnessing weak depletion, with continued challenges in the hard seltzer category for a while. The hard seltzer segment remains under pressure, which has been weighing on Truly Hard Seltzer as it faces declining volumes and continued loss of shelf space. Intense competition across flavored malt beverages and tea-based drinks is further straining shelf space, as retailers streamline assortments and reduce the number of brands they carry. Such limitations are likely to hurt the company's top-line results during the quarter under review. On the flip side, Boston Beer's focus on strategic pricing, product innovation and brand development to strengthen its market position and drive performance appears encouraging. The company is expanding its presence in the Beyond Beer category, which continues to outpace the traditional beer market. Sun Cruiser remains a major growth driver, benefiting from triple-digit depletion growth, expanding distribution and favorable product mix. Strong price realization and ongoing procurement savings are helping offset the inflationary and tariff pressures. These positives are likely to have contributed to the company's bottom-line performance in the quarter under review. The Boston Beer Company, Inc. price-eps-surprise | The Boston Beer Company, Inc. Quote Our proven model does not conclusively predict an earnings beat for Boston Beer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. But that is not the case here. Boston Beer currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks before they are reported with our Earnings ESP Filter. From a valuation perspective, Boston Beer stock is trading at a premium relative to historical and industry benchmarks. SAM has a forward 12-month price-to-earnings of 17.73X, above the Beverages - Alcohol industry's average of 14.85X. Boston Beer shares have shown a downward trend, losing 27.1% in the past six months against the industry's growth of 5.1%. Image Source: Zacks Investment Research Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle. Keurig Dr Pepper KDP currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports third-quarter 2026 numbers. The consensus mark for revenues is pegged at $7.4 billion, which indicates a rise of 70.8% from the figure reported in the year-ago quarter. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Keurig Dr Pepper's quarterly earnings per share of 64 cents implies a rise of 18.5% from the year-ago quarter. The consensus mark has been stable in the past 30 days. KDP has a trailing four-quarter earnings surprise of 2.7%, on average. Celsius Holdings, Inc. CELH currently has an Earnings ESP of +4.00% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports third-quarter 2026 numbers. The Zacks Consensus Estimate for CELH's quarterly EPS is pegged at 34 cents, down 19.1% from the year-ago period. The consensus mark dipped a penny in the past 30 days. The consensus estimate for Celsius' quarterly revenues is pegged at $806.2 million, which implies an increase of 11.2% from the prior-year quarter. CELH has a trailing four-quarter negative earnings surprise of 28.5%, on average. Anheuser-Busch InBev BUD currently has an Earnings ESP of +1.01% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2026 EPS is pegged at $1.14, which implies an increase of 15.2% from the year-ago quarter's actual. The consensus mark for EPS has dipped a penny in the past 30 days. The consensus mark for BUD's quarterly revenues is pegged at $16.3 billion, which indicates growth of 7.3% from the figure reported in the prior-year quarter. BUD delivered a trailing four-quarter earnings surprise of 6.3%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Celsius Holdings has seen its share price fall sharply in recent years, and the current US$28.00 level raises a clear question about what the market is willing to pay for its earnings. For investors watching a long slide in returns, the key issue is whether that price still lines up with what the business currently earns. - Over the past 3 years the stock has declined 51.7%, which puts the focus firmly on whether the earnings now support the quoted valuation. - The business model relies on converting revenue into durable profits and cash, which can shape how much value investors ascribe to each dollar of Celsius Holdings earnings. - There is a second opinion on Celsius Holdings worth weighing. See what analysts think Celsius Holdings's shares could be worth. The issue now is whether the recent share price for Celsius Holdings is justified by the earnings the company is generating today. If you want to test the same earnings question that Celsius Holdings now faces across a broader set of opportunities, you can scan through the 33 high quality undervalued stocks. The P/E ratio fits Celsius Holdings because earnings are now the main anchor for what investors are paying for each share. At about 108.4x earnings, the stock trades at a much richer level than the Beverage industry average of 16.7x and the broader peer group on roughly 33.4x. That kind of gap means you are paying a high price for every dollar of current profit, not just a modest premium. The Fair Ratio, which reflects what investors might typically pay for Celsius Holdings once its growth profile, margins, size and risks are baked in, sits well below the current P/E. Because the model is heavily penalising the risk and quality of the cash flows, this spread reads less like a precise target and more like a warning flag that the shares screen as overvalued on this earnings lens. That is why the key question for you is whether Celsius Holdings can justify such a premium over time or whether this is simply a very expensive way to get exposure to its current profit base. Explore the numbers behind Celsius Holdings's P/E valuation. Simply Wall St Narratives for Celsius Holdings give you a structured way to test what kind of future growth, profitability and earnings path would need to play out for the current premium P/E to make sense, or to break. Each narrative lays out the assumptions that sit behind its view of fair value so you can compare those expectations with Celsius Holdings' actual results as they are reported on the Community page. Community views on Celsius Holdings split between those who see a reset opportunity and those who think the valuation still asks too much. Bull case: 49% undervalued "The ones who understood what actually happened in 2024 and why the crash was a channel inventory problem, not a brand problem, had the best entry point..." Discover why this Narrative puts Celsius Holdings at 49% undervalued. Bear case: 8% overvalued "Intensifying competition from well-established industry giants and new market entrants will likely force Celsius to increase marketing and promotional spending to maintain its shelf presence..." Explore why this Narrative puts Celsius Holdings at 8% overvalued. Before building a full view on Celsius Holdings, it helps to know that Simply Wall St's broader checks have flagged specific areas of concern that sit outside the valuation work covered here. Take a closer look at 2 warning signs before settling on a valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CELH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Celsius Holdings stock has seen a sharp three year decline in shareholder returns, yet the market still prices the company on the rich side compared with its fundamentals. For investors, the question is why a stock with this recent track record continues to screen expensive on broad valuation checks. Over the past three years, Celsius Holdings shares have delivered a total return that is down about 49.5%, which puts recent enthusiasm in a different light. Expectations that the company can keep growing sales and improve profitability may support the current share price. However, any setback in execution or margins could quickly pressure what investors are willing to pay. On a combined view of multiples and other metrics, Celsius Holdings looks overvalued and the broader checks suggest it is not a clear bargain, with only 2 of 6 valuation indicators pointing to value. The issue now is whether the current premium valuation for Celsius Holdings still leaves enough potential reward to compensate for the risks in the story. Broaden your watchlist beyond Celsius Holdings by scanning a curated set of resilient stocks on the 76 resilient stocks with low risk scores that may offer a different mix of valuation and risk. The P/E ratio is a useful lens for Celsius Holdings because the company currently reports positive earnings that can anchor the valuation. On this measure, Celsius Holdings trades on about 127.8x earnings, which is far higher than the Beverage industry average of roughly 17.5x and also well above the peer group average of about 36.6x. That is a sizeable premium to both the broader sector and more closely comparable stocks. The fair P/E multiple implied by the broader model is around 31.2x. This is far below the current 127.8x, which indicates that the framework is heavily penalising the stock for its risk profile and earnings quality. In practical terms, the gap suggests Celsius Holdings would need to justify a much higher valuation than peers on earnings alone, and leaves little room for disappointment if expectations around profitability or growth change. On the P/E multiple, Celsius Holdings stock currently appears significantly overvalued. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Celsius Holdings are designed to connect the current valuation puzzle to specific scenarios for the company. Each one spells out what would need to happen to Celsius Holdings' revenue growth, margins and earnings for the stock to be worth materially more or less than today. Each narrative ties its numbers to a clear view of where growth, profitability and risks go next, which you can revisit as fresh results and news emerge. Celsius Holdings inspires two very different readings of the same story, and the valuation debate is just as split. Bull case: 40% undervalued Read the full Bull Case to see why Celsius Holdings could be undervalued Bear case: 27% overvalued Read the full Bear Case to see why Celsius Holdings could be overvalued Do you think there's more to the story for Celsius Holdings? Head over to our Community to see what others are saying! Celsius Holdings currently screens as overvalued on market multiples, with a very large gap between its P/E and broader peer benchmarks. With only a small share of valuation checks pointing to value, the burden of proof now sits with future execution on revenue growth and margins. For you as an investor, the key question is whether Celsius Holdings can deliver enough durable earnings power to keep justifying this premium, or whether expectations reset and the multiple compresses from here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CELH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Axon Enterprise (NASDAQ:AXON) primarily generates revenue by manufacturing and selling conducted energy devices, on-officer body cameras, and cloud-based digital evidence management software to domestic and international law enforcement agencies. While securing the largest individual device order in its history and signing multiple eight-figure government contracts, it reported an operating margin of approximately 5% for the quarter ended June 30, 2026. Celsius (NASDAQ:CELH) mainly earns revenue by developing, marketing, and distributing sparkling functional energy drinks and liquid nutritional supplements directly to supermarkets, convenience stores, pharmacies, mass merchants, and various fitness channels globally. While initiating a major executive leadership realignment and navigating multiple legal investigations following a recent financial shortfall, it reported an operating profit margin of about 9% for the quarter ended June 30, 2026. Revenue here refers to the standardized income-statement revenue line item, and it remains a critically important foundational metric for individual investors. It measures how much money the business earns from gross sales of products or services before subtracting any overhead costs, operating expenses, or corporate taxes. Image source: The Motley Fool. Data source: Company filings. Data as of Aug. 17, 2026. Axon has shown greater consistency, while Celsius has benefited from acquisitions and growing product sales to scale revenue faster over the last eight quarters. From Q3 2024 through Q2 2026, Axon increased its revenue by 66%. Celsius's quarterly revenue increased 204% over that period. The market often rewards companies that demonstrate greater consistency in revenue and earnings. Axon currently trades at a price-to-earnings ratio of 250 compared to Celsius' 129. The company's consistent growth reflects the steady demand for its public safety products and software services, which inherently build recurring revenue into the business. On the other hand, Celsius is more exposed to shifting consumer preferences for its energy beverages. Celsius competes with many brands, making revenue forecasting more challenging. Axon is a leader in producing public safety hardware and software that it sells to law enforcement agencies. It serves a market that will continue to invest in these tools across strong or weak consumer spending trends, unlike Celsius. However, Celsius is benefiting from its partnership with PepsiCo, which gives the company a major leg up in distribution -- an important advantage for any consumer brand. It still has tremendous opportunities to grow over time, especially through new products or international expansion. Will Axon's steadier demand continue to drive higher revenue, or will Celsius be able to reaccelerate growth and pull ahead? Investors should monitor upcoming quarterly earnings reports from these companies to see how this plays out. Before you buy stock in Axon Enterprise, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Axon Enterprise wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 21, 2026. John Ballard has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool recommends Celsius Holdings. The Motley Fool has a disclosure policy. Axon Enterprise vs. Celsius: Comparing Steady Incremental Gains and Historical Volatility in Quarterly Revenue Trends was originally published by The Motley Fool

Download the Complete Report Here Key Takeaways: Strong topline growth and continued education-channel rebuilding were offset by slower-than-expected manufacturing efficiency at the existing Arps facility. BRFH reported 2Q26 revenue of $4.7 million, up 190% y/y from $1.6 million but down 16% sequentially from $5.6 million in 1Q26 and approximately 9.5% below the low end of $5.2 million guidance. Arps Dairy contributed $3.2 million, including $2.9 million from raw and processed milk, while frozen beverage and food revenue, consisting primarily of legacy Barfresh products, increased 9% y/y to approximately $1.8 million. Consolidated growth remained heavily acquisition-driven, with milk representing roughly 62% of quarterly revenue and core Barfresh recovery not yet fully reflected in reported results. Arps continues to provide supply continuity, while new district wins and returning education customers are expected to contribute more meaningfully with the 2026-27 school year. The principal 2Q pressure point was therefore production, where a slower and more costly manufacturing ramp weighed on gross margin and adjusted EBITDA recovery. Profitability remained pressured by manufacturing inefficiencies, but improving throughput and a more favorable product mix support sequential recovery in 2H26. Gross margin declined to negative 3.2% in 2Q26 from 31.1% in 2Q25 and approximately 18% in 1Q26, while adjusted EBITDA fell to a $1.2 million loss from a $600,000 loss a year ago. The pressure reflected startup costs, equipment limitations and lower than planned productivity at the existing Arps facility, with the impact extending into legacy Barfresh production. Management indicated that repairs and process improvements are improving throughput and yields, while a greater mix of higher margin education products should provide additional support as the 2026-27 school year ramps. Together, these factors support management’s expectation for adjusted EBITDA to improve to a $0.5 million loss to breakeven in 2H26. Arps has restored supply continuity for BRFH, but scaling owned production has required more investment and operational work than initially anticipated. As more Barfresh volume shifted in-house, operating the facility at the required production levels highlighted additional equipment and infrastructure needs that had not been apparent before the acquisition. BRFH therefore moved ice cream production out to prioritize its core smoothie portfolio, while repairs, equipment servicing and process refinements have since improved throughput and yields. Management indicated that a significant portion of the corrective work has already been completed and that remaining requirements at the existing facility should be relatively modest, with focus increasingly shifting to Defiance. Guidance revision quantifies the impact of the slower manufacturing ramp and makes operational efficiency an important 2H26 focus. 2026 revenue guidance was reduced to $23 to $26 million from $28 to $32 million, while adjusted EBITDA guidance was reduced to a loss of $1 million to $2 million from positive $3.2 to $3.8 million. At the respective midpoints, this represents a $5.5 million reduction in expected revenue and an approximately $5.0 million reset in adjusted EBITDA. Management attributed most of the EBITDA revision to ~$1.8 million of higher Arps processing costs, $0.8 million from the loss of the ice cream mix business and $0.8 million of higher material costs, with another $1.2 million tied to delayed legacy Barfresh revenue recovery and unrealized freight and storage synergies. Street’s 2026 revenue estimate of $22.9 million (source: TIKR) sits just below management’s $23 to $26 million guide, suggesting expectations are already relatively conservative; delivery within the range could support upward estimate revisions. Management’s breakdown of the guidance revision indicates that the downgrade is primarily tied to manufacturing efficiency, integration timing and delayed cost savings, making cost per case, throughput and gross margin recovery important operating markers through 2H26. The revised outlook still supports meaningful sequential improvement in 2H26, while education growth and manufacturing progress provide the foundation for continued growth into 2027. With 1H26 revenue of $10.3 million, management’s 2026 guidance implies $12.7 to $15.7 million of revenue in 2H26, with sequential improvement expected in both 3Q26 and 4Q26 as new school districts and returning customers ramp. Management also expects 2H26 adjusted EBITDA to improve to a loss of $0.5 million to breakeven from a $1.46 million loss in 1H26, supported by higher throughput, better cost absorption and a more favorable mix of core Barfresh products. Looking into 2027, Street estimates call for revenue of $29.2 million and adjusted EBITDA of negative $2 million (source: TIKR), implying ~28% revenue growth versus 2026 estimates and a modest improvement in adjusted EBITDA from negative $2.4 million. The revenue growth and modest EBITDA improvement reflect expectations for broader education rollouts, continued customer recovery and gradual improvement in manufacturing economics, while the lower margin Arps milk business remains relatively stable. Education channel momentum continues to build, with new district wins and customer reactivations supporting a stronger 2H26 setup. Several recently won districts began serving BRFH products during the 2025-26 school year and are expected to expand across all locations in the 2026-27 school year, while additional education wins are expected as remaining bids close. BRFH is also reengaging customers that removed products from menus following prior supply disruptions. The timing of these wins helps explain why frozen beverage and food revenue increased 9% y/y in 2Q26, as much of the first half still reflected purchasing decisions made during the prior school year. Management expects incremental 2H26 growth to be driven primarily by higher margin Barfresh products, while the Arps milk business remains relatively stable, supporting a more favorable revenue mix as school-year orders ramp. BRFH’s broker-led commercial model continues to support customer recovery while keeping costs well controlled. Selling, marketing and distribution expense declined 12% y/y to $561,000 in 2Q26 from $634,000, with sales and marketing expense down 28% to $256,000 as the company increasingly relied on brokers to communicate improved supply reliability and rebuild relationships with school districts. Single-serve products are also reducing equipment maintenance requirements in the education channel, providing operating leverage as volume scales. Storage and outbound freight expense increased to $305,000 from $276,000, reflecting the delivery requirements of processed milk, but the broader commercial cost structure remains relatively lean. This should support better operating leverage as higher margin Barfresh volume becomes a larger share of the mix, provided manufacturing efficiency continues to improve. The 44,000-square-foot Defiance facility remains the central strategic catalyst for BRFH’s transition to normalized production economics. BRFH is targeting partial commissioning of core products by year-end 2026, with remaining products expected to follow shortly thereafter. The facility is designed to provide greater throughput, improved production flexibility and more efficient unit economics than the existing plant, directly addressing the equipment reliability and processing constraints that affected 2Q26 results. The company also has a $2.4 million government grant available for qualifying equipment purchases. While the existing Arps facility has already improved supply continuity and reduced reliance on third-party manufacturers, successful commissioning of Defiance should be the more important driver of margin normalization and capacity expansion heading into 2027. The transition will also require careful production sequencing, with the existing facility lease running through September 30 and partial commissioning at Defiance targeted by year-end. Operating expense discipline provided some offset to manufacturing pressure, although higher G&A and financing costs weighed on overall profitability. Selling, marketing and distribution expense declined 12% y/y to $561,000 from $634,000 and was down from approximately $697,000 in 1Q26, reflecting greater use of the broker network and lower equipment-related costs. G&A increased 18% y/y to $794,000 from $673,000, primarily due to higher personnel, recruiting and administrative costs associated with Arps Dairy, while total operating expenses remained broadly flat y/y at $1.37 million. Net loss widened to $1.86 million from $880,000 y/y, with interest expense increasing to $344,000 from $12,000 as acquisition and facility financing became a larger part of the cost structure. Working capital is being positioned for the new school year, with inventory supporting production readiness as education volumes ramp. Inventory increased approximately 30% from year-end 2025 to $2.16 million, driven by raw materials and packaging rising to $1.17 million from $684,000, while finished goods remained broadly stable at approximately $1.0 million. This mix suggests the build is primarily supporting higher production rather than reflecting an accumulation of unsold finished product. Management also indicated that inventory has continued to build through the summer and that current internal capacity, supplemented by co-manufacturers, is sufficient to support existing, returning and newly won school business. Given the supply interruptions experienced last year, maintaining this production buffer should help BRFH convert improving education demand into more consistent revenue. Liquidity remains supported by receivables financing and planned funding sources as the manufacturing build progresses. BRFH ended June with $324,000 of cash and $1.09 million of trade receivables, while operating cash use increased to $3.05 million in 1H26 from $1.58 million a year ago as the company absorbed integration costs, built inventory and reduced trade payables. Receivables facilities provide an additional liquidity buffer, with approximately $3.58 million of borrowing availability at quarter end, subject to eligible collateral. Converting the back-to-school inventory build into sales and receivables, while securing planned financing for Defiance, remains an important balance-sheet consideration through the remainder of 2026. The March convertible financing provides BRFH with funding flexibility, although interest cost and potential dilution remain considerations. BRFH raised $7.5 million through senior convertible notes and used a portion of the proceeds to repay the existing mortgage, leaving the Defiance property unencumbered and available to support planned property-backed financing. The notes carry a 10% coupon during the first 12 months and are convertible at $2.90 per share, while investors also received approximately 2.35 million warrants exercisable at $3.20. Interest expense increased to $344,000 in 2Q26 from $12,000 a year ago, reflecting the higher financing burden. Management does not currently plan an equity raise and continues to prioritize mortgage and equipment financing; successful execution of that plan would help limit incremental dilution as BRFH completes the Defiance build. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Stock has reacted negatively to the latest earnings print, but our analysis suggests BRFH’s current valuation increasingly discounts the near-term operating pressure reflected in the guidance reset, while the medium to long-term opportunity from education growth and vertical integration remains intact. At $1.30 per share and an approximately $21 million market capitalization, BRFH trades at 0.93x 2026E P/Sales. The selloff reflects the slower manufacturing ramp and reduced 2026 outlook, while the longer-term education opportunity and strategic rationale for vertical integration remain intact. Importantly, the Street estimate sits slightly below the low end of management’s $23 to $26 million 2026 revenue guidance, suggesting current expectations are already relatively conservative. Delivery within the guidance range, particularly toward the upper end, could support upward estimate revisions and strengthen confidence in the medium to long-term growth and margin recovery trajectory. A return toward BRFH’s historical valuation range highlights meaningful rerating potential as execution improves. The stock has de-rated and currently trades well below its three-year peak of 4.5x NTM P/Sales. Applying a 3.0x P/Sales multiple, approximately one-third below the historical peak, to the $22.9 million 2026E Street revenue implies an illustrative market capitalization of approximately $68 million, or roughly $4.2 per share, while 2027E Street revenue of $29.2 million provides additional forward growth support. However, the path to rerating remains contingent on execution across key operating milestones, including education revenue growth through the 2026-27 school year, gross margin recovery, improved efficiency at the Arps facility, progress toward the 2H26 adjusted EBITDA target, and successful commissioning of the Defiance facility. Relative valuation has also become compelling, with BRFH trading at a greater than 40% discount to peers. BRFH’s 0.93x 2026E P/Sales multiple compares with a peer average of 1.58x, representing an approximately 41% discount. Applying the peer average to the $22.9 million 2026E Street revenue estimate sourced from TIKR implies an illustrative equity value of approximately $36 million, or roughly $2.2 per share. This framework assumes only convergence toward the peer average, with further rerating potential if BRFH delivers within management’s revenue guidance, demonstrates sequential margin improvement, and executes on the Defiance transition, supporting the medium to long-term growth and margin recovery thesis. Read Exec Edge’s Initiation on Barfresh Food Group Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Barfresh Reports Topline Growth & Continued Education Recovery – Quarterly Update Report appeared first on ExecEdge.

Celsius’ second quarter was marked by a negative market reaction, as both revenue and non-GAAP profit fell short of Wall Street expectations. Management attributed this underperformance to the timing and depth of SKU rationalization within the core Celsius brand and integration complexities from recent acquisitions. CEO John Fieldly acknowledged, “We went too deep on the CELSIUS rationalization,” and noted that delayed retail space upgrades and purposeful innovation pauses created a gap that was not bridged during the quarter. Despite these challenges, management highlighted continued strength in underlying consumer demand and growth from newer brands in the portfolio. Is now the time to buy CELH? Find out in our full research report (it’s free). Revenue: $817.9 million vs analyst estimates of $872 million (10.6% year-on-year growth, 6.2% miss) Adjusted EPS: $0.36 vs analyst expectations of $0.42 (13.9% miss) Adjusted EBITDA: $184.2 million vs analyst estimates of $198.5 million (22.5% margin, 7.2% miss) Operating Margin: 9.2%, down from 19.3% in the same quarter last year Market Capitalization: $6.99 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Peter Grom (UBS): asked what gives management confidence in a return to growth for Celsius exiting 2026. CEO John Fieldly pointed to robust innovation plans, retailer engagement, and a stabilized base business, while acknowledging the timing of SKU rationalization as a key learning. Bonnie Herzog (Goldman Sachs): questioned whether SKU rationalization went too far and the ongoing risk for further sales pressure. Fieldly admitted the company “went too deep” but emphasized a stronger foundation and more targeted innovation for 2027. Kaumil Gajrawala (Jefferies): inquired about handling tough year-over-year comparisons for both core Celsius and Alani Nu. Fieldly explained that base business growth and strategic product launches should help cycle challenging comps and set up for improved performance in 2027. James Salera (Stephens): asked about the expected pace and magnitude of the recovery in core Celsius and international expansion. Fieldly and Langhans indicated the recovery would be gradual, with international growth as a longer-term opportunity but not a near-term driver. Eric Serotta (Morgan Stanley): sought clarity on delayed retail shelf space gains and future innovation strategy. Langhans cited slower-than-expected fixture installations as a factor, and Fieldly described a more disciplined approach to new SKUs going forward. In the coming quarters, our analysts will focus on (1) evidence of recovery in the core Celsius brand as new product innovation and shelf resets take hold, (2) the ability of Alani Nu to transition toward a more stable core assortment and reduce dependence on limited-time offerings, and (3) progress in realizing operational cost savings, particularly from supply chain integration and new manufacturing capacity. We’ll also monitor international expansion and the impact of commodity price trends as key variables for future profitability. Celsius currently trades at $27.62, down from $29.15 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Jeff Auxier (Trades, Portfolio), founder and CEO of Auxier Asset Management and manager of the Auxier Focus Fund, recently submitted his 13F filing for the second quarter of 2026. Auxier's investment philosophy centers on identifying compelling, undervalued companies with strong fundamentals, competitive advantages, and shareholder-oriented management. His approach emphasizes generating substantial free cash flow, maintaining strong balance sheets, and seeking above-average returns with acceptable risk. The filing provides valuable insights into how Auxier is positioning his portfolio in the current market environment. Warning! GuruFocus has detected 7 Warning Signs with PM. Is PM fairly valued? Test your thesis with our free DCF calculator. Jeff Auxier (Trades, Portfolio) added a total of 10 new stocks to his portfolio during the second quarter of 2026. The most significant addition was Celsius Holdings Inc (NASDAQ:CELH), with 59,963 shares acquired, accounting for 0.24% of the portfolio and a total value of $1.76 million. The second largest new position was FedEx Freight Holding Co Inc (NYSE:FDXF), consisting of 4,234 shares, representing approximately 0.09% of the portfolio with a total value of $639,330. The third largest addition was Advanced Micro Devices Inc (NASDAQ:AMD), with 595 shares, accounting for 0.05% of the portfolio and a total value of $345,640. These new positions suggest Auxier is finding value in consumer beverages, logistics, and semiconductor sectors. Auxier also increased stakes in a total of 18 existing holdings during the quarter. The most notable increase was Grand Canyon Education Inc (NASDAQ:LOPE), with an additional 2,960 shares, bringing the total to 17,370 shares. This adjustment represents a significant 20.54% increase in share count, a 0.06% impact on the current portfolio, and a total value of $2.49 million. The second largest increase was Mastercard Inc (NYSE:MA), with an additional 745 shares, bringing the total to 29,266 shares. This adjustment represents a 2.61% increase in share count, with a total value of $15.03 million. These increases indicate Auxier's confidence in the education services and payment processing sectors. Jeff Auxier (Trades, Portfolio) completely exited two holdings in the second quarter of 2026. Digital Realty Trust Inc (NYSE:DLR) saw all 1,167 shares sold, resulting in a -0.03% impact on the portfolio. Forrester Research Inc (NASDAQ:FORR) was also fully liquidated, with all 13,076 shares sold, causing a -0.01% impact on the portfolio. These exits suggest Auxier may have found better opportunities elsewhere or identified deteriorating fundamentals in these companies. Auxier reduced positions in 118 stocks during the quarter, with the most significant changes being notable. The largest reduction was Corning Inc (NYSE:GLW), with 16,420 shares sold, resulting in a -12.96% decrease in shares and a -0.32% impact on the portfolio. The stock traded at an average price of $181.21 during the quarter and has returned -20.38% over the past 3 months and 89.74% year-to-date. The second largest reduction was Bank of New York Mellon Corp (NYSE:BNY), with 16,639 shares sold, resulting in a -10.17% reduction in shares and a -0.28% impact on the portfolio. The stock traded at an average price of $136.44 during the quarter and has returned 20.14% over the past 3 months and 41.91% year-to-date. These reductions may reflect profit-taking after strong performance or rebalancing toward more attractive opportunities. At the end of the second quarter of 2026, Jeff Auxier (Trades, Portfolio)'s portfolio included 185 stocks. The top holdings included 4.95% in Philip Morris International Inc (NYSE:PM), 4.24% in Alphabet Inc (NASDAQ:GOOGL), 4.2% in Microsoft Corp (NASDAQ:MSFT), 3.78% in Corning Inc (NYSE:GLW), and 3.52% in UnitedHealth Group Inc (NYSE:UNH). The holdings are mainly concentrated in 10 of all 11 industries: Consumer Defensive, Financial Services, Healthcare, Technology, Communication Services, Consumer Cyclical, Industrials, Energy, Basic Materials, and Real Estate. This diversified approach across multiple sectors reflects Auxier's commitment to maintaining a balanced portfolio while seeking undervalued opportunities with strong growth potential.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:00 a.m. ET Investor Relations - Paul Wiseman Chairman and Chief Executive Officer - John Fieldly President and Chief Operating Officer - Eric Hanson Chief Financial Officer - Jarrod Langhans Chief of Staff - Toby David Operator: Hello, everyone. Thank you for joining us, and welcome to the Celsius Holdings Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the call over to Paul Wiseman, Investor Relations at Celsius. Please go ahead. Paul Wiseman: Good morning, and thank you for joining Celsius Holdings' Second Quarter 2026 Earnings Webcast. With me today are John Fieldly, Chairman and CEO; Eric Hanson, President and Chief Operating Officer; Jarrod Langhans, Chief Financial Officer; and Toby David, Chief of Staff. We'll take questions following the prepared remarks. Our second quarter 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 second quarter press 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: Thank you, Paul. Good morning, everyone, and thank you for joining us today to discuss our second quarter 2026 results. We delivered second quarter revenue of $818 million, reflecting the execution of the plan we laid out coming into the year. We completed the Rockstar integration. We moved through the most active phase of our SKU optimization on brand CELSIUS. Gross margins remained consistent with the first quarter despite a challenging commodity environment. And we continue to scale Alani Nu. All while our combined portfolio maintained a strong position at approximately 1 in 5 energy drinks purchased in the United States or roughly 20% dollar share in tracked channels. Energy remains one of the strongest-performing categories and beverage, and our portfolio is key to driving that growth. New consumers are entering the category through our brands, and we are winning new occasions with them. We are a key growth driver for the energy category, and we are just beginning to unlock the full potential of our expanding portfolio. Today we have 2 billion-dollar brands and a third brand with a clear role in the portfolio, and each one reaching a differentiated consumer segment. CELSIUS is the performance brand. It holds up across a full range of active, health-conscious consumers, not one sport, not one age group, but a mindset of active living. That is the gyms, run clubs, trainers, daily movement. Alani Nu wins on flavor and self-expression, recruiting younger, more female consumers. And for many of them, it is the first energy brand they ever try, which makes it an entry point into the category. And Rockstar reaches the male consumer with a real affinity for gaming, action sports and music, occasions the other brands do not naturally reach. Their 25 years of history and heritage give the brand permission the others do not have. Together, they give us more ways to grow across more channels, more occasions and more price points. That is the power of managing a portfolio, and it's showing up in how we plan, how we innovate and how we show up at retail. I want to first discuss brand CELSIUS. That is important to share what we set out to do this year and where we are in that work. When we came into 2026, we made a deliberate choice. Over the years, we've built the CELSIUS brand by taking decisive actions to break through, lead launches, exclusive flavors for individual retailers, actions that got us on the shelf in a category that did not have a place for modern energy yet. That is how you build a challenger brand. But today, CELSIUS is a powerful national brand inside one of the largest distribution systems in the country. And at the forefront of better-for-you energy, we yet again took decisive action to cut items sitting at low ACVs and worked to get consistency across the country and put our weight behind the items that perform. We also used this as an opportunity to achieve better retail space, not just more of it, but the right kind: cold space, end caps, permanent coolers in the highest traffic parts of the stores. And we purposely delayed innovation while we brought on Alani and Rockstar into the system to minimize complexity in the distribution at a time of significant change. However, those things moved at different speeds. The rationalization happened right away. The retail allocation took longer, because the space we wanted required investment from the retailer partners, coolers and fixtures, not just a shelf tag. And in some instances, these activities were pushed to later in the reset periods. And innovation, which is one of the biggest growth drivers in the category, was not there to bridge the gap. But when you look at what is happening underneath, we feel good about where CELSIUS brand is going. Dollars per point of distribution are up 16% from the first quarter to the second. Fizz-Free is growing with dollar sales in tracked channels up over 20% in the second quarter versus the first. We are growing at Amazon, and retailers are leaning in on 2027 planning earlier than they ever had before. We're also investing behind execution, moving more of our volume closer to the retailer to improve service, and adding hundreds of merchandisers and sales representatives to get more product on the floor and keep it in stock. Where we still have work is our 16-ounce line, and we have innovation coming against it in early 2027. Given that sequencing, we would expect brand CELSIUS in the third quarter to look a lot like the second quarter, before we exit the year back into growth. In the first half of the year, Alani Nu surpassed $1 billion in retail sales in tracked channels, an important milestone for a brand we acquired just over a year ago. And it happened in a category with more competition than ever before, with more entrants and established players alike. Tracked channel dollar growth was approximately 56% in the quarter. We launched Purple Cotton Candy as well during the quarter and it quickly became our top-selling new flavor in tracked channels, following Cherry Bomb and Lime Slush before it, and reinforcing that the brand's innovation model is durable and not dependent on any one flavor. These limited time offers have become seasonal moments that alone consumers generally look forward to. But what is important is what sits underneath the growth. We are bringing new consumers into the brand and many are repeat purchasers. We are building out the permanent core, graduating top-performing flavors into everyday placements, which adds stability and predictability as the brand scales. Alani is also expanding our reach. The brand brings a differentiated, largely female consumer into the category, with flavors that are inviting, approachable and on trend. And there is meaningful runway ahead. The brand remains underpenetrated in certain channels where our portfolio is strong, which gives us a clear road map for continued growth. With Rockstar, we completed the integration in June, on the 9-month time line we set, an important milestone for the organization. The brand is now fully on our platform and on the finished goods model. For Rockstar, it's about building stability. Bringing out the rock star in everyone, focusing on the core brand and its identity across motor sports, music and lifestyle, as well as a clear product differentiation and increased velocity. We are already seeing green shoots across a number of markets, and velocity gains across the board have been significant after the rationalization program we implemented. We are tracking in line with our sales expectations, which we set upon acquiring the brand, and are well positioned for 2027. We're also keeping Rockstar connected to its core consumer. Our motorsports program includes the partnership with 23XI Racing and the Formula DRIFT series, which continues to build authenticity with the traditional energy drink consumer, while we strengthen the brand's foundation. And we are in the early stages of refreshing the brand's look with updated packaging, revamped logo beginning to roll out. We have more to share as our plans progress. Innovations remain central to how we grow. During the quarter, we activated Electric Vibe, timed to the global soccer tournament here in North America, as well as Purple Cotton Candy. And we just launched our summer limited time offer, Spritz VIBE's Sparkling Limoncello Twist, a refreshing flavor built for peak summer occasions. Our summer programming is fully activated, including our global partnership, with Aston Martin Aramco Formula One team and our 100 Days of Summer programming, and our partnerships across music, fitness and culture. And looking ahead in the back half, we have a strong slate of fall programming, new marketing campaigns and an expanded lineup of athlete partnerships. These programs are designed to connect awareness to trial and trial to the register. We're excited about our innovation calendar with 2027 shaping up to be a busy year. Turning to international, where I want to share the long-term road map we have been building. International is one of the largest white space opportunities because both CELSIUS and Alani remain significantly underpenetrated outside the U.S. Over the next 5 years, we expect international markets outside of the U.S. to represent more than 15% of our revenue. We are building toward that with focused market entries, strong local partnership and disciplined launch plans. Sweden is a great example of what success looks like at maturity. It is one of our longest-standing international markets. And this quarter, the team delivered the highest 4-week sell-through in market history, nearly 3.5 million units purchased by consumers. That is what strong local execution and consumer loyalty built over time can deliver, and it is the playbook we're running in every market we enter. Our newer European markets continue to progress alongside our partnership with Suntory. We are also identifying select international markets in which to introduce Alani Nu in 2027. And with our international center of excellence in Dublin, we have a strong operating infrastructure in place to help execute this road map for years to come. With that, I'll turn it over to Jarrod to walk through the financials. Jarrod? Jarrod Langhans: Thanks, John, and good morning, everyone. I will walk through the quarter by brand, then cover profitability, operating discipline and capital allocation. We delivered second quarter revenue of $818 million, up approximately 11% year-over-year as a portfolio. Starting with brand CELSIUS, net sales were down approximately 12% year-over-year, while retail sales in tracked channels were down 2% in the second quarter. I'm going to discuss those 2 numbers separately because they are telling you 2 different things. The scanner number, down 2%, is the consumer. That reflects the optimization and moderation and innovation John just walked through. As he described, the rationalization landed immediately, the space came later, and we purposely limited innovation in order to prioritize the existing portfolio and integrations. The GAAP to reported net sales came from 3 things: shipment timing related to inventory rebalancing, increased trade and promotional investment, and softness in the club channel. On shipment timing, this is the same optimization work we have discussed, but showing up in a different way. As we remove SKUs from the DSD system, distributor inventory rebalanced down across the first half of the year. That was most pronounced this quarter and at quarter-end in particular when depletions versus orders accounted for roughly half of the gap between scanner and reported results. Trade and promotional investment was largely tied to our variable spend, promotions and price pack activity. During the first half of the year, we saw some negative mix and channel impact as well as some inefficiencies in our programming. This was further complicated by fixed costs that are less efficient when volumes are down. This is the core of the revenue growth management program we are building, with the team in place now that we did not have a year ago. We have begun implementing parts of the improved programming in the back half and we see a significantly larger opportunity to drive better returns on trade spend in 2027 and beyond. What is most important to stress, the productivity story is intact. Dollars per point of distribution are up approximately 16% in the second quarter versus the first, on approximately 7% fewer points of distribution. Turning to Alani Nu. Net sales were approximately $364 million in the second quarter, up approximately 21% year-over-year, while retail sales grew 56%. As in the first quarter, tracked growth and reported growth are 2 different numbers. So let me walk through how to get from one to the other, and we have again included a bridge in our earnings deck posted online. The difference reflects discontinuation of certain non-ready-to-drink products, a higher mix of DSD versus direct sales, which carries higher trade investment and billbacks that reduced reported net revenue, product mix and the timing of inventory builds as well as a noncash entry as a part of the distribution and captaincy agreements. So excluding Canada and our non-RTD business, all-in gross revenue growth was approximately 39%. And from gross to net, we got to approximately 21%, with the difference reflecting promotional allowances and channel and pack mix in the DSD system, the same dynamics we walked through last quarter. The integration into the Pepsi DSD system is complete and it is working. Our limited time offer program continues to elevate the brand, build the core and drive trial, and we have strong plans for 2027: new launches, new activations and new programming along with the market expansion John described. For Rockstar, net sales were approximately $66 million in the second quarter. With the integration complete and the reconfigured assortment in place, our focus is on stability. And as John said, we are encouraged by what we are seeing in the early data and by how the brand is positioned for 2027. Turning to profitability. Second quarter gross margin was approximately 48%, in line with our expectations and consistent with the first quarter at approximately 48% as well. Improvements in outbound freight and the continued integration of our acquisitions into our supply chain offset ongoing commodity inflation, primarily aluminum. As we look towards margin expansion, I think about it in 3 buckets. The first is integration. With Alani and Rockstar both now fully in our infrastructure, our raw material purchasing, our freight lanes and our orbit model, those benefits build to our back half. Even with the integrations complete, we still saw some carryover of higher costs this quarter because we have to work through existing inventory before the improved case costs flow through. That improvement started with Alani in the second quarter and builds into the third, with Rockstar flowing in during the third quarter. The second is structural cost opportunities. Our second manufacturing line in North Carolina begins producing in the back half with the full benefit in 2027, and we are advancing vertical integration and direct sourcing beyond that. Our supply chain center of excellence in Dublin is playing an increasing role in how we procure and how we move products across the network. The third is revenue growth management. The price pack architecture work we have referenced delivers initial impact in the back half with a much larger opportunity as we look at 2027 and 2028. And this work, as well as other programs we are launching, will help offset some of the mix impacts of more cases through DSD while supporting margin expansion. On gross margin, the initiatives we just walked through are delivering continued improvement. At current diesel and aluminum levels, margin expansion is largely offset. So based on what we see today, we would expect the third quarter to be consistent with the second and remain in the high 40s. If fuel or aluminum moderates, you would expect to see improvement. Selling, general and administrative expenses were $238 million, essentially flat with the prior year in dollars, and 29% of revenue compared to 32% a year ago. Adjusted SG&A was 28.6% of revenue. We held costs flat while revenue grew 11%, and we did that while investing behind the summer selling season as planned. We will continue to invest behind our brands. We would expect sales and marketing in the third quarter to be broadly consistent with the second quarter, and we continue to work to keep general and administrative costs down, with third quarter also consistent with the second. Adjusted EBITDA was $184 million or approximately 22.5% of revenue, compared to $210 million for the same quarter last year. For the first half, adjusted EBITDA was $380 million, up 36% year-over-year, at approximately 23.7% of revenue. The year-over-year comparison in the quarter reflects the gross margin pressure from commodities and the investments we are making behind the brands. On capital deployment, our balance sheet remains a source of strength and flexibility. During the second quarter, we repurchased approximately $100 million of stock, bringing first half repurchases to approximately $124 million. We intend to continue utilizing the $300 million authorization this year. We also reduced our interest rate by 25 basis points in July, with the opportunity to reduce it another 25 basis points. The reason why we are leaning into repurchases is straightforward. Our cash flow return on investment is among the strongest in the beverage category, and at current levels, we view repurchasing our own stock as an attractive use of capital. Our approach continues to be grounded in the same 3 priorities: investing to support brand growth and execution, maintaining the strength of our balance sheet, and returning capital to shareholders. Let me close with how we are thinking about the third quarter. As it relates to brand CELSIUS, we had some rebalancing continue in July, and we are moving certain SKUs into the distribution centers to be closer to the consumers and out of the mixing centers. This movement will have some onetime timing impacts as the distribution centers hold less inventory as it turns quicker. So reiterating what John said, given the sequencing, we would expect the third quarter to look a lot like the second for brand CELSIUS. And then we exit the year back into growth. Our focus in the third quarter is execution, improving service quality and driving efficiency through the network, moving more volume closer to the retailer through our distribution centers from the mixing centers, and continuing the retailer conversations and partnership work that appropriately set us up for 2027. For Alani Nu, we expect our momentum will continue. Service levels continue to grow, and we have a robust limited time offer calendar in the back half of this year that we believe will drive not only the brand but also the category. For Rockstar, our focus remains on stabilizing the brand, getting Rockstar back to its roots, strengthening its core identity and setting it up for 2027. Across the portfolio, we are adding merchandisers and sales reps to improve in-stock levels and get more product on the floor. With that, I will turn the call back to the operator to open the lines for questions. Operator: [Operator Instructions] Your first question comes from the line of Peter Grom with UBS. Peter Grom: I wanted to just ask on the path forward for brand CELSIUS, and I understand there's a lot of work going on for the brand. But just given kind of the weakness we're seeing in tracked data, what we saw this morning, what gives you confidence that we will see improved performance exiting '26 and into '27? It sounds like 3Q is going to be under similar pressure, but a return to growth exiting the year into '27 is feasible. So just curious, if you were to look out in the next 6 to 9 months, what does success look like? John Fieldly: Yes, Peter. With the CELSIUS brand, as we said in the prepared remarks and discussed the rationalization, is really producing a core portfolio of core SKUs on a national basis. We did make strategic decisions to not lean in as much on the brand CELSIUS as we were integrating Alani and Rockstar, which is now behind us. The base business within CELSIUS is strong. It has an extremely healthy consumer base. And we have robust innovation plans in the works for '27. We've already been meeting key retailers. We have a variety of initiatives, strategic investments in marketing. Brand health metrics are strong. And one area of weakness, as we mentioned, is the 16-ounce. And we have a new offering, which we'll be launching in a meaningful way in '27. So I think when you look at where brand CELSIUS is, the rationalization is behind us. It will flow through the third quarter. As we exit the year, we expect to continue to get CELSIUS back to growth, and category growth in '27 and beyond. The brand has a reason to believe, retailers are -- see the opportunity, it's driving incrementality in the category. And then when you look at CELSIUS and you look at the portfolio that we've established, and you look at Alani driving 50% growth in Q2, great momentum heading into '27. We're building a base business of SKUs there on a national basis. Rockstar has stabilized. We'll have a portfolio of brands entering 2027 that we'll truly be able to capitalize on, and which is driving incrementality retailers want. There's a lot of me-too competition out there. But when you look at CELSIUS and Alani, these are truly iconic brands. We have a reason to be there. Consumers love that's out there. And then I think when you look at the overall investments as well within our -- we've made through operational investments, Jarrod talked about revenue management, stable -- further vertical integration investments, and you start to walk down the P&L and the opportunities we have to continue to drive shareholder value, we're on track for that. We continue to improve in '27 and beyond. The retailer meetings have gone very successful with Celsius, with the total portfolio. We just got done with the PepsiCo annual operating meeting, where we spoke with over 1,000 key Pepsi employees, working on our plans for '27 and aligning on plans and priorities. So I think we're in really great shape for the portfolio. And your specific question on CELSIUS, we're excited about CELSIUS and where it's positioned and are confident in our strategy is as we're exiting 2026, into '27, working on the strategies, optimizing, investing in retail, making sure CELSIUS and Alani and our portfolio are disrupting that path to purchase, our brands show up at the right point, at the right time, and we continue to drive incrementality and category growth. Operator: Your line is open, Bonnie. Bonnie Herzog: I didn't hear you guys call my name. Can you hear me? John Fieldly: Yes, Bonnie. Bonnie Herzog: Sorry, I didn't hear my name being called. I actually did have a follow-up on that, just in terms of the SKU rationalization, John. As you sit here today, I'm just trying to understand, do you believe ultimately this was the right decision? And maybe is there anything you would have done differently as you kind of look back? And then could you give us a little more color on the disruption you called out that's going to continue to pressure the brand in Q3? And how much risk there is that sales for the brand won't be even more pressured? I guess I'm just trying to understand how much visibility you have. John Fieldly: Yes. No. Great question, Bonnie. I think one thing -- I think we did. We went too deep on the CELSIUS rationalization. I think when you look at we're entering the year, we could have done a much lighter job on that. But then there's also puts and takes. The integration on Alani could have been further challenged, and Rockstar. Looking back, I definitely would have not cut as many SKUs within the organization through these commercial plans. But I think taking the key learnings we have today, we've added stability within the portfolio. We see opportunity with Fizz-Free. That is now a core subline. We have the VIBE line, and we have our core flavors, and we're leaning in with innovation for '27. So I think that's definitely something we would have done -- I would have done different and the organization would have done differently. But taking those challenges, reacting, I mean that's the most important thing. Each and every day, you got to continue to analyze the moves, what's going on within the organization, and adapt. And that's what we're doing now. We have robust innovation plans for '27. We're going to further leverage the opportunities we have with Alani. And we're going to bring Rockstar along. There's opportunities there. So I think when you look at the organization for where we are today, from where we started the year, the foundation of the organization is extremely strong. And we're in an extremely great place to capitalize on the growth trends in this category. More health and wellness consumers are coming into the category, more female consumers. The category is going broader with our PepsiCo distribution. We're touching more consumers in more places from food service, hospitals, college universities and programs. So many great things are going on where we're bringing our portfolio of brand CELSIUS and Alani to more people and more places and more often. And when we're talking about Q3, I think when you look at the weekly run rates, we expect those to be somewhat similar within the CELSIUS portfolio. We are cycling prior year innovation. So when we talk about kind of a look of similar from Q2 to Q3, we do expect slight increases, but we don't have that robust innovation we had in the prior year. So we're cycling those higher comps. So that will still continue, as it did in Q2, to Q3. So hopefully that further explains kind of the question around the sidestep from Q2 to Q3. But the brand is healthy. We're seeing strong, continual repeat purchases, and there's just a massive opportunity with the CELSIUS portfolio. Operator: Your next question comes from the line of Kaumil Gajrawala with Jefferies. Kaumil Gajrawala: First, just a very quick one on CELSIUS. 3Q for the CELSIUS brand being the same as 2Q. Is that dollars or is that percentage? John Fieldly: Yes. I think we're talking about the dollars, looking at scan data. You'll have some fluctuations, when you look at the dollar level, but also on a percent level. Kaumil Gajrawala: Okay. Got it. And then you just mentioned a little bit about cycling and innovation, that sort of thing. You've got some of that you just laid out in 3Q and then a very big one in 4Q with the LTO on Alani. So as we think about all of these moving parts, there's so many things going on, which leads to a weaker net all-in number than we would have expected, I think than you guys would have expected as well. But it also feels like you're going into an area of more difficult comparisons for more than 1 quarter as it relates to top line. So how do you plan for that? How do you sort of continue pace when sort of simultaneously a very big comp on Alani, which has been driving the overall top line, and then trying to reverse the trends of CELSIUS? John Fieldly: Yes. No, great question. And so you have the trends, we've talked about CELSIUS. From Q2 to Q3, we're looking at somewhat of a sidestep as we still have the cycling of the optimization. That's going to continue to improve in the fourth quarter, and we expect to get back to growth in 2027 as we continue to have robust innovation plans in place. As it relates to Alani, you're referencing Witch's Brew, which we'll be launching. It's going to be the biggest LTO in history. We have a comp there. We know what that comp is. We're going to continue to -- Witch's Brew will be bigger than it ever has ever before. We're really excited about some of the plans and marketing initiatives we have around that. Now how do we continue to grow those comps on the Alani portfolio? That's building out that base portfolio. So over time, the LTOs become less relevant to the total top line revenue because you're building out that base business, that base SKU count, building that loyal consumer and that repeat purchase. And we're seeing that unfold as we started to do that in 2026. We'll continue to do that in 2027. So we have the base business growth as well as leveraging the LTO opportunities, which are seasonal, which are connecting with consumers, which are bringing new consumers into the category more than ever before. So when you take that into consideration and how we're building out strategically Alani and the opportunities and the strategy behind CELSIUS going forward, we feel we're set up for great success in '27 to cycle those comps and drive growth, not only within our top line, but the overall category, which is expected to grow as well. Operator: Your next question comes from the line of Jim Salera with Stephens. James Salera: I wanted to see if you could give us some more detail on the recovery in 4Q and maybe if you could just help contextualize the magnitude of that. I think the decline in core brand CELSIUS in 2Q/3Q is probably greater than expectations. And so should we think about that helping amplify the magnitude of the recovery in 4Q? And maybe if you can offer some thoughts about kind of the run rate as we think about modeling FY '27. John Fieldly: Yes. No, I think when you look at 4Q, you're starting to cycle some of the rationalization that has come out. So that will be a positive on the year-over-year comps, as you're looking at that on the weekly data. You do have some seasonality that needs to be taken into consideration that we do see within the category every year. And then we'll be when you're looking at also the expanded distribution, we've talked about that, with retailers with permanent fixtures, investment in cold placements. So those will be continually coming through the rest of the year as well. So that should give us expanded distribution, better placement for the CELSIUS portfolio. And then also, you have the comps from the prior year when the rationalization really started to progress through. So those are some things that will benefit the CELSIUS portfolio. James Salera: So can we think about that as kind of being up into the mid-single-digit range? Or just, again, trying to contextualize that step-up, and then maybe any detail on the pacing of international given some of the opportunity that you highlighted there. Just trying to think about, like I said, kind of the pace of recovery, if we should expect a quick snapback or if this is more of a gradual build 4Q and then through 2027? John Fieldly: Yes. I think I'll let Jarrod comment further on some of the scans versus the revenue that we're recognizing. But it should be more of a build as we're going through in Q4, because some of those SKUs slowly come out, right? So it will be more of a slow build on the CELSIUS portfolio. Do you want to touch-base on that, Jarrod? Jarrod Langhans: Yes. We'll also have more information on our next quarterly call as we kind of set timing and sequencing of when we're going to do load-ins and different things for the 2027 innovation. If you look at, just in general, brand CELSIUS, as John talked about, you'd see the build come through the scan data. Wouldn't necessarily look for a direct snapback, but that's from a scanner. From a reported perspective, we do have a softer comp year-over-year that would be seen in Q4. So the anticipation would be, with that, you have an opportunity to actually be in the opposite direction versus scans for brand CELSIUS. Now for Alani, we did have an inventory build in Q4 last year, which was partly why we had some soft comps for brand CELSIUS. So as we kind of get to building out the timing and sequencing of the 2027 innovation, because some of that will get loaded in Q4, we'll be able to better kind of map out for everyone what we're expecting on Q4 versus Q1, because we do have a nice, robust plan of innovation coming forward for 2027. John Fieldly: And then just to touch on your question in regards to international, that's an amazing opportunity. We've been building out the teams this year. We have a really strong foundation, building up the sales and marketing teams. We're seeing green shoots in a variety of markets, from Australia, Paris. And we expect to further launch Alani for the first time in a variety of international markets that we're working on. So I think we're in really good shape, although it's a smaller piece of our overall top line revenue. International can be a meaningful piece over the years. And as in prepared remarks, we anticipate a 15% over time, that we're looking at, and it could be even higher. So we'll see how the brands resonate. But health and wellness trends and what we're seeing in the category in the U.S. and North America are the same trends globally. And the awareness is a lot higher than we anticipated as we further conduct an analysis and research within these markets. Operator: Your next question comes from the line of Eric Serotta with Morgan Stanley. Eric Serotta: First, in terms of the shelf space gains that you talked about back at CAGNY and earlier in the year. Clearly, some of these gains have been a lot slower than expected in coming. Where are you today versus that original target? I believe over the past quarter or so, you talked about some imminent space -- permanent space increases in the mass channel. Has that happened? And how is it performing if it has? And if it hasn't happened, why not? And then a quick follow-up after that. Jarrod Langhans: Eric, this is Jarrod. In terms of space gains, one of the things that happened is, I would say, the timing was a bit off from our initial expectations as we were going into the year. With some of it being fixtures and cold, it did take a little longer, more labor intensive. So I know Toby had referred to a large retailer that was in place. We put a time line out back in June in terms of when we thought the cadence would occur. So that's come to plan. So that kind of as we go through July, we were able to pick up that space. We do have an opportunity to swap out some end caps with some cold space. That wouldn't really change the space equation. It's just better space as we look at September and into Q4 with another retailer. And then the same kind of new channel retailer that we talked about coming onboard in Q4 is coming onboard. So those are kind of the nuances of the ones that got pushed a little bit. The rest of them have been reset with the rest of the resets as those were just your typical shelf gains. And then Alani is in place as well. Eric Serotta: Great. And then just in terms of the innovation strategy, this year you pulled back on sort of permanent extensions for brand CELSIUS. It sounds like you're planning on bringing that back next year. Could you just talk about some guardrails that you might have in place in terms of SKU proliferation just to kind of make sure that we're not in the same situation in another year or 2 in terms of over-proliferation and sort of undoing the work that you're doing of turning the tail? John Fieldly: Yes. I think as you're managing a portfolio and you're managing brands, you're always going to continue to optimize the tail. But I think when we look at your base SKUs, you're always evaluating do you have the fastest cars on the track and making sure you're optimizing that, to maximize the shelf space, to maximize the distribution. So those are something that you continually do through your commercial planning process, that continues to be evaluated, and replacing the tail. I think that's the most important thing. We need to continue to drive incrementality with the portfolio, make sure we continue to leverage the maximum billboard so we can disrupt that path to purchase, and versus cutting tail, replacing it with new innovation that's permanent throughout the year. So I think that is something that will be a strategic change going forward. Operator: Your next question comes from the line of Andrea Teixeira with JPMorgan. Andrea Teixeira: I was just hoping to see if you can elaborate a little bit more on Alani. We clearly have seen, as you mentioned, like about half of the gap, the 10% gap, was about like basically the shipment depletes. And that is set, right? I mean you can't -- it seems like you're not going to have an improvement. And that's more brand CELSIUS, I understand that. But then as we think about the deceleration and disruption and the changes in distributor, you still have $8 million charge, and that's a cash charge, I'm assuming. How to think about the cadence with Alani itself? I understand all the fuel dynamics and you're going to put Witch's Brew even stronger this year. But as we think about like all the dynamics that you highlighted in terms of the shipments in the fourth quarter that were strong last year as well, how we should be thinking of the improvement that you called out in the fourth quarter? I know it's a loaded question, but as we see CELSIUS in the same situation for the third quarter, unfortunately, then you have an improvement in the fourth, but then Alani has this kind of tough comp, so how we should be thinking about the fourth quarter for Alani? And then when do we see this noise of distributor charges coming out? Jarrod Langhans: I'll take this one, John. In terms of the fourth quarter, I think like I was referring to back with Jim, we need to take a look at the timing and sequencing of when we're going to bring our innovation in because that will impact the comps that we're going to be seeing. We've got a lot of good innovation we're going to be coming out with in Q1. And so we're going to have some of that coming in November, December. Some of that will come in throughout Q1. And so we're mapping that out right now. It's not fully baked in. And so we're working with our DSD partner on that. That will impact the timing and sequencing of what we're seeing from an Alani perspective where we're going to have Alani growth, but we're also going to have the comp that we're rolling over from the pipe fill last year. But also we have a lighter comp on brand CELSIUS and we've got new innovations coming in at the same time. So we've got an easier comp with brand CELSIUS plus new innovation. We've got a tougher comp with Alani with new innovation. And we're going through that right now with our DSD partner to see how that shakes out, and we'll be able to provide more data on that once we get to our next call after the Q3 earnings. John Fieldly: And I'm just -- great question because there is some nuances from quarter-to-quarter, especially on the -- the load-ins on Alani going into the PepsiCo system. So that is a comp. And as Jarrod mentioned, when you look at our revenue, we do have innovation going in. So there are some offsets there. But I think the most important thing for the long term and the long-term health of these brands is truly happening at the registers. That's something that we continue to focus on. We have to focus on that. We'll have nuances from month-to-month, quarter-to-quarter on inventories and warehouses. But at the end of the day, it's how are those scans performing? How are consumers reacting with these brands? That are going to continue to drive this portfolio for and to continue to create opportunities in this fast-growing energy category, which is going beyond energy, is going to more day parts and occasions. That's really the value behind these brands. Operator: And we've now reached the end of the Q&A session. I'd like to turn the call back to Mr. John Fieldly for closing remarks. Please go ahead. John Fieldly: Thank you for joining us today. The second quarter was a meaningful progress in advancing our scaled portfolio of leading brands. We're entering the back half of the year with a clear set of priorities. We have a strong slate of fall programming and new campaigns ahead. Alani Nu has what we believe to be the biggest launch in all history for that brand. And we are on track for planning our 2027 priorities with key retailers and we're doing it earlier than we have ever before. I want to take this opportunity to thank our employees, our partners and all of our customers for their focus, their teamwork and what makes this all possible. To everyone listening today, we appreciate the support. We look forward to updating you next quarter. Until then, grab a CELSIUS and live fit. Operator: This concludes today's call. Thank you all for attending. You may now disconnect. Before you buy stock in Celsius Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Celsius Holdings wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Celsius Holdings. The Motley Fool has a disclosure policy. Celsius (CELH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Celsius Holdings, Inc. CELH reported a second-quarter earnings miss even as its broader beverage portfolio continued to expand. Revenues rose 10.6% year over year to $817.9 million, supported by Alani Nu and Rockstar, but adjusted earnings fell 23% to 36 cents per share. The quarter sharpened the divide inside the portfolio. Alani Nu is adding consumers, distribution and innovation-driven growth, while the flagship CELSIUS brand is working through SKU rationalization, softer retail trends and inventory rebalancing. Contracting margins add another hurdle, making the next phase of the story less about portfolio scale and more about whether that scale can translate into better earnings. Adjusted earnings of 36 cents per share missed the Zacks Consensus Estimate of 42 cents. Revenues of $817.9 million also fell short of the $883 million consensus mark, although the top line increased 10.6% from the prior-year quarter. The growth came from a broader portfolio rather than uniform brand momentum. Alani Nu contributed $364.4 million in second-quarter revenues and Rockstar added about $66.5 million, while CELSIUS brand revenues declined 11.7%. That mix helped consolidated revenues grow despite weakness in the company’s flagship franchise. Portfolio retail trends were stronger than reported revenues. U.S. tracked-channel retail sales across CELSIUS, Alani Nu and Rockstar increased 31% in the quarter, and the portfolio held about 20.1% of the U.S. ready-to-drink energy category. The gap between portfolio growth and core-brand performance remains the key issue after the report. Celsius Holdings Inc. price-consensus-eps-surprise-chart | Celsius Holdings Inc. Quote Alani Nu remains Celsius Holdings’ clearest near-term growth engine. The brand generated about $364.4 million in second-quarter revenues, up roughly 21% year over year, while tracked-channel retail sales advanced 55.7%. Its U.S. ready-to-drink energy dollar share reached about 8.7%. Innovation is helping sustain that momentum. Purple Cotton Candy became Alani Nu’s top-selling new flavor during the quarter, following launches such as Cherry Bomb and Lime Slush. Management said successful limited-time flavors can graduate into permanent placements, which can help expand the brand’s core assortment as it scales. Monster Beverage Corporation MNST is a relevant industry benchmark, with its Monster Energy Drinks segment posting 27.6% net-sales growth in the first quarter of 2026. CELSIUS brand revenues fell 11.7% year over year in the second quarter, while tracked-channel retail sales declined 2%. The brand’s U.S. ready-to-drink energy dollar share was about 9.5%, down from roughly 9.9% in the first quarter. Management tied the pressure to SKU optimization, delayed installation of targeted retail space, limited innovation, increased trade and promotional spending, softness in the club channel and distributor inventory rebalancing. The rationalization reduced distribution points before all planned shelf and cooler gains were in place. PepsiCo, Inc. PEP remains central to execution because its direct-store-delivery system distributes CELSIUS, Alani Nu and Rockstar in the United States. There are early productivity signs. Dollars per point of distribution increased about 16% from the first quarter to the second despite roughly 7% fewer distribution points. Fizz-Free tracked-channel dollar sales also rose more than 20% sequentially. Those improvements have not yet restored brand growth. Management expects the third quarter to look similar to the second before CELSIUS returns to growth exiting 2026, with additional 16-ounce innovation planned for early 2027. That timing makes the next several quarters an execution test rather than a confirmed recovery. Gross margin declined 340 basis points year over year to 48.1% in the second quarter. Higher promotional activity and direct-store-delivery channel mix pressured profitability, while aluminum and fuel costs offset some benefits from freight optimization and acquisition integration. Adjusted EBITDA fell 12% to $184.2 million, with adjusted EBITDA margin dropping to 22.5% from 28.4%. The margin contraction explains why double-digit revenue growth did not translate into higher adjusted earnings. Celsius Holdings is pursuing several offsets, including a second North Carolina manufacturing line, direct sourcing, freight improvements and price-pack architecture. Still, management expects third-quarter gross margin to remain in the high 40s at current diesel and aluminum levels. The earnings recovery could therefore lag revenue growth even if portfolio sales remain healthy. Rockstar contributed about $66.5 million in second-quarter revenues, but consumer demand remains soft. Tracked-channel retail sales declined 13% year over year, and the brand held about 1.9% of U.S. ready-to-drink energy dollar share. The integration was completed in June, shifting the focus from operational transition to demand stabilization. Management has cited early velocity gains after SKU rationalization and said Rockstar is tracking in line with the sales expectations set at acquisition. The company is also refreshing packaging and focusing marketing around motorsports, music and gaming. The key issue is timing. Management continues to position 2026 as a stabilization year and Rockstar for a stronger 2027. Until retail growth improves, the brand adds scale to CELH’s portfolio but does not provide the same demand momentum as Alani Nu. Image Source: Zacks Investment Research The second-quarter report showed that Alani Nu can offset part of the weakness in the CELSIUS brand, but it has not yet fully offset the earnings impact of softer core trends and lower margins. That distinction matters because consolidated revenue growth can remain healthy while profitability stays under pressure. CELH currently carries a Zacks Rank #5 (Strong Sell). The stock also has a Growth Score of A, Momentum Score of B, Value Score of D and VGM Score of B. The favorable Growth and Momentum Scores highlight the portfolio’s expansion potential, but the Zacks Rank remains the more important near-term signal because it incorporates the direction of earnings-estimate revisions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. For investors evaluating the Q2 event, the next proof points are clear: CELSIUS brand growth needs to stabilize, margin initiatives need to overcome commodity and promotional pressure, and Rockstar needs to show better retail demand. Until those trends improve, Alani Nu is carrying more of the portfolio’s growth burden than the headline revenue increase alone suggests. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research