Celsius Holdings' Q2 2025: Key Contradictions on Margins, Alani Growth, and Costco Revenue Insights

Gross margin performance and expectations, Alani Nu's distribution and market positioning, Alani growth and market performance, Costco revenue growth expectations, and category growth and recovery are the key contradictions discussed in Celsius Holdings' latest 2025Q2 earnings call.



Revenue Growth and Brand Performance:
- Celsius Holdings reported revenue of $739.3 million for Q2 2025, marking an 84% year-over-year increase.
- The growth was primarily driven by Alani Nu brand revenue, contributing $301.2 million, and Celsius brand revenue at $438.1 million.

Alani Nu's Breakout Growth:
- The Alani Nu brand experienced 129% growth in retail sales, raising its share by 3.2 points year-over-year, achieving a 6.3 share for the 13 weeks ended June 29.
- The growth was attributed to strong limited time offer sales, particularly of Sherbet Swirl and Cotton Candy flavors, and sustained core SKU performance.

Celsius Brand Resilience:
- The Celsius brand delivered a 6.1% increase in unit sales and 3% growth in dollar sales, maintaining a 11-point share.
- Resilience was driven by consumer demand, strong execution at retail, and effective innovation, such as the release of Pink Lemonade and Dragon Fruit Lime flavors.

Gross Margin Performance:
- Celsius Holdings reported a consolidated gross margin of 51.5%, down 50 basis points year-over-year, supported by favorable material costs and improved production yields.
- The margin was impacted by Alani Nu's lower-margin profile, but benefited from cost efficiencies and product mix improvements.