Celsius Holdings 2025 Q3 Earnings Record Revenue Growth Amidst Net Loss Widening

Celsius Holdings reported Q3 2025 earnings with revenue surging 172.9% to $725.11 million, exceeding estimates. Despite strong top-line growth, the company posted a net loss of $61.01 million, a 1059.9% decline from net income of $6.36 million in Q3 2024. Shares fell sharply post-earnings, reflecting investor concerns over profitability and strategic transitions.

Revenue

Celsius Holdings’ Q3 2025 revenue reached $725.11 million, a 172.9% increase from $265.75 million in the prior year. North American operations drove growth, contributing $701.99 million (+184.1% YoY), while international revenue rose 24.3% to $23.12 million. Asia-Pacific saw the most dramatic surge at +492.3% YoY to $3.52 million, underscoring the company’s expanding global footprint.

Earnings/Net Income

The company maintained an EPS of -$0.27 for Q3 2025, unchanged from the prior year. However, net income turned to a $61.01 million loss, a 1059.9% deterioration from $6.36 million in Q3 2024. The significant net loss highlights operational challenges, including $246.7 million in distributor termination costs linked to the Alani Nu brand’s transition to PepsiCo distribution.

Post-Earnings Price Action Review

Celsius Holdings’ stock price plummeted 9.16% in a single trading day, 31.06% over the week, and 34.00% month-to-date following the earnings report. The sharp decline occurred despite exceeding revenue expectations and a 50% EPS beat, as investors reacted to the widening net loss and concerns over short-term profitability. Analysts attributed the drop to worries about distribution transition costs and margin pressures, despite positive momentum from Alani Nu’s 114% retail sales growth.

CEO Commentary

John Fieldly, CEO of Celsius Holdings, emphasized the company’s strategic progress during the earnings call, stating, “The third quarter marked another important step in Celsius Holdings’ transformation in a year full of growth catalysts.” He highlighted the integration of Alani Nu and Rockstar Energy into PepsiCo’s distribution network as a key enabler for long-term scalability. Fieldly also noted the gross margin improvement to 51.3%, driven by reduced promotional spending and operational efficiencies, while acknowledging the need for continued cost management.

Guidance

Celsius Holdings provided forward-looking guidance, projecting Q4 2025 revenue of $740 million and full-year 2025 revenue of $2.8 billion. The company expects non-GAAP EPS to remain positive, with a focus on stabilizing profitability through cost optimization and leveraging PepsiCo’s distribution infrastructure. Management reiterated confidence in long-term growth, driven by international expansion and brand innovation.

Additional News

1. Distribution Transition: Celsius announced the full transition of Alani Nu distribution to PepsiCo by December 2025, aiming to streamline operations and reduce costs.

2. Executive Leadership: Rishi Daing joined as Chief Marketing Officer, reinforcing the company’s focus on brand innovation and customer engagement.

3. Insider Selling: Insiders, including CEO John Fieldly and CFO Jarrod Langhans, sold shares totaling $30 million in the past quarter, raising questions about confidence in short-term performance.

Celsius Holdings’ Q3 results underscore a pivotal phase in its strategic evolution, balancing rapid revenue growth with profitability challenges. While the partnership with PepsiCo positions the company for long-term scalability, near-term execution risks and margin pressures remain critical focus areas for investors.