Celsius Holdings 2025 Q3 Earnings Surging Revenue Amid Sharp Net Loss Deterioration

Celsius Holdings (CELH) reported fiscal 2025 Q3 earnings on Nov 7, 2025, with revenue soaring 172.9% to $725.11 million, far exceeding expectations. However, the company swung to a net loss of $61.01 million, a 1059.9% deterioration from $6.36 million net income in 2024 Q3, and shares plummeted 34% month-to-date.

Revenue

The company’s total revenue surged to $725.11 million, a 172.9% year-over-year increase, driven by strong performance across its energy drink portfolio.

Earnings/Net Income

Celsius Holdings reported stable EPS at -$0.27, but the net loss of $61.01 million marked a significant deterioration from the prior year’s net income of $6.36 million. This reflects challenges in managing costs amid rapid revenue growth.

Post-Earnings Price Action Review

Celsius Holdings’ stock price fell 9.16% in the latest trading day, dropped 31.06% over the past week, and declined 34.00% month-to-date. Despite beating revenue expectations, the sharp net loss and concerns over distribution transition costs with PepsiCo drove investor pessimism.

CEO Commentary

John Fieldly, Chief Executive Officer, emphasized the company’s “transformation through growth catalysts,” highlighting the integration of Alani Nu and Rockstar Energy into PepsiCo’s distribution network. While revenue growth was robust, he acknowledged margin pressures from distributor transition costs and operational complexities. Fieldly expressed cautious optimism about long-term opportunities, including international expansion and brand innovation, but noted short-term challenges in balancing growth with profitability.

Guidance

The CEO indicated no specific forward-looking revenue or EPS targets for 2026 but reiterated confidence in the company’s strategic partnerships and product portfolio. Management expects to optimize cost structures and leverage PepsiCo’s distribution capabilities to drive sustainable growth, though near-term profitability remains uncertain.

Additional News

1. Distribution Transition with PepsiCo: Celsius Holdings finalized the transfer of Alani Nu distribution to PepsiCo by December 2025, incurring $246.7 million in termination costs. PepsiCo will fund these fees, signaling a strategic shift to consolidate distribution under one partner.

2. Insider Selling Activity: Insiders sold 57,500 shares over the past three months, including 406,141 shares by CEO John Fieldly and 640,000 by William H. Milmoe, raising investor concerns about confidence in short-term prospects.

3. Hedge Fund Portfolio Shifts: Institutional investors like Vanguard and Steadfast Capital added shares, while Morgan Stanley and Norges Bank reduced holdings, reflecting mixed sentiment amid valuation concerns.