CELH Q1 2026 Earnings Call Summary

Record Revenue: CELH reported Q1 2026 revenue of $783 million, a significant increase from the previous year.
Brand Performance:
- CELSIUS: Net sales of $348 million, up 6% year-over-year.
- Alani Nu: Net sales of $368 million, representing a pro forma growth of approximately 60% year-over-year.
- Rockstar: Net sales of $67 million.
Profitability:
- GAAP net income reached $110 million, more than double the $44 million from the prior year.
- Adjusted EBITDA was $195 million, with a margin of 24.9%, up from 21.2%.
- Gross margin was approximately 48.3%.
Share Repurchase: Approximately 700,000 shares repurchased for $24.1 million.

Market Share Growth: CELH's combined portfolio now represents 20.9% of the U.S. energy drink market, with two billion-dollar brands.
Integration Success: Completed integration of Alani Nu, capturing $50 million in synergies, and on track for Rockstar integration completion in H1 2026.
Innovation: Successful limited-time offers (LTOs) such as Lime Slush and Electric Vibe are driving consumer engagement and sales.
International Expansion: Launched CELSIUS in Spain through a partnership with Suntory, with plans for further European expansion.

Q2 Expectations: Anticipate continued growth with additional innovation and marketing support, particularly for the summer selling season.
Shelf Space Gains: Projected 17% shelf space gain for CELSIUS and over 100% for Alani Nu across various channels.
Profitability Goals: Aiming to return gross margins to the low 50s by the end of 2026, contingent on commodity price stabilization.

Commodity Cost Pressures: Rising costs for aluminum and freight could impact margins and profitability.
SKU Rationalization Impact: The optimization process may temporarily affect CELSIUS growth as slower items are phased out.
Competition and Cannibalization: Concerns about potential cannibalization between CELSIUS and Alani Nu, as well as competition within the energy drink market.

CELSIUS Growth Drivers: Management acknowledged that limited innovation and SKU rationalization impacted CELSIUS growth, but expressed optimism about upcoming product launches and distribution optimization.
Alani Nu Integration: Clarified that increased orders from PepsiCo were aimed at expanding distribution, not necessarily indicating inventory build.
Margin Outlook: Management indicated that Q2 might see flat margins compared to Q1 due to ongoing commodity pressures, but expects improvements in Q3 and Q4 as operational efficiencies are realized.

This summary encapsulates the key points from CELH's Q1 2026 earnings call, highlighting both the successes and challenges faced by the company.

CELH — Celsius Holdings, Inc.