Celsius Holdings reported second-quarter revenue of $818 million, reflecting an 11% year-over-year increase. The growth was driven by strong performance from the Alani Nu brand, which offset a decline in the core Celsius brand due to strategic SKU rationalization.

Portfolio performance and brand dynamics

The company’s portfolio strategy is yielding divergent results across its brands. Alani Nu net sales reached approximately $364 million, up 21% year-over-year, with retail sales in tracked channels growing 56%. The brand surpassed $1 billion in retail sales in the first half of the fiscal year. In contrast, brand Celsius net sales fell 12% year-over-year, while retail sales declined 2%. Management attributed the gap between reported net sales and retail scan data to shipment timing, inventory rebalancing, and increased trade investment.

Rockstar net sales were approximately $66 million. The integration of Rockstar was completed in June, on the nine-month timeline set by the company. Management noted that dollars per point of distribution for brand Celsius rose 16% in the second quarter versus the first, despite a 7% reduction in points of distribution.

Profitability and operational metrics

Gross margins remained stable at approximately 48%, consistent with the first quarter. Adjusted EBITDA stood at $184 million, or 22.5% of revenue, compared to $210 million in the same quarter last year. For the first half of the year, adjusted EBITDA was $380 million, up 36% year-over-year at 23.7% of revenue. Selling, general and administrative expenses were $238 million, flat with the prior year in dollar terms but decreasing to 29% of revenue from 32% a year ago.

Capital allocation and future outlook

The company repurchased approximately $100 million of stock in the second quarter, bringing first-half repurchases to $124 million. Celsius Holdings intends to continue utilizing its $300 million share repurchase authorization this year. Management also reduced its interest rate by 25 bps in July.

Looking ahead, the company expects international markets to represent more than 15% of revenue over the next five years. Innovation plans for 2027 are robust, with new offerings for the 16-ounce line expected in early 2027. Management anticipates brand Celsius will return to growth exiting the year, following a third quarter that is expected to resemble the second quarter in terms of performance trends.

What the numbers show

A significant divergence exists between consumer demand and reported financials for the core Celsius brand. While retail sales (scanner data) declined only 2%, reported net sales dropped 12%. This 10 percentage point gap highlights the impact of channel inventory adjustments and trade spend rather than a collapse in consumer interest. Conversely, Alani Nu shows strong alignment between its 56% retail growth and 21% net sales growth, though management notes that promotional allowances and channel mix account for the difference.

Celsius Holdings, Inc. has entered a partnership with ATHX Games as its Global Energy Drink Partner. The deal supports the hybrid fitness competition's expansion into the United States, with events scheduled across four major cities this fall.

The collaboration begins with an activation in New York on Sept. 26 before moving to competitive events in Miami, Houston, and Los Angeles.

Partnership Structure

Celsius will serve as the title sponsor of the fitness festival at Strong New York on Sept. 26. The activation includes a connected experience featuring ATHX's 45-minute FitScore test, which measures strength, endurance, and conditioning. Athletes will then move to the CELSIUS x ATHX Recovery Zone.

Following the New York event, Celsius will be embedded in the athlete experience at subsequent competition floors. This includes dedicated booths, product sampling, giveaways, and on-course branding.

Event Schedule

The partnership rollout aligns with ATHX Games' initial US stops. The schedule is as follows:

Miami marks Celsius' home market entry for the partnership. Houston and Los Angeles represent the first-ever stops for ATHX Games in those cities.

Strategic Outlook

Kyle Watson, Chief Brand Officer at Celsius, stated that the brand aims to show up where active communities train and compete. He noted that fitness culture is extending beyond traditional gyms.

Mark Hartnett-Morgan, Co-founder of ATHX Games, described Celsius as a partner aligned with their belief that fitness should be competitive and social. He mentioned plans to move into new international markets together in 2027 and beyond.