Celsius (NASDAQ:CELH) executives highlighted a record year for the company’s “Modern Energy” portfolio on its fourth quarter 2025 earnings call, pointing to growing scale across Celsius, Alani Nu, and Rockstar Energy and outlining integration milestones that management expects to complete in the first half of 2026.
Record revenue and a growing multi-brand portfolio
Chairman and CEO John Fieldly said Celsius delivered full-year record revenue of $2.5 billion in 2025, which he described as evidence of momentum and operating discipline. Fieldly emphasized that the company is investing across its portfolio of Celsius, Alani Nu, and Rockstar Energy to broaden reach, while staying focused on execution with Pepsi and retail partners.
Brand updates: Celsius, Alani Nu, and Rockstar
On innovation and demand activation, Fieldly said Celsius started 2026 with its Fizz-Free line available nationally, citing an opportunity to attract consumers seeking non-carbonated options. He said the company plans a more intentional cadence of innovation and limited-time offers (LTOs) in 2026, supported by broader distribution and in-market execution.
For Alani Nu, Fieldly said momentum remains strong and that the brand’s transition into the PepsiCo system is progressing. CFO Jarrod Langhans reported fourth-quarter Alani net sales of $370 million, which he said was a quarterly record driven by customer demand, increased distribution points, and increased orders as the brand moved into the Pepsi distribution system. On a pro forma basis, he said that would equate to 136% growth versus the prior year quarter. Langhans also said that in the nine months since Celsius purchased the brand, Alani has contributed $1 billion to net sales.
Management highlighted Alani’s first LTO in the Pepsi system, Cherry Bomb, which they said “ran out in record time” and drove incremental orders late in the year. In Q&A, Langhans said early 2026 performance included “triple-digit growth in the first 6–8 weeks of the year,” and that the company expects continued expansion into more locations with more SKUs, along with “overall triple-digit space gains.” He added that the company recently launched another Alani LTO, Lime Slush.
For Rockstar, Langhans said the integration continues and remains on track to be completed in the first half of 2026. He also explained that integration affected how some sales were reflected under GAAP during the quarter, with certain components recorded in “other income” rather than net sales.
Integration timing and accounting impacts
Langhans said that in the fourth quarter, Rockstar contributed $45 million recorded within net sales and an additional $6 million recorded in other income. For the full year, he said Celsius recorded $56 million in net sales for Rockstar and an additional $13 million in other income. Looking ahead, he said the company expects to transition the U.S. portion of Rockstar to a finished goods model in the first quarter of 2026, leaving only Canada in other income until that market transitions in the first half of 2026.
On Alani, Fieldly said the company is “substantially complete” on the U.S. direct-store-delivery (DSD) transition as of year-end, and reiterated an expectation that the Alani implementation and integration will be completed by the end of the first quarter of 2026.
Langhans also said that the Alani transition into Pepsi influenced reported results for the Celsius brand in the quarter as the company balanced inventory movements within the Pepsi system. He said scanner data for Celsius was up 12.8% for the quarter, while underlying GAAP sales for Celsius showed a 7.7% decline due to “timing activities.” When combining Celsius inventory movements with the Alani load-in, he said the company had a net benefit of approximately $25 million.
Financial results and margin outlook
For the fourth quarter, Langhans reported consolidated revenue of approximately $722 million, and reiterated full-year consolidated revenue of $2.5 billion. He said brand Celsius delivered $1.46 billion of net sales for the full year, representing 7.5% year-over-year growth.
Gross profit for the fourth quarter increased to $341.8 million from $166.7 million in the prior-year period, with a gross margin of 47.4% versus 50.2% a year earlier. Langhans attributed the margin change to Rockstar dilution, higher product costs tied to integration costs and tariffs, partially offset by improved outbound freight and favorable product and pack mix. He said one-time integration and distribution transition costs impacted gross margin, and management expects margin expansion as integrations conclude and ongoing initiatives take hold.
Langhans said the company expects gross margins to return to a “more normalized profile,” targeting gross margins in the low 50s in 2026, driven by savings in raw materials, scrap, manufacturing tolling fees, freight, and mix, partially offset by tariffs and aluminum costs. In Q&A, he added that the company sees an opportunity to move into the mid-50s over the “next handful of years,” though he did not call that a 2026 target.
On profitability, Celsius reported fourth-quarter net income of $24.7 million on a GAAP basis. Adjusted EBITDA for the quarter was $134.1 million, up from $62.9 million a year ago, representing an Adjusted EBITDA margin of approximately 18.6%. For the full year, the company reported net income of $108 million and Adjusted EBITDA of $619.6 million, representing an Adjusted EBITDA margin of approximately 24.6%.
Balance sheet, capital allocation, and shelf space commentary
Celsius ended the year with $399 million in cash and approximately $670 million in total debt. Operating cash flow was $359 million. Langhans said the company reduced debt by approximately $200 million during the quarter and repurchased $40 million of shares, with $260 million remaining under its repurchase program.
On distribution and shelf space, executives said spring resets typically finalize by the end of spring ahead of the summer selling season, with the biggest gains for Alani expected in convenience. In Q&A, Langhans said the company expects 17% space gains for Celsius and “triple-digit” shelf-space gains for Alani. Fieldly also discussed broader category trends, saying retailers are expanding energy space as the category grows and cited cooler and shelf optimization in convenience as one contributor to additional energy placements.
About Celsius (NASDAQ:CELH)
Celsius Holdings, Inc is an American beverage company known for its line of fitness and energy drinks formulated to support active lifestyles. The company’s flagship product, the Celsius® brand, features beverages enhanced with ingredients such as green tea extract, guarana seed extract and essential vitamins, positioned as a functional alternative to traditional energy drinks. These products are designed to deliver a blend of ingredients that support metabolism and sustained energy without high sugar content or artificial preservatives.
In addition to its core carbonated drink portfolio, Celsius has expanded its offerings to include powder mixes and non-carbonated ready-to-drink variants, catering to consumer preferences around taste, convenience and nutritional needs.
