Asked for clarification on the difference between Alani Nu's tracked scanner growth and reported revenue, specifically if there was a shipment benefit or inventory build from increased PepsiCo orders and the impact of promo/allowances.

The increased orders were primarily due to building ACV and expanding locations within the PepsiCo system. The CFO explained the nuances of the DSD transition, including Alani's larger direct business compared to CELSIUS's at the time of transition, and a $5 million non-cash GAAP impact from amortization related to the transaction. “That comment was more to refer to that as we were going more into the Pepsi system across Q1 that we're building ACV and therefore, building expanding the locations that the availability of the brand was in terms of average SKUs per location and in terms of just locations in general, which was helped driving the scanner growth and helped driving our internal GAAP numbers.”

Inquired about the breakdown of CELSIUS's 17% shelf gains (foodservice vs. tracked channels) and the progress and timing of Alani Nu's over 100% shelf gains, particularly in gas and convenience channels.

Management emphasized strong retailer confidence in the energy category, leading to increased overall energy space. Alani Nu's significant space gains are largely in place, with most resets expected to finalize by May/June. Foodservice distribution is difficult to quantify but involves adding new outlets. “On your question around foodservice, difficult to break that out. In some cases, foodservice becomes a zero-sum game, you're in or you're not. And so it's really about adding new outlets that help in overall space gains.”

Asked about the company's strategy for balancing new flavor innovation through LTOs (like Cherry Bomb and Lime Slush) versus bringing back popular flavors permanently, given their success.

The LTO strategy provides optionality for 'surprise and delight,' leveraging seasonal trends and driving trial. Successful LTOs can be considered for permanent SKU status. This approach allows for learning consumer preferences and maximizing the PepsiCo distribution network, driving trial and awareness. “The LTO strategy allows us to do a lot of surprise and delight, especially with the Alani portfolio as well as leverage the seasonal trends.”

CELH

Celsius Holdings (CELH) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Consumer Staples· May 7, 2026

Source: earnings call transcript

Executive summary

Celsius Holdings Q1 FY26 — Record Revenue and Portfolio Share Expansion

Celsius Holdings delivered record first-quarter revenue and expanded its U.S. energy drink market share, driven by successful brand integrations and strategic portfolio management. While facing commodity cost headwinds, the company remains focused on operational discipline, margin expansion initiatives, and leveraging its diversified brand portfolio for sustainable growth, with significant innovation planned for the remainder of the year.

Highlights

Achieved record first quarter revenue of $783 million.
Expanded portfolio dollar share to 20.9% in Circana tracked channels (4 weeks ending April 12).
Completed Alani Nu integration, capturing approximately $50 million in synergies.
Alani Nu net sales grew approximately 60% year-over-year to $368 million on a pro forma basis.
Adjusted EBITDA increased by approximately $125 million year-over-year to $195 million, with margin expanding to 24.9%.

Concerns

Midwest aluminum premium and LME moved higher, potentially impacting the timing of margin expansion back to the low 50s.
Severe winter weather in the Northeast created incremental freight costs in Q1.
Additional freight expense was incurred to rebalance Rockstar inventory across the network.
CELSIUS brand growth moderated to approximately 6% year-over-year, influenced by SKU optimization and limited Q1 innovation.

Guidance & targets

Category	Target	Timeline	Confidence
Gross margin trajectory	ramp back to the low 50s high materiality	future	Medium
Rockstar brand trajectory	stabilization year for Rockstar medium materiality	FY26	High
North Carolina manufacturing line production	begin producing medium materiality	H2 FY26	High
Aluminum coverage extension	extend coverage into 2027 and 2028 medium materiality	2027 and 2028 · 2027, 2028	High
Gross margin sequential trend	more of a side-step-type activity high materiality	Q2 · FY26	High
Gross margin sequential trend	stair step high materiality	Q3, Q4 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
CELSIUS Net sales reflecting continued focus on tightening the alignment between shipments and underlying consumer takeaway. SKU optimization project led to velocity improvements. Moving into a more active innovation period, including activations around the global soccer tournament and 100 days of summer programming.	$348 million	approximately 6%	—	—
Alani Nu Net sales representing pro forma growth. Strong execution as the brand builds on distribution gains from the PepsiCo system transition. Integration now complete, operating with a cleaner structure. Tracked scanner data shows Alani at approximately 100% year-over-year, adjusted to 85% for Cherry Bomb sell-in timing. This 85% implies organic Q1 2026 RTD revenue of about $340 million when adjusting for higher sales mix associated with DSD system, plus $28 million from Canada and non-U.S. energy business.	$368 million	approximately 60%	—	—
Rockstar Net sales for the quarter. With SKU reconfiguration and reset activity substantially complete, the focus is on stabilizing the brand as integration completes in the first half of 2026. The U.S. business is substantially on the finished goods model with some remaining components still in transition.	$67 million	—	—	—

Product announcements

Product	Type	Timeline
Alani Nu Lime Slush	launch	Q1 FY26
CELSIUS Fizz-free	expansion	Q1 FY26
CELSIUS Electric Vibe	launch	Q2 FY26
CELSIUS summer LTO	launch	Q2 FY26 and back half of the year

Deals & partnerships

Suntory Beverage & Food Spain exclusive sales and distribution agreement

Launched the brand CELSIUS in Spain, building on existing collaboration with Suntory in other international markets. Portugal is next on the European footprint with this partnership.

Aston Martin Aramco Formula One Team official global energy drink partner multiyear

Multiyear global partnership announced to support brand momentum.

Palm Tree Music Festival global partnership

Kicked off a global partnership to support brand momentum.

Breakaway continued partnership

Continued partnership building on strong preference at the intersection of music, fitness and culture.

23XI Racing and Tyler Reddick new partnership

New partnership for Rockstar, connecting the brand with its core motorsports and action sports audience. Kicked off the Formula DRIFT season opener in April.

Capital programs

Second manufacturing line in North Carolina underway

Benefit:some benefit in the back half of the year with full benefit in 2027

The second manufacturing line in North Carolina is expected to begin producing in the back half of the year, contributing to margin improvement.

Risks & headwinds

Elevated commodity and input costs Q1 FY26, potentially across the year

Midwest aluminum premium moved higher as did the LME. Severe winter weather in parts of the Northeast created incremental freight costs. Additional freight expense incurred to rebalance Rockstar inventory.

Mitigation:Sourcing strategies in place, fully locked on aluminum conversion, price locks on a variety of other ingredients and vitamins, actively working to extend coverage into 2027 and 2028.

CELSIUS brand growth moderation Q1 FY26

Net sales growth of approximately 6% year-over-year.

Mitigation:SKU optimization to improve velocity, focus on expanding fizz-free distribution, and planned LTOs and activations in Q2 and H2 to drive excitement and merchandising.

Rockstar brand stabilization FY26

Net sales of $67 million for the quarter.

Mitigation:SKU reconfiguration and reset activity substantially complete, integration on track for completion in H1 2026, focusing on improved velocities on core items.

What to watch in Q2 FY26

Gross margin trajectory

Q2 FY26, Q3 FY26, Q4 FY26

Current 48.3% in Q1 FY26

Target Sidestep in Q2, stair-step improvement in Q3/Q4 towards low 50s

Why it matters

Key indicator of profitability and effectiveness of cost management and pricing strategies amidst commodity headwinds.

Q2 is probably more of a side-step-type activity and then Q3 and Q4, where you're going to see the stair step and then continue on to 2027 with further stair steps.

Find out whether CELH delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquired about the drivers behind moderating CELSIUS growth, including the impact of limited Q1 innovation, SKU rationalization, and potential cannibalization from Alani Nu, and the outlook for CELSIUS growth for the rest of the year.

Management attributed the moderation to SKU optimization and a focus on fizz-free distribution, noting that optimization temporarily softens total distribution points (TDPs) but improves velocity. They highlighted two planned LTOs for CELSIUS in the coming months to drive excitement and merchandising.

“Optimization, generally, as John mentioned, plays out over a couple of quarters where we see the reduction faster than the ACV build. We are continuing to progress on that, and we'll continue to see that build over the next quarter or so.”

asked by Bonnie Herzog · answered by Eric Hanson

2 min read 6 chapters

Detailed narrative

Portfolio Strategy & Market Share Expansion

Celsius Holdings' diversified portfolio, comprising CELSIUS, Alani Nu, and Rockstar, is effectively capturing consumer interest and retailer partnerships. The combined portfolio achieved a 20.9% dollar share in the U.S. energy drink market in Circana tracked channels for the four weeks ending April 12.

This strategy allows the company to participate across various channels, usage occasions, and price points, with two brands now recognized as billion-dollar entities, driving incremental growth in the category.

Integration Milestones and Operational Streamlining

The company successfully completed the integration of Alani Nu, realizing approximately $50 million in anticipated synergies. This milestone simplifies the operating model and establishes a more connected commercial structure. Concurrently, the Rockstar integration is progressing as planned, with completion expected in the first half of 2026.

SKU transitions are largely finished, and early signs of improved velocities are observed on core Rockstar items, positioning the brand for stabilization.

Innovation and Shelf Management Initiatives

Innovation remains a core growth driver. Alani Nu's Lime Slush limited-time offer (LTO) became its top-selling flavor in tracked channels, validating the brand's durable innovation model. For CELSIUS, the fizz-free platform is expanding distribution, and Electric Vibe, a soccer-inspired LTO, was launched.

The company is also optimizing its shelf presence through disciplined SKU rationalization and resets, aiming for 17% space gains for CELSIUS and over 100% for Alani Nu, ensuring efficient assortment and increased velocity.

International Growth and Infrastructure

Celsius advanced its international expansion by launching the CELSIUS brand in Spain through an exclusive sales and distribution agreement with Suntory Beverage & Food Spain. This initiative leverages existing collaborations and will be followed by expansion into Portugal. With the global headquarters now established in Dublin, the company has the necessary operating infrastructure to accelerate deeper execution in existing markets and facilitate new market entries in the coming years.

Gross Margin Trajectory and Commodity Headwinds

Gross margin improved to 48.3% in Q1, benefiting from integration synergies and raw material alignment. However, this progress was partially offset by rising Midwest aluminum premium and LME costs, as well as incremental freight expenses due to severe winter weather and Rockstar inventory rebalancing.

Management anticipates Q2 gross margin to be flat sequentially, with stair-step improvements expected in Q3 and Q4, as the company targets a return to gross margins in the low 50s, supported by sourcing strategies and future vertical integration.

Capital Allocation and Shareholder Returns

The company maintains a strong balance sheet, providing flexibility for capital deployment. In Q1, Celsius repurchased approximately 700,000 shares for $24.1 million at a weighted average price of $35.39, with $236.1 million remaining under the authorized $300 million repurchase program.

Capital allocation priorities include investing in brand growth, maintaining balance sheet strength, and returning capital to shareholders, with ongoing evaluation of repurchase activity based on cash generation and market conditions.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.