Why Is CELH Stock Rising Today?

• CEO John Fieldly highlighted record quarterly revenue, citing the strength of Celsius Holdings' multi-brand platform and its overall portfolio strategy.
• Alani Nu revenue increased 24% year-over-year to $410.1 million, while CELSIUS brand revenue declined approximately 6% to $356.8 million. 
• The company also appointed Alex Zigliara as president of CELSIUS and Rishi Daing as president of Rockstar Energy and Emerging Growth.

Celsius Holdings (CELH) shares were in focus on Thursday after the energy drink maker reported better-than-expected third-quarter results, with CEO John Fieldly highlighting plans to strengthen brand performance, improve operational execution and drive margin expansion across its portfolio. 

CELH shares traded 6.8% higher in premarket trading at the time of writing. The stock gained over 11% in the last week.

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Revenue Beats Estimates As Alani Nu Drives Portfolio Growth

Celsius reported revenue of $847.2 million, up 16.8% from $725.1 million a year earlier. Adjusted diluted earnings per share (EPS) came in at $0.41, compared with $0.42 in the year-ago quarter. Both figures topped analysts' estimates of $800.66 million in revenue and $0.31 in adjusted EPS, according to estimates compiled by Fiscal.ai.

Alani Nu continued to lead the company's brand-level revenue growth, with sales rising approximately 24% to $410.1 million. The company attributed the increase to expanded distribution through PepsiCo's direct-store-delivery network, strong consumer demand and the success of its limited-time Witch's Brew flavors.

In contrast, CELSIUS brand revenue declined approximately 6% to $356.8 million. The company cited SKU optimization, shipment timing related to inventory rebalancing, and softness in the club channel. Rockstar Energy contributed $80.3 million in quarterly revenue, supported by performance in Canada and the timing of orders across the second and third quarters.

CEO Outlines Margin Improvement Priorities Amid Profitability Pressure

Gross margin declined to 46.8% from 51.3% a year earlier, a contraction of 450 basis points. Celsius attributed the decline to continued inflation in commodity costs, particularly aluminum and fuel, as well as a higher mix of direct-store-delivery sales. 

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 3% to $198.6 million from $205.6 million in the year-ago quarter. The company said efficiencies from integrating acquired businesses into its supply chain partially offset the higher costs.

Fieldly said the company continued to make progress in improving CELSIUS brand performance while advancing operational execution across its portfolio. He identified revenue growth management, supply chain improvements, and cost initiatives as key priorities to improve margins and position each brand for sustainable growth.

The company also announced a new brand-led organizational structure, appointing Alex Zigliara as president of CELSIUS and Rishi Daing as president of Rockstar Energy and Emerging Growth.

How Retail Views CELH

However, on Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘neutral’ a day ago. The stock was also one of the trending tickers on the platform at the time of writing. 

CELH shares have dropped over 32% year-to-date.

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