CELSIUS (CELH) Stock PLUMMETS 25% After Massive Earnings Beat | Q3 2025 Report Analysis скачать в хорошем качестве

CELSIUS (CELH) Stock PLUMMETS 25% After Massive Earnings Beat | Q3 2025 Report Analysis

*Celsius Holdings, Inc. (CELH)* reported its Third Quarter 2025 financial results on November 6, 2025, revealing a dramatic contradiction: significant top-line growth and a huge Adjusted EPS beat, set against a sharp GAAP loss that drove the stock down. This video breaks down the **Q3 2025 earnings report**, explaining the factors behind the 173% revenue surge, the $0.42 Adjusted EPS beat, and the complex accounting moves related to its portfolio acquisitions (Alani Nu and Rockstar Energy) that led to investor concern. --- 📊 Q3 2025 Financial Breakdown *REVENUE & GROWTH:* *Total Revenue:* $725.1 million, marking substantial growth of 173% year-over-year. *North America Revenue:* Increased 184% year-over-year to $702.0 million. *Gross Margin:* Improved to 51.3% in Q3 2025, up from 46.0% in the prior-year period, driven by lower net promotional spend, favorable channel mix, and scale benefits. *PROFITABILITY (GAAP vs. Non-GAAP):* *Adjusted Diluted EPS (Non-GAAP):* **$0.42**, significantly beating the forecasted $0.28 and resulting in a 50% surprise. This non-GAAP measure excludes specific one-time items. *Adjusted EBITDA:* Soared to $205.6 million, an increase of 4,573% compared to Q3 2024. *GAAP Net Loss:* The company reported a net loss of *$(61.0) million* (Diluted EPS of $(0.27)), compared to net income of $6.4 million in Q3 2024. *GAAP Profitability Concern:* Celsius reported a negative operating margin of 11%, a stark decline from -1.2% in Q3 2024, raising questions about the efficiency of its rapid expansion. 🚨 The GAAP Loss & Integration Challenge The massive GAAP loss was primarily driven by *$246.7 million in distributor termination expenses* recorded in Q3 2025. *Alani Nu Transition:* These fees were accrued to facilitate the transfer of a significant portion of the Alani Nu distribution network into the PepsiCo system in the U.S. and Canada. *Cash Neutrality:* Crucially, PepsiCo agreed to fund these termination fees, making the transactions *net cash neutral* for Celsius Holdings. However, GAAP requires Celsius to record the expense in the income statement while amortizing the corresponding payment from PepsiCo over the distribution agreement's life, creating a temporary timing difference that impacts reported earnings. 🚀 Portfolio Power & Strategic Expansion Celsius Holdings is now the **#3 energy drink portfolio in the U.S.**. *Market Share:* The combined portfolio (CELSIUS, Alani Nu, Rockstar Energy) holds *20.8% dollar share* of the U.S. energy drink market in tracked channels. *Category Growth:* The portfolio's retail sales increased **31% year over year**, growing nearly twice as fast as the overall energy drink category. *Alani Nu Momentum:* The Alani Nu brand achieved *record sales of $332.0 million* in Q3 2025, with retail sales soaring 114% year over year. *PepsiCo Captaincy:* Celsius was designated as **PepsiCo’s U.S. Strategic Energy Drink Captain**, granting greater control over planograms and distribution strategy. *Rockstar Acquisition:* The acquisition of the Rockstar Energy brand (U.S. & Canada) on August 28, 2025, extends Celsius's reach into new consumer segments (culture, music, next generation energy). 🔮 Outlook & Q4 "Noise" Management anticipates that **Q4 2025 will be a "noisy quarter"**. *Integration Risks:* Noise is expected due to integration activities, including the transition of Alani Nu distribution to PepsiCo starting December 1, 2025. This involves former distributors winding down inventory and returning products, while PepsiCo builds up new inventory. *Margin Pressure:* Potential gross margin pressure is expected in Q4 2025 (relative to prior quarters) due to increased scrap, freight costs from the Alani Nu integration, and tariff pressure. *2026 Normalization:* Most financial benefits from the Alani Nu distribution transition and margin improvement are expected to be realized in **Q1 2026**. --- Disclaimer: This analysis uses non-GAAP measures such as Adjusted EBITDA and Adjusted Diluted EPS, which management uses to assess performance, but these should not be considered a substitute for GAAP measures. Investors are strongly encouraged to review the company’s financial statements in their entirety. #CELH #CelsiusStock #CelsiusEarnings #EnergyDrinks #AlaniNu #RockstarEnergy #StockAnalysis #PepsiCo #Q32025Results #StockMarketNews