A maker of functional energy drinks and wellness beverages, Celsius Holdings sells its CELSIUS, Alani Nu, and Rockstar brands in grocery, convenience, fitness, and e-commerce aisles, with PepsiCo handling U.S. and Canadian distribution. It was founded in 2004 in Florida by Steve Haley and his wife Janice around a 'thermogenic' formula meant to raise body temperature and burn calories — hence the name, borrowed from the temperature scale. The company later added the Rockstar and Alani Nu brands.
Celsius net income fell 44.6% to $55.3M as $80.9M in distributor termination fees for Alani Nu offset a 10.6% revenue increase.
A second wave of distributor termination charges hit earnings, this time for Alani Nu. rose 10.6% to $817.9 million as the Alani Nu and Rockstar acquisitions drove growth, but $80.9 million in fees to transition Alani Nu distributors to PepsiCo pushed down 44.6% to $55.3 million. The acquisition integration is now producing the promised revenue scale, but the cost of unwinding legacy distribution continues to compress the bottom line.
Key takeaways
An $80.9 million charge to terminate Alani Nu's legacy distributor agreements was the defining event of the quarter, cutting nearly in half to $75.3 million from $143.0 million a year earlier.
PepsiCo reimbursed the company $81.1 million for these termination obligations, neutralizing the cash impact but not the earnings hit, as the reimbursement is recorded as a financing inflow rather than an operating offset.
rose 10.6% to $817.9 million, driven by a 21.0% increase in Alani Nu revenue to $364.4 million and $66.5 million from Rockstar, while the legacy Celsius brand declined 11.7% to $387.0 million on higher promotions and .
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 10.6% to $817.9M driven by Alani Nu and Rockstar, but net income fell 57.5% on $80.9M in distributor termination fees.
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Total increased 10.6% to $817.9M, with Alani Nu up 21.0% to $364.4M and Rockstar contributing $66.5M, while Celsius brand revenue declined 11.7% to $387.0M due to higher promotions and .
contracted 3.4 percentage points to 48.1%, pressured by increased promotional and incentive activity and channel mix, partially offset by the absence of the prior-year step-up costs tied to the Alani Nu acquisition.
SG&A expenses were flat at $237.6 million as the absence of acquisition-related costs was offset by higher marketing spend to support the expanded three-brand portfolio.
more than doubled to $296.3 million for the first half, and the company refinanced its $694.8 million term loan after the quarter to reduce interest costs.
What changed
The legacy Celsius brand's 11.7% decline answers the question of whether organic volume growth would return after the distributor reset: it has not, and the brand is now contending with higher promotions and that are reducing sell-in.
The blended fell to 48.1%, below the 50% threshold flagged in prior quarters, as promotional activity intensified and aluminum costs rose — confirming the risk that the company's no-hedging policy leaves margins exposed.
The $80.9 million in Alani Nu distributor termination fees mirrors the $246.7 million charge from Q3 2025, indicating that the unwinding of legacy distribution is occurring in waves rather than as a single event, with PepsiCo reimbursing the cash outlay.
The post-quarter term-loan refinancing from $694.8 million at a lower rate addresses the interest-expense burden that had been flagged as a watch item, though the variable-rate exposure remains.
What to watch
Whether the legacy Celsius brand can stabilize and return to volume growth in Q3 2026, or whether the promotional and headwinds signal a sustained share loss within the three-brand portfolio.
The trajectory of the blended now that the Alani Nu step-up has fully lapped but promotional activity and aluminum costs continue to rise — specifically whether it can hold above 48%.
The size and timing of any further distributor termination charges as the Alani Nu transition to PepsiCo completes, and whether additional waves of fees will continue to depress reported earnings.
The impact of the post-quarter term-loan refinancing on in Q3 2026, and whether the lower rate meaningfully reduces the debt-service burden on .
margin contracted 340 to 48.1%, pressured by increased promotional and incentive activity and channel mix, partially offset by the absence of prior-year step-up costs.
SG&A expenses were flat at $237.6M as the absence of acquisition-related costs was offset by higher marketing spend to support the expanded three-brand portfolio.
Distributor termination fees of $80.9M were recorded in connection with transitioning Alani Nu distributors to Pepsi, with Pepsi reimbursing the Company $81.1M for these obligations.
more than doubled to $296.3M for the first half, driven by higher and improved collections, while the Company refinanced its $694.8M term loan post-quarter to reduce interest costs.
attributable to common stockholders fell to $36.4M, or $0.14 per share, impacted by the termination fees and dividends on the newly issued Series B Preferred Stock.
Quantitative and Qualitative Disclosures About Market Risk
Commodity and interest-rate risks are the main market exposures; the company does not hedge commodity costs and carries variable-rate debt.
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The company is exposed to commodity price risk from raw materials like aluminum cans, sucralose, and other sweeteners, but does not use hedging agreements or financial instruments to manage it.
Ability to recover higher input costs through pricing is limited by the competitive environment.
Interest rate risk arises from the Term Loan Facility and , which carry variable rates tied to a benchmark or alternate base rate plus an applicable margin.
A hypothetical one-percentage-point rate increase would raise annual by approximately $6.9 million based on Term Loan Facility balances as of June 30, 2026.
There were no borrowings outstanding under the as of June 30, 2026.
No material changes in market risk have occurred since the disclosures in the prior Annual Report.
The information required by this Item is included in Note 15. Commitments and Contingencies in the unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.
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The information required by this Item is included in Note 15. Commitments and Contingencies in the unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.
We face a variety of risks that are inherent in our business and our industry, including operational, legal, regulatory and product risks. Such risks could cause our actual results to differ materially from our forward-looking statements, expectations and historical trends. Exce…
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We face a variety of risks that are inherent in our business and our industry, including operational, legal, regulatory and product risks. Such risks could cause our actual results to differ materially from our forward-looking statements, expectations and historical trends. Except for the risks discussed elsewhere in this Quarterly Report, during the reporting period covered by this Quarterly Report, there have been no material changes to our risk factors as set forth in Part I, Item 1A. Risk Factors in our Annual Report.