Celsius delivered a strong second quarter, with results well above Wall Street expectations and a significant positive market reaction. Management credited the quarter’s robust growth to the successful integration of the Alani Nu brand, which contributed substantial revenue gains, as well as continued momentum in the core Celsius brand. CEO John Fieldly highlighted that both brands benefited from new product launches, expanding distribution, and consumer demand for zero sugar, functional energy drinks. The company also noted disciplined execution in marketing and operational efficiency, supporting solid gross margins despite integrating a lower-margin business.

Is now the time to buy CELH? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Celsius’s Q2 Earnings Call

• Peter K. Grom (UBS) asked about the sustainability of gross margins in light of recent outperformance and upcoming tariffs. CFO Jarrod Langhans explained that cost savings and operational efficiencies helped margins in Q2, but input cost inflation, especially aluminum tariffs, will likely pressure margins in the second half.
• Eric Adam Serotta (Morgan Stanley) requested clarity on the relationship between Alani Nu shipments and consumer takeaway, as well as expectations for new limited-time offerings. CEO John Fieldly responded that sell-in closely matches sell-through and highlighted the upcoming Witch’s Brew launch and additional innovation plans.
• Jeffrey Wallin Van Sinderen (B. Riley Securities) inquired about international expansion plans. Fieldly described ongoing investments in teams and partnerships, particularly in the U.K., Australia, and France, and emphasized a focus on execution in current markets before broader expansion.
• Gerald John Pascarelli (Needham & Company) asked about performance in the club channel and the impact of promotional activity at Costco. Fieldly confirmed increased promotions drove uplift and noted ongoing optimization of promotional timing and innovation launches in this channel.
• Filippo Falorni (Citi) sought details on the return to growth for the Celsius brand and the impact of recent marketing campaigns. Fieldly cited the LIVE. FIT. GO. campaign and new fizz-free flavors as key drivers, along with renewed focus on channel and promotional strategies.

Catalysts in Upcoming Quarters

In the next few quarters, our analysts will be monitoring (1) the impact of aluminum price increases and tariffs on gross margins, (2) the success and frequency of new product launches and limited-time offerings from both Celsius and Alani Nu, and (3) the pace of international revenue growth as new teams and strategies are implemented. Additionally, we will track ongoing integration progress of the Alani Nu acquisition and execution of retail and channel expansion plans.

Celsius currently trades at $55.87, up from $42.86 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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