CELH Q2 Deep Dive: Alani Nu Acquisition and Product Innovation Drive Growth

August 12, 2025 at 03:08 AM EDT

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Energy drink company Celsius (NASDAQ: CELH) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 83.9% year on year to $739.3 million. Its non-GAAP profit of $0.47 per share was 93.1% above analysts’ consensus estimates.

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

Celsius (CELH) Q2 CY2025 Highlights:

Revenue: $739.3 million vs analyst estimates of $648.5 million (83.9% year-on-year growth, 14% beat)
Adjusted EPS: $0.47 vs analyst estimates of $0.24 (93.1% beat)
Adjusted EBITDA: $210.3 million vs analyst estimates of $121 million (28.4% margin, 73.7% beat)
Operating Margin: 19.3%, down from 23.4% in the same quarter last year
Market Capitalization: $13.93 billion

StockStory’s Take

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.

Looking forward, Celsius management pointed to continued expansion opportunities in both domestic and international markets, as well as a steady pipeline of product innovation for the second half of the year and beyond. CEO John Fieldly emphasized the importance of targeting health-conscious consumers and leveraging brand partnerships, stating, “We remain focused on bringing our brands to more people and more places.” However, CFO Jarrod Langhans cautioned that input cost inflation, especially from tariffs and aluminum prices, could pressure margins in the coming quarters.

Key Insights from Management’s Remarks

Management attributed outperformance in the quarter to strong Alani Nu growth, disciplined execution in innovation and marketing, and favorable input costs.

Alani Nu acquisition impact: The newly acquired Alani Nu brand was the standout contributor, driving significant incremental revenue and market share gains, especially through successful limited-time offerings like Sherbet Swirl and Cotton Candy. Management highlighted high household penetration and strong loyalty among Gen Z and female consumers.
Celsius brand momentum: The core Celsius brand returned to growth following a slow start to the year, supported by new fizz-free flavors and the LIVE. FIT. GO. marketing campaign, which increased brand awareness and household penetration.
Product mix and operational efficiencies: Both brands benefited from favorable product and channel mix, lower ingredient costs, and improved production yields. The integration of supply chain and vertical integration initiatives helped strengthen gross margins, offsetting some of the lower margins from the Alani Nu portfolio.
Distribution and retail activation: The company expanded its points of distribution and increased items per store, with particular strength in foodservice and club channels. Celsius also achieved leading market share in online channels, notably Amazon during Prime Day, reflecting effective digital execution.
International expansion: International revenue grew at a double-digit rate, with early success in markets like Australia, the U.K., and France. Management noted that health and wellness trends fueling functional beverage demand are global, and investments in localized teams and strategies are underway.

Drivers of Future Performance

Management expects revenue growth to be supported by ongoing product innovation, brand activation, and international expansion, while margin outlook is clouded by rising input costs.

Tariff and input cost pressures: CFO Jarrod Langhans warned that rising aluminum prices and new tariffs are likely to increase raw material costs, impacting gross margin in the coming quarters. The company expects to mitigate some of these headwinds through operational efficiency and cost initiatives but anticipates overall margin pressure.
Innovation and limited-time offerings: Management plans to launch additional limited-time flavors for both Celsius and Alani Nu, aiming to drive consumer trial and expand household penetration. The company is leveraging learnings from both brands to accelerate innovation and keep offerings relevant to evolving consumer preferences.
International and channel expansion: The company is investing in building teams and infrastructure to grow in established and new international markets. Management cited early traction in health and wellness-driven markets and sees continued opportunity in foodservice, club, and online channels.

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 $53.72, 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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