Celsius Holdings Reports $329.3 Million Revenue in Q1 2025, Down 7.4% Year-Over-Year

Celsius Holdings, Inc. reported a revenue of $329.3 million for the first quarter of 2025, a decrease of 7.4% from $355.7 million in the same period last year. The decline was primarily attributed to a significant drop in North American sales, which fell by 9.7% to $306.5 million, influenced by the timing of promotional activities and the prior year's successful launch of the Celsius Essentials line. In contrast, international revenues saw a notable increase, with European sales rising by 31.9% to $18.7 million and total international revenue growing by 41% year-over-year, driven by ongoing expansion efforts.

The company's gross profit for the quarter was $172.4 million, down from $182.2 million, but the gross profit margin improved to 52.3% from 51.2% due to lower raw material costs. Selling, general, and administrative expenses increased by 22% to $120.3 million, largely due to higher acquisition-related costs and increased marketing investments. As a result, net income attributable to common stockholders was $34.4 million, or $0.15 per share, compared to $64.8 million, or $0.28 per share, in the prior year.

Celsius has made significant strategic moves, including the acquisition of Alani Nutrition LLC, completed on April 1, 2025, for a total consideration of $1.275 billion in cash and stock. This acquisition aligns with Celsius's focus on expanding its presence in the performance energy and health-focused wellness segments. The company also entered into a Credit Agreement to fund part of this acquisition, securing a term loan facility of $900 million and a revolving credit facility of $100 million.

Operationally, Celsius reported a cash and cash equivalents balance of approximately $977.3 million as of March 31, 2025, reflecting a strong liquidity position. The company continues to rely on co-packers for manufacturing while also utilizing its in-house capabilities. The total employee headcount has increased as Celsius invests in growth and expansion initiatives. The company remains optimistic about its future, focusing on integrating Alani Nu and leveraging its partnership with PepsiCo to enhance distribution and market reach.

Looking ahead, Celsius anticipates that its strategic investments and acquisitions will drive growth, despite the challenges posed by market conditions and increased promotional allowances. The company is committed to maintaining its competitive edge in the functional beverage market while navigating the complexities of global trade and economic factors.