Corporate media analysis report
Celsius Holdings’ (CELH) most recent quarterly earnings report (Q4), released on February 20, 2025, indicated steady results for the company. The company’s income statement reported net sales at $332.2 million and Earnings Per Share (EPS) at 14 cents. These numbers beat the estimated $328 million in net sales and EPS of 11 cents analysts at the London Stock Exchange Group estimated (Singh, 2025). Celsius also announced that it acquired Alani Nutrition LLC (“Alani Nu”) for $1.8 billion. This purchase price includes a mix of cash ($1.65 billion) and stock ($150 million) (Liu, 2025).
The reported revenue for Q4 was $332.2 million was a slight drop from prior year revenue of $347 million. In a note to their clients, Bank of America’s Global Research analysts Johnathon Keypour and Bryan Spillman wrote that the Q4 revenue decrease is a result of PepsiCo, their largest distributor, reducing its inventory as well as category-wide slowdown (BofA Global Research, 2025).
Although the acquisition of Alani attracts a larger female consumer for Celsius, its revenue decline remains a concern. Truist analyst Bill Chappell concludes Pepsi’s distribution of Celsius and Anheuser-Busch InBev’s distribution of Alani continues the status quo where both brands continue to compete for shelf space and market share. “We believe the brands target the same audience so faster growth for Alani Nu could result in slower growth for CELH in the next few quarters,” Bill Chappell said in a note to clients (Singh, 2025).
Kaumil Gajrawalan, an analyst from Jeffries, reiterated his strong buy and raises his price target for CELH to $40 per share, and increase from $33 per share days after the release of quarterly earnings report. He believes the merger of Celsius and Alani will capture about 15% of energy drinks market share and contribute to 18% annual revenue growth for the company. Gajrawalan refers to CELH as the best buy-the-dip stocks during this period (“CFRA Raises Celsius Stock Price Target,” 2025).
Contrastingly, Morgan Stanley analyst Eric Serotta says the acquisition of Alani could boost Celsius’ growth for the next several quarters. However, the overlap between both companies makes him cautious over the medium term. There’s risk the deal was “done from a more defensive posture,” he said (Singh, 2025).
In an interview with CNBC’s Jim Cramer, Celsius CEO John Fieldly discussed the proposed acquisition of Alani Nutrition and the growth strategy for the combined company. He emphasized the sugar-free market’s growth, stating, “For the first time in 2024, sugar-free is the largest segment of the energy drink category… [This merger] offers the largest sugar-free beverage portfolio of its peers” (Cramer, 2025). Fieldly noted the combined company will become the third-largest in the energy drink category and praised Alani Nu’s “great flavors [and] great packaging,” highlighting its focus on health, wellness, and female consumers. He expects rising demand for zero-sugar beverages, driven by the popularity of GLP-1 weight loss drugs.
In summary, Celsius’ Q4 quarterly earnings reported steady sales growth for the company. Its projection since acquiring Alani Nutrition suggested accelerated growth once the two companies fully merge operations.
*All content is for academic purposes only and in no way affiliated with Celsius.