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Celsius’s flagship drink brought in 11.7% less revenue last quarter than it did a year earlier, and the company that makes it still takes roughly one in five dollars Americans spend on energy drinks. A lead director paid $336,000 for the second fact, not the first.
You read this morning that Celsius lead director Hal Kravitz bought 12,000 shares on September 15, five days after CEO John Fieldly put $494,000 into the same stock. Tonight, let’s take the business underneath that buy apart.
Three questions I’ll answer
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If the CELSIUS brand is shrinking, what is the company selling more of? |
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How does a drinks company keep almost half of every sales dollar without owning a factory? |
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What does it mean when one customer is also your distributor and your shareholder? |
I’ve read a lot of insider buys in falling stocks, and this one is worth ten minutes, because the business underneath the ticker is no longer the business the ticker describes. ↓
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Celsius Stopped Being A One-Drink Company
Celsius Holdings is a Boca Raton beverage company that for most of its life sold one product: a zero-sugar energy drink in a matte can. That company no longer exists. On April 1, 2025 it closed the purchase of Alani Nu, a women-focused energy and wellness brand, for $1.275 billion in cash and 22,451,224 shares. In August 2025 it agreed to buy Rockstar Energy from PepsiCo for $585 million. Three brands, one shelf.
In the second quarter of 2026 the portfolio brought in $817.9 million. Alani Nu accounted for $364.4 million, Rockstar for $66.5 million, and the namesake CELSIUS brand fell 11.7% from a year earlier. The brand on the building is losing ground; the brand bought in April 2025 is carrying the quarter.
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U.S. energy dollar share, Q2 2026
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20.1%
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Alani Nu revenue, Q2 2026
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$364.4M
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Gross margin, Q2 2026
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48.1%
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Why the margin holds
Celsius owns almost none of the machinery behind those cans. Its annual report states that it predominantly relies on co-packers — contract manufacturers that own the plants and canning lines and fill cans to its formula for a fee. Delivery is rented too: under the August 2025 agreement PepsiCo leads distribution for all three brands in the United States and Canada. Celsius owns the formulas, the brands and the shelf position; other companies own the assets. That is why 48.1 cents of every sales dollar was still gross profit last quarter, even after a 340 basis point decline — a basis point is one hundredth of a percentage point.
The number that runs both ways
Renting someone else’s trucks has a price. Sales to PepsiCo were 43.2% of Celsius’s total revenue in 2025, and PepsiCo owns roughly 11% of the company through convertible preferred stock — $550 million bought in 2022 and $585 million more last August, the same sum that paid for Rockstar. Those are shares that carry a fixed 5% dividend and can be exchanged for common stock later. One relationship now carries the route to market, close to half the revenue and a large block of the equity.
NATE’S TAKE
I read Kravitz’s filing as a vote on the portfolio rather than on the flagship. The CELSIUS can is what the market still prices; Alani Nu, Rockstar and a Pepsi route network is what the company has become, and those two have moved apart over the past year and a half. A lead director sits closer to that gap than anyone reading the ticker. What I’m watching is whether the margin steadies as the acquired brands settle into the Pepsi system.
— Nate Fowler
After the Bell · Evening Special Edition
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