What Celsius Holdings (CELH)'s Rapid Sales Growth and Q3 Loss Means for Shareholders

• Celsius Holdings reported third quarter 2025 results, posting sales of US$725.11 million, up sharply from US$265.75 million a year earlier, but moving to a net loss of US$61.01 million versus net income of US$6.36 million in Q3 2024.
• This marked a period of fast revenue expansion for Celsius Holdings, but unexpected profitability setbacks drew attention to underlying operational and cost challenges.
• We'll consider how the increased revenue alongside a swing to net loss may impact Celsius Holdings' investment outlook and margin expectations.

We've found 20 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Celsius Holdings Investment Narrative Recap

To be a shareholder in Celsius Holdings, you essentially need to believe in the ongoing shift toward health-focused, zero-sugar drinks and the company’s ability to deliver strong sales growth, despite increasing industry competition and margin pressures. The most recent Q3 2025 results delivered rapid revenue gains but showed a surprising swing to a net loss, which puts a spotlight on margin compression as the main short-term risk and may affect the timing of any margin recovery, though it doesn’t appear to change the primary top-line growth story driving current interest in the stock.

Among recent announcements, Celsius’s expanded partnership with PepsiCo, including the integration of Alani Nutrition into PepsiCo’s distribution and the acquisition of the Rockstar Energy brand, stands out as especially relevant. This move could reinforce distribution growth, a key catalyst for future sales, but also brings new complexity and cost integration challenges into sharp relief at a time when margin pressures are already front and center. Yet, despite these operational shifts, investors should consider that...

Read the full narrative on Celsius Holdings (it's free!)

Celsius Holdings' outlook projects $3.7 billion in revenue and $532.9 million in earnings by 2028. This implies a 30.1% annual revenue growth and an increase in earnings of $437 million from the current $95.9 million.

Uncover how Celsius Holdings' forecasts yield a $68.95 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Twenty-nine Simply Wall St Community fair value estimates for Celsius Holdings span from US$35.70 to US$80, reflecting a wide range of outlooks on growth potential. While these views differ, many continue to watch cost structure changes and margin impacts following recent earnings setbacks.

Explore 29 other fair value estimates on Celsius Holdings - why the stock might be worth 40% less than the current price!

Build Your Own Celsius Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Celsius Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Celsius Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Celsius Holdings' overall financial health at a glance.

Seeking Other Investments?

Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

• This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality.
• Rare earth metals are the new gold rush. Find out which 38 stocks are leading the charge.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com