Celsius Holdings Posts 51.5% Gross Margin in Q2: Can It Hold Up?

Celsius Holdings, Inc. (CELH) turned in another strong performance in the second quarter of 2025, keeping its gross margin stable at 51.5%. That’s only a modest dip (of 50 basis points) from last year, even after factoring in the addition of Alani Nu, a brand with a naturally lower margin profile. This highlights how well CELH is managing its costs while scaling up its business.During the quarter, the gross profit climbed to $380.9 million on revenues of $739.3 million compared with the year-ago period’s gross profit of $209.1 million on $402.0 million revenues. Much of this margin stability came from improved production yields, lower material and freight costs, and a better product and channel mix.The company’s vertical integration initiatives helped strengthen operational efficiency and offset some of the acquisition-related drag from Alani Nu.In the second quarter, the company also saw its adjusted EBITDA more than double to $210.3 million, pushing the adjusted EBITDA margin up to 28.4% from 25% last year. This improvement reflects strong execution, disciplined expense management, and the benefits of scale as the combined Celsius and Alani Nu portfolio grows across key retail channels.However, management signaled that the margin environment could tighten in the coming quarters. Rising aluminum prices and new tariff-related costs could weigh on profitability in the back half of 2025. Though Celsius Holdings continues to demonstrate margin resilience amid rapid expansion, the next test will be whether the company can keep margins in the low-50s range while managing cost pressures and investing in marketing, innovation and global growth.Growth Catalysts for MNST & KOMonster Beverage (MNST) posted a gross margin of 55.7% in the second quarter of 2025, up from 53.6% a year ago, driven by pricing actions, supply-chain optimization and lower input costs. Monster Beverage’s margin gains also reflected tighter promotional discipline and regional mix shifts noted in the transcript. While MNST sits well below Coca-Cola on gross margin, it clearly has solid margin momentum.The Coca-Cola Company’s (KO) reported gross margin came in at roughly 61.5% in the third quarter of 2025, reflecting an improvement from 60.7% in the prior year. Coca-Cola’s margin increase was fueled primarily by strong price/mix execution, as KO implemented pricing actions and benefited from favorable geographic and channel mix.CELH Stock’s Price Performance, Valuation & EstimatesShares of Celsius Holdings have surged 134.6% year to date against the industry’s decline of 8.8%.CELH’s Price Performance Versus IndustryImage Source: Zacks Investment ResearchFrom a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 44.47, much higher than the industry’s average of 15.37.CELH’s Valuation Compared to IndustryImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings implies year-over-year growth of 60% and 29.7%, respectively.Celsius Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report Monster Beverage Corporation (MNST): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks