Celsius Shares Plunge Following Quarterly Earnings Release

Celsius Holdings saw its stock value plummet dramatically after reporting third-quarter 2025 financial results. Despite posting extraordinary revenue growth, investors reacted negatively to unexpected losses and substantial one-time expenses, triggering a massive sell-off.

Market analysts responded swiftly to the earnings report with divided opinions:

• BofA Securities maintained its "Underperform" rating while reducing the price target from $55 to $50
• CFRA raised its price objective from $50 to $55 while keeping a "Hold" recommendation
• JPMorgan lowered its target from $76 to $68 but reaffirmed its "Overweight" position

The contrasting assessments reflect significant uncertainty among financial experts regarding Celsius's near-term prospects.

Revenue Surge Overshadowed by Substantial Losses

The company delivered exceptional top-line performance with revenue soaring to $725.1 million—representing a remarkable 173% year-over-year increase that comfortably exceeded analyst projections. Adjusted earnings per share reached $0.42, also surpassing market expectations.

However, these impressive figures couldn't conceal a troubling bottom-line result. Celsius reported a GAAP net loss of $61.0 million, equivalent to $0.27 per share. This represents a sharp reversal from the same quarter last year when the company achieved a profit of $6.4 million. The dramatic swing into negative territory primarily stemmed from $246.7 million in distributor termination costs connected to the acquisition of the Alani Nu brand.

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Acquisition Strategy Drives Growth Amid Challenges

Strategic acquisitions played a pivotal role in driving the substantial revenue expansion. The recently acquired Alani Nu brand contributed $332.0 million to the total, registering impressive growth of 114% year-over-year. Meanwhile, the core Celsius brand maintained strong momentum with a 44% growth rate.

The market response to the earnings release was immediate and severe. During pre-market trading, Celsius shares collapsed by more than 20%, with some reports indicating declines reaching 26%. Trading volume exploded far beyond average levels as investors digested the mixed results.

Integration Hurdles and Forward Guidance

Management acknowledged that assimilating recent acquisitions presents ongoing challenges. The company cautioned investors to expect a "volatile" fourth quarter in 2025, with operations not anticipated to normalize until the first quarter of 2026. Sales and marketing expenditures are projected to represent 23-25% of total revenue moving forward.

The critical question facing Celsius is whether the company can successfully navigate these operational complexities and reestablish consistent profitability. The upcoming quarterly results will provide crucial evidence about management's ability to convert impressive revenue growth into sustainable earnings.