Celsius Holdings Stock (CELH) Great Growth and Good Value in Q3 2025

Celsius Holdings is once again proving why it’s one of the most exciting growth stories in the beverage sector. The company’s Q3 2025 earnings showcased massive revenue acceleration, improving cash-flow metrics, and a strategic expansion that positions Celsius for even bigger gains ahead. While earnings remain pressured by heavy investment and acquisitions, the long-term trajectory makes CELH a standout candidate for growth-focused investors seeking both momentum and potential value. In this article we will dive into Celsius recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.

About Celsius Holdings

Founded in 2004, Celsius Holdings is a U.S. functional beverage company known for its flagship zero-sugar CELSIUS energy drink aimed at fitness-focused consumers. The company has expanded its reach through strategic acquisitions, including Alani Nu and Rockstar Energy rights in the U.S. and Canada, both contributing to growth in 2025. Supported by strong distribution partnerships such as PepsiCo, Celsius is evolving into a diversified functional-beverage portfolio with a growing domestic and international presence.

Celsius Financial Performance

Celsius delivered exceptionally strong financial performance in Q3 2025, highlighted by revenue of $725.11 million, up sharply from $265.75 million in Q3 2024, representing a 172.85% increase year over year. However, EPS for the quarter came in at –$0.27, compared to $0 in Q3 2024, showing a significant decline in profitability. On a trailing-twelve-month basis, revenue reached $2.12 billion, up from $1.37 billion, a 55.07% increase, while TTM EPS declined from $0.72 to $0.13, a drop of 82.52%. Free cash flow per share (TTM), however, surged from $0.71 to $2.10, an impressive 195.77% increase, reflecting strong cash-generation capability. The company maintains solid profitability metrics with a gross profit margin of 52.4%, net profit margin of 3.03%, and free cash flow margin of 24.63%, supported by a Return on asset of 1.22%, Return on equity of 3.83%, and a healthy 0.3 debt-to-equity ratio.

Over the past five years, Celsius has grown revenue at a 79.9% CAGR, net income at 26.3%, and free cash flow at 154.7%. The company has expanded rapidly in recent years and is still projected to maintain strong growth in the years ahead.

Celsius Fiscal 2025 Financial Forecast

Looking ahead, analysts forecast 2025 revenue of $2.45 billion, an 80.63% increase from 2024’s $1.36 billion, and expect EPS of $0.61, up 36.49% from $0.45 in 2024. Wall Street analyst remains optimistic, assigning a Buy rating with an average price target of $64.52 with potential upside of 64.55% and the highest price target of $80, implying potential upside of 103.99%.

CELH Stock Price Performance and Valuation

At the time this article was written Celsius stock was trading at $39.21 per share. Celsius’ stock performance has remained strong, with the stock gaining 41.5% over the past year, significantly outperforming the S&P 500’s 10.5% increase. Over the last five years, the stock has surged 244.3%, far ahead of the S&P 500’s 83.6% gain in the same period, highlighting the company’s sustained growth momentum. 

From a valuation standpoint, Celsius trades at a P/S TTM ratio of 4.78 and a forward P/S of 4.34. Although the non-GAAP P/E TTM of 327.79 appears high due to temporarily depressed earnings, the forward P/E of 64.53 better reflects expected profitability improvements. More importantly, the company’s P/FCF of 19.3 is attractive for a high-growth consumer brand with strong growing of free-cash-flow.

Based on Fiscal.ai data, the valuation over the past five years shows that the forward P/S and forward P/E ratios are below their historical averages. The recent stock decline makes the current valuation lower and more attractive, especially as Celsius is still projected to grow rapidly.

Celsius Growth Potential

Celsius growth potential remains strong, driven by several factors.

• Strategic Portfolio Expansion Through Strategic Acquisitions
  Celsius Holdings completed two major acquisitions in 2025 that significantly reshaped its market position and growth outlook. On April 1, 2025, it acquired Alani Nu, and on August 28, it obtained the U.S. and Canadian rights to the Rockstar Energy brand. These moves fueled impressive Q3 revenue growth, with Alani Nu alone generating $332 million in sales during the quarter. Combined, the expanded portfolio now commands 20.8% of the U.S. energy drink market by dollar share, making Celsius Holdings the third-largest energy drink portfolio in the country, a substantial leap from previous years.
  The portfolio also surpassed $5 billion in annual U.S. retail sales, highlighting its scale. Management's successful integration and strong financial performance, including $205.6 million in adjusted EBITDA for Q3, indicate a solid foundation for ongoing strategic acquisitions and growth momentum.
• Market Share Gains and Category Leadership Position
  Celsius Holdings  has solidified its position as a dominant player in the U.S. energy drink market, contributing 27% of all category growth year-to-date in 2025. The company's retail sales surged 31% year-over-year in Q3, driven by the Alani Nu brand’s exceptional 114% growth and double-digit gains from the Celsius brand itself. Celsius continues to build strong organic momentum, becoming a leader in the health-focused energy drink segment. The company now achieves 99.5% all-commodity volume (ACV) coverage, with its products available in over 250,600 tracked U.S. retail outlets, providing an expansive distribution network for further growth.
  From Q1 2022 to Q3 2025, Celsius’s portfolio increased its U.S. energy drink market share by 960 basis points from 10.7% to 20.8% validating its growth strategy focused on reaching more consumers, in more places, more frequently. This robust market expansion underscores continuing strong demand for its functional beverage portfolio.
• PepsiCo Partnership Integration and Distribution Optimization
  Celsius Holdings ’ strategic partnership as PepsiCo’s  U.S. Strategic Energy Drink Captain marks a pivotal step for distribution expansion and growth acceleration. This relationship grants Celsius access to PepsiCo’s vast direct-store-delivery system and distribution network. Starting December 1, 2025, the Alani Nu brand will transition into PepsiCo’s distribution, significantly broadening its reach into new retail channels and geographies previously inaccessible. Although this shift may cause some short-term Q4 inventory adjustments, it is expected to accelerate Alani Nu’s growth.
  The partnership also enhances Celsius's international expansion capabilities, leveraging PepsiCo's global infrastructure. International revenue has grown 30% year-to-date to $70.6 million, currently 3.9% of total revenue, signaling further growth potential. The appointment of Garrett Quigley as President of Celsius International underlines management’s focus on global markets. Overall, this partnership de-risks distribution growth and unlocks unprecedented access to both U.S. and international channels.

Risks to Consider

While Celsius growth prospect is strong, we should be mindful of potential risks.

• Dependence on PepsiCo Distribution
  Approximately 53% of Celsius's sales come from its partnership with PepsiCo. This dependence introduces operational and negotiation risks, as any disruption or change in PepsiCo’s strategic priorities could materially affect Celsius’s revenue and profit margins. The close collaboration, while offering growth opportunities, also means Celsius is vulnerable to shifts in PepsiCo’s distribution or investment focus, impacting its business stability and growth potential.
• Intensifying Competition in a Saturated Market
  The energy drink market is highly competitive, dominated by giants like Monster Beverage Corporation and Red Bull, which each hold about 35% of the U.S. market share. Celsius Holdings, Inc. faces intense competition from these established players who have superior resources, brand recognition, and distribution networks. This competition can intensify price wars and pressure Celsius's market share and profitability as it battles for consumer attention in this challenging landscape.
• Financial and Regulatory Risks
  Celsius Holdings, Inc. disclosed material weaknesses in its internal controls over financial reporting, raising concerns about the accuracy of its financial statements. These weaknesses include revenue recognition, promotional allowances, and inventory accounting. Such deficiencies increase the risk of financial misstatements, regulatory penalties, and reputational damage. Additionally, the company faces compliance risks related to export controls and anti-corruption laws, which could result in fines or other penalties if violated.

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Conclusion

Celsius Holdings presents a compelling blend of strong growth, improving fundamentals, and attractive long-term potential. The company continues to deliver exceptional revenue expansion, rising free cash flow, and increasing global reach, supported by solid analyst forecasts. While profitability remains pressured and execution risks exist, Celsius’ expanding portfolio, strengthening margins, and long-term market opportunity position it well for future gains. For investors seeking a high-growth stock with meaningful upside, Celsius remains an appealing and recommended investment opportunity.