Celsius Holdings, Inc. (CELH) — Fundamental Analysis

Data sourced from SEC 10-K and 10-Q filings. Annual figures cover fiscal years ending December 31, 2023–2025. The most recent quarterly data (Q1 2026, period ending March 31, 2026) is more current than the annual figures and is treated accordingly.

📊 Snapshot & Big Picture

Celsius Holdings is an energy drink company that has repositioned itself as a functional fitness beverage brand. After a period of explosive growth fueled by its partnership with PepsiCo, the company has entered a new phase: revenue nearly doubled year-over-year from fiscal 2023 to fiscal 2025 (from ~$1.32B to ~$2.52B), but profitability margins have compressed noticeably, suggesting the business is investing heavily in growth and navigating distribution headwinds. The Q1 2026 quarter offers an early and encouraging signal that margins may be recovering from the fiscal 2025 trough.

📋 Latest Quarter Snapshot — Q1 2026 (Period Ending March 31, 2026)

The most recent data available is from Celsius's Q1 2026 10-Q, filed May 7, 2026. This is the freshest picture of the business and shows a meaningful improvement in profitability metrics compared to the full fiscal year 2025 figures.

Q1 2026's operating margin of 17.8% and net margin of 14.1% are a sharp recovery from the full-year FY 2025 figures of 5.6% and 4.3%, respectively. With $782.6M in a single quarter, revenue run rate is also well above the FY 2025 annual total on an annualized basis, suggesting continued top-line momentum. EBITDA of $148.1M in just one quarter already represents 87% of the entire FY 2025 EBITDA figure.

📈 Profitability — Multi-Year Trend

Celsius's profitability story is one of expansion, compression, and now apparent recovery. In FY 2023, the company was highly profitable at the operating level (20.2% operating margin). FY 2024 saw meaningful compression — likely reflecting elevated distribution-related costs, promotional spending, and inventory normalization with PepsiCo — with operating margin falling to 11.5%. FY 2025 compressed further to just 5.6% operating margin, even as gross margin held relatively steady above 50%. This tells us the pressure was predominantly below the gross profit line, in operating expenses. Q1 2026 snaps back forcefully to 17.8% operating margin, the strongest reading since FY 2023.

Gross margin has been notably resilient — staying in the 48–50% range across all periods — which points to solid product economics and pricing power. The volatility has been in operating cost management. If Q1 2026's margin recovery is sustained, it would represent a significant inflection point.

🏦 Financial Health

Celsius's liquidity position has tightened since its peak in FY 2023, though it remains adequate. The current ratio declined from a very comfortable 4.36x in FY 2023 to 1.68x in FY 2025, then edged up slightly to 1.77x in Q1 2026. A ratio above 1.0x indicates the company can cover near-term obligations, but the sharp decline from the FY 2023 highs warrants monitoring.

The debt-to-equity ratio has fluctuated between 1.36x and 1.84x across the periods examined. It stood at 1.72x as of Q1 2026 — elevated relative to FY 2024's low of 1.36x but in line with FY 2023 and FY 2025 levels. This is not alarming for a consumer growth company, but it does mean the balance sheet carries leverage that could amplify downside risk if revenue or margins deteriorate.

🚀 Growth

Top-line growth is the headline story for Celsius. Revenue was essentially flat from FY 2023 ($1.318B) to FY 2024 ($1.356B) — a period of likely distribution disruption and inventory resets. FY 2025 then surged to $2.515B, an 85% increase year-over-year, reflecting a full-year contribution from expanded distribution and possibly international expansion. Q1 2026's $782.6M in a single quarter, annualized, implies a run rate well above FY 2025 — suggesting revenue growth has not yet stalled. The key question for investors is whether this growth can be sustained while restoring and maintaining the stronger operating margins seen in FY 2023 and Q1 2026.

💬 Plain English Summary

Celsius Holdings is a fast-growing energy drink company that has seen remarkable revenue expansion — essentially doubling its sales between FY 2023 and FY 2025. The catch is that much of that revenue growth came with a painful squeeze on profits, particularly in FY 2025, when operating margins fell to just 5.6% despite the company generating over $2.5 billion in sales. The good news from the most recent quarter (Q1 2026) is that margins appear to be bouncing back strongly — operating margin jumped back to nearly 18%, suggesting the cost pressures that weighed on FY 2025 may have been temporary. The balance sheet has tightened, with the current ratio falling from very comfortable levels in 2023 to just above the "adequate" threshold today, and the company carries meaningful leverage. For investors, the core question is whether Celsius can maintain its top-line growth momentum while sustaining the kind of profitability levels seen in Q1 2026 — if it can, the business looks substantially more attractive than the FY 2025 annual numbers alone would suggest.

📁 Source Filings

• 10-Q — Filed May 7, 2026 (Period Ending March 31, 2026)
• 10-K — Filed March 2, 2026 (Fiscal Year Ending December 31, 2025)