- Barfresh: Q1 Revenue Beats Expectations Amid Customer Recovery – Quarterly Update Report
May 18, 2026
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Barfresh Food Group, Inc. (BRFH)
Revenue Beat Supports Transition-Year Setup. Manufacturing Integration and Customer Recovery Position BRFH for 2H26 Inflection.
Key Takeaways:
Revenue increased 92% y/y to $5.6 million, exceeding $5.0-$5.2 million guidance, driven by stronger Arps milk contribution. Gross margin declined to 18% from 31% y/y as lower-margin milk mix and facility startup costs weighed on profitability. Education recovery is building, with active bid season, broker-led reactivation, and large-district momentum supporting a stronger 2H26 setup. FY26 guidance remains $28-$32 million revenue and $3.2-$3.8 million adjusted EBITDA, implying sharp 2H26 conversion. At ~$39 million market cap and 1.32x 2026E sales, valuation discounts capacity-led upside and EBITDA scalability. Top-line beat was driven by stronger-than-expected contribution from Arps Dairy’s milk processing operations, supporting continued revenue scale-up. BRFH’s 1Q26 revenue increased 92% y/y to $5.6 million from $2.9 million in 1Q25, exceeding management’s $5.0-$5.2 million guidance range. The upside was driven by stronger-than-anticipated contribution from Arps Dairy’s raw and processed milk business, which expanded the consolidated revenue base but carries a lower margin profile than BRFH’s core frozen beverage and food products. Profitability reflected the transitional nature of the model shift, with gross margin pressure partly offset by opex discipline and a narrower adjusted EBITDA loss. Gross margin declined to 18% in 1Q26 from 31% in 1Q25, driven by Arps Dairy’s lower-margin milk processing contribution and startup costs associated with producing in the newly acquired processing facility. Adjusted EBITDA improved to a loss of $238,000 from a loss of $506,000 y/y, but came in below prior breakeven expectations because revenue mix was more heavily weighted toward lower-margin milk processing than anticipated and production volumes through the acquired facility were lower than planned. Net loss improved to $661,000 from $761,000 y/y, indicating that revenue scale and cost discipline are beginning to narrow losses, though not yet enough to fully offset integration costs and facility ramp inefficiencies.
Operating expenses remained controlled, reinforcing operating leverage potential once gross margin normalizes and higher-margin education volume ramps. Selling, marketing and distribution expense declined to $697,000 from $824,000 in 1Q25, reflecting lower personnel costs as BRFH increasingly leverages its broker network, reduced sampling expense following the Pop & Go freeze pop launch, and lower equipment maintenance costs as single-serve products become a greater share of the education-channel mix. G&A expense was essentially flat at $755,000 versus $747,000 y/y. Arps Dairy remains the central strategic initiative as it gives BRFH production control, improves customer credibility, and creates the manufacturing base needed to support a larger institutional platform. The Arps processing facility supported ~50% of BRFH’s frozen beverage and food volume in 1Q26, while the company continued to use co-manufacturers for some product during the transition. We view this as a staged internalization process rather than a completed transition, with current inefficiencies tied to equipment ramp-up, installation timing, training, and lower-than-planned production volumes through the owned facility. The strategic benefit is that owned production gives BRFH greater control over availability, timing, and execution, reducing reliance on third-party co-manufacturers while strengthening its ability to pursue larger school districts and foodservice accounts that require dependable supply at scale.
Manufacturing transition remains the key near-term drag on margins, but the bridge to recovery is becoming clearer. Gross margin declined to 18% in 1Q26 from 31% in 1Q25, reflecting Arps Dairy’s lower-margin raw and processed milk business, commodity-price fluctuations, and startup costs tied to production transfer. The processed milk business was running at roughly 5% margin in segment reporting, compared with a normalized consolidated gross margin target in the low-40% range. As throughput improves, new equipment is installed, and school-year volume shifts mix toward core Barfresh products, consolidated gross margin should begin recovering from the 1Q26 trough. Revenue mix remains the critical 2H26 swing factor as growth shifts from lower-margin milk processing toward core education products. Arps’ legacy milk business is expected to remain relatively flat rather than drive substantial growth, and its stronger-than-expected 1Q26 contribution was margin-dilutive despite helping revenue exceed guidance. The more important 2H26 test is whether higher-margin core Barfresh education volume becomes a larger percentage of revenue as school-year orders ramp and lower-margin Arps milk revenue becomes less dominant in the consolidated mix. That mix shift is central to both the 2026 adjusted EBITDA guide of $3.2-$3.8 million and the longer-term operating leverage case as BRFH scales through its vertically integrated platform. The larger 44,000-square-foot Defiance facility remains on track for commissioning before year-end 2026 and should provide the step-change in throughput, flexibility, and unit economics needed for the next phase of growth. BRFH continues to procure and install equipment and personnel at the larger Ohio facility, supported by a $2.4 million government grant for specialized equipment and the $7.5 million senior convertible note financing completed in March 2026. The financing allowed BRFH to pay off the existing mortgage on the facility and own it free and clear, while management expects to evaluate mortgage and equipment financing against the unencumbered facility to support growth objectives and potentially repay a portion of the convertible note. Customer recovery and large-district momentum reinforce demand visibility in the core education channel, where supply reliability is often as important as product adoption. Education remains BRFH’s primary focus and greatest near-term opportunity, with tangible progress rebuilding customer relationships and adding new school district wins during 1Q26. The broker network and direct sales team have been communicating manufacturing progress and improved supply reliability to districts, and that message appears to be gaining traction. The 7-year award with the fifth largest school district in the U.S. remains a key validation point, demonstrating that BRFH can compete for large-scale procurement contracts where compliance, operational simplicity, and dependable fulfillment are central decision criteria. More importantly for the current quarter, bid season remains active and the company is progressing on customer reactivation as prior supply constraints ease.
Active bid season and customer reactivation point to a potentially strongest-ever back half for core Barfresh products. BRFH is still receiving bids for the upcoming school season and is actively returning to customers that dropped off because of prior lack of supply. Management expects a step increase in revenue as the school year begins, driven by both new customers and recovered accounts, and described the upcoming back half as potentially the strongest ever for Barfresh products. This is important because 1Q26 revenue upside was Arps-led, while 2H26 should provide a cleaner read on whether improved production reliability is converting into recurring core education revenue, reinstated districts, and new school wins. BRFH’s 2026 priorities remain centered on completing the manufacturing transition, rebuilding education demand, and expanding the long-term revenue base. The immediate focus is commissioning the new manufacturing facility before year-end 2026, which should improve production efficiency, capacity, and supply reliability. In parallel, the company is rebuilding and expanding its education customer base following prior supply disruptions, while beginning to evaluate adjacent opportunities in foodservice, convenience, and other channels as capacity increases. Longer term, the expanded facility could also support co-manufacturing revenue once operations are stabilized, adding a potential incremental growth stream beyond BRFH’s core branded education business. 2026 remains a transition year, with revenue growth and EBITDA conversion weighted to the back half. Management introduced 2Q26 revenue guidance of $5.2-$5.6 million, representing more than 200% growth versus the prior-year period, and expects an adjusted EBITDA loss of $0.3-$0.2 million as the company continues progressing through manufacturing transition and facility optimization. At the midpoint, 2Q26 revenue of $5.4 million would be roughly in line with 1Q26 revenue of $5.6 million, but the y/y comparison remains strong because 2Q25 was seasonally weak for the legacy Barfresh business. The company reiterated 2026 revenue guidance of $28-$32 million, representing 97%-125% growth versus 2025, and adjusted EBITDA guidance of $3.2-$3.8 million, implying profitability should improve meaningfully in 2H26 as school-year demand, production efficiency, and product mix improve.
The 2026 guide embeds a clear 2H26 inflection, with execution dependent on school-year volume, mix recovery, and facility optimization. At the midpoint, 2026 revenue of $30.0 million implies approximately 111% y/y growth from 2025 revenue of $14.2 million, while adjusted EBITDA of $3.5 million implies an approximately 11.7% adjusted EBITDA margin. This compares with a 1Q26 adjusted EBITDA loss of $238,000 and a 2Q26 guided adjusted EBITDA loss of $0.2-$0.3 million, meaning the full-year outlook depends on 3Q26 and 4Q26 execution. The key upcoming indicators are gross margin recovery from 18%, higher core Barfresh mix, throughput improvement in the existing facility, bid conversion for the new school year, customer reactivations, and confirmation that the larger Defiance facility remains on track before year-end.
Story Continues
Illustrative 2027 outlook highlights significant operating leverage potential, driven by new customer opportunities. Based on illustrative figures presented in BRFH’s investor presentation (not to be interpreted as formal guidance), management outlined a potential pathway to ~$70 million in revenue by 2027 (vs. ~$28-32 million base in 2026), driven by $40 million+ incremental contribution from new customer opportunities under discussion. This potential is contingent on conversion of current discussions and incremental capital deployment to support capacity expansion.
On profitability, illustrative adjusted EBITDA could scale to ~$14.5-$16.5 million in 2027, supported by ~$11 million in incremental EBITDA from these opportunities. These assumptions are underpinned by strong inbound interest from large, branded customers amid constrained U.S. dairy manufacturing capacity, as well as BRFH’s expanded production footprint, which could support up to ~$250 million of long-term revenue capacity. This highlights the magnitude of operating leverage available as facility utilization ramps and a larger share of revenue flows through the vertically integrated manufacturing platform. Working capital remains thesis-relevant because seasonal school demand requires inventory readiness and dependable service levels. As of March 31, 2026, BRFH had approximately $4.1 million of cash and accounts receivable and approximately $1.8 million of inventory, modestly above the ~$1.7 million level at year-end 2025. The inventory build appears constructive if it supports back-to-school readiness and customer reactivation, though cash conversion should be monitored as production transitions and demand ramps through 2H26.
Financing and grant support provide flexibility to fund the manufacturing transition and facility expansion. The company secured a $7.5 million senior convertible note financing alongside a $2.4 million government grant for specialized equipment installation, providing capital to support facility build-out and operational growth through 2026. Management may also pursue mortgage or equipment financing backed by the unencumbered facility to support future growth initiatives and potentially repay a portion of the convertible notes, while preserving liquidity for operational needs during construction.
Attractive Valuation as Growth Accelerates and Margin Recovery Builds
Our analysis suggests BRFH remains undervalued relative to its growth profile, manufacturing transition, and potential EBITDA inflection. The following analysis is illustrative in nature and does not constitute a price target or investment recommendation. We assess valuation using a combination of absolute, time-series, and relative peer-based approaches to frame potential re-rating as revenue growth, gross margin recovery, and profitability improve. BRFH currently trades at a discount to both its historical trading range and relevant peers, despite a step-change in revenue growth and a guided profitability inflection. Based on management guidance, BRFH is positioned to deliver approximately 111% revenue growth in 2026E at the midpoint of the guidance range, alongside adjusted EBITDA of approximately $3.5 million. This outlook is supported by improved supply reliability, reactivation of education accounts, facility optimization, and incremental daypart expansion, dynamics that do not appear fully reflected in the current multiple. At present, BRFH trades at 1.32x 2026E P/Sales, representing a meaningful discount to its one-year mean of 2.25x and well below its one-year peak multiple of 3.92x.
Applying a 3.3x P/Sales multiple, which remains conservative relative to the one-year peak, to BRFH’s 2026E revenue estimate implies an illustrative equity value of approximately $6.2 per share versus the current share price of $2.45. Importantly, this framework does not require premium multiple expansion; it assumes only partial reversion toward prior trading levels as revenue growth accelerates, gross margin recovers, and adjusted EBITDA turns positive. Relative valuation also supports the rerating case. BRFH trades at 1.32x 2026E P/Sales versus a peer average of 1.71x, despite accelerating revenue growth, improving visibility into manufacturing normalization, and management’s reiterated expectation for positive adjusted EBITDA in 2026E. We believe the valuation discount could narrow as BRFH executes on its vertically integrated manufacturing strategy, improves production efficiency, regains school customers following prior supply disruptions, and demonstrates stronger operating leverage through the 2026 school-year ramp. We believe re-rating potential will increasingly depend on execution against measurable operational milestones, including sustained revenue growth through the school-year ramp, continued gross margin recovery from the 18% level reported in 1Q26, improved production efficiency as transition costs normalize, and achievement of positive adjusted EBITDA during 2026. Demonstrated supply reliability, successful customer re-engagement in education, commissioning of the 44,000-square-foot Defiance facility, and progress toward higher utilization of the vertically integrated manufacturing platform could support valuation convergence toward peer and historical benchmarks.
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- 5 Must-Read Analyst Questions From Celsius’s Q1 Earnings Call
May 18, 2026
Celsius posted a positive first quarter, as the market responded favorably to both its top-line growth and margin expansion. Management attributed the strong results to the successful integration of Alani Nu, ongoing distribution gains across its portfolio, and disciplined SKU optimization. CEO John Fieldly emphasized that the company’s multi-brand strategy—centered around Celsius, Alani Nu, and Rockstar—enabled it to reach more consumers and occasions than ever before, stating, “Our portfolio reaches more consumers, more places, more occasions and more price points across the category than it did a year ago.”
Is now the time to buy CELH? Find out in our full research report (it’s free).
Celsius (CELH) Q1 CY2026 Highlights:
Revenue: $782.6 million vs analyst estimates of $762.5 million (138% year-on-year growth, 2.6% beat) Adjusted EPS: $0.41 vs analyst estimates of $0.29 (40% beat) Adjusted EBITDA: $195.5 million vs analyst estimates of $153.1 million (25% margin, 27.7% beat) Operating Margin: 17.8%, up from 15.8% in the same quarter last year Market Capitalization: $7.12 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Celsius’s Q1 Earnings Call
Bonnie Herzog (Goldman Sachs) asked about moderating Celsius brand growth and the effects of SKU rationalization and Alani Nu cannibalization. CEO John Fieldly and President Eric Hansen emphasized ongoing distribution gains and innovation as key growth drivers, highlighting new LTOs and shelf space optimization. Peter Grom (UBS) questioned the impact of increased Pepsi system orders for Alani Nu and potential inventory build. CFO Jarrod Langhans clarified that distribution gains and expanded SKU availability drove growth, noting specific accounting items but downplaying shipment-related distortions. Filippo Falorni (Citi) inquired about shelf space gains for Celsius and Alani, especially in foodservice and convenience channels. Fieldly and Hansen explained that retailers are expanding energy drink space overall, with Celsius Holdings benefiting from category growth and differentiated product offerings. Gerald Pascarelli (Needham & Company LLC) asked about the limited time offer (LTO) strategy and whether successful flavors might return as permanent SKUs. Fieldly described LTOs as a way to drive trial, seasonal excitement, and optionality for future product launches. Peter Galbo (Bank of America) probed on margin trajectory and aluminum cost impacts. Langhans acknowledged that input costs are a headwind, but reaffirmed margin improvement plans via supply chain optimization and vertical integration, with expected gross margin progress throughout the year.
Story Continues
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be monitoring (1) the rollout and consumer adoption of new limited time offer flavors across Celsius and Alani Nu, (2) the finalization and execution of shelf space resets in major retail and convenience channels, and (3) the company’s ability to manage ongoing input cost pressures, particularly aluminum, while maintaining gross margin expansion. Progress in international market entries and vertical integration will also be important signposts.
Celsius currently trades at $28.26, down from $32.80 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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- Celsius: Competition Concerns Create A Compelling Buying Opportunity
May 16, 2026 · seekingalpha.com
Celsius Holdings stock has dropped about 37% this year due to short-term concerns about competition from Costco's energy drink. Historically volatile, Celsius has usually traded at a high P/E multiple, but has now come down to a reasonable level at 19x forward earnings. Despite short-term worries, Celsius remains a strong long-term investment with tailwinds and increased profitability.
- Roth Capital Maintains Buy Rating on Celsius Holdings (CELH)
May 14, 2026
Celsius Holdings, Inc. (NASDAQ:CELH) is one of the
10 Best Stocks to Buy in Falling Markets According to Wall Street Analysts.
On May 8, 2026, Roth Capital analyst Sean McGowan lowered the firm’s price target on Celsius Holdings, Inc. (NASDAQ:CELH) to $65 from $67 while maintaining a Buy rating on the shares. The firm said the company’s Q1 results featured solid sales growth along with better-than-expected gross margins and adjusted EBITDA, though rising aluminum and freight costs could slow the pace of future margin expansion.
Meanwhile, JPMorgan analyst Andrea Teixeira raised the firm’s price target on Celsius Holdings, Inc. (NASDAQ:CELH) to $70 from $67 and maintained an Overweight rating on the shares.Roth Capital Maintains Buy Rating on Celsius Holdings(CELH)
On May 7, 2026, Celsius Holdings, Inc. (NASDAQ:CELH) reported Q1 adjusted EPS of 41c, versus the consensus estimate of 29c. Revenue totaled $783M, versus the consensus estimate of $760.63M. Chairman and CEO John Fieldly said the first quarter marked a defining period for the company as it delivered record first-quarter revenue, highlighting the strength of its brands and growth strategy. Fieldly added that the company is building a scaled “Modern Energy” portfolio through CELSIUS, Alani Nu, and Rockstar Energy, with each brand serving distinct consumer segments and consumption occasions. The company also said it reached an approximate 20.9% dollar share of the U.S. energy drink category during Q1 2026 as PepsiCo’s energy category captain in the U.S. Celsius Holdings, Inc. (NASDAQ:CELH) said its evolving operating model and ongoing brand integration efforts position the company for continued momentum and long-term shareholder value creation.
Celsius Holdings, Inc. (NASDAQ:CELH) develops, manufactures, markets, and distributes functional energy drinks globally.
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- Celsius Holdings' (NASDAQ:CELH) Earnings Offer More Than Meets The Eye
May 14, 2026
The stock was sluggish on the back of Celsius Holdings, Inc.'s (NASDAQ:CELH) recent earnings report. Our analysis suggests that there are some reasons for hope that investors should be aware of.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.NasdaqCM:CELH Earnings and Revenue History May 14th 2026
Zooming In On Celsius Holdings' Earnings
In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF.
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
Celsius Holdings has an accrual ratio of -0.10 for the year to March 2026. Therefore, its statutory earnings were quite a lot less than its free cashflow. To wit, it produced free cash flow of US$293m during the period, dwarfing its reported profit of US$114.5m. Celsius Holdings shareholders are no doubt pleased that free cash flow improved over the last twelve months. Having said that, there is more to the story. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio.
See our latest analysis for Celsius Holdings
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
How Do Unusual Items Influence Profit?
Celsius Holdings' profit was reduced by unusual items worth US$421m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. This is what you'd expect to see where a company has a non-cash charge reducing paper profits. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. In the twelve months to March 2026, Celsius Holdings had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.
Story Continues
Our Take On Celsius Holdings' Profit Performance
Considering both Celsius Holdings' accrual ratio and its unusual items, we think its statutory earnings are unlikely to exaggerate the company's underlying earnings power. After considering all this, we reckon Celsius Holdings' statutory profit probably understates its earnings potential! So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 2 warning signs for Celsius Holdings and we think they deserve your attention.
Our examination of Celsius Holdings has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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- Celsius Stock Is Rebounding Thursday: What's Driving The Action?
May 14, 2026 · benzinga.com
Celsius Holdings Inc (NASDAQ:CELH) shares are trading higher Thursday morning as traders weigh an oversold bounce against lingering worries that the company's distribution-driven growth could keep pressuring margins.
- Is Trending Stock Celsius Holdings Inc. (CELH) a Buy Now?
May 13, 2026
Celsius Holdings Inc. (CELH) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this company have returned -14.2% over the past month versus the Zacks S&P 500 composite's +8.8% change. The Zacks Food - Miscellaneous industry, to which Celsius belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Celsius is expected to post earnings of $0.43 per share for the current quarter, representing a year-over-year change of -8.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -7.5%.
For the current fiscal year, the consensus earnings estimate of $1.59 points to a change of +18.7% from the prior year. Over the last 30 days, this estimate has changed +2.3%.
For the next fiscal year, the consensus earnings estimate of $2.02 indicates a change of +27.1% from what Celsius is expected to report a year ago. Over the past month, the estimate has changed +0.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Celsius.
Story Continues
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS12-month consensus EPS estimate for CELH
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Celsius, the consensus sales estimate for the current quarter of $901.25 million indicates a year-over-year change of +21.9%. For the current and next fiscal years, $3.35 billion and $3.68 billion estimates indicate +33.1% and +10% changes, respectively.
Last Reported Results and Surprise History
Celsius reported revenues of $782.61 million in the last reported quarter, representing a year-over-year change of +137.7%. EPS of $0.41 for the same period compares with $0.18 a year ago.
Compared to the Zacks Consensus Estimate of $756.32 million, the reported revenues represent a surprise of +3.48%. The EPS surprise was +41.38%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Celsius is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Celsius. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
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- Why Celsius Holdings Inc. (CELH) is a Top Growth Stock for the Long-Term
May 13, 2026 · zacks.com
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- Is Trending Stock Celsius Holdings Inc. (CELH) a Buy Now?
May 13, 2026 · zacks.com
Celsius (CELH) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
- Why Celsius (CELH) Shares Are Sliding Today
May 13, 2026
What Happened?
Shares of energy drink company Celsius (NASDAQ:CELH) fell 5.6% in the afternoon session after the company reported first-quarter 2026 financial results that showed slowing growth for its main brand and declining profit margins.
Although adjusted earnings per share of $0.41 more than doubled from the prior-year period, investors focused on signs of weakness. The core CELSIUS brand's revenue grew by only about 6%, a figure that suggests a slowdown in its primary markets. While overall revenue increased, this was mainly due to the acquisitions of Alani Nu and Rockstar Energy.
A significant point of concern was the drop in the gross profit margin to 48.3% from 52.3% in the same quarter of the previous year. This decline was attributed to the lower margin profiles of the recently acquired brands, indicating that the new additions are less profitable and are weighing on the company's overall financial health.
The shares closed the day at $32.29, down 5.6% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Celsius? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Celsius’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 23.8% on the news that the company reported underwhelming earnings. The company announced impressive year-over-year revenue growth of 173% to $725.1 million, slightly ahead of estimates. Adjusted earnings per share of $0.42 also comfortably beat the consensus forecast. However, investors appeared to focus on the company's deteriorating profitability. Celsius reported a negative operating margin of 11%, a sharp decline from the negative 1.2% margin in the same quarter last year. This drop suggested that operating expenses, such as marketing and administrative costs, grew even faster than its impressive sales, raising concerns about its cost controls and the efficiency of its rapid expansion. Despite the strong top-line performance, the significant pressure on profitability seemed to spook investors, leading to the sharp sell-off.
Celsius is down 32.3% since the beginning of the year, and at $32.34 per share, it is trading 50.1% below its 52-week high of $64.86 from October 2025. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at only $683.25.
Story Continues
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
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