Contineum Therapeutics Reports Second-Quarter 2025 Financial Results; Updates Key Clinical Development Milestones
Key Clinical Development Milestones
The Company expects to report topline data from its ongoing PIPE-307 Phase 2 VISTA relapsing-remitting multiple sclerosis (RRMS) trial in the fourth quarter of 2025. This randomized, double-blind, placebo-controlled, multi-center, proof-of-concept trial is evaluating safety and efficacy in RRMS patients including clinical and imaging endpoints sensitive to remyelination. More information on this trial can be found at https://clinicaltrials.gov (NCT06083753).
Contineum expects to report topline data from its PIPE-791 Phase 1b Positron Emission Tomography (PET) trial in the third quarter of 2025. This open-label, single-center trial is designed to assess the correlation between pharmacokinetics and lysophosphatidic acid 1 (LPA1) receptor occupancy using PET imaging to help guide dose selection in the next stages of clinical development. More information on this trial can be found at https://clinicaltrials.gov (NCT06683612).
The Company is proceeding with activities related to the submission of regulatory applications with foreign regulatory authorities, and with the U.S. Food & Drug Administration (FDA), in support of its planned global PIPE-791 Phase 2 proof-of-concept clinical trial in IPF. This trial is expected to be initiated in the fourth quarter of 2025.
In order to focus internal clinical resources on the PIPE-791 IPF program, the Company has postponed the initiation of its planned PIPE-791 Phase 2 clinical trial in progressive multiple sclerosis (PrMS) and the advancement of CTX-343 to first-in-human studies.
The Company anticipates reporting topline data from its exploratory PIPE-791 Phase 1b trial in patients with chronic pain in the first half of 2026. This randomized, double-blind, placebo-controlled, crossover trial initiated patient dosing in March 2025. PIPE-791 is being evaluated for the treatment of patients with chronic osteoarthritis pain and chronic lower back pain. More information on this trial can be found at https://clincialtrials.gov (NCT06810245).
In December 2024, Johnson & Johnson began recruiting an estimated 124 adult participants for a Phase 2 Moonlight-1 trial of PIPE-307/JNJ-89495120. This trial is a randomized, double-blind, multicenter, placebo-controlled, proof-of-concept study to evaluate the efficacy, safety and tolerability of PIPE-307/JNJ-89495120 as monotherapy in adult participants with major depressive disorder (MDD). More information on this trial can be found at https://clinicaltrials.gov (NCT06785012).
'We continue to make significant progress with our lead programs and have taken several important steps to focus our key clinical development efforts,' said Carmine Stengone, CEO, Contineum Therapeutics. 'We're focused on initiating a comprehensive, well-designed global Phase 2 proof-of-concept trial in IPF by year-end. In parallel, we elected to postpone the initiation of our planned PIPE-791 PrMS and CTX-343 clinical trials in order to concentrate internal clinical resources on our IPF trial. We also expect to report topline data from our PIPE-307 Phase 2 VISTA trial for the treatment of RRMS in the fourth quarter of 2025. This topline data readout could provide the first evidence of remyelination in this challenging disease setting, while representing a critical step in delivering a novel therapy for patients in need.'
Stengone continued, 'With a cash runway that is projected to extend through 2027, our near-term objectives are advancing the PIPE-307 partnered programs and PIPE-791 IPF program through critical milestones.'
Second-Quarter 2025 Financial Results
Cash, cash equivalents and marketable securities were $175.5 million as of June 30, 2025. Contineum believes it should have sufficient cash resources to fund its planned operations through 2027. During July 2025, the Company generated net proceeds of approximately $8.4 million from the issuance of 2,122,000 shares of Class A common stock in an at-the-market (ATM) offering at a weighted average price of $4.03 per share.
Research and development expenses were $14.1 million, a 78 percent increase from the second quarter of 2024, largely due to higher clinical development expenses related to the advancement of the Company's PIPE-791 and PIPE-307 programs and higher employee-related costs.
General and administrative expenses were $3.8 million, a 26 percent increase from the second quarter of 2024. The increase was primarily driven by higher stock-based compensation expense and employee-related costs.
Net loss was $16.0 million for the three months ended June 30, 2025, as compared to $9.0 million for the prior-year quarter.
About Contineum Therapeutics
Contineum Therapeutics (Nasdaq: CTNM) is a clinical-stage biopharmaceutical company pioneering novel, oral small molecule therapies for NI&I indications with significant unmet need. Contineum is advancing a pipeline of internally-developed programs with multiple drug candidates now in clinical trials. PIPE-791 is an LPA1 receptor antagonist in clinical development for idiopathic pulmonary fibrosis, progressive multiple sclerosis and chronic pain. PIPE-307 is a selective inhibitor of the M1 receptor in clinical development for relapsing-remitting multiple sclerosis and major depressive disorder. For more information, please visit www.contineum-tx.com.
Forward-Looking Statements
Certain statements contained in this press release, other than historical information, constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include, but are not limited to, statements regarding the Company's clinical trial and product development plans and timelines, including, but not limited to, the Company's expectations related to the regulatory submission process and expected timing of the initiation of the Company's Phase 2 proof-of-concept clinical trial in IPF; the expected timing of topline data from the PIPE-307 Phase 2 VISTA RRMS trial, the PIPE-791 Phase 1b PET trial or from the exploratory Phase 1b chronic pain trial; the Company's cash runway; the indications, anticipated benefits of, and market opportunities for the Company's drug candidates; the Company's business strategies and plans; and the quotations of the Company's management. These statements involve known and unknown risks, uncertainties and other important factors that are in some cases beyond the Company's control and may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties, include, but are not limited to, the following: the Company is heavily dependent on the success of PIPE-791 and PIPE-307, both of which are in the early stages of clinical development, and neither of these drug candidates may progress through clinical development or receive regulatory approval; the results of earlier preclinical studies and clinical trials, including those conducted by third parties, may not be predictive of future results and unexpected adverse side effects or inadequate efficacy of the Company's drug candidates may limit their development, regulatory approval and/or commercialization; the timing and outcome of research, development and regulatory review is uncertain; the FDA or comparable foreign regulatory authorities may disagree as to the design or implementation of our proposed clinical trials; clinical trials and preclinical studies may not proceed at the time or in the manner expected, or at all; the potential for the Company's programs and prospects to be negatively impacted by developments relating to the Company's competitors, including the results of studies or regulatory determinations relating to the Company's competitors; risks associated with reliance on third parties to successfully conduct clinical trials and, in the case of PIPE-307, the Company's reliance, pursuant to a global license and development agreement, upon Janssen Pharmaceutica NV, a Johnson & Johnson company, to develop PIPE-307 for any other indication other than relapsing-remitting multiple sclerosis and, after completion of the Company's PIPE-307 Phase 2 VISTA trial, Janssen Pharmaceutica NV's decision, in its sole discretion, whether or not to further develop PIPE-307 for relapsing-remitting multiple sclerosis; the Company has incurred significant operating expenses since inception and it expects that its operating expenses will continue to significantly increase for the foreseeable future; the Company's license agreement with Janssen Pharmaceutica NV may not result in the successful development of PIPE-307; the Company may be unable to obtain, maintain and enforce intellectual property protection for its technology and drug candidates; and unstable market and economic conditions and military conflict may adversely affect the Company's business and financial condition and the broader economy and biotechnology industry. Additional risks and uncertainties that could affect the Company's business, operations and results are included under the captions, 'Risk Factors' and "Management's Discussion and Analysis of Financial Condition and Results of Operations' in the Company's periodic filings and in other filings that the Company makes with the Securities and Exchange Commission (SEC) from time to time, which are available on the Company's website at www.contineum-tx.com under the Investor section and on the SEC's website at www.sec.gov. Accordingly, readers should not rely upon forward-looking statements as predictions of future events. Except as required by applicable law, the Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
_____________
(a)
Basic and diluted per share amounts are the same for Class A and Class B shares.
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CONTINEUM THERAPEUTICS, INC.
CONDENSED BALANCE SHEETS
(unaudited)
(in thousands, except share and par value data)
June 30, 2025
Assets
Current assets:
Cash and cash equivalents
$
20,784
$
21,943
Marketable securities
154,700
182,817
Prepaid expenses and other current assets
1,355
1,628
Total current assets
176,839
206,388
Property and equipment, net
856
989
Other long-term assets
186
3
Operating lease right-of-use assets
5,007
5,467
Total assets
$
182,888
$
212,847
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
2,001
$
1,811
Accrued expenses
3,747
6,711
Current portion of operating lease liabilities
1,466
1,452
Total current liabilities
7,214
9,974
Operating lease liabilities, net of current portion
4,284
4,807
Total liabilities
11,498
14,781
Commitments and contingencies (Note 8)
Stockholders' equity:
Class A common stock, $0.001 par value; authorized shares—200,000,000 at June 30, 2025 and December 31, 2024; issued and outstanding shares—19,190,723 and 19,125,377 at June 30, 2025 and December 31, 2024, respectively.
19
19
Class B common stock, $0.001 par value; authorized shares—20,000,000 at June 30, 2025 and December 31, 2024; issued and outstanding shares—6,729,172 at June 30, 2025 and December 31, 2024.
7
7
Preferred stock, $0.001 par value; authorized shares—10,000,000 at June 30, 2025 and December 31, 2024; no shares issued or outstanding at June 30, 2025 and December 31, 2024.
—
—
Additional paid-in-capital
320,649
315,371
Accumulated deficit
(149,432
)
(117,402
)
Accumulated other comprehensive income
147
71
Total stockholders' equity
171,390
198,066
Total liabilities and stockholders' equity
$
182,888
$
212,847
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AUSTIN, Texas--(BUSINESS WIRE)--YETI Holdings, Inc. ('YETI') (NYSE: YETI) today announced its financial results for the second quarter ended June 28, 2025. YETI reports its financial performance in accordance with accounting principles generally accepted in the United States of America ('GAAP') and as adjusted on a non-GAAP basis. Please see 'Non-GAAP Financial Measures' and 'Reconciliation of GAAP to Non-GAAP Financial Information' below for additional information and reconciliations of the non-GAAP financial measures to the most comparable GAAP financial measures. Second Quarter 2025 Highlights Net sales decreased 4%, reflecting a more promotional drinkware market environment, caution from consumers and our retail partners, and inventory constraints driven by our supply chain transition. EPS increased 3% to $0.61; Adjusted EPS decreased 6% to $0.66, inclusive of $0.07 net impact of higher tariff costs in the second quarter of 2025 Repurchased 0.7 million shares for $23 million Matt Reintjes, President and Chief Executive Officer, commented, 'We are making excellent progress on our long-term strategic priorities—accelerating innovation, expanding our global brand, and diversifying our supply chain. We are seeing these strategies play out in the market with momentum in product innovation and diversification across our portfolio with notable strength in bags, our global expansion with exceptional performance in the UK and Europe and strong end user demand in Canada and Australia, and the transformational shift in our supply chain. Our brand continues to expand, connecting both domestically and, importantly, globally. Amidst a disruptive macroeconomic environment, we are positioning YETI to deliver long-term, sustainable top and bottom-line growth supported by a strong financial foundation. Our strong balance sheet and robust free cash flow generation are enabling investment in growth initiatives while also advancing our capital allocation priorities, including share repurchases. We exited the second quarter with encouraging momentum across our key growth drivers, and we are seeing signs of continued improvement in the third quarter, reinforcing our confidence in the trajectory ahead.' Second Quarter 2025 Results Sales and adjusted sales both decreased 4% to $445.9 million, compared to $463.5 million during the same period last year. Direct-to-consumer ('DTC') channel sales decreased 1% to $248.6 million, compared to $250.4 million in the prior year quarter. 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This was partially offset by conservative inventory purchases and caution from our wholesale partners in other international regions against robust consumer demand. Gross profit decreased 3% to $257.6 million, or 57.8% of sales, compared to $264.3 million, or 57.0% of sales, in the second quarter of 2024. The 80 basis points increase in gross margin was primarily due to lower product costs, selective price increases implemented in the second quarter of 2025 and the absence in the current year quarter of purchase accounting inventory step-up amortization, partially offset by higher tariff costs. Adjusted gross profit decreased 4% to $257.6 million, or 57.8% of adjusted sales, compared to $267.5 million, or 57.7% of adjusted sales, in the second quarter of 2024. The 10 basis points increase in adjusted gross margin was primarily due to lower product costs and selective price increases implemented in the second quarter of 2025, partially offset by higher tariffs. Selling, general, and administrative ('SG&A') expenses decreased 1% to $195.5 million, compared to $196.9 million in the second quarter of 2024. As a percentage of sales, SG&A expenses increased 140 basis points to 43.9% from 42.5% in the prior year period. This increase was primarily due to higher technology expenses related to our growth investments. Adjusted SG&A expenses decreased 2% to $184.4 million, compared to $187.5 million in the second quarter of 2024. As a percentage of adjusted sales, adjusted SG&A expenses increased 80 basis points to 41.3% from 40.5% in the prior year period. This increase was primarily due to higher technology expenses related to our growth investments, partially offset by lower employee costs. Operating income decreased 8% to $62.0 million, or 13.9% of sales, compared to $67.4 million, or 14.5% of sales during the prior year quarter. Adjusted operating income decreased 9% to $73.2 million, or 16.4% of adjusted sales, compared to $80.0 million, or 17.3% of adjusted sales during the same period last year. Other income increased to $5.8 million compared to other income of $0.4 million in the second quarter of 2024, primarily due to higher foreign currency gains related to intercompany balances in the current year. Net income increased 1% to $51.2 million, or 11.5% of sales, compared to $50.4 million, or 10.9% of sales in the prior year quarter; Net income per diluted share increased 3% to $0.61, compared to $0.59 in the prior year quarter. Adjusted net income decreased 7% to $55.2 million, or 12.4% of adjusted sales, compared to $59.6 million, or 12.9% of adjusted sales in the prior year quarter; Adjusted net income per diluted share decreased 6% to $0.66, compared to $0.70 per diluted share in the prior year quarter. Six Months Ended June 28, 2025 Results Sales and adjusted sales both decreased 1% to $797.0 million, compared to $804.9 million in the prior year period. DTC channel sales increased 2% to $444.8 million, compared to $438.2 million in the prior year period, primarily due to growth in Coolers & Equipment. Wholesale channel sales decreased 4% to $352.2 million, compared to $366.7 million in the same period last year, primarily due to a decline in Drinkware, partially offset by growth in Coolers & Equipment. Drinkware sales decreased 4% to $442.0 million, compared to $461.1 million in the prior year period. Drinkware growth in our international regions was more than offset by a decline in our U.S. region, reflecting a challenging market, and inventory constraints driven by our supply chain transition. Coolers & Equipment sales increased 5% to $340.8 million, compared to $325.8 million in the same period last year, primarily driven by strong performance in bags and hard coolers, partially offset by a decline in soft coolers. Sales in the U.S. decreased 4%, to $639.0 million, compared to $662.7 million in the prior year period. International sales increased 11%, to $158.0 million, compared to $142.2 million in the prior year period reflecting strong growth in Europe, Canada and our launch in Japan. The 11% increase in international sales included an FX headwind of approximately 260 basis points. Gross profit increased to $459.3 million, or 57.6% of sales, compared to $459.1 million, or 57.0% of sales, in the prior year period. 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Balance Sheet and Liquidity Review Cash was $269.7 million, total debt, excluding finance leases and unamortized deferred financing fees, was $75.9 million, and our $300 million Revolving Credit Facility remained undrawn as of the end of the second quarter of 2025. Inventory decreased 10% to $342.1 million, compared to $378.3 million at the end of the prior year quarter. Capital Allocation Update Pursuant to our existing $450 million share repurchase authorization, in the second quarter of 2025, we repurchased approximately 745,000 shares of YETI's common stock on the open market for $23.0 million. Based on our current expectations, we anticipate completing approximately $200 million in share repurchases during 2025. In addition, in August 2025, we acquired certain assets, including designs, tooling, and intellectual property, related to a shaker bottle for $38 million in cash. Updated 2025 Outlook Mr. Reintjes concluded, 'Our confidence in the business and the underlying operating fundamentals supporting our full-year outlook remains unchanged. I'm particularly pleased with the execution on our ongoing supply chain transition which will meaningfully diversify our footprint and capabilities, positioning us for continued expansion and innovation driving long-term success. We are modestly lowering our top-line expectations to reflect a slightly more prolonged recovery in drinkware in the U.S. At the same time, we are raising our EPS outlook, primarily due to our strong operating execution and reflecting tariff reduction on China-sourced products, partially offset by increased tariffs on imports from other regions. As we look to the second half of 2025, we remain incredibly excited about the innovation we have planned, the continued strength and momentum of our brand, and the global opportunities we see in front of us.' 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This outlook reflects an approximate 220 basis point net impact from higher tariff costs versus the prior year; An effective tax rate of approximately 25.5% (versus previous outlook of 26.0%; compared to 24.5% in the prior year period); Adjusted net income per diluted share between $2.34 and $2.48 (versus previous outlook of between $1.96 and $2.02) including an approximately $0.40 net unfavorable impact from higher tariff costs; Diluted weighted average shares outstanding of approximately 82.0 million (versus previous outlook of 83.7 million); Capital expenditures of approximately $50 million (versus previous outlook of $60 million), primarily to support investments in technology, new product innovation, and our supply chain; and Free cash flow between $150 million and $200 million (versus previous outlook of between $100 million and $125 million). Conference Call Details A conference call to discuss the second quarter of 2025 financial results is scheduled for today, August 7, 2025, at 8:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 800-717-1738 (international callers, please dial 646-307-1865) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at A replay will be available through August 21, 2025 by dialing 844-512-2921 (international callers, 412-317-6671). The accompanying access code for this call is 1166514. About YETI Holdings, Inc. Headquartered in Austin, Texas, YETI is a global designer, retailer, and distributor of innovative outdoor products. From coolers and drinkware to bags and apparel, YETI products are built to meet the unique and varying needs of diverse outdoor pursuits, whether in the remote wilderness, at the beach, or anywhere life takes you. By consistently delivering high-performing, exceptional products, we have built a strong following of brand loyalists throughout the world, ranging from serious outdoor enthusiasts to individuals who simply value products of uncompromising quality and design. We have an unwavering commitment to outdoor and recreation communities, and we are relentless in our pursuit of building superior products for people to confidently enjoy life outdoors and beyond. For more information, please visit Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted net sales, adjusted gross profit, adjusted gross margin, adjusted SG&A expenses, adjusted operating income, adjusted net income, adjusted net income per diluted share (which we also refer to as adjusted EPS), free cash flow as well as adjusted gross profit, adjusted SG&A expenses, adjusted operating income and adjusted net income as a percentage of adjusted net sales. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to measure our profitability and to evaluate our financial performance. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding the underlying operating performance of our business and are appropriate to enhance an overall understanding of our financial performance. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. YETI does not provide a reconciliation of forward-looking non-GAAP to GAAP financial measures because such reconciliations are not available without unreasonable efforts. This is due to the inherent difficulty in forecasting with reasonable certainty certain amounts that are necessary for such reconciliation, including in particular the impacts of product recalls and realized and unrealized foreign currency gains and losses reported within other expense. For the same reasons, we are unable to forecast with reasonable certainty all deductions and additions needed in order to provide a forward-looking GAAP financial measures at this time. The amount of these deductions and additions may be material and, therefore, could result in forward-looking GAAP financial measures being materially different or less than forward-looking non-GAAP financial measures. See 'Forward-looking statements' below. Forward-looking statements This press release contains ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements. Forward-looking statements include statements containing words such as 'anticipate,' 'assume,' 'believe,' 'can have,' 'contemplate,' 'continue,' 'could,' 'design,' 'due,' 'estimate,' 'expect,' 'forecast,' 'goal,' 'intend,' 'likely,' 'may,' 'might,' 'objective,' 'plan,' 'predict,' 'project,' 'potential,' 'seek,' 'should,' 'target,' 'will,' 'would,' and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events. For example, all statements made relating to our cash generation abilities, our position to deliver sustainable top- and bottom-line growth, growth initiatives, capital allocation priorities, our share repurchase program, consumer buying behavior, inventory constraints, supply chain challenges, a promotional retail environment, the impact of tariffs, future financial performance, capital expenditures, and our expectations for opportunity, growth, and investments, including those set forth in the quotes from YETI's President and CEO, and the 2025 financial outlook provided herein, constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected and, therefore, you should not unduly rely on such statements. The risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include but are not limited to: (i) economic conditions or consumer confidence in future economic conditions; (ii) our ability to maintain and strengthen our brand and generate and maintain ongoing demand for our products; (iii) our ability to successfully design, develop and market new products; (iv) our ability to effectively manage our growth; (v) our ability to expand into additional consumer markets, and our success in doing so; (vi) the success of our international expansion plans; (vii) our ability to compete effectively in the outdoor and recreation market and protect our brand; (viii) the level of customer spending for our products, which is sensitive to general economic conditions and other factors; (ix) problems with, or loss of, our third-party contract manufacturers and suppliers or an inability to obtain raw materials; (x) fluctuations in the cost and availability of raw materials, equipment, labor, and transportation and subsequent manufacturing delays or increased costs; (xi) adverse changes in international trade policies, tariffs and treaties, including increases in tariff rates and the imposition of additional tariffs; (xii) our ability to accurately forecast demand for our products and our results of operations; (xiii) our relationships with our national, regional, and independent retail partners, who account for a significant portion of our sales; (xiv) the impact of natural disasters and failures of our information technology on our operations and the operations of our manufacturing partners; (xv) the integration and use of artificial intelligence; (xvi) our ability to attract and retain skilled personnel and senior management, and to maintain the continued efforts of our management and key employees; (xvii) the impact of our indebtedness on our ability to invest in the ongoing needs of our business; and (xviii) our ability to successfully execute our share repurchase program and its impact on stockholder value and the volatility of the price of our common stock. For a more extensive list of factors that could materially affect our results, you should read our filings with the United States Securities and Exchange Commission (the 'SEC'), including our Annual Report on Form 10-K for the year ended December 28, 2024 and our Quarterly Report on Form 10-Q for the quarter ended June 28, 2025, as such filings may be amended, supplemented or superseded from time to time by other reports YETI files with the SEC. These forward-looking statements are made based upon detailed assumptions and reflect management's current expectations and beliefs. While YETI believes that these assumptions underlying the forward-looking statements are reasonable, YETI cautions that it is very difficult to predict the impact of known factors, and it is impossible for YETI to anticipate all factors that could affect actual results. The forward-looking statements included here are made only as of the date hereof. YETI undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law. Many of the foregoing risks and uncertainties may be exacerbated by the global business and economic environment, including ongoing geopolitical conflicts. Solely for convenience, certain trademark and service marks referred to in this press release appear without the ® or ™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and service marks. YETI HOLDINGS, INC. (Unaudited) (In thousands) June 28, 2025 December 28, 2024 June 29, 2024 ASSETS Current assets Cash $ 269,673 $ 358,795 $ 212,937 Accounts receivable, net 163,595 120,190 159,050 Inventory 342,131 310,058 378,296 Prepaid expenses and other current assets 52,771 37,723 56,966 Total current assets 828,170 826,766 807,249 Property and equipment, net 138,224 126,270 131,858 Operating lease right-of-use assets 84,732 78,279 80,425 Goodwill 72,308 72,557 72,894 Intangible assets, net 176,165 172,023 136,886 Other assets 3,445 10,225 2,993 Total assets $ 1,303,044 $ 1,286,120 $ 1,232,305 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 152,290 $ 158,499 $ 175,199 Accrued expenses and other current liabilities 116,803 128,210 112,138 Taxes payable 18,584 38,089 23,821 Accrued payroll and related costs 13,900 28,610 17,856 Operating lease liabilities 21,054 19,621 16,365 Current maturities of long-term debt 6,331 6,475 6,481 Total current liabilities 328,962 379,504 351,860 Long-term debt, net of current portion 70,143 72,821 75,829 Operating lease liabilities, non-current 79,455 73,586 78,217 Other liabilities 21,752 20,102 20,539 Total liabilities 500,312 546,013 526,445 Stockholders' Equity Common stock 897 892 890 Treasury stock, at cost (324,824 ) (281,587 ) (200,878 ) Additional paid-in capital 445,671 405,921 402,495 Retained earnings 681,885 614,125 504,687 Accumulated other comprehensive (loss) gain (897 ) 756 (1,334 ) Total stockholders' equity 802,732 740,107 705,860 Total liabilities and stockholders' equity $ 1,303,044 $ 1,286,120 $ 1,232,305 Expand YETI HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six Months Ended June 28, 2025 June 29, 2024 Cash Flows from Operating Activities: Net income $ 67,760 $ 66,251 Adjustments to reconcile net income to cash provided by (used in) operating activities: Depreciation and amortization 26,297 23,559 Amortization of deferred financing fees 321 326 Stock-based compensation 21,317 17,325 Deferred income taxes 6,968 (1,966 ) Impairment of long-lived assets — 2,025 Other (7,292 ) 2,343 Changes in operating assets and liabilities: Accounts receivable (40,769 ) (60,085 ) Inventory (28,864 ) (25,380 ) Other current assets (11,506 ) (9,946 ) Accounts payable and accrued expenses (35,560 ) (50,065 ) Taxes payable (18,572 ) (13,503 ) Other 799 1,402 Net cash used in operating activities (19,101 ) (47,714 ) Cash Flows from Investing Activities: Purchases of property and equipment (19,943 ) (21,636 ) Business acquisition, net of cash acquired — (36,164 ) Additions of intangibles, net (11,143 ) (14,635 ) Net cash used in investing activities (31,086 ) (72,435 ) Cash Flows from Financing Activities: Repayments of long-term debt (2,109 ) (2,109 ) Taxes paid in connection with employee stock transactions (1,563 ) (1,202 ) Payments of finance lease obligations (12,150 ) (2,491 ) Repurchases of common stock (22,984 ) (100,000 ) Excise tax paid on repurchases of common stock (1,562 ) — Net cash used in financing activities (40,368 ) (105,802 ) Effect of exchange rate changes on cash 1,433 (72 ) Net decrease in cash (89,122 ) (226,023 ) Cash, beginning of period 358,795 438,960 Cash, end of period $ 269,673 $ 212,937 Expand YETI HOLDINGS, INC. Supplemental Financial Information (Unaudited) (In thousands) Three Months Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net sales $ 445,892 $ 463,499 $ 797,020 $ 804,893 Product recall (1) — — — — Adjusted net sales $ 445,892 $ 463,499 $ 797,020 $ 804,893 Gross profit $ 257,569 $ 264,306 $ 459,291 $ 459,119 Transition costs (2) — 3,208 (395 ) 4,755 Adjusted gross profit $ 257,569 $ 267,514 $ 458,896 $ 463,874 Selling, general, and administrative expenses $ 195,545 $ 196,886 $ 375,596 $ 365,882 Non-cash stock-based compensation expense (11,173 ) (8,828 ) (21,317 ) (17,325 ) Long-lived asset impairment — — — (2,025 ) Organizational realignment costs (3) — — (994 ) (1,122 ) Stockholder matters (4) — — (2,760 ) — Transition costs (5) — (140 ) — (682 ) Business optimization expense (6) — (415 ) — (415 ) Adjusted selling, general, and administrative expenses $ 184,372 $ 187,503 $ 350,525 $ 344,313 Gross margin 57.8 % 57.0 % 57.6 % 57.0 % Adjusted gross margin 57.8 % 57.7 % 57.6 % 57.6 % SG&A expenses as a % of net sales 43.9 % 42.5 % 47.1 % 45.5 % Adjusted SG&A expenses as a % of adjusted net sales 41.3 % 40.5 % 44.0 % 42.8 % Expand (1) Represents adjustments and charges associated with product recalls. (2) Represents a favorable true-up of estimated disposal costs in connection with the acquisition of Mystery Ranch, LLC for the six months ended June 28, 2025. Represents inventory step-up costs and inventory disposal costs in connection with the acquisition of Mystery Ranch, LLC for the three and six months ended June 29, 2024. (3) Represents employee severance costs in connection with strategic organizational realignments. (4) Represents advisory and legal fees related to a stockholder matter that resulted in a cooperation agreement signed in March 2025. (5) Represents transition costs in connection with the acquisition of Mystery Ranch, LLC, including third-party business integration costs. (6) Represents start-up, transition and integration costs associated with our new distribution facility in the United Kingdom. Expand YETI HOLDINGS, INC. Supplemental Financial Information (Unaudited) (In thousands, except per share amounts) Three Months Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Operating income $ 62,024 $ 67,420 $ 83,695 $ 93,237 Adjustments: Non-cash stock-based compensation expense (1) 11,173 8,828 21,317 17,325 Long-lived asset impairment (1) — — — 2,025 Organizational realignment costs (1)(2) — — 994 1,122 Business optimization expense (1)(5) — 415 — 415 Transition costs (3) — 3,348 (395 ) 5,437 Shareholder matters (4) — — 2,760 — Adjusted operating income $ 73,197 $ 80,011 $ 108,371 $ 119,561 Net income $ 51,151 $ 50,396 $ 67,760 $ 66,251 Adjustments: Non-cash stock-based compensation expense (1) 11,173 8,828 21,317 17,325 Long-lived asset impairment (1) — — — 2,025 Organizational realignment costs (1)(2) — — 994 1,122 Business optimization expense (1)(5) — 415 — 415 Transition costs (3) — 3,348 (395 ) 5,437 Shareholder matters (4) — — 2,760 — Other (income) expense, net (6) (5,773 ) (391 ) (7,149 ) 3,710 Tax impact of adjusting items (7) (1,323 ) (2,989 ) (4,294 ) (7,358 ) Adjusted net income $ 55,228 $ 59,607 $ 80,993 $ 88,927 Net sales $ 445,892 $ 463,499 $ 797,020 $ 804,893 Adjusted net sales $ 445,892 $ 463,499 $ 797,020 $ 804,893 Operating income as a % of net sales 13.9 % 14.5 % 10.5 % 11.6 % Adjusted operating income as a % of adjusted net sales 16.4 % 17.3 % 13.6 % 14.9 % Net income as a % of net sales 11.5 % 10.9 % 8.5 % 8.2 % Adjusted net income as a % of adjusted net sales 12.4 % 12.9 % 10.2 % 11.0 % Net income per diluted share $ 0.61 $ 0.59 $ 0.81 $ 0.77 Adjusted net income per diluted share $ 0.66 $ 0.70 $ 0.97 $ 1.03 Weighted average shares outstanding used to compute adjusted net income per diluted share 83,463 85,468 83,503 86,313 Expand (1) These costs are reported in SG&A expenses. (2) Represents employee severance costs in connection with strategic organizational realignments. (3) Represents a favorable true-up of estimated disposal costs in connection with the acquisition of Mystery Ranch, LLC for the six months ended June 28, 2025. Represents transition costs, inventory step-up and inventory disposal costs, and third-party business integration costs in connection with the acquisition of Mystery Ranch, LLC for the three and six months ended June 29, 2024. (4) Represents advisory and legal fees related to a stockholder matter that resulted in a cooperation agreement signed in March 2025. (5) Represents start-up, transition and integration costs associated with our new distribution facility in the United Kingdom. (6) Other (income) expense, net substantially consists of realized and unrealized foreign currency gains and losses on intercompany balances that arise in the ordinary course of business. (7) Represents the tax impact of adjustments calculated at an expected statutory tax rate of 24.5% for each of the three and six months ended June 28, 2025 and June 29, 2024. Expand Six Months Ended June 28, 2025 Six Months Ended June 29, 2024 Net Sales Product Recalls (1) Adjusted Net Sales Net Sales Product Recalls (1) Adjusted Net Sales Channel Wholesale $ 352,208 $ — $ 352,208 $ 366,697 $ — $ 366,697 Direct-to-consumer 444,812 — 444,812 438,196 — 438,196 Total $ 797,020 $ — $ 797,020 $ 804,893 $ — $ 804,893 Category Coolers & Equipment $ 340,789 $ — $ 340,789 $ 325,848 $ — $ 325,848 Drinkware 442,039 — 442,039 461,103 — 461,103 Other 14,192 — 14,192 17,942 — 17,942 Total $ 797,020 $ — $ 797,020 $ 804,893 $ — $ 804,893 Geographic Region United States $ 639,047 $ 639,048 $ 662,682 $ — $ 662,682 International 157,973 — 157,972 142,211 — 142,211 Total $ 797,020 $ — $ 797,020 $ 804,893 $ — $ 804,893 Expand (1) Represents adjustments and charges associated with product recalls. Expand YETI HOLDINGS, INC. Supplemental Financial Information (Unaudited) (In thousands) Six Months Ended June 28, 2025 June 29, 2024 Net cash used in operating activities $ (19,101 ) $ (47,714 ) Less: Purchases of property and equipment (19,943 ) (21,636 ) Free cash flow $ (39,044 ) $ (69,350 ) Expand
Business Wire
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- Business Wire
Celsius Holdings Reports Second Quarter 2025 Financial Results
- Record quarterly revenue of $739M reflects Alani Nu ® acquisition and accelerating demand for Celsius Holdings' modern energy portfolio, which is driving category growth Celsius Holdings reaches 17.3% share of US energy drink category, up 180bps versus a year ago, led by demand for zero sugar, functional beverages 1 Results reflect the company's focus on execution in a fast-growing, consumer-led category undergoing rapid transformation BOCA RATON, Fla.--(BUSINESS WIRE)--Celsius Holdings, Inc. (Nasdaq: CELH) ('Celsius Holdings' or 'the company') today reported second quarter 2025 financial results. Celsius Holdings delivered strong results in the second quarter, supported by solid sales growth for the CELSIUS and Alani Nu brands and operational efficiencies across our business. Share Summary of Second Quarter 2025 Financial Results Summary Financials 2Q 2025 2Q 2024 Change 1H 2025 1H 2024 Change (Millions except for percentages and EPS) Revenue $739.3 $402.0 84% $1,068.5 $757.7 41% N. America $714.5 $382.4 87% $1,021.0 $721.9 41% International $24.8 $19.6 27% $47.5 $35.8 33% Gross Margin 51.5% 52.0% -50 BPS 51.8% 51.6% +20 BPS Net Income $99.9 $79.8 25% $144.3 $157.6 (8)% Net Income att. to Common Shareholders $85.7 $66.7 28% $119.9 $131.5 (9)% Diluted EPS $0.33 $0.28 18% $0.48 $0.55 (13)% Adjusted Diluted EPS* $0.47 $0.28 68% $0.65 $0.55 18% Adjusted EBITDA* $210.3 $100.4 109% $280.0 $188.4 49% Expand *The company reports financial results in accordance with generally accepted accounting principles in the United States ('GAAP'), but management believes that disclosure of Adjusted EBITDA and Adjusted Diluted EPS, which are non-GAAP financial measures that management uses to assess our performance, may provide users with additional insights into operating performance. Please see 'Use of Non-GAAP Measures' and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, both of which can be found below. Expand John Fieldly, Chairman and CEO of Celsius Holdings, said: 'Celsius Holdings delivered strong results in the second quarter, supported by solid sales growth for the CELSIUS and Alani Nu brands and operational efficiencies across our business. As momentum builds across the energy category, our brands continue to lead - driving household penetration, expanding shelf space and outperforming expectations. We believe modern energy is one of the most exciting growth opportunities in beverages today, and Celsius Holdings is defining the category's future. We remain focused on disciplined execution, organizational excellence and long-term growth.' FINANCIAL AND MARKET HIGHLIGHTS FOR THE SECOND QUARTER OF 2025 For the three months ended June 30, 2025, revenue totaled approximately $739.3 million, compared to $402.0 million for the prior-year period, representing 84% growth. The increase was primarily driven by $301.2 million of revenue from the Alani Nu ® brand which we acquired on April 1, 2025. Alani Nu achieved record sales fueled by strong limited-time-offer (LTO) innovation performance and organic growth across the brand's core flavors. CELSIUS ® brand revenue grew 9% in the second quarter compared to the same period last year supported by favorable channel mix, increases in total distribution points and velocity gains. International revenue totaled $24.8 million for the second quarter of 2025, representing a 27% increase compared to the same period in 2024 driven by continued momentum in our expansion markets including the UK, Ireland, France, Australia, New Zealand and the Netherlands. For the three months ended June 30, 2025, gross profit increased by $171.8 million to $380.9 million from $209.1 million for the prior-year period. Gross profit margin was 51.5% for the three months ended June 30, 2025, compared to 52.0% for the same period in 2024. Gross margin improvements were driven by lower material costs, price mix, and favorable channel and portfolio mix but were offset by the impact of Alani Nu's margin profile, which included a $21.7 million dollar inventory step up adjustment (although Alani Nu was favorably impacted by product mix, price mix, material costs, and freight costs). As inventory is recorded on a first in first out basis, the impact from tariffs was not significant during the quarter. Selling, general and administrative expenses for the three months ended June 30, 2025, increased $123.0 million, or 107%, to $237.9 million from $114.9 million for the year-ago period, primarily due to the addition of Alani Nu to the portfolio and acquisition-related costs, including recognition of the full performance earn out. Selling, general and administrative expenses represented 32.2% of revenue in the second quarter of 2025. Investment in our Live. Fit. Go. marketing campaign, launched in the second quarter, will continue to increase in the second half of 2025. Diluted earnings per share for the second quarter of 2025 was $0.33 compared to $0.28 for the prior-year period. Non-GAAP adjusted diluted earnings per share for the second quarter of 2025 was $0.47 compared to $0.28 for the prior-year period. Retail Performance Retailer enthusiasm and consumer demand continue to validate the company's brand leadership in modern energy, a category now accelerating across channels and demographics. Retail sales of the Celsius Holdings portfolio in U.S. tracked channels (MULO+ w/C) reflected increasing consumer demand for sugar free, functional beverages for the 13-week period ended June 29, 2025 2. Celsius Holdings retail sales increased 29% year over year and 25% sequentially 3, with month-over-month retail sales growth since January 2025. Celsius Holdings held a 17.3% dollar share in the U.S. RTD energy category for the period, a 1.8 point year-over-year increase and 1.1 point sequential increase. CELSIUS brand retail sales increased 3% year over year for the 13-week period ended June 29, 2025, and 17.6% sequentially 4, with month-over-month retail sales growth since January 2025. The CELSIUS brand held an 11% dollar share in the U.S. RTD energy category for the period, a 1.3 point decline over the year-ago period. Sequential dollar share increased slightly (+8 bps) over the prior period. 5 Alani Nu brand retail sales increased 129% year over year for the 13-week period ended June 29, 2025, and 39% sequentially, 6 marking one of the fastest accelerations in the category and underscoring the brand's resonance with younger, more diverse energy consumers. The Alani Nu brand held a 6.3% dollar share in the U.S. RTD energy category for the period, a 3.1 point increase over the year-ago period. Sequential dollar share increased by 1 point over the prior 13-week period. 7 Strong retailer support and rising consumer demand for great-tasting, better-for-you functional beverages have propelled Celsius Holdings' past-52-week RTD energy retail sales to over $4 billion, surpassing the combined sales of the next eight RTD energy drink brands in the same period. 8 FINANCIAL AND MARKET HIGHLIGHTS FOR THE FIRST HALF OF 2025 For the six months ended June 30, 2025, revenue totaled approximately $1,068.5 million, compared to $757.7 million for the prior-year period, representing growth of 41.0%. The increase was primarily driven by $301.2 million of revenue from the Alani Nu brand in the second quarter of 2025. International revenue totaled $47.5 million for the first half of 2025, representing a 33% increase compared to the first half of 2024, driven by continued momentum in expansion markets, including the UK, Ireland, France, Australia, New Zealand and the Netherlands as well as growth in Nordic markets. For the six months ended June 30, 2025, gross profit increased by $161.9 million to $553.2 million from $391.3 million for the six months ended June 30, 2024. Gross profit margin was 51.8% for the six months ended June 30, 2025, a 20-basis-point increase from 51.6% for the same period in 2024, driven by lower material costs, price mix, and favorable channel and portfolio mix which were partially offset by the impact of Alani Nu's margin profile which included a $21.7 million dollar inventory step up adjustment (although Alani Nu was favorably impacted in the second quarter by product mix, price mix, material costs, and freight costs). Selling, general and administrative expenses for the six months ended June 30, 2025, increased $144.4 million, or 68%, to $358.2 million from $213.9 million for the prior-year period. Diluted earnings per share for the first half of 2025 was $0.48 compared to $0.55 for the prior-year period. Non-GAAP adjusted diluted earnings per share for the first half of 2025 was $0.65 compared to $0.55 for the prior-year period. Second Quarter 2025 Earnings Webcast Management will host a webcast today, Thursday, Aug. 7, 2025, at 8:00 a.m. ET to discuss the company's second quarter 2025 financial results with the investment community. Investors are invited to join the webcast accessible from Downloadable files, an audio replay and transcript will be made available on the Celsius Holdings investor relations website. About Celsius Holdings, Inc. Celsius Holdings, Inc. (Nasdaq: CELH) is a functional beverage company and the owner of energy drink brand CELSIUS ®, hydration brand CELSIUS HYDRATION TM and health and wellness brand Alani Nu ®. Born in fitness and pioneering the rapidly growing, better-for-you, functional beverage category, the company creates and markets leading functional beverage products. For more information, please visit Forward-Looking Statements This press release contains statements by Celsius Holdings, Inc. ('Celsius Holdings', 'we', 'us', 'our' or the 'Company') that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our prospects, plans, business strategy and expected financial and operational results. You can identify these statements by the use of words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'should,' 'will,' 'would', 'could', 'project', 'plan', 'potential', 'designed', 'seek', 'target', variations of these terms, the negatives of such terms and similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. You should not rely on forward-looking statements because our actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: changes to our commercial agreements with PepsiCo, Inc.; management's plans and objectives for international expansion and global operations; general economic and business conditions; our business strategy for expanding our presence in our industry; our expectations of revenue; operating costs and profitability; our expectations regarding our strategy and investments; our ability to successfully integrate businesses that we acquire, including Alani Nu; our ability to achieve the benefits that we expect to realize as a result of our acquisitions, including Alani Nu; the potential negative impact on our financial condition and results of operations if we fail to achieve the benefits that we expect to realize as a result of our business acquisitions, including Alani Nu; liabilities of the businesses that we acquire that are not known to us; our expectations regarding our business, including market opportunity, consumer demand and our competitive advantage; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; the Company's ability to comply with the rules and regulations of the Securities and Exchange Commission (the 'SEC'); and those other risks and uncertainties discussed in the reports we file with the SEC, such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date the statements were made. We do not undertake any obligation to update forward-looking information, except to the extent required by applicable law. Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 615,233 $ 890,190 Accounts receivable-net [1] 490,389 270,342 Inventories-net 230,046 131,165 Prepaid expenses and other current assets 41,420 18,759 Deferred other costs-current [2] 14,124 14,124 Total current assets 1,391,212 1,324,580 Property, plant and equipment-net 72,516 55,602 Deferred tax assets 43,158 38,699 Other long-term assets 36,755 29,990 Deferred other costs-non-current [2] 227,153 234,215 Brands-net 1,104,389 907 Customer relationships-net 117,726 11,306 Goodwill 802,234 71,582 Total Assets $ 3,795,143 $ 1,766,881 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable [3] $ 120,962 $ 41,287 Accrued expenses [4] 225,859 148,780 Income taxes payable 21,765 10,834 Accrued promotional allowance [5] 200,169 135,948 Contingent consideration 25,000 — Deferred revenue - current [6] 16,071 9,513 Other current liabilities 49,949 19,173 Total current liabilities 659,775 365,535 Long-term debt 862,917 — Deferred revenue-non-current [7] 156,135 157,714 Other long term liabilities 25,002 19,215 Total Liabilities 1,703,829 542,464 Commitment and contingencies (Note 15) Mezzanine Equity: Series A convertible preferred stock, $0.001 par value and 1,467 shares issued and outstanding 824,488 824,488 Stockholders' Equity: Common stock, $0.001 par value; 400,000 shares authorized, 257,769 and 235,014 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 101 79 Additional paid-in capital 1,028,384 297,579 Accumulated other comprehensive income (loss) 2,178 (3,250 ) Retained earnings 236,163 105,521 Total Stockholders' Equity 1,266,826 399,929 Total Liabilities, Mezzanine Equity and Stockholders' Equity $ 3,795,143 $ 1,766,881 [1] Includes $204.5 million and $168.2 million from a related party as of June 30, 2025 and December 31, 2024, respectively. [2] Amounts in this line item are associated with a related party for all periods presented. [3] Includes $17.3 million and $1.7 million due to a related party as of June 30, 2025 and December 31, 2024, respectively. [4] Includes $0.3 million and $0.2 million due to a related party as of June 30, 2025 and December 31, 2024, respectively. [5] Includes $94.8 million and $75.1 million due to a related party as of June 30, 2025 and December 31, 2024, respectively. [6] Includes $9.5 million and $9.5 million due to a related party as of June 30, 2025 and December 31, 2024, respectively. [7] Includes $153.0 million and $157.7 million due to a related party as of June 30, 2025 and December 31, 2024, respectively. Expand (In thousands, except per share amounts) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Revenue [1] $ 739,259 $ 401,977 $ 1,068,535 $ 757,685 Cost of revenue 358,408 192,879 515,311 366,380 Gross profit 380,851 209,098 553,224 391,305 Selling, general and administrative expenses [2] 237,886 114,850 358,228 213,867 Income from operations 142,965 94,248 194,996 177,438 Other (expense) income: Interest income 4,038 10,647 11,884 20,259 Interest expense (18,080 ) — (18,080 ) — Other, net 542 (264 ) 1,658 (605 ) Total other (expense) income (13,500 ) 10,383 (4,538 ) 19,654 Net income before provision for income taxes 129,465 104,631 190,458 197,092 Provision for income taxes (29,610 ) (24,848 ) (46,184 ) (39,498 ) Net income $ 99,855 $ 79,783 $ 144,274 $ 157,594 Dividends on Series A convertible preferred stock [3] (6,851 ) (6,838 ) (13,632 ) (13,675 ) Income allocated to participating preferred stock [3] (7,314 ) (6,289 ) (10,703 ) (12,417 ) Net income attributable to common stockholders $ 85,690 $ 66,656 $ 119,939 $ 131,502 Other comprehensive income: Foreign currency translation gain (loss), net of income tax 3,179 (308 ) 5,428 (1,662 ) Comprehensive income $ 88,869 $ 66,348 $ 125,367 $ 129,840 Earnings per share Basic $ 0.33 $ 0.29 $ 0.49 $ 0.56 Diluted $ 0.33 $ 0.28 $ 0.48 $ 0.55 *Please refer to Note 3 in the Company's Annual Report on Form 10-Q for the period ended June 30, 2025, for Earnings per Share reconciliations. [1] Includes $245.8 million and $434.3 million for the three and six months ended June 30, 2025, respectively, and $211.3 million and $420.8 million for the three and six months ended June 30, 2024, respectively, from a related party. [2] Includes $0.2 million and $0.8 million for the three and six months ended June 30, 2025, respectively, and $0.6 million and $1.2 million for the three and six months ended June 30, 2024, respectively, from a related party. [3] Amounts in this line item are associated with a related party for all periods presented. Expand Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income (GAAP measure) $ 99,855 $ 79,783 $ 144,274 $ 157,594 Add back/(Deduct): Net interest (expense) income 14,042 (10,647 ) 6,196 (20,287 ) Provision for income taxes 29,610 24,848 46,184 39,498 Depreciation and amortization expense 9,119 1,418 11,730 2,648 Non-GAAP EBITDA 152,626 95,402 208,384 179,453 Stock-based compensation 1 6,434 4,746 11,463 8,309 Foreign exchange (800 ) 264 (1,720 ) 633 Reorganization Costs 2 482 — 482 — Acquisition Costs 3 29,855 — 38,967 — Penalties 4 — — 710 — Inventory step-up adjustment 5 21,692 — 21,692 — Expand ______________________________ 1[9] Selling, general and administrative expenses related to employee non-cash stock-based compensation expense. Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and directors. The Company believes that the exclusion provides a more accurate comparison of operating results and is useful to investors to understand the impact that stock-based compensation expense has on its operating results. 2 Impairment charges for the Fast brand in the EMEA region. 3[10] Fees and professional services related to acquisition activity. 4 Accrued expense in the quarter ended March 31, 2025, related to contractual co-packer obligations. 5 Non-cash inventory valuation step-up from the Alani Nu acquisition which was recognized as an adjustment to the cost of revenue. 6 Add backs and deductions are net of their respective impacts from tax and reallocation of earnings to participating securities. The total tax effect of the adjusted items for the quarter ended June 30, 2025 was $(0.05) per diluted share, which includes the tax effect of deductible acquisition costs and inventory step-up adjustment. The total tax effect of the adjusted items for the six months ended June 30, 2025 was $(0.06) per diluted share. There were no adjusted items for the six months ended June 30, 2024. Tax effects are determined based on the tax treatment of the related item, the incremental statutory rate of the jurisdictions pertaining to the adjustment, and their effects on pre-tax income (loss). Expand USE OF NON-GAAP MEASURES Celsius defines Adjusted EBITDA as net income before net interest (expense) income, income tax expense (benefit), and depreciation and amortization expense, further adjusted by excluding stock-based compensation expense, foreign exchange gains or losses, distributor termination fees, legal settlement costs, reorganization costs, acquisition costs, penalties, and inventory step-up adjustment. Adjusted EBITDA Margin is the ratio between the company's Adjusted EBITDA and net revenue, expressed as a percentage. Adjusted diluted earnings per share is GAAP diluted earnings per share net of add backs and deductions for distributor termination, legal settlement costs, reorganization costs, acquisitions costs, penalties, and inventory step-up adjustment. Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share are non-GAAP financial measures. Celsius uses Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share for operational and financial decision-making and believes these measures are useful in evaluating its performance because they eliminate certain items that management does not consider indicators of Celsius' operating performance. Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share may also be used by many of Celsius' investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. Celsius believes that the presentation of Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share, provides useful information to investors by allowing an understanding of measures that it uses internally for operational decision-making, budgeting and assessing operating performance. Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share are not recognized terms under GAAP and should not be considered as a substitute for net income or any other financial measure presented in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of Celsius' results as reported under GAAP. Celsius strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share as defined by Celsius, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare Celsius' use of these non-GAAP financial measures with those used by other companies. More News From Celsius Holdings, Inc. Get RSS Feed Celsius Holdings to Release Second Quarter Results on Thursday, Aug. 7, 2025 BOCA RATON, Fla.--(BUSINESS WIRE)--Celsius Holdings, Inc. will release its second quarter financial results before markets open on Thursday, Aug. 7, 2025.... Celsius Redefines How to Fuel Everyday Life with Launch of the LIVE. FIT. GO.™ Campaign BOCA RATON, Fla.--(BUSINESS WIRE)--Celsius launches largest 360° marketing campaign in the brand's history with LIVE. FIT. GO.™...
