Energy drink company Celsius (NASDAQ: CELH) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 138% year on year to $782.6 million. Its non-GAAP profit of $0.41 per share was 40% above analysts’ consensus estimates.
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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: $8.43 billion
Company Overview
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $2.97 billion in revenue over the past 12 months, Celsius carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.
As you can see below, Celsius grew its sales at an incredible 56.1% compounded annual growth rate over the last three years. This shows it had high demand, a useful starting point for our analysis.
This quarter, Celsius reported magnificent year-on-year revenue growth of 138%, and its $782.6 million of revenue beat Wall Street’s estimates by 2.6%.
Looking ahead, sell-side analysts expect revenue to grow 16.4% over the next 12 months, a deceleration versus the last three years. Still, this projection is healthy and implies the market is baking in success for its products.
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Cash Is King
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
Celsius has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors. The company’s free cash flow margin averaged 12.3% over the last two years, quite impressive for a consumer staples business.
Key Takeaways from Celsius’s Q1 Results
We were impressed by how significantly Celsius blew past analysts’ EBITDA expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its gross margin slightly missed. Zooming out, we think this quarter featured some important positives. The stock traded up 3.7% to $34.21 immediately following the results.
Sure, Celsius had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
