Celsius Holdings Inc. shares jumped 17.8% after the energy drink maker reported fourth-quarter results that significantly exceeded Wall Street expectations. The company posted adjusted earnings per share of $0.26, beating estimates by $0.07, while revenue surged 117% to $721.6 million, well above the consensus estimate of $639.14 million.

The revenue growth was driven by the acquisitions of Alani Nu and Rockstar Energy, which contributed $370.0 million and $45.0 million respectively during the quarter. However, Celsius's core brand revenue declined approximately 8% compared to the same period last year due to temporary integration-related timing dynamics. The company noted these factors resulted in a short-term misalignment between shipments and promotional activity during the quarter and are not reflective of underlying retail demand trends.

For the full year 2025, Celsius reported record revenue of $2.515 billion, up 86% from the prior year, with adjusted diluted EPS reaching $1.34 compared to $0.70 in 2024. Despite the strong top-line growth, gross profit margin for the fourth quarter fell to 47.4% from 50.2% in the prior year, reflecting integration costs and higher product costs related to tariffs. The company expects margins to expand across 2026 and return to a normalized profile with gross margin percentages in the low 50s as integrations complete.