Celsius Holdings, Inc. ( CELH ) shares are trading lower on Tuesday after the company released its first-quarter results.

The beverage giant reported adjusted earnings per share of 18 cents, missing the analyst consensus estimate of 19 cents. Quarterly sales of $329.28 million (down 7% year over year) missed the street view of $344.03 million.

CELSIUS brand retail sales declined 3% year over year with a dollar share of 10.9%, down 140 basis points from the prior year. 

Celsius highlighted that the revenue was affected by the timing and structure of our U.S. distributor incentive program and elevated retail promotional allowances, which were more heavily weighted toward the latter part of the quarter compared to the same period in 2024. 

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“While revenue was down year over year, retail scanner data showed a 2% increase in dollar sales for the 13 weeks ended Mar. 30, 2025, compared to the prior 13-week period,” the company said in a press release.

The company’s adjusted EBITDA slumped 21% year over year to $69.7 million, while quarterly net income fell 43% to $44.4 million.

Celsius closed the acquisition of Alani Nu on Apr. 1, 2025. Alani Nu surpassed $1 billion in trailing 52-week retail sales for the period ended Apr. 13.

The company exited the quarter with cash and equivalents worth $977.285 million. Inventories-net totaled $141.159 million.

Gross margin in the quarter under review expanded by 110 basis points to 52.3%. The increase in gross margin is attributed to sourcing efficiencies for raw and package materials.

On a pro forma basis, Celsius said it captured 16.2% of U.S. energy drink category dollar share in the first quarter.

Price Action: CELH shares are trading lower by 3.57% to $32.68 at the last check on Tuesday.

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