Celsius Holdings, a prominent player in the functional beverage market, delivered an exceptional performance in the second quarter of 2025. This strong showing was primarily fueled by the successful integration and breakout growth of the recently acquired Alani Nu brand, alongside the sustained momentum of its flagship Celsius line. The company's strategic focus on innovation, effective marketing campaigns, and robust distribution channels has solidified its position in the rapidly expanding energy drink category, appealing to a diverse consumer base seeking healthier and more functional beverage options.
During the second quarter, Celsius Holdings witnessed a remarkable 84% year-over-year surge in revenue, totaling $739.3 million. A significant portion of this growth, $301.2 million, was directly attributable to Alani Nu, which achieved record sales, particularly from its limited-time offerings like Sherbet Swirl and Cotton Candy. The Celsius brand also contributed substantially with $438.1 million in revenue, demonstrating consistent velocity improvements and broader distribution. Overall, the company's retail sales expanded by 29% and volume by 31%, reflecting widespread consumer demand. Consolidated gross margin remained steady at 51.5%, a testament to favorable material costs, enhanced production yields, and strategic product and channel mix, even with Alani Nu's initially lower margin profile. Adjusted EBITDA hit a record high, exceeding $200 million, underscoring strong profitability.
The company's success is deeply rooted in understanding evolving consumer preferences. A major trend observed is the increasing shift towards functional, zero-sugar energy drinks, particularly among women and Gen Z consumers. This demographic shift has created a fertile ground for brands like Celsius and Alani Nu, which resonate with active and wellness-focused lifestyles. Celsius Holdings' portfolio now boasts a 43% household penetration, with the Celsius brand at 34% and Alani Nu at 22%, both exhibiting repeat purchase rates above 65%. In tracked U.S. channels, the ready-to-drink energy category grew by 15.2% year-over-year, while Celsius Holdings significantly outpaced this, with dollar sales increasing by 28.9% and unit sales by 31.2%. The company's dollar share in the RTD energy category reached 17.3%, an increase of 180 basis points from the prior period.
Innovation remains a crucial growth engine. Alani Nu's new flavors, such as Sherbet Swirl and Cotton Candy, not only drove sales but also significantly expanded the brand's reach, with Cotton Candy setting new sales records at Walmart. Looking ahead, Alani Nu is set to launch its seasonal offerings, Witch's Brew and Pumpkin Cream. Similarly, the Celsius brand introduced refreshing fizz-free options like Pink Lemonade and Dragon Fruit Lime, catering to consumer demand for diverse flavor profiles. The company also demonstrated strong performance in e-commerce and foodservice channels; Celsius was the top-selling trademark on Amazon during Prime Day, and its foodservice volume increased by 9.8% year-over-year in North America. Internationally, revenue grew by 27%, with notable contributions from Australia, the UK, and France, signaling the global appeal of these brands. These strategic initiatives, coupled with ongoing investments in brand awareness and organizational capabilities, position Celsius Holdings for continued success.
The company's robust second-quarter results highlight its adeptness in navigating a dynamic market and capitalizing on key consumer trends. Through strategic acquisitions, product innovation, and strong operational execution, Celsius Holdings has not only expanded its market footprint but also cultivated significant brand loyalty. The impressive financial metrics, including substantial revenue growth and record-breaking EBITDA, reflect a well-executed strategy focused on long-term, sustainable profitability and market leadership in the functional beverage sector.