How CELH (Celsius Holdings) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a functional energy beverage leader like Celsius Holdings, Inc. (CELH) makes money is essential for investors and anyone interested in the business of health and wellness beverages. In this post, we break down Celsius Holdings' quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Celsius Holdings, Inc. Overview

Celsius Holdings, Inc. operates as a leading provider of functional energy beverages, primarily under the Celsius® brand. The company’s business model centers on the development, marketing, and distribution of health-focused energy drinks that appeal to fitness-conscious consumers. Revenue comes predominantly from the sale of ready-to-drink energy beverages through retail, convenience, and e-commerce channels across North America and select international markets. The company’s business segments include North America (the core market) and International, with the vast majority of sales generated domestically.

Revenue Breakdown

• Total Revenue (Q2 2025): $0.59B (+32% YoY)
  • North America: $0.55B (93% of total)
  • International: $0.04B (7% of total)
  • Growth is powered by expanded retail distribution, strong brand momentum, and increased consumer demand for healthier energy alternatives.

Gross Profit and Margins

• Gross Profit: $0.29B (49% gross margin)
  • Cost of Revenue: $0.30B (+28% YoY)
  • Celsius maintains robust margins due to its asset-light, outsourced manufacturing model and premium product positioning.
• Most costs come from product procurement, co-packing, and logistics.

Operating Income and Expenses

• Operating Income: $0.11B (+41% YoY, 19% margin)
• Operating Expenses: $0.18B (+25% YoY)
  • R&D: $0.01B (+8% YoY, 2% of revenue) — Focused on new product development, flavor innovation, and functional ingredient research.
  • SG&A: $0.17B (+26% YoY, 29% of revenue) — Includes marketing, advertising, salesforce expansion, and general corporate costs.
  • Celsius continues to prioritize brand-building and distribution expansion while maintaining operational efficiency.

Net Income

• Pre-Tax Income: $0.11B (+39% YoY, 18% margin)
• Income Tax: $0.02B (18% effective tax rate)
• Net Income: $0.09B (+44% YoY, 15% net margin)
• Celsius converts a significant portion of sales into profit due to its scalable business model and disciplined cost management.

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What Drives Celsius Holdings' Money Machine?

• Energy Beverage Sales: Over 90% of revenue comes from Celsius® energy drink sales in North America, driven by increased shelf space and consumer adoption.
• Volume Growth: Case shipments rose 29% YoY, reflecting strong demand and successful retail partnerships.
• Brand Investment: Heavy marketing and sponsorships fuel awareness and trial, supporting long-term growth.
• International Expansion: Early-stage investments in Europe and Asia offer future growth potential, though these segments are not yet profitable.

Visualizing Celsius Holdings' Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant marketing investments, 15% of revenue drops to the bottom line.

Key Takeaways

• Celsius Holdings' money comes overwhelmingly from North American energy beverage sales
• High gross and net margins illustrate the power of Celsius' premium, asset-light business model
• Heavy investment in brand marketing and distribution, balanced by efficiency in operating costs
• Ongoing growth is driven by retail expansion, consumer trends, and international opportunities

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FAQ About Celsius Holdings, Inc.'s Income Statement

1. What is the main source of Celsius Holdings' revenue in 2025?

Celsius Holdings generates over 90% of its revenue from Celsius® energy drink sales in North America. International sales and licensing contribute a small but growing share.

2. How profitable is Celsius Holdings in Q2 2025?

Celsius Holdings reported net income of $0.09B in Q2 2025, with a net margin of approximately 15%, reflecting strong profitability driven by premium pricing and operational leverage.

3. What are the largest expense categories for Celsius Holdings?

The biggest expenses on Celsius Holdings' income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs and marketing. R&D investment reached $0.01B in Q2 2025, as Celsius prioritizes product innovation and brand development.

4. Why does the International segment operate at a loss?

The International segment, despite generating $0.04B in revenue, posted an operating loss of over $0.01B in Q2 2025. This is because Celsius aggressively invests in market entry, distribution partnerships, and brand awareness, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does Celsius Holdings' effective tax rate compare to previous years?

Celsius Holdings' effective tax rate in Q2 2025 was 18%, consistent with previous years. This moderate rate is primarily due to the company’s U.S.-centric earnings and available tax credits.