Company: CELH
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001341766-25-000104
Chunk: 109

Company: Celsius Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 the Human Resources and Compensation Committee approved a modification to the revenue-based performance metrics applicable to certain of the Company’s outstanding PSUs to take into account the acquisition of Alani Nu. For units with no change in probability of payout, compensation expense continues to be recognized based on the original grant-date fair value. For incremental units where the modification resulted in a shift from improbable to probable, the modification-date fair value was used. Expense for the incremental units was immaterial.

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Celsius Holdings, Inc.Notes to the Condensed Consolidated Financial Statements (Unaudited)June 30, 2025(Tabular dollars in thousands, except per share amounts)

14.    SEGMENT REPORTING

The Company operates in multiple geographical regions and functions as a single operating segment because its operations and strategies are centrally designed and executed, and remain significantly similar across these regions. The CODM, who is the Company’s Chief Executive Officer, evaluates operating results and allocates resources on a consolidated basis due to the significant economic interdependencies between the Company's geographical operations and brands.As discussed in Note 5. Acquisitions, in April 2025, the Company acquired Alani Nu. The Company determined that under Topic 280, Alani Nu is not deemed a separate reportable segment. Alani Nu’s operations and processes are being aligned with Celsius’ existing business functions to ensure unified strategy execution across brands. Alani Nu will be managed within Celsius’ organizational structure and will not operate as a separate business unit. As a result, the Company, including results from Alani Nu beginning from the Closing Date, continues to be managed as a single operating segment and has a single reportable segment.The following table reflects certain financial data for the Company's single reportable segment:Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Revenue$739,259 $401,977 $1,068,535 $757,685 Cost of revenue (excluding freight) (318,277)(178,480)(460,752)(338,026)Freight(40,131)(14,399)(54,559)(28,354)Gross profit380,851 209,098 553,224 391,305 Selling and marketing expenses(150,842)(90,909)(231,738)(166,748)General and administrative expenses(87,044)(23,941)(126,490)(47,119)Other (expense) income, net(