Company: CELH
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001341766-25-000144
Chunk: 2

Company: Celsius Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 3
Chunk 2
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Commodity Price Risk 

In the normal course of business, our financial position is routinely subject to a variety of risks. The principal market risks (i.e., the risk 

of loss arising from adverse changes in market rates and prices) to which we are exposed are fluctuations in commodity and other input 

prices affecting the costs of our raw materials (including, but not limited to, increases in the costs of the price of aluminum cans, 

sucralose and other sweeteners, as well as other raw materials contained within our products). We do not currently use hedging 

agreements or other financial instruments to manage the risks associated with securing sufficient ingredients or raw materials, although 

we may consider doing so in the future as part of our risk management strategy. We are also subject to market risks with respect to the 

cost of commodities and other inputs because our ability to recover increased costs through higher pricing is limited by the competitive 

environment in which we operate. 

Interest Rate Risk

We may be subject to market risk from exposure to changes in interest rates based on our financing, investing, and cash management 

activities. As of September 30, 2025, the interest rate on our $897.8 million term loan incurred in connection with the Alani Nu 

Acquisition was 7.29%. Based on the outstanding balances as of September 30, 2025, if our applicable interest rate increased by 1%, 

then our debt service on an annual basis would increase by approximately $8.8 million. For more information, see Note 6. Debt in the 

notes to the condensed consolidated financial statements.

We do not use derivative financial instruments to protect ourselves from fluctuations in interest rates.