Company: CELH
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001341766-25-000080
Chunk: 23

Company: Celsius Holdings, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 23
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22025-2027Revenue  rTSRRevenue - $25.69rTSR - $36.61

21

Celsius Holdings, Inc.Notes to the Condensed Consolidated Financial Statements (Unaudited)March 31, 2025(Tabular dollars in thousands, except per share amounts)

13. 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. As a result, the Company is managed as a single operating segment and has a single reportable segment. The primary financial measure reviewed by the CODM is net income.The following table reflects certain financial data for the Company's single reportable segment:Three Months Ended March 31, 20252024Revenue$329,276 $355,708 Cost of sales (excluding freight) (142,476)(159,546)Freight(14,427)(13,955)Gross profit172,373 182,207 Selling and marketing expenses(80,898)(75,838)General and administrative expenses(39,444)(23,179)Other income8,962 9,271 Net income before provision for income taxes$60,993 $92,461 Provision for income taxes(16,574)(14,650)Net income$44,419 $77,811 

14.    COMMITMENTS AND CONTINGENCIES

LegalSEC InquiryBeginning in January 2021, the Company received formal and informal requests from the SEC Division of Enforcement, seeking information in connection with a non-public, fact-finding inquiry. On January 17, 2025, without admitting to or denying the SEC’s findings, the Company reached a settlement with the SEC concerning alleged reporting, books and records, internal accounting controls, and disclosure controls and procedures violations. The Company paid a $3.0 million civil penalty during the three months ended March 31, 2025, and the investigation is now concluded with respect to the Company.Derivative Actions Related to 2022 Restatement Between January 11, 2023, and April 11, 2024, several derivative actions were filed, purportedly on behalf of the Company, naming as