Company: CELH
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001341766-25-000104
Chunk: 145

Company: Celsius Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 145
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 period in relation to these arrangements. This was partially offset by favorable tax benefits from foreign operations. The effective tax rate for the current period exceeded the U.S. federal statutory rate of 21.0% primarily due to non-deductible stock-based compensation and state income taxes. In contrast, the prior-year rate was below the statutory rate, driven by net excess tax benefits associated with stock-based compensation, partially offset by similar disallowed expenses and state taxes.

The Company is subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. The Company’s tax returns for tax years beginning 2020 remain subject to potential examination by the taxing authorities.

Net Income Attributable to Common Stockholders

Net income attributed to common stockholders for the six months ended June 30, 2025 was $119.9 million, representing basic earnings per share of $0.49 based on a basic weighted average of 246.5 million shares outstanding. In comparison, for the six months ended June 30, 2024 the Company's net income attributed to common stockholders was $131.5 million, representing basic earnings per share of $0.56 based on a weighted average of 233.0 million shares outstanding. Diluted earnings per share was $0.48 and $0.55 for the six months ended June 30, 2025 and 2024, respectively. The decrease in net income attributable to common stockholders for the six months ended June 30, 2025 was primarily due to higher SG&A expenses, acquisition-related costs, the inventory valuation step-up adjustment related to the Alani Nu acquisition, interest expense on newly incurred debt, and the contingent consideration related to the Alani Nu acquisition, which more than offset the revenue and gross profit benefits associated with the Alani Nu acquisition.

Liquidity and Capital Resources

General

As of June 30, 2025, we had cash and cash equivalents of approximately $615.2 million and net working capital of $731.4 million.

Our primary sources of liquidity are cash flows from operations and our existing cash balances. We believe that cash available from operations, together with our $100.0 million revolving credit facility, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable and other assets, and purchases of capital assets and equipment for the next twelve months and beyond. 

Purchases of inventories, increases in accounts receivable and other assets, equipment