Company: CELH
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001341766-25-000080
Chunk: 97

Company: Celsius Holdings, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 97
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 within SG&A expenses included:

•a $12.1 million increase in administrative expenses related primarily to higher acquisition-related costs, including transaction and legal expenses;

•a $4.9 million increase in employee costs, reflecting our ongoing investments to support growth; 

•a $2.8 million increase in marketing investments, driven by initiatives and events aimed at enhancing brand awareness to reflect our commitment to long-term growth, helping to ensure that our brand remains top-of-mind with consumers and well-positioned in an increasingly competitive market; and

•a $1.5 million increase in all other SG&A expenses.

Other Income (Expense)

Total other income for the three months ended March 31, 2025 was $9.0 million, which reflects a decrease of $0.3 million from $9.3 million for the three months ended March 31, 2024. This decrease was primarily attributed to lower interest income earned on cash held in our money market accounts, driven by a decline in market interest rates.

Provision for Income Taxes

For the three months ended March 31, 2025, the Company’s effective tax rate was 27.2%, as compared to 15.8% for the same period in 2024. The increase was primarily driven by a shift in stock-based compensation-related impacts. In the current period, the tax rate was higher than the U.S. federal statutory rate of 21.0% due to disallowed stock-based compensation expense and state income taxes. In the prior-year period, the rate was lower than the statutory rate due to net tax benefits related to 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 three months ended March 31, 2025 was $34.4 million, representing basic earnings per share of $0.15 based on a basic weighted average of 235.2 million shares outstanding. In comparison, for the three months ended March 31, 2024 the Company's net income attributed to common stockholders was $64.8 million, representing basic earnings per share of $0.28 based on a weighted average of 232.8 million shares outstanding. Diluted