# EDGAR Filing Document

**Accession Number:** 0000865752
**File Stem:** 0001410578-25-001620
**Filing Date:** 2025-8
**Character Count:** 186675
**Document Hash:** 08dab6a0cf86689933f3be6ba639e2d0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001410578-25-001620.hdr.sgml**: 20250808

**ACCESSION NUMBER**: 0001410578-25-001620

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 88

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250808

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Monster Beverage Corp
- **CENTRAL INDEX KEY:** 0000865752
- **STANDARD INDUSTRIAL CLASSIFICATION:** BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS [2086]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 471809393
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-18761
- **FILM NUMBER:** 251195880

**BUSINESS ADDRESS:**
- **STREET 1:** 1 MONSTER WAY
- **CITY:** CORONA
- **STATE:** CA
- **ZIP:** 92879
- **BUSINESS PHONE:** 909-739-6200

**MAIL ADDRESS:**
- **STREET 1:** 1 MONSTER WAY
- **CITY:** CORONA
- **STATE:** CA
- **ZIP:** 92879

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HANSEN NATURAL CORP
- **DATE OF NAME CHANGE:** 19930328

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** UNIPAC CORP
- **DATE OF NAME CHANGE:** 19600201

?xml version='1.0' encoding='ASCII'? Monster Beverage Corp_June 30, 2025

[**Table of Contents**](#TOC)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**Form 10-Q**

**Quarterly Report Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

For the quarterly period ended June 30, 2025 Commission File Number 001-18761

**MONSTER BEVERAGE CORPORATION**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| Delaware | 47-1809393 |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |

---

1 Monster Way

Corona, California 92879

(Address of principal executive offices) (Zip code)

(951) 739 - 6200

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on<br>which registered |
| Common Stock | MNST | Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X&nbsp;&nbsp;&nbsp;&nbsp;No __

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes X&nbsp;&nbsp;&nbsp;&nbsp;No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | |
|:---|:---|
| Large accelerated filer ☒ | Accelerated filer ☐ |
| Non-accelerated filer ☐ | Smaller reporting company ☐ |
|  | Emerging growth company ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes __&nbsp;&nbsp;&nbsp;&nbsp;No X

The registrant had 976,428,189 shares of common stock, par value $0.005 per share, outstanding as of July 31, 2025.

------

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**JUNE 30, 2025**

**INDEX**

---

| | | |
|:---|:---|:---|
| [**Part I.**](#PARTIFINANCIALINFORMATION_555950) | [**FINANCIAL INFORMATION**](#PARTIFINANCIALINFORMATION_555950) | **Page No.** |
| [Item 1.](#ITEM1CONDENSEDCONSOLIDATEDFINANCIALSTATE) | [Condensed Consolidated Financial Statements (Unaudited)](#ITEM1CONDENSEDCONSOLIDATEDFINANCIALSTATE) |  |
|  | [Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](#CONDENSEDCONSOLIDATEDBALANCESHEETS_69653) | 3 |
|  | [Condensed Consolidated Statements of Income for the Three- and Six-Months Ended June 30, 2025 and 2024](#STATEMENTSOFINCOME_393941) | 4 |
|  | [Condensed Consolidated Statements of Comprehensive Income for the Three- and Six-Months Ended June 30, 2025 and 2024](#STATEMENTSOFCOMPREHENSIVEINCOME_19420) | 5 |
|  | [Condensed Consolidated Statements of Stockholders' Equity for the Three- and Six-Months Ended June 30, 2025 and 2024](#STATEMENTSOFSTOCKHOLDERSEQUITY_603690) | 6 |
|  | [Condensed Consolidated Statements of Cash Flows for the Six-Months Ended June 30, 2025 and 2024](#STATEMENTSOFCASHFLOWS_392736) | 7 |
|  | [Notes to Condensed Consolidated Financial Statements](#a1BASISOFPRESENTATION_156061) | 9 |
| [Item 2.](#ITEM2MANAGEMENTSDISCUSSIONANDANALYSIS_40) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ITEM2MANAGEMENTSDISCUSSIONANDANALYSIS_40) | 28 |
| [Item 3.](#ITEM3QUANTITATIVEANDQUALITATIVEDISCLOSUR) | [Quantitative and Qualitative Disclosures About Market Risk](#ITEM3QUANTITATIVEANDQUALITATIVEDISCLOSUR) | 46 |
| [Item 4.](#ITEM4CONTROLSANDPROCEDURES_270637) | [Controls and Procedures](#ITEM4CONTROLSANDPROCEDURES_270637) | 46 |
| [**Part II.**](#PARTIIOTHERINFORMATION_669833) | [**OTHER INFORMATION**](#PARTIIOTHERINFORMATION_669833) |  |
| [Item 1.](#ITEM1LEGALPROCEEDINGS_448899) | [Legal Proceedings](#ITEM1LEGALPROCEEDINGS_448899) | 47 |
| [Item 1A.](#ITEM1ARISKFACTORS_609704) | [Risk Factors](#ITEM1ARISKFACTORS_609704) | 47 |
| [Item 2.](#ITEM2UNREGISTEREDSALESOFEQUITY_417570) | [Unregistered Sales of Equity Securities and Use of Proceeds](#ITEM2UNREGISTEREDSALESOFEQUITY_417570) | 47 |
| [Item 3.](#ITEM3DEFAULTSUPONSENIORSECURITIES_753663) | [Defaults Upon Senior Securities](#ITEM3DEFAULTSUPONSENIORSECURITIES_753663) | 47 |
| [Item 4.](#ITEM4MINESAFETYDISCLOSURES_417702) | [Mine Safety Disclosures](#ITEM4MINESAFETYDISCLOSURES_417702) | 47 |
| [Item 5.](#ITEM5OTHERINFORMATION_353440) | [Other Information](#ITEM5OTHERINFORMATION_353440) | 48 |
| [Item 6.](#ITEM6EXHIBITS_20622) | [Exhibits](#ITEM6EXHIBITS_20622) | 48 |
|  | [Signatures](#SIGNATURES_652864) | 49 |

---

[**Table of Contents**](#TOC)

**PART I – FINANCIAL INFORMATION**

**ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**AS OF JUNE 30, 2025 AND DECEMBER 31, 2024**

**(In Thousands, Except Par Value) (Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| **ASSETS** |  |  |
| CURRENT ASSETS: |  |  |
| Cash and cash equivalents | $1926927 | $1533287 |
| Short-term investments | 145253 |  |
| Accounts receivable, net | 1522702 | 1221646 |
| Inventories | 658167 | 737107 |
| Prepaid expenses and other current assets | 137257 | 107262 |
| Prepaid income taxes | 39034 | 42202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 4429340 | 3641504 |
| INVESTMENTS | 138058 |  |
| PROPERTY AND EQUIPMENT, net | 1090898 | 1047024 |
| DEFERRED INCOME TAXES, net | 184791 | 184260 |
| GOODWILL | 1331643 | 1331643 |
| OTHER INTANGIBLE ASSETS, net | 1418827 | 1414252 |
| OTHER ASSETS | 136331 | 100406 |
| **Total Assets** | $8729888 | $7719089 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| Accounts payable | $489037 | $466775 |
| Accrued liabilities | 258937 | 220764 |
| Accrued promotional allowances | 360406 | 267711 |
| Deferred revenue | 49279 | 45809 |
| Accrued compensation | 72838 | 92454 |
| Income taxes payable | 28121 | 4006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1258618 | 1097519 |
| DEFERRED REVENUE | 169763 | 179008 |
| OTHER LIABILITIES | 110203 | 110893 |
| LONG-TERM DEBT |  | 373951 |
| COMMITMENTS AND CONTINGENCIES (Note 10) |  |  |
| STOCKHOLDERS' EQUITY: |  |  |
| Common stock - $0.005 par value; 5,000,000 shares authorized; 1,129,950 shares issued and 976,398 shares outstanding as of June 30, 2025; 1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024 | 5650 | 5632 |
| Additional paid-in capital | 5285157 | 5144922 |
| Retained earnings | 8380571 | 7448784 |
| Accumulated other comprehensive loss | (91308) | (269487) |
| Common stock in treasury, at cost; 153,552 shares and 153,250 shares as of June 30, 2025 and December 31, 2024, respectively | (6388766) | (6372133) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 7191304 | 5957718 |
| **Total Liabilities and Stockholders' Equity** | $8729888 | $7719089 |

---

See accompanying notes to condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

**FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2025 AND 2024**

**(In Thousands, Except Per Share Amounts) (Unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three-Months Ended**  | **Three-Months Ended**  | **Six-Months Ended**  | **Six-Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| NET SALES | $2111593 | $1900597 | $3966150 | $3799695 |
| COST OF SALES | 935180 | 881091  | 1741775 | 1753061  |
| GROSS PROFIT | 1176413 | 1019506  | 2224375 | 2046634  |
| OPERATING EXPENSES | 544791 | 492343  | 1023008 | 977480  |
| OPERATING INCOME | 631622 | 527163  | 1201367 | 1069154  |
| INTEREST and OTHER INCOME, net | 15065 | 24376  | 23337 | 60131  |
| INCOME BEFORE PROVISION FOR INCOME TAXES | 646687 | 551539  | 1224704 | 1129285  |
| PROVISION FOR INCOME TAXES | 157893 | 126170  | 292917 | 261867  |
| NET INCOME | $488794 | $425369 | $931787 | $867418 |
| NET INCOME PER COMMON SHARE: |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.50 | $0.41 | $0.96 | $0.84 |
| &nbsp;&nbsp;Diluted | $0.50 | $0.41 | $0.95 | $0.83 |
| WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS: |  |  |  |  |
| &nbsp;&nbsp;Basic | 975749 | 1029268  | 974691 | 1035175  |
| &nbsp;&nbsp;Diluted | 983997 | 1037378  | 982748 | 1044363  |

---

See accompanying notes to condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2025 AND 2024**

**(In Thousands) (Unaudited)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three-Months Ended**  | **Three-Months Ended**  | **Six-Months Ended**  | **Six-Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income, as reported | $488794 | $425369 | $931787 | $867418 |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;Change in foreign currency translation adjustment | 100759 | (31104) | 164730 | (61799) |
| &nbsp;&nbsp;Change in net unrealized gain (loss) on available-for-sale investments | 213 | 535 | 213 | 758 |
| &nbsp;&nbsp;Change in net gain (loss) on commodity derivatives | 10666 | 6205 | 13236 | 4074 |
| Other comprehensive income (loss) | 111638 | (24364) | 178179 | (56967) |
| Comprehensive income  | $600432 | $401005 | $1109966 | $810451 |

---

See accompanying notes to condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY** 

**FOR THE THREE- AND SIX-MONTHS ENDED JUNE 30, 2025 AND 2024**

**(In Thousands) (Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | **Treasury stock** | **Treasury stock** | |
|  | **Shares** | **Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**(Loss) Income** | **Shares** | **Amount** | <br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balance, December 31, 2024** | 1126329 | $5632 | $5144922 | $7448784 | $(269487) | (153250) | $(6372133) | $5957718 |
| Stock-based compensation  |  |  | 20727 |  |  |  |  | 20727 |
| Stock options/awards | 2366 | 11 | 48082 |  |  |  |  | 48093 |
| Repurchase of common stock  |  |  |  |  |  | (302) | (16633) | (16633) |
| Foreign currency translation  |  |  |  |  | 63971 |  |  | 63971 |
| Net gain (loss) on commodity derivatives  |  |  |  |  | 2570 |  |  | 2570 |
| Net income  |  |  |  | 442993 |  |  |  | 442993 |
| **Balance, March 31, 2025** | 1128695 | $5643 | $5213731 | $7891777 | $(202946) | (153552) | $(6388766) | $6519439 |
| Stock-based compensation  |  |  | 31842 |  |  |  |  | 31842 |
| Stock options/awards | 1255 | 7 | 39584 |  |  |  |  | 39591 |
| Unrealized gain (loss), net on available-for-sale securities  |  |  |  |  | 213 |  |  | 213 |
| Foreign currency translation  |  |  |  |  | 100759 |  |  | 100759 |
| Net gain (loss) on commodity derivatives  |  |  |  |  | 10666 |  |  | 10666 |
| Net income  |  |  |  | 488794 |  |  |  | 488794 |
| **Balance, June 30, 2025** | 1129950 | $5650 | $5285157 | $8380571 | $(91308) | (153552) | $(6388766) | $7191304 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | **Treasury stock** | **Treasury stock** | |
|  | **Shares** | **Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br><br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive** <br>**(Loss) Income** | **Shares** | **Amount** | <br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balance, December 31, 2023** | 1122592 | $5613 | $4975115 | $5939736 | $(125337) | (81021) | $(2566383) | $8228744 |
| Stock-based compensation |  |  | 21452 |  |  |  |  | 21452 |
| Stock options/awards | 2278 | 11 | 38381 |  |  |  |  | 38392 |
| Unrealized gain (loss), net on available-for-sale securities  |  |  |  |  | 223 |  |  | 223 |
| Repurchase of common stock  |  |  |  |  |  | (2151) | (120245) | (120245) |
| Foreign currency translation  |  |  |  |  | (30695) |  |  | (30695) |
| Net gain (loss) on commodity derivatives |  |  |  |  | (2131) |  |  | (2131) |
| Net income |  |  |  | 442049 |  |  |  | 442049 |
| **Balance, March 31, 2024** | 1124870 | $5624 | $5034948 | $6381785 | $(157940) | (83172) | $(2686628) | $8577789 |
| Stock-based compensation |  |  | 19645 |  |  |  |  | 19645 |
| Stock options/awards | 460 | 3 | 13698 |  |  |  |  | 13701 |
| Unrealized gain (loss), net on available-for-sale securities |  |  |  |  | 535 |  |  | 535 |
| Repurchase of common stock |  |  |  |  |  | (58778) | (3145817) | (3145817) |
| Foreign currency translation |  |  |  |  | (31104) |  |  | (31104) |
| Net gain (loss) on commodity derivatives |  |  |  |  | 6205 |  |  | 6205 |
| Net income |  |  |  | 425369 |  |  |  | 425369 |
| **Balance, June 30, 2024** | 1125330 | $5627 | $5068291 | $6807154 | $(182304) | (141950) | $(5832445) | $5866323 |

---

See accompanying notes to condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE SIX-MONTHS ENDED JUNE 30, 2025 AND 2024**

**(In Thousands) (Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Six-Months Ended**  | **Six-Months Ended**  |
|  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net income | $931787 | $867418 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 52405 | 39913 |
| &nbsp;&nbsp;Non-cash lease expense | 6966 | 6599 |
| &nbsp;&nbsp;Loss (gain) on disposal of property and equipment | (641) | 1849 |
| &nbsp;&nbsp;Loss on impairment of property and equipment | 2279 | 6067 |
| &nbsp;&nbsp;Stock-based compensation | 53854 | 41262 |
| &nbsp;&nbsp;Deferred income taxes | 646 | (13294) |
| &nbsp;&nbsp;Effect on cash of changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (222239) | (197227) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 104633 | 123484 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (63675) | (13993) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid income taxes | 14512 | (12297) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 4333 | (33505) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 28510 | 2715 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued promotional allowances | 71516 | 54242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | (22146) | (26954) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 21056 | 11348 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (1582) | (1463) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (8598) | (7731) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 973616 | 848433 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Sales of available-for-sale investments |  | 1377915 |
| Purchases of available-for-sale investments | (283097) | (342121) |
| Purchases of property and equipment | (60460) | (125812) |
| Proceeds from sale of property and equipment | 2334 | 1052 |
| Additions to intangibles | (15399) | (6364) |
| Decrease (increase) in other assets | (1107) | (1366) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (357729) | 903304 |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Payments on short-term debt | (5023) | (5269) |
| Payments on credit facilities | (375000) |  |
| Borrowings on credit facilities |  | 750000 |
| Payments for debt issuance costs |  | (2776) |
| Issuance of common stock | 87684 | 52093 |
| Purchases of common stock held in treasury | (16633) | (3234523) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (308972) | (2440475) |
| Effect of exchange rate changes on cash and cash equivalents | 86725 | (44203) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 393640 | (732941) |
| CASH AND CASH EQUIVALENTS, beginning of period | 1533287 | 2297675 |
| CASH AND CASH EQUIVALENTS, end of period | $1926927 | $1564734 |
| SUPPLEMENTAL INFORMATION: |  |  |
| &nbsp;&nbsp;Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $5144 | $1460 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | $262711 | $276359 |

---

See accompanying notes to condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE SIX-MONTHS ENDED JUNE 30, 2025 AND 2024**

**(In Thousands) (Unaudited) (Continued)**

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

Included in accrued liabilities as of June 30, 2025 and 2024 were additions to other intangible assets of $2.7 million and $9.6 million, respectively.

Included in accounts payable as of June 30, 2025 and 2024 were property and equipment purchases of $4.2 million and $9.6 million, respectively.

Included in accounts payable as of June 30, 2024 were treasury stock repurchases of $0.9 million.

See accompanying notes to condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the "Company") Annual Report on Form 10-K for the year ended December 31, 2024 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q ("Form 10-Q").

The Company's condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and Securities and Exchange Commission ("SEC") rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three- and six-months ended June 30, 2025 and 2024, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

**Recent Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Disaggregation of Income Statement Expenses.* The amendments in this update require the Company to disaggregate key expense categories such as purchases of inventory, employee compensation, depreciation and intangible asset amortization, within its financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. REVENUE RECOGNITION

Revenues are accounted for in accordance with FASB Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers". The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment ("Monster Energy® Drinks"), which is primarily comprised of the Company's Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, (ii) Strategic Brands segment ("Strategic Brands"), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company ("TCCC") in 2015 as well as the Company's affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment ("Alcohol Brands"), which is comprised of various craft beers, flavored malt beverages ("FMBs") and hard seltzers and (iv) Other segment ("Other"), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the "AFF Third-Party Products").

The Company's Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors ("bottlers/distributors"). In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The Company's Strategic Brands segment primarily generates net operating revenues by selling "concentrates" and/or "beverage bases" to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

The Company's Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, FMBs and hard seltzers primarily to beer distributors in the United States.

The majority of the Company's revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company's products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company's bottlers/distributors may also perform a separate function as a co-packer on the Company's behalf. In such cases, control of the Company's products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company's finished goods. The Company's general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of June 30, 2025 and December 31, 2024.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company's products, where applicable, and warehousing expenses after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company's energy drink products primarily include consideration given to the Company's non-alcohol bottlers/distributors or customers, including, but not limited to, the following:

● discounts granted off list prices to support price promotions to end-consumers by retailers;

● reimbursements given to the Company's bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

● the Company's agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

● the Company's agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

● incentives given to the Company's bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

● discounted and/or free products or cash rebates;

● contractual fees given to the Company's bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers'/distributors' sales territories; and

● commissions to TCCC based on the Company's sales to wholly-owned subsidiaries of TCCC (the "TCCC Subsidiaries") and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the "TCCC Related Parties").

The Company's promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company's promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company's anticipated liabilities. These accruals are based on agreed upon terms as well as the Company's historical experience with similar programs and require management's judgment with respect to estimating consumer

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company's prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company's trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company's historical experience.

*Disaggregation of Revenue*

The following tables disaggregate the Company's revenue by geographical markets and reportable segments:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three-Months Ended June 30, 2025 | Three-Months Ended June 30, 2025 | Three-Months Ended June 30, 2025 | Three-Months Ended June 30, 2025 | Three-Months Ended June 30, 2025 |
|  |  |  | Asia Pacific | Latin |  |
|  | U.S. and |  | (including | America and |  |
| Net Sales | Canada | EMEA<sup>1</sup> | Oceania) | Caribbean | Total |
| Monster Energy® Drinks | $1197590 | $439418 | $153926 | $146387 | $1937321 |
| Strategic Brands | 59460 | 58798 | 7768 | 3867 | 129893 |
| Alcohol Brands | 37971 |  |  |  | 37971 |
| Other | 6408 |  |  |  | 6408 |
| Total Net Sales | $1301429 | $498216 | $161694 | $150254 | $2111593 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three-Months Ended June 30, 2024 | Three-Months Ended June 30, 2024 | Three-Months Ended June 30, 2024 | Three-Months Ended June 30, 2024 | Three-Months Ended June 30, 2024 |
|  |  |  | Asia Pacific | Latin |  |
|  | U.S. and |  | (including | America and |  |
| Net Sales | Canada | EMEA<sup>1</sup> | Oceania) | Caribbean | Total |
| Monster Energy® Drinks | $1100063 | $351985 | $132078 | $158682 | $1742808 |
| Strategic Brands | 49579 | 41938 | 13010 | 4695 | 109222 |
| Alcohol Brands | 41564 |  |  |  | 41564 |
| Other | 7003 |  |  |  | 7003 |
| Total Net Sales | $1198209 | $393923 | $145088 | $163377 | $1900597 |

---

<sup>1</sup>*Europe, Middle East and Africa ("EMEA")*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Six-Months Ended June 30, 2025 | Six-Months Ended June 30, 2025 | Six-Months Ended June 30, 2025 | Six-Months Ended June 30, 2025 | Six-Months Ended June 30, 2025 |
|  |  |  | Asia Pacific | Latin |  |
|  | U.S. and |  | (including | America and |  |
| Net Sales | Canada | EMEA<sup>1</sup> | Oceania) | Caribbean | Total |
| Monster Energy® Drinks | $2277927 | $785489 | $285945 | $303508 | $3652869 |
| Strategic Brands | 103090 | 97302 | 20271 | 7562 | 228225 |
| Alcohol Brands | 72674 |  |  |  | 72674 |
| Other | 12382 |  |  |  | 12382 |
| Total Net Sales | $2466073 | $882791 | $306216 | $311070 | $3966150 |

---

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Six-Months Ended June 30, 2024 | Six-Months Ended June 30, 2024 | Six-Months Ended June 30, 2024 | Six-Months Ended June 30, 2024 | Six-Months Ended June 30, 2024 |
|  |  |  | Asia Pacific | Latin |  |
|  | U.S. and |  | (including | America and |  |
| Net Sales | Canada | EMEA<sup>1</sup> | Oceania) | Caribbean | Total |
| Monster Energy® Drinks | $2194909 | $704214 | $254096 | $318640 | $3471859 |
| Strategic Brands | 99221 | 85275 | 22207 | 10963 | 217666 |
| Alcohol Brands | 97634 |  |  |  | 97634 |
| Other | 12536 |  |  |  | 12536 |
| Total Net Sales | $2404300 | $789489 | $276303 | $329603 | $3799695 |

---

<sup>1</sup>*Europe, Middle East and Africa ("EMEA")*

*Contract Liabilities*

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of June 30, 2025 and December 31, 2024, the Company had $219.0 million and $224.8 million, respectively, of deferred revenue, which is included in current and long-term deferred revenue in the Company's condensed consolidated balance sheets. During both the three-months ended June 30, 2025 and 2024, $10.0 million of deferred revenue was recognized in net sales. During both the six-months ended June 30, 2025 and 2024, $19.9 million of deferred revenue was recognized in net sales. See Note 8.

3. INVESTMENTS

The following table summarizes the Company's investments at June 30, 2025. The Company held no short-term or long-term investments at December 31, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | Continuous | Continuous |
|  |  | Gross | Gross |  | Unrealized | Unrealized |
|  |  | Unrealized | Unrealized |  | Loss Position | Loss Position |
|  | Amortized | Holding | Holding | Fair | less than | greater than |
| June 30, 2025 | Cost | Gains | Losses | Value | 12 Months | 12 Months |
| **Available-for-sale** |  |  |  |  |  |  |
| Short-term: |  |  |  |  |  |  |
| &nbsp;&nbsp;Commercial paper | $27549 | $— | $— | $27549 | $— | $— |
| &nbsp;&nbsp;Certificates of deposit | 8334 |  |  | 8334 |  |  |
| &nbsp;&nbsp;U.S. treasuries | 105900 | 20 |  | 105920 |  |  |
| &nbsp;&nbsp;Corporate bonds | 3450 |  |  | 3450 |  |  |
| Long-term: |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. treasuries | 33929 | 57 |  | 33986 |  |  |
| &nbsp;&nbsp;Corporate bonds | 103939 | 133 |  | 104072 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $283101 | $210 | $— | $283311 | $— | $— |

---

During the three- and six-months ended June 30, 2025 and 2024, realized gains or losses recognized on the sale of investments were not significant.

The Company's investments at June 30, 2025 carried investment grade credit ratings.

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The following table summarizes the underlying contractual maturities of the Company's investments at June 30, 2025. The Company held no short-term or long-term investments at December 31, 2024.

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | June 30, 2025 |
|  | Amortized Cost | Fair Value |
| Less than 1 year: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | $27549 | $27549 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit | 8334 | 8334 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. treasuries | 105900 | 105920 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 3450 | 3450 |
| Due 1 - 10 years: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. treasuries | 33929 | 33986 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 103939 | 104072 |
| &nbsp;&nbsp;Total | $283101 | $283311 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, "Fair Value Measurement", provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

● **Level 1:** Quoted prices in active markets for identical assets or liabilities.

● **Level 2:** Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

● **Level 3:** Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The following tables present the fair value of the Company's financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

---

| | | | | |
|:---|:---|:---|:---|:---|
| June 30, 2025 | Level 1 | Level 2 | Level 3 | Total |
| Cash | $1151621 | $— | $— | $1151621 |
| Money market funds | 722386 |  |  | 722386 |
| Certificates of deposit  |  | 61254 |  | 61254 |
| Commercial paper |  | 27549 |  | 27549 |
| Corporate bonds |  | 107522 |  | 107522 |
| U.S. treasuries  |  | 139905 |  | 139905 |
| Foreign currency derivatives |  | (754) |  | (754) |
| Commodity derivatives |  | 15627 |  | 15627 |
| &nbsp;&nbsp;Total | $1874007 | $351103 | $— | $2225110 |
| Amounts included in: |  |  |  |  |
| Cash and cash equivalents | $1874007 | $52920 | $— | $1926927 |
| Short-term investments |  | 145253 |  | 145253 |
| Accounts receivable, net |  | 16696 |  | 16696 |
| Other assets |  | 1500 |  | 1500 |
| Investments |  | 138058 |  | 138058 |
| Accrued liabilities |  | (3324) |  | (3324) |
| &nbsp;&nbsp;Total | $1874007 | $351103 | $— | $2225110 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| December 31, 2024 | Level 1 | Level 2 | Level 3 | Total |
| Cash | $1103647 | $— | $— | $1103647 |
| Money market funds | 396306 |  |  | 396306 |
| Certificates of deposit |  | 33334 |  | 33334 |
| Foreign currency derivatives |  | 799 |  | 799 |
| Commodity derivatives |  | (785) |  | (785) |
| &nbsp;&nbsp;Total | $1499953 | $33348 | $— | $1533301 |
| Amounts included in: |  |  |  |  |
| Cash and cash equivalents | $1499953 | $33334 | $— | $1533287 |
| Accounts receivable, net |  | 5991 |  | 5991 |
| Other assets |  | 6 |  | 6 |
| Accrued liabilities |  | (5952) |  | (5952) |
| Other liabilities |  | (31) |  | (31) |
| &nbsp;&nbsp;Total | $1499953 | $33348 | $— | $1533301 |

---

The Company's valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company's valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company's valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the three- and six-months ended June 30, 2025, or during the year-ended December 31, 2024, and there were no changes in the Company's valuation techniques.

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. INVENTORIES

Inventories consist of the following at:

---

| | | |
|:---|:---|:---|
|  | June 30, <br>2025 | December 31, <br>2024 |
| Raw materials | $257954 | $232698 |
| Work in process | 1189 | 1200 |
| Finished goods | 399024 | 503209 |
|  | $658167 | $737107 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:

---

| | | |
|:---|:---|:---|
|  | June 30, <br>2025 | December 31, <br>2024 |
| Land | $179492 | $178056 |
| Leasehold improvements | 32630 | 31132 |
| Furniture and fixtures | 13394 | 11416 |
| Office and computer equipment | 26088 | 28029 |
| Equipment | 642447 | 561408 |
| Buildings | 384770 | 280663 |
| Vehicles | 80178 | 72564 |
| Assets under construction | 69818 | 178980 |
|  | 1428817 | 1342248 |
| Less: accumulated depreciation and amortization | (337919) | (295224) |
|  | $1090898 | $1047024 |

---

Total depreciation and amortization expense was $23.3 million and $17.8 million for the three-months ended June 30, 2025 and 2024, respectively. Total depreciation and amortization expense was $43.7 million and $36.9 million for the six-months ended June 30, 2025 and 2024, respectively.

7. GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the six-months ended June 30, 2025 and 2024 by reportable segment:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Monster<br>Energy®<br>Drinks | <br>Strategic<br>Brands | <br>Alcohol <br>Brands\* | <br>Other | <br>Total |
| Balance at December 31, 2024 | $693644 | $637999 | $— | $— | $1331643 |
| Acquisitions |  |  |  |  |  |
| Balance at June 30, 2025 | $693644 | $637999 | $— | $— | $1331643 |

---

\*Accumulated goodwill impairment balance at December 31, 2024 and June 30, 2025 was $86.3 million related entirely to Alcohol Brands.

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Monster <br>Energy®<br>Drinks | <br>Strategic<br>Brands | <br>Alcohol <br>Brands | <br>Other | <br>Total |
| Balance at December 31, 2023 | $693644 | $637999 | $86298 | $— | $1417941 |
| Acquisitions |  |  |  |  |  |
| Balance at June 30, 2024 | $693644 | $637999 | $86298 | $— | $1417941 |

---

Intangible assets consist of the following at:

---

| | | |
|:---|:---|:---|
|  | June 30, <br>2025 | December 31, <br>2024 |
| Amortizing intangibles | $190336 | $183800 |
| Accumulated amortization | (95740) | (86703) |
|  | 94596 | 97097 |
| Non-amortizing intangibles | 1324231 | 1317155 |
|  | $1418827 | $1414252 |

---

Amortizing intangibles primarily consist of customer relationships. All amortizing intangibles have been assigned an estimated finite useful life, and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally three to ten years. Total amortization expense was $4.3 million and $1.7 million for the three-months ended June 30, 2025 and 2024, respectively. Total amortization expense was $8.7 million and $3.0 million for the six-months ended June 30, 2025 and 2024, respectively. For the three- and six-months ended June 30, 2025 and 2024, no impairment charges were recorded to intangible assets.

The following is the future estimated amortization expense related to amortizing intangibles as of June 30, 2025:

---

| | |
|:---|:---|
| 2025 (from July 1, 2025 to December 31, 2025) | $9423 |
| 2026 | 18710 |
| 2027 | 16937 |
| 2028 | 14323 |
| 2029 | 13755 |
| 2030 and thereafter | 21448 |
|  | $94596 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. DISTRIBUTION AGREEMENTS

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company's prior distributors, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $10.0 million for both the three-months ended June 30, 2025 and 2024. Revenue recognized was $19.9 million for both the six-months ended June 30, 2025 and 2024.

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. DEBT

The Company repaid the outstanding balance of $200.0 million on long-term debt in April 2025. As of December 31, 2024, the Company's long-term debt consisted of the following:

---

| | |
|:---|:---|
|  | December 31, <br>2024 |
| Term loan | $375000 |
| Revolving credit facility |  |
| &nbsp;&nbsp;Total debt | 375000 |
| Less: unamortized debt issuance costs | (1049) |
| &nbsp;&nbsp;Total debt, net of unamortized debt issuance costs | 373951 |
| Less: current portion of long-term debt |  |
| &nbsp;&nbsp;Long-term debt | $373951 |

---

In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the "Credit Facilities"). The Credit Facilities consist of a $750.0 million term loan (the "Term Loan") and up to $750.0 million in multicurrency revolving loan commitments (the "Revolving Credit Facility"). The Term Loan was repaid in April 2025 with no additional borrowings permitted. The Revolving Credit Facility matures in May 2029. Borrowings under the Revolving Credit Facility bear interest at a variable rate per annum equal to the applicable rate plus margin (as defined in the Credit Facilities). Borrowings may be repaid at any time during the term of the Revolving Credit Facility and may be reborrowed prior to the maturity date. As of June 30, 2025, no borrowings were outstanding under the Credit Facilities, and the Company was in compliance with all covenants under the Credit Facilities.

Additionally, the Company has a line of credit of up to $15.0 million with HSBC Bank (China) Company Limited, Shanghai Branch. As of June 30, 2025, no amount was outstanding on this line of credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $275.4 million at June 30, 2025, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $491.3 million at June 30, 2025, which related primarily to sponsorships and other marketing activities.

*Litigation —* From time to time in the normal course of business, the Company is named in litigation, including labor and employment matters, personal injury matters, consumer class actions, intellectual property matters and claims from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in aggregate will likely not have a material adverse effect on the Company's financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, and any related insurance reimbursements. As of June 30, 2025 and December 31, 2024, $30.6 million and $16.8 million, respectively, of loss contingencies were included in the Company's accompanying condensed consolidated balance sheets.

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the six-months ended June 30, 2025 and 2024 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Accumulated Net<br>Gains (Losses) <br>on Commodity <br>Derivatives | Currency<br>Translation<br>Gains<br>(Losses) | Unrealized Gains<br>(Losses) on<br>Available-for-<br>Sale Securities | <br>Total |
| Balance at December 31, 2024 | $443 | $(269930) | $— | $(269487) |
| &nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 16189 | 164730 | 213 | 181132 |
| &nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive loss | (2953) |  |  | (2953) |
| &nbsp;&nbsp;Net current-period other comprehensive income (loss) | 13236 | 164730 | 213 | 178179 |
| Balance at June 30, 2025 | $13679 | $(105200) | $213 | $(91308) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Accumulated Net<br>Gains (Losses) <br>on Commodity <br>Derivatives | Currency<br>Translation<br>Gains<br>(Losses) | Unrealized Gains<br>(Losses) on<br>Available-for-<br>Sale Securities | <br>Total |
| Balance at December 31, 2023 | $4410 | $(128989) | $(758) | $(125337) |
| &nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 4074 | (61799) | 758 | (56967) |
| &nbsp;&nbsp;Net current-period other comprehensive income (loss) | 4074 | (61799) | 758 | (56967) |
| Balance at June 30, 2024 | $8484 | $(190788) | $— | $(182304) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. TREASURY STOCK

On August 19, 2024, the Company's Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company's outstanding common stock (the "August 2024 Repurchase Plan"). During the three-months ended June 30, 2025, no shares were repurchased under the August 2024 Repurchase Plan. As of August 6, 2025, $500.0 million remained available for repurchase under the August 2024 Repurchase Plan.

The aggregate amount of the Company's outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $500.0 million as of August 6, 2025.

During the three-months ended June 30, 2025, no shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at June 30, 2025: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub-plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The Company recorded $33.2 million and $18.8 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended June 30, 2025 and 2024, respectively. The Company recorded $53.9 million and $41.3 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the six-months ended June 30, 2025 and 2024, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended June 30, 2025 and 2024 was $6.4 million and $1.5 million, respectively. The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the six-months ended June 30, 2025 and 2024 was $13.6 million and $9.0 million, respectively.

*Stock Options*

Under the Company's stock-based compensation plans, all stock options granted as of June 30, 2025 were granted at prices based on the fair value of the Company's common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-Months Ended June 30,  | Three-Months Ended June 30,  | Six-Months Ended June 30,  | Six-Months Ended June 30,  |
|  | 2025 | 2024 | 2025 | 2024 |
| Dividend yield | 0.0% | 0.0% | 0.0% | 0.0% |
| Expected volatility | 26.5% | 27.5% | 26.7% | 27.5% |
| Risk-free interest rate | 4.1% | 4.4% | 4.2% | 4.3% |
| Expected term | 6.1<br> years | 6.4<br> years | 6.2<br> years | 6.4<br> years |

---

*Expected Volatility*: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

*Risk-Free Interest Rate*: The risk-free interest rate is based on the U.S. treasury zero-coupon yield curve in effect at the time of grant for the expected term of the option.

*Expected Term*: The Company's expected term represents the weighted-average period that the Company's stock options are expected to be outstanding. The expected term is based on the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The following table summarizes the Company's activities with respect to its stock option plans as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | Weighted- |  |
|  |  |  | Average |  |
|  |  | Weighted- | Remaining |  |
|  | Number of | Average | Contractual |  |
|  | Shares | Exercise Price | Term | Aggregate |
| Options | (in thousands) | Per Share | (in years) | Intrinsic Value |
| Outstanding at January 1, 2025 | 27088 | $38.98 | 5.8 | $400207 |
| &nbsp;&nbsp;Granted 01/01/25 - 03/31/25 | 1299 | $55.09 |  |  |
| &nbsp;&nbsp;Granted 04/01/25 - 06/30/25 | 21 | $60.28 |  |  |
| &nbsp;&nbsp;Exercised | (3001) | $29.21 |  |  |
| &nbsp;&nbsp;Cancelled or forfeited | (213) | $52.00 |  |  |
| Outstanding at June 30, 2025 | 25194 | $40.88 | 5.8 | $584124 |
| Vested and expected to vest in the future at June 30, 2025 | 24372 | $40.48 | 5.8 | $540196 |
| Exercisable at June 30, 2025 | 13894 | $32.41 | 3.9 | $420082 |

---

The weighted-average grant-date fair value of options granted during the three-months ended June 30, 2025 and 2024 was $21.20 per share and $19.52 per share, respectively. The weighted-average grant-date fair value of options granted during the six-months ended June 30, 2025 and 2024 was $19.85 per share and $22.64 per share, respectively.

The total intrinsic value of options exercised during the three-months ended June 30, 2025 and 2024 was $38.0 million and $10.2 million, respectively. The total intrinsic value of options exercised during the six-months ended June 30, 2025 and 2024 was $86.1 million and $57.8 million, respectively.

Cash received from option exercises under all plans for the three-months ended June 30, 2025 and 2024 was $39.6 million and $13.7 million, respectively. Cash received from option exercises under all plans for the six-months ended June 30, 2025 and 2024 was $87.7 million and $52.1 million, respectively.

At June 30, 2025, there was $144.6 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company's stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 2.8 years.

*Restricted Stock Units and Performance Share Units*

The cost of stock-based compensation for restricted stock units and performance share units is measured based on the closing fair market value of the Company's common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The following table summarizes the Company's activities with respect to non-vested restricted stock units and performance share units as follows:

---

| | | |
|:---|:---|:---|
|  | Number of Shares<br>(in thousands) | Weighted-Average<br>Grant-Date Fair Value |
| Non-vested at January 1, 2025 | 1682 | $46.16 |
| &nbsp;&nbsp;Granted 01/01/25 - 03/31/25<sup>1</sup> | 1017 | $55.08 |
| &nbsp;&nbsp;Granted 04/01/25 - 06/30/25 | 33 | $62.68 |
| &nbsp;&nbsp;Vested | (620) | $39.25 |
| &nbsp;&nbsp;Forfeited/cancelled  | (48) | $37.99 |
| Non-vested at June 30, 2025 | 2064 | $53.08 |

---

<sup>1</sup>*The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.*

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended June 30, 2025 and 2024 was $62.68 and $49.12 per share, respectively. The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the six-months ended June 30, 2025 and 2024 was $55.32 and $59.58 per share, respectively.

As of June 30, 2025, 2.0 million restricted stock units and performance share units are expected to vest over their respective terms.

At June 30, 2025, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $67.8 million, which is expected to be recognized over a weighted-average period of 2.0 years.

*Other Share-Based Awards*

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At June 30, 2025, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2026, 2027 and 2028.

At June 30, 2025, there was $1.0 million of unrecognized compensation expense related to non-vested other share-based awards granted to employees under the Company's stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.8 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. INCOME TAXES

The following is a roll-forward of the Company's total gross unrecognized tax benefits, not including interest and penalties, for the six-months ended June 30, 2025:

---

| | |
|:---|:---|
|  | Gross Unrecognized <br>Tax Benefits |
| Balance at December 31, 2024 | $2626 |
| Additions for tax positions related to the current year |  |
| Additions for tax positions related to the prior years | 1440 |
| Decreases for tax positions related to the prior years |  |
| Balance at June 30, 2025 | $4066 |

---

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company's condensed consolidated financial statements. As of June 30, 2025, the Company had approximately $0.9 million in accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company's effective tax rate would not be significant. It is expected that any change in the amount of unrecognized tax benefits within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company's 2021 through 2024 U.S. federal income tax returns are subject to examination by the IRS. The Company's state income tax returns are subject to examination for the 2019 through 2024 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2020 through 2024 tax years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-Months Ended  | Three-Months Ended  | Six-Months Ended  | Six-Months Ended  |
|  | June 30,  | June 30,  | June 30,  | June 30,  |
|  | 2025 | 2024 | 2025 | 2024 |
| Weighted-average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;Basic | 975749 | 1029268 | 974691 | 1035175 |
| &nbsp;&nbsp;Dilutive | 8248 | 8110 | 8057 | 9188 |
| &nbsp;&nbsp;Diluted | 983997 | 1037378 | 982748 | 1044363 |

---

For the three-months ended June 30, 2025 and 2024, options and awards outstanding totaling 7.2 million shares and 8.8 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive. For the six-months ended June 30, 2025 and 2024, options and awards outstanding totaling 9.9 million shares and 6.9 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. SEGMENT INFORMATION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company's Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company's affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, FMBs and hard seltzers and (iv) Other segment, which is comprised of the AFF Third-Party Products.

The Company's Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company's Strategic Brands segment primarily generates net operating revenues by selling "concentrates" and/or "beverage bases" to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

The Company's Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, FMBs and hard seltzers primarily to beer distributors in the United States.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to "Corporate & Unallocated." No asset information, other than goodwill and other intangible assets, has been provided in the Company's reportable segments, as management does not measure or allocate such assets on a segment basis.

The Company's chief operating decision maker is the chief executive officer (the "CEO"). The CEO assesses segments' performance by using each segment's operating income and considers budget-to-actual variances on a periodic basis (at least quarterly) when making decisions about operational planning, including whether to invest resources into the segments or into other parts of the Company. Further, the CEO uses segments' operating income when comparing the results of each segment with one another.

The tables below provide information about the Company's reportable segments, including the corporate and unallocated category.

Three-Months Ended June 30, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Monster<br>Energy® <br>Drinks | <br>Strategic<br>Brands | <br>Alcohol <br>Brands | <br>Other | <br>Corporate and<br>Unallocated | <br>Consolidated |
| Net sales<sup>1</sup> | $1937321 | $129893 | $37971 | $6408 | $— | $2111593 |
| Cost of sales | 861518 | 41931 | 27235 | 4496 |  |  |
| Gross profit | 1075803 | 87962 | 10736 | 1912 |  | 1176413 |
| Distribution expense | 77812 | 1588 | 2629 | 6 |  |  |
| Selling and marketing expense | 174769 | 15607 | 6463 | 59 |  |  |
| Nonmanufacturing payroll expense | 44074 | 2025 | 8989 | 414 | 115232 |  |
| Other segment items<sup>2</sup> | 21648 | 875 | 7287 | 174 | 65140 |  |
| Operating income (loss)<sup>1</sup> | 757500 | 67867 | (14632) | 1259 | (180372) | 631622 |
| Interest and other income, net |  |  |  |  |  | 15065 |
| Income before provision for income taxes |  |  |  |  |  | $646687 |
| Depreciation and amortization | $19214 | $244 | $4808 | $325 | $2966 | $27557 |

---

<sup>1</sup>*For the Monster Energy® Drinks segment, includes $10.0 million related to the recognition of deferred revenue.*

<sup>2</sup>*Other segment items for each reportable segment include:*

*Monster Energy® Drinks - travel and entertainment expense, professional services expense, and certain overhead expenses*

*Strategic Brands - travel and entertainment expense, and certain overhead expenses*

*Alcohol Brands - depreciation and amortization expense, travel and entertainment expense, and certain overhead expenses*

*Other - certain overhead expenses*

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

Three-Months Ended June 30, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Monster <br>Energy® <br>Drinks | <br>Strategic<br>Brands | <br>Alcohol<br>Brands | <br>Other | <br>Corporate and<br>Unallocated | <br>Consolidated |
| Net sales<sup>1</sup> | $1742808 | $109222 | $41564 | $7003 | $— | $1900597 |
| Cost of sales | 815570 | 29585 | 31045 | 4891 |  |  |
| Gross profit | 927238 | 79637 | 10519 | 2112 |  | 1019506 |
| Distribution expense | 82766 | 1463 | 3156 | 21 |  |  |
| Selling and marketing expense | 171838 | 13796 | 6459 | 57 |  |  |
| Nonmanufacturing payroll expense | 41060 | 2005 | 9970 | 551 | 87523 |  |
| Other segment items<sup>2</sup> | 19319 | 714 | 13495 | 65 | 38085 |  |
| Operating income (loss)<sup>1</sup> | 612255 | 61659 | (22561) | 1418 | (125608) | 527163 |
| Interest and other income, net |  |  |  |  |  | 24376 |
| Income before provision for income taxes |  |  |  |  |  | $551539 |
| Depreciation and amortization | $13105 | $224 | $3668 | $57 | $2384 | $19438 |

---

<sup>1</sup>*For the Monster Energy® Drinks segment, includes $10.0 million related to the recognition of deferred revenue.*

<sup>2</sup>*Other segment items for each reportable segment include:*

*Monster Energy® Drinks - travel and entertainment expense, and certain overhead expenses*

*Strategic Brands - travel and entertainment expense, and certain overhead expenses*

*Alcohol Brands - depreciation and amortization expense, travel and entertainment expense, and certain overhead expenses*

*Other - certain overhead expenses*

Six-Months Ended June 30, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Monster<br>Energy® <br>Drinks | <br>Strategic<br>Brands | <br>Alcohol<br>Brands | <br><br>Other | <br>Corporate and<br>Unallocated | <br><br>Consolidated |
| Net sales<sup>1</sup> | $3652869 | $228225 | $72674 | $12382 | $— | $3966150 |
| Cost of sales | 1607215 | 72618 | 52670 | 9272 |  |  |
| Gross profit | 2045654 | 155607 | 20004 | 3110 |  | 2224375 |
| Distribution expense | 151257 | 2698 | 5627 | 6 |  |  |
| Selling and marketing expense | 329303 | 26903 | 12801 | 171 |  |  |
| Nonmanufacturing payroll expense | 86880 | 4475 | 18312 | 1128 | 212333 |  |
| Other segment items<sup>2</sup> | 40362 | 1768 | 19386 | 310 | 109288 |  |
| Operating income (loss)<sup>1</sup> | 1437852 | 119763 | (36122) | 1495 | (321621) | 1201367 |
| Interest and other income, net |  |  |  |  |  | 23337 |
| Income before provision for income taxes |  |  |  |  |  | $1224704 |
| Depreciation and amortization | $35839 | $503 | $9902 | $449 | $5712 | $52405 |

---

<sup>1</sup>*For the Monster Energy® Drinks segment, includes $19.9 million related to the recognition of deferred revenue.*

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

<sup>2</sup>*Other segment items for each reportable segment include:*

*Monster Energy® Drinks - travel and entertainment expense, professional services expense, and certain overhead expenses*

*Strategic Brands - travel and entertainment expense, and certain overhead expenses*

*Alcohol Brands - depreciation and amortization expense, travel and entertainment expense, property and equipment impairment, and certain overhead expenses*

*Other - certain overhead expenses*

Six-Months Ended June 30, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Monster<br>Energy®<br>Drinks | <br>Strategic<br>Brands | <br>Alcohol<br>Brands | <br><br>Other | <br>Corporate and<br>Unallocated | <br><br>Consolidated |
| Net sales<sup>1</sup> | $3471859 | $217666 | $97634 | $12536 | $— | $3799695 |
| Cost of sales | 1613262 | 61690 | 69341 | 8768 |  |  |
| Gross profit | 1858597 | 155976 | 28293 | 3768 |  | 2046634 |
| Distribution expense | 171069 | 3121 | 7616 | 33 |  |  |
| Selling and marketing expense | 331332 | 23318 | 11843 | 105 |  |  |
| Nonmanufacturing payroll expense | 80041 | 4370 | 18273 | 1070 | 186107 |  |
| Other segment items<sup>2</sup> | 35778 | 1490 | 19138 | 141 | 82635 |  |
| Operating income (loss)<sup>1</sup> | 1240377 | 123677 | (28577) | 2419 | (268742) | 1069154 |
| Interest and other income, net |  |  |  |  |  | 60131 |
| Income before provision for income taxes |  |  |  |  |  | $1129285 |
| Depreciation and amortization | $25713 | $453 | $7406 | $97 | $6244 | $39913 |

---

<sup>1</sup>*For the Monster Energy® Drinks segment, includes $19.9 million related to the recognition of deferred revenue.*

<sup>2</sup>*Other segment items for each reportable segment include:*

*Monster Energy® Drinks - travel and entertainment expense, and certain overhead expenses*

*Strategic Brands - travel and entertainment expense, and certain overhead expenses*

*Alcohol Brands - depreciation and amortization expense, travel and entertainment expense, professional services expense, and certain overhead expenses*

*Other - certain overhead expenses*

Corporate and unallocated expenses for the three-months ended June 30, 2025 include $115.2 million of payroll costs, of which $32.6 million was attributable to stock-based compensation expenses (see Note 13 "Stock-Based Compensation"), as well as $25.3 million attributable to professional service expenses, including accounting and legal costs, and $39.8 million of other operating expenses.

Corporate and unallocated expenses for the three-months ended June 30, 2024 include $87.5 million of payroll costs, of which $17.8 million was attributable to stock-based compensation expenses (see Note 13 "Stock-Based Compensation"), as well as $14.5 million attributable to professional service expenses, including accounting and legal costs, and $23.6 million of other operating expenses.

Corporate and unallocated expenses for the six-months ended June 30, 2025 include $212.3 million of payroll costs, of which $52.4 million was attributable to stock-based compensation expenses (see Note 13 "Stock-Based Compensation"), as well as $44.5 million attributable to professional service expenses, including accounting and legal costs, and $64.8 million of other operating expenses.

[**Table of Contents**](#TOC)

**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

Corporate and unallocated expenses for the six-months ended June 30, 2024 include $186.1 million of payroll costs, of which $39.7 million was attributable to stock-based compensation expenses (see Note 13 "Stock-Based Compensation"), as well as $34.5 million attributable to professional service expenses, including accounting and legal costs, and $48.1 million of other operating expenses.

Coca-Cola Europacific Partners accounted for approximately 15% and 14% of the Company's net sales for the three-months ended June 30, 2025 and 2024, respectively. Coca-Cola Europacific Partners accounted for approximately 14% of the Company's net sales for both the six-months ended June 30, 2025 and 2024.

Coca-Cola Consolidated, Inc. accounted for approximately 11% of the Company's net sales for both the three-months ended June 30, 2025 and 2024. Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company's net sales for both the six-months ended June 30, 2025 and 2024.

Reyes Holdings, LLC accounted for approximately 9% and 10% of the Company's net sales for the three-months ended June 30, 2025 and 2024, respectively. Reyes Holdings, LLC accounted for approximately 9% of the Company's net sales for both the six-months ended June 30, 2025 and 2024.

Net sales to customers outside the United States amounted to $864.2 million and $746.0 million for the three-months ended June 30, 2025 and 2024, respectively. Such sales were approximately 41% and 39% of net sales for the three-months ended June 30, 2025 and 2024, respectively. Net sales to customers outside the United States amounted to $1.60 billion and $1.49 billion for the six-months ended June 30, 2025 and 2024, respectively. Such sales were approximately 40% and 39% of net sales for the six-months ended June 30, 2025 and 2024, respectively.

Goodwill and other intangible assets for the Company's reportable segments were as follows at:

---

| | | |
|:---|:---|:---|
|  | June 30, <br>2025 | December 31, <br>2024 |
| Goodwill and other intangible assets: |  |  |
| &nbsp;&nbsp;Monster Energy® Drinks | $1712928 | $1703256 |
| &nbsp;&nbsp;Strategic Brands | 982389 | 982035 |
| &nbsp;&nbsp;Alcohol Brands | 55153 | 60604 |
| &nbsp;&nbsp;Other |  |  |
|  | $2750470 | $2745895 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. RELATED PARTY TRANSACTIONS

TCCC controls approximately 20.9% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company's products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $29.6 million and $19.8 million for the three-months ended June 30, 2025 and 2024, respectively, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $55.4 million and $42.3 million for the six-months ended June 30, 2025 and 2024, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers, were $12.0 million and $8.7 million for the three-months ended June 30, 2025 and 2024, respectively, and are included in operating expenses. TCCC commissions, based on sales to TCCC independent bottlers, were $21.4 million and $18.4 million for the six-months ended June 30, 2025 and 2024, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended June 30, 2025 and 2024 were $61.1 million and $55.5 million, respectively. Net sales to the TCCC Subsidiaries for the six-months ended June 30, 2025 and 2024 were $119.2 million and $97.2 million, respectively.

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**MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)**

The Company also purchases concentrates from TCCC which are then sold to certain of the Company's bottlers/distributors. Concentrate purchases from TCCC were $6.8 million and $6.9 million for the three-months ended June 30, 2025 and 2024, respectively. Concentrate purchases from TCCC were $13.2 million and $14.9 million for the six-months ended June 30, 2025 and 2024, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company's energy drinks. Such contract manufacturing expenses were $12.9 million and $9.6 million for the three-months ended June 30, 2025 and 2024, respectively. Such contract manufacturing expenses were $24.6 million and $18.6 million for the six-months ended June 30, 2025 and 2024, respectively.

Accounts receivable, accounts payable, accrued promotional allowances and accrued liabilities related to the TCCC Subsidiaries were as follows at:

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| | | |
|:---|:---|:---|
|  | June 30, <br>2025 | December 31, <br>2024 |
| Accounts receivable, net | $144801 | $112686 |
| Accounts payable | $(35642) | $(29095) |
| Accrued promotional allowances | $(21980) | $(16914) |
| Accrued liabilities | $(32713) | $(22595) |

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One director of the Company through certain trusts, and a family member of one director are the principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended June 30, 2025 and 2024 were $1.9 million and $1.7 million, respectively. Expenses incurred with such company in connection with promotional materials purchased during the six-months ended June 30, 2025 and 2024 were $3.5 million and $3.6 million, respectively.

The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During the three-months ended June 30, 2025 and 2024, the Company incurred expenses of $0.01 million and $0.03 million, respectively, in relation to the aircraft. During the six-months ended June 30, 2025 and 2024, the Company incurred expenses of $0.06 million and $0.03 million, respectively, in relation to the aircraft.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity ("VIE") for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE's assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company's condensed consolidated financial statements.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Our Business**

When this report uses the words "the Company", "we", "us", and "our", these words refer to Monster Beverage Corporation and its subsidiaries, unless the context otherwise requires. Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company's subsidiaries primarily develop and market energy drinks, and to a lesser extent, craft beers, flavored malt beverages ("FMBs") and hard seltzers.

***Pricing Actions***

We implemented price increases in the fourth quarter of 2024 (for core brands and packages) in the United States and at various times in certain international markets during 2024 and 2025 (collectively, the "Pricing Actions"). The Pricing Actions positively impacted gross profit margins in 2025 as compared to 2024.

**Overview**

We develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| ●&nbsp;&nbsp;&nbsp;&nbsp; Monster Energy® | ●&nbsp;&nbsp;&nbsp;&nbsp; Burn® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Monster Energy Ultra® | ●&nbsp;&nbsp;&nbsp;&nbsp; Mother® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Rehab Monster® | ●&nbsp;&nbsp;&nbsp;&nbsp; Nalu® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Monster Energy® Nitro | ●&nbsp;&nbsp;&nbsp;&nbsp; Ultra Energy® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Java Monster® | ●&nbsp;&nbsp;&nbsp;&nbsp; Play® and Power Play® (stylized) |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Punch Monster® | ●&nbsp;&nbsp;&nbsp;&nbsp; Relentless® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Juice Monster® | ●&nbsp;&nbsp;&nbsp;&nbsp; BPM® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Reign Total Body Fuel® | ●&nbsp;&nbsp;&nbsp;&nbsp; BU® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Reign Inferno® Thermogenic Fuel | ●&nbsp;&nbsp;&nbsp;&nbsp; Samurai® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Reign Storm® | ●&nbsp;&nbsp;&nbsp;&nbsp; Live+® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Bang Energy® | ●&nbsp;&nbsp;&nbsp;&nbsp; Predator® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; NOS® | ●&nbsp;&nbsp;&nbsp;&nbsp; Fury® |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Full Throttle® |  |

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We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man® IPA, Dale's Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum<sup>TM</sup> IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast<sup>TM</sup>, Nasty Beast® Hard Tea, Blind Lemon®, Blinder Lemon<sup>TM</sup>, Michi and a host of other brands.

We also develop, market, sell and distribute still and sparkling waters under the Monster Tour Water® brand name.

We have four operating and reportable segments: (i) Monster Energy® Drinks segment ("Monster Energy® Drinks"), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, (ii) Strategic Brands segment ("Strategic Brands"), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company ("TCCC") in 2015 as well as our affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment ("Alcohol Brands"), which is comprised of various craft beers, FMBs and hard seltzers and (iv) Other segment ("Other"), which is comprised of certain products sold by American Fruits and Flavors LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the "AFF Third-Party Products").

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During the three-months ended June 30, 2025, we continued to expand our existing drink portfolio by adding additional products to our portfolio in a number of countries and further developed our distribution markets. During the three-months ended June 30, 2025, we sold the following new products to our customers:

● Monster Energy® Lando Norris Zero Sugar

● Monster Energy® Valentino Rossi Zero Sugar

● Blind Lemon® Cherry Lemonade

● Blind Lemon® Original Lemonade

● Blind Lemon® Peach Lemonade

● Blind Lemon® Strawberry Lemonade

● Blinder Lemon <sup>TM</sup> Original Lemonade

● Blinder Lemon <sup>TM</sup> Strawberry Lemonade

In the normal course of business, we discontinue certain products and/or product lines. Those products or product lines discontinued in the three-months ended June 30, 2025, either individually or in aggregate, did not have a material adverse impact on our financial position, results of operations or liquidity.

Our net sales were $2.11 billion for the three-months ended June 30, 2025. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $5.0 million for the three-months ended June 30, 2025. Net sales on a foreign currency adjusted basis increased 11.4% for the three-months ended June 30, 2025.

The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Net sales of our Monster Energy® Drinks segment were $1.94 billion for the three-months ended June 30, 2025. Net sales of our Strategic Brands segment were $129.9 million for the three-months ended June 30, 2025. Net sales of our Alcohol Brands segment were $38.0 million for the three-months ended June 30, 2025. Net sales of our Other segment were $6.4 million for the three-months ended June 30, 2025.

Our Monster Energy® Drinks segment represented 91.7% of our net sales for both the three-months ended June 30, 2025 and 2024. Our Strategic Brands segment represented 6.2% and 5.7% of our net sales for the three-months ended June 30, 2025 and 2024, respectively. Our Alcohol Brands segment represented 1.8% and 2.2% of our net sales for the three-months ended June 30, 2025 and 2024, respectively. Our Other segment represented 0.3% and 0.4% of our net sales for the three-months ended June 30, 2025 and 2024, respectively.

Our growth strategy includes further developing our domestic markets and expanding our international business. Net sales to customers outside the United States were $864.2 million for the three-months ended June 30, 2025, an increase of approximately $118.2 million, or 15.8% higher than net sales to customers outside of the United States of $746.0 million for the three-months ended June 30, 2024. Such sales were approximately 41% and 39% of net sales for the three-months ended June 30, 2025 and 2024, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $5.0 million for the three-months ended June 30, 2025. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 16.5% for the three-months ended June 30, 2025.

Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. Our alcohol customers are primarily beer distributors who in turn sell to retailers within the alcohol distribution system. Percentages of our gross billings to our various customer types for the three- and six-months ended June 30, 2025 and 2024 are reflected below. Such information includes sales made by us directly to the customer types concerned, which include our full service beverage bottlers/distributors in the United States. Such full service beverage bottlers/distributors in turn sell certain of our products to

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some of the same customer types listed below. We limit our description of our customer types to include only our sales to our full service bottlers/distributors without reference to such bottlers/distributors' sales to their own customers.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-Months Ended  | Three-Months Ended  | Six-Months Ended  | Six-Months Ended  |
|  | June 30,  | June 30,  | June 30,  | June 30,  |
|  | 2025 | 2024 | 2025 | 2024 |
| U.S. full service bottlers/distributors | 45% | 46% | 45% | 46% |
| International full service bottlers/distributors | 43% | 41% | 42% | 41% |
| Club stores and e-commerce retailers | 8% | 8% | 9% | 8% |
| Retail grocery, direct convenience, specialty chains and wholesalers | 2% | 2% | 2% | 2% |
| Alcohol, value stores and other | 2% | 3% | 2% | 3% |

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Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Holdings, LLC, Coca-Cola Southwest Beverages LLC, The Coca-Cola Bottling Company of Northern New England, Inc., Swire Pacific Holdings, Inc. (USA), Liberty Coca-Cola Beverages, LLC, Coca-Cola Europacific Partners, Coca-Cola Hellenic, Coca-Cola FEMSA, Swire Coca-Cola (China), COFCO Coca-Cola, Coca-Cola Beverages Africa, Coca-Cola İçecek and certain other TCCC network bottlers, Asahi Soft Drinks, Co., Ltd., Wal-Mart, Inc. (including Sam's Club), Costco Wholesale Corporation and Amazon.com, Inc.

Our alcohol customers include Reyes Beverage Group, Ben E. Keith Company, J.J. Taylor Distributing and Admiral Beverage Corporation.

A decision by any large customer to decrease amounts purchased from us or to cease carrying our products could have a material adverse effect on our financial condition and consolidated results of operations.

Coca-Cola Europacific Partners accounted for approximately 15% and 14% of the Company's net sales for the three-months ended June 30, 2025 and 2024, respectively. Coca-Cola Europacific Partners accounted for approximately 14% of the Company's net sales for both the six-months ended June 30, 2025 and 2024.

Coca-Cola Consolidated, Inc. accounted for approximately 11% of the Company's net sales for both the three-months ended June 30, 2025 and 2024. Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company's net sales for both the six-months ended June 30, 2025 and 2024.

Reyes Holdings, LLC accounted for approximately 9% and 10% of the Company's net sales for the three-months ended June 30, 2025 and 2024, respectively. Reyes Holdings, LLC accounted for approximately 9% of the Company's net sales for both the six-months ended June 30, 2025 and 2024.

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**Results of Operations** 

The following table sets forth key statistics for the three- and six-months ended June 30, 2025 and 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-Months Ended | Three-Months Ended | Percentage | Six-Months Ended | Six-Months Ended | Percentage |
| (In thousands, except per share amounts) | June 30,  | June 30,  | Change | June 30,  | June 30,  | Change |
|  | 2025 | 2024 | 25 vs. 24 | 2025 | 2024 | 25 vs. 24 |
| Net sales<sup>1</sup> | $2111593 | $1900597 | 11.1% | $3966150 | $3799695 | 4.4% |
| Cost of sales | 935180 | 881091 | 6.1% | 1741775 | 1753061 | (0.6)% |
| Gross profit\*<sup>1</sup> | 1176413 | 1019506 | 15.4% | 2224375 | 2046634 | 8.7% |
| Gross profit as a percentage of net sales | 55.7% | 53.6% |  | 56.1% | 53.9% |  |
| Operating expenses | 544791 | 492343 | 10.7% | 1023008 | 977480 | 4.7% |
| Operating expenses as a percentage of net sales | 25.8% | 25.9% |  | 25.8% | 25.7% |  |
| Operating income<sup>1</sup> | 631622 | 527163 | 19.8% | 1201367 | 1069154 | 12.4% |
| Operating income as a percentage of net sales | 29.9% | 27.7% |  | 30.3% | 28.1% |  |
| Interest and other income, net | 15065 | 24376 | (38.2)% | 23337 | 60131 | (61.2)% |
| Income before provision for income taxes<sup>1</sup> | 646687 | 551539 | 17.3% | 1224704 | 1129285 | 8.4% |
| Provision for income taxes | 157893 | 126170 | 25.1% | 292917 | 261867 | 11.9% |
| Income taxes as a percentage of income before taxes | 24.4% | 22.9% |  | 23.9% | 23.2% |  |
| Net income | $488794 | $425369 | 14.9% | $931787 | $867418 | 7.4% |
| Net income as a percentage of net sales | 23.1% | 22.4% |  | 23.5% | 22.8% |  |
| Net income per common share: |  |  |  |  |  |  |
| &nbsp;&nbsp;Basic | $0.50 | $0.41 | 21.2% | $0.96 | $0.84 | 14.1% |
| &nbsp;&nbsp;Diluted | $0.50 | $0.41 | 21.1% | $0.95 | $0.83 | 14.2% |
| Energy drink case sales (in thousands) (in 192-ounce case equivalents) | 249336 | 212194 | 17.5% | 462436 | 423624 | 9.2% |

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<sup>1</sup>*Includes $10.0 million for both the three-months ended June 30, 2025 and 2024, related to the recognition of deferred revenue. Includes $19.9 million for both the six-months ended June 30, 2025 and 2024, related to the recognition of deferred revenue.*

*\*Gross profit may not be comparable to that of other entities since some entities include all costs associated with their distribution process in cost of sales, whereas others exclude certain costs and instead include such costs within another line item such as operating expenses. We include out-bound freight and warehouse costs in operating expenses rather than in cost of sales.*

***Three-Months Ended June 30, 2025 Compared to the Three-Months Ended June 30, 2024*.**

**Net Sales**

Net sales were $2.11 billion for the three-months ended June 30, 2025, an increase of approximately $211.0 million, or 11.1% higher than net sales of $1.90 billion for the three-months ended June 30, 2024. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $5.0 million for the three-months ended June 30, 2025. Net sales on a foreign currency adjusted basis increased 11.4% for the three-months ended June 30, 2025.

Net sales were $810.2 million for the three-months ended June 30, 2025, an increase of $107.8 million, or 15.3% higher than net sales of $702.4 million for the three-months ended June 30, 2024, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean of approximately $3.1 million for the three-months ended June 30, 2025. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 15.8% for the three-months ended June 30, 2025.

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Net sales for the Monster Energy® Drinks segment were $1.94 billion for the three-months ended June 30, 2025, an increase of approximately $194.5 million, or 11.2% higher than net sales of $1.74 billion for the three-months ended June 30, 2024. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $4.8 million for the three-months ended June 30, 2025. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 11.4% for the three-months ended June 30, 2025.

Net sales for the Strategic Brands segment were $129.9 million for the three-months ended June 30, 2025, an increase of approximately $20.7 million, or 18.9% higher than net sales of $109.2 million for the three-months ended June 30, 2024. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, NOS®, and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $0.2 million for the Strategic Brands segment for the three-months ended June 30, 2025. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 19.1% for the three-months ended June 30, 2025. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment primarily as a result of bottler production schedules.

Net sales for the Alcohol Brands segment were $38.0 million for the three-months ended June 30, 2025, a decrease of approximately $3.6 million, or 8.6% lower than net sales of $41.6 million for the three-months ended June 30, 2024. The decrease in net sales for the three-months ended June 30, 2025 was primarily due to decreased sales by volume of certain craft beers and the Nasty Beast® Hard Tea product line.

Net sales for the Other segment were $6.4 million for the three-months ended June 30, 2025, a decrease of approximately $0.6 million, or 8.5% lower than net sales of $7.0 million for the three-months ended June 30, 2024.

Case sales for our energy drink products, in 192-ounce case equivalents, were 249.3 million cases for the three-months ended June 30, 2025, an increase of approximately 37.1 million cases or 17.5% higher than case sales of 212.2 million cases for the three-months ended June 30, 2024. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.29 for the three-months ended June 30, 2025, which was 5.0% lower than the average net sales per case of $8.73 for the three-months ended June 30, 2024. The decrease in overall average net sales per case for our energy drink products for the three-months ended June 30, 2025 compared to the three-months ended June 30, 2024 was primarily due to geographical/product sales mix.

Case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, were 2.8 million cases for the three-months ended June 30, 2025, a decrease of approximately 0.2 million cases or 7.6% lower than case sales of 3.0 million cases for the three-months ended June 30, 2024. Barrel sales for our craft beers, FMBs and hard seltzers, in 31 U.S. gallon equivalents, were 0.14 million barrels for the three-months ended June 30, 2025, a decrease of approximately 0.01 million barrels or 7.6% lower than barrel sales of 0.15 million barrels for the three-months ended June 30, 2024.

**Gross Profit**

Gross profit was $1.18 billion for the three-months ended June 30, 2025, an increase of approximately $156.9 million, or 15.4% higher than the gross profit of $1.02 billion for the three-months ended June 30, 2024. The increase in gross profit dollars was primarily the result of the $211.0 million increase in net sales for the three-months ended June 30, 2025.

Gross profit as a percentage of net sales increased to 55.7% for the three-months ended June 30, 2025 from 53.6% for the three-months ended June 30, 2024. The increase in gross profit as a percentage of net sales for the three-months ended June 30, 2025 was primarily the result of the Pricing Actions, supply chain optimization and lower input costs, partially offset by geographical sales mix and higher promotional allowances.

**Operating Expenses**

Total operating expenses were $544.8 million for the three-months ended June 30, 2025, an increase of approximately $52.4 million, or 10.7% higher than total operating expenses of $492.3 million for the three-months ended June 30, 2024.

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The increase in operating expenses was primarily due to increased payroll expense of $29.6 million (of which $14.4 million was attributable to stock-based compensation expense) and general administrative expense of $23.5 million. Operating expenses as a percentage of net sales for the three-months ended June 30, 2025 were 25.8% as compared to 25.9% for the three-months ended June 30, 2024.

**Operating Income**

Operating income was $631.6 million for the three-months ended June 30, 2025, an increase of approximately $104.5 million, or 19.8% higher than operating income of $527.2 million for the three-months ended June 30, 2024. Operating income as a percentage of net sales increased to 29.9% for the three-months ended June 30, 2025 from 27.7% for the three-months ended June 30, 2024.

Operating income was $164.1 million and $145.8 million for the three-months ended June 30, 2025 and 2024, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.

Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $757.5 million for the three-months ended June 30, 2025, an increase of approximately $145.2 million, or 23.7% higher than operating income of $612.3 million for the three-months ended June 30, 2024. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in gross profit.

Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $67.9 million for the three-months ended June 30, 2025, an increase of approximately $6.2 million, or 10.1% higher than operating income of $61.7 million for the three-months ended June 30, 2024. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in gross profit.

Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $14.6 million for the three-months ended June 30, 2025, a decrease of approximately $7.9 million, or 35.1% lower than the operating loss of $22.6 million for the three-months ended June 30, 2024. The decrease in operating loss for the three-months ended June 30, 2025 was primarily due to a decrease in general administrative expense.

Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $1.3 million for the three-months ended June 30, 2025, as compared to operating income of $1.4 million for the three-months ended June 30, 2024.

**Interest and Other Income, net**

Interest and other income, net, was $15.1 million for the three-months ended June 30, 2025, as compared to interest and other income, net, of $24.4 million for the three-months ended June 30, 2024. Interest income was $18.1 million and $38.2 million for the three-months ended June 30, 2025 and 2024, respectively. The decrease in interest income for the three-months ended June 30, 2025 was primarily related to lower average short- and long-term investment balances as a result of treasury stock repurchases made in the second and third quarters of 2024. Interest expense was $1.8 million and $4.9 million for the three-months ended June 30, 2025 and 2024, respectively. Foreign currency transaction losses were $2.1 million and $8.0 million for the three-months ended June 30, 2025 and 2024, respectively.

**Provision for Income Taxes**

Provision for income taxes was $157.9 million for the three-months ended June 30, 2025, an increase of $31.7 million, or 25.1% higher than the provision for income taxes of $126.2 million for the three-months ended June 30, 2024. The effective combined federal, state and foreign tax rate increased to 24.4% from 22.9% for the three-months ended June 30, 2025 and 2024, respectively. The increase in the effective tax rate was primarily attributable to higher income taxes in foreign tax jurisdictions.

**Net Income**

Net income was $488.8 million for the three-months ended June 30, 2025, an increase of $63.4 million, or 14.9% higher than net income of $425.4 million for the three-months ended June 30, 2024.

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***Six-Months Ended June 30, 2025 Compared to the Six-Months Ended June 30, 2024*.**

**Net Sales**

Net sales were $3.97 billion for the six-months ended June 30, 2025, an increase of approximately $166.5 million, or 4.4% higher than net sales of $3.80 billion for the six-months ended June 30, 2024. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $62.4 million for the six-months ended June 30, 2025. Net sales on a foreign currency adjusted basis increased 6.0% for the six-months ended June 30, 2025.

Net sales were $1.50 billion for the six-months ended June 30, 2025, an increase of $104.7 million, or 7.5% higher than net sales of $1.40 billion for the six-months ended June 30, 2024, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean of approximately $57.7 million for the six-months ended June 30, 2025. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 11.6% for the six-months ended June 30, 2025.

Net sales for the Monster Energy® Drinks segment were $3.65 billion for the six-months ended June 30, 2025, an increase of approximately $181.0 million, or 5.2% higher than net sales of $3.47 billion for the six-months ended June 30, 2024. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $55.6 million for the six-months ended June 30, 2025. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 6.8% for the six-months ended June 30, 2025.

Net sales for the Strategic Brands segment were $228.2 million for the six-months ended June 30, 2025, an increase of approximately $10.6 million, or 4.9% higher than net sales of $217.7 million for the six-months ended June 30, 2024. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator® and NOS® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $6.7 million for the Strategic Brands segment for the six-months ended June 30, 2025. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 7.9% for the six-months ended June 30, 2025. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment primarily as a result of bottler production schedules.

Net sales for the Alcohol Brands segment were $72.7 million for the six-months ended June 30, 2025, a decrease of approximately $25.0 million, or 25.6% lower than net sales of $97.6 million for the six-months ended June 30, 2024. The decrease in net sales for the six-months ended June 30, 2025 was primarily due to decreased sales by volume of the Nasty Beast® Hard Tea product line, which was launched during the six-months ended June 30, 2024, as well as decreased sales by volume of The Beast<sup>TM</sup> product line.

Net sales for the Other segment were $12.4 million for the six-months ended June 30, 2025, a decrease of approximately $0.1 million, or 1.2% lower than net sales of $12.5 million for the six-months ended June 30, 2024.

Case sales for our energy drink products, in 192-ounce case equivalents, were 462.4 million cases for the six-months ended June 30, 2025, an increase of approximately 38.8 million cases or 9.2% higher than case sales of 423.6 million cases for the six-months ended June 30, 2024. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.39 for the six-months ended June 30, 2025, which was 3.6% lower than the average net sales per case of $8.71 for the six-months ended June 30, 2024. The decrease in overall average net sales per case for our energy drink products for the six-months ended June 30, 2025 compared to the six-months ended June 30, 2024 was primarily due to adverse changes in foreign currency exchange rates as well as geographical/product sales mix.

Case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, were 5.2 million cases for the six-months ended June 30, 2025, a decrease of approximately 1.9 million cases or 26.9% lower than case sales of 7.1 million cases for the six-months ended June 30, 2024. Barrel sales for our craft beers, FMBs and hard seltzers, in 31 U.S. gallon equivalents, were 0.25 million barrels for the six-months ended June 30, 2025, a decrease of approximately 0.09 million barrels or 26.9% lower than barrel sales of 0.34 million barrels for the six-months ended June 30, 2024.

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**Gross Profit**

Gross profit was $2.22 billion for the six-months ended June 30, 2025, an increase of approximately $177.7 million, or 8.7% higher than the gross profit of $2.05 billion for the six-months ended June 30, 2024. The increase in gross profit dollars was primarily the result of the $166.5 million increase in net sales for the six-months ended June 30, 2025.

Gross profit as a percentage of net sales increased to 56.1% for the six-months ended June 30, 2025 from 53.9% for the six-months ended June 30, 2024. The increase in gross profit as a percentage of net sales for the six-months ended June 30, 2025 was primarily the result of the Pricing Actions, supply chain optimization, lower input costs and favorable product mix, partially offset by higher promotional allowances and geographical sales mix.

**Operating Expenses** 

Total operating expenses were $1.02 billion for the six-months ended June 30, 2025, an increase of approximately $45.5 million, or 4.7% higher than total operating expenses of $977.5 million for the six-months ended June 30, 2024.

The increase in operating expenses was primarily due to increased payroll expense of $33.3 million and general administrative expense of $32.0 million, partially offset by decreased distribution expense of $22.3 million. Operating expenses as a percentage of net sales for the six-months ended June 30, 2025 were 25.8% as compared to 25.7% for the six-months ended June 30, 2024.

**Operating Income**

Operating income was $1.20 billion for the six-months ended June 30, 2025, an increase of approximately $132.2 million, or 12.4% higher than operating income of $1.07 billion for the six-months ended June 30, 2024. Operating income as a percentage of net sales increased to 30.3% for the six-months ended June 30, 2025 from 28.1% for the six-months ended June 30, 2024.

Operating income was $306.7 million and $283.7 million for the six-months ended June 30, 2025 and 2024, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.

Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $1.44 billion for the six-months ended June 30, 2025, an increase of approximately $197.5 million, or 15.9% higher than operating income of $1.24 billion for the six-months ended June 30, 2024. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in gross profit.

Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $119.8 million for the six-months ended June 30, 2025, a decrease of approximately $3.9 million, or 3.2% lower than operating income of $123.7 million for the six-months ended June 30, 2024. The decrease in operating income for the Strategic Brands segment was primarily the result of a decrease in gross profit as a percentage of net sales.

Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $36.1 million for the six-months ended June 30, 2025, an increase of approximately $7.5 million, or 26.4% higher than the operating loss of $28.6 million for the six-months ended June 30, 2024. The increase in operating loss for the six-months ended June 30, 2025 was primarily due to a decrease in net sales.

Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $1.5 million for the six-months ended June 30, 2025, as compared to operating income of $2.4 million for the six-months ended June 30, 2024.

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**Interest and Other Income, net**

Interest and other income, net, was $23.3 million for the six-months ended June 30, 2025, as compared to interest and other income, net, of $60.1 million for the six-months ended June 30, 2024. Interest income was $35.0 million and $79.4 million for the six-months ended June 30, 2025 and 2024, respectively. The decrease in interest income for the six-months ended June 30, 2025 was primarily related to lower average short- and long-term investment balances as a result of treasury stock repurchases made in the second and third quarters of 2024. Interest expense was $5.8 million and $5.0 million for the six-months ended June 30, 2025 and 2024, respectively. Foreign currency transaction losses were $5.8 million and $14.0 million for the six-months ended June 30, 2025 and 2024, respectively.

**Provision for Income Taxes**

Provision for income taxes was $292.9 million for the six-months ended June 30, 2025, an increase of $31.1 million, or 11.9% higher than the provision for income taxes of $261.9 million for the six-months ended June 30, 2024. The effective combined federal, state and foreign tax rate increased to 23.9% from 23.2% for the six-months ended June 30, 2025 and 2024, respectively. The increase in the effective tax rate was primarily attributable to higher income taxes in foreign tax jurisdictions.

**Net Income** 

Net income was $931.8 million for the six-months ended June 30, 2025, an increase of $64.4 million, or 7.4% higher than net income of $867.4 million for the six-months ended June 30, 2024.

**Key Business Metrics**

We use certain key metrics and financial measures not prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to evaluate and manage our business. For a further discussion of how we use key metrics and certain non-GAAP financial measures, see "Non-GAAP Financial Measures and Other Key Metrics."

**Non-GAAP Financial Measures and Other Key Metrics**

***Gross Billings\*\****

***Three-Months Ended June 30, 2025 Compared to the Three-Months Ended June 30, 2024*.**

Gross billings were $2.50 billion for the three-months ended June 30, 2025, an increase of approximately $282.5 million, or 12.7% higher than gross billings of $2.22 billion for the three-months ended June 30, 2024. Gross billings increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $3.0 million for the three-months ended June 30, 2025. Gross billings on a foreign currency adjusted basis increased 12.9% for the three-months ended June 30, 2025.

Gross billings for the Monster Energy® Drinks segment were $2.30 billion for the three-months ended June 30, 2025, an increase of approximately $257.3 million, or 12.6% higher than gross billings of $2.05 billion for the three-months ended June 30, 2024. Gross billings increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $2.6 million for the three-months ended June 30, 2025. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 12.7% for the three-months ended June 30, 2025.

Gross billings for the Strategic Brands segment were $152.0 million for the three-months ended June 30, 2025, an increase of $29.0 million, or 23.5% higher than gross billings of $123.1 million for the three-months ended June 30, 2024. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $0.4 million for the three-months ended June 30, 2025. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 23.8% for the three-months ended June 30, 2025.

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Gross billings for the Alcohol Brands segment were $39.8 million for the three-months ended June 30, 2025, a decrease of approximately $3.1 million, or 7.3% lower than gross billings of $42.9 million for the three-months ended June 30, 2024. The decrease in gross billings for the three-months ended June 30, 2025 was primarily due to decreased sales by volume of certain craft beers and the Nasty Beast® Hard Tea product line.

Gross billings for the Other segment were $6.4 million for the three-months ended June 30, 2025, a decrease of $0.6 million, or 9.2% lower than gross billings of $7.0 million for the three-months ended June 30, 2024.

Promotional allowances, commissions and other expenses, as described in the footnote below, were $399.1 million for the three-months ended June 30, 2025, an increase of $71.5 million, or 21.8% higher than promotional allowances, commissions and other expenses of $327.5 million for the three-months ended June 30, 2024. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 16.0% from 14.8% for the three-months ended June 30, 2025 and 2024, respectively.

***Six-Months Ended June 30, 2025 Compared to the Six-Months Ended June 30, 2024*.**

Gross billings were $4.66 billion for the six-months ended June 30, 2025, an increase of approximately $255.8 million, or 5.8% higher than gross billings of $4.41 billion for the six-months ended June 30, 2024. Gross billings increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $66.3 million for the six-months ended June 30, 2025. Gross billings on a foreign currency adjusted basis increased 7.3% for the six-months ended June 30, 2025.

Gross billings for the Monster Energy® Drinks segment were $4.31 billion for the six-months ended June 30, 2025, an increase of approximately $259.7 million, or 6.4% higher than gross billings of $4.05 billion for the six-months ended June 30, 2024. Gross billings increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $59.4 million for the six-months ended June 30, 2025. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.9% for the six-months ended June 30, 2025.

Gross billings for the Strategic Brands segment were $265.8 million for the six-months ended June 30, 2025, an increase of approximately $20.2 million, or 8.2% higher than gross billings of $245.6 million for the six-months ended June 30, 2024. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator® and NOS® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $6.9 million for the six-months ended June 30, 2025. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 11.0% for the six-months ended June 30, 2025.

Gross billings for the Alcohol Brands segment were $76.0 million for the six-months ended June 30, 2025, a decrease of approximately $24.0 million, or 24.0% lower than gross billings of $100.0 million for the six-months ended June 30, 2024. The decrease in gross billings for the six-months ended June 30, 2025 was primarily due to decreased sales by volume of the Nasty Beast® Hard Tea product line, which was launched during the six-months ended June 30, 2024, as well as decreased sales by volume of The Beast<sup>TM</sup> product line.

Gross billings for the Other segment were $12.5 million for the six-months ended June 30, 2025, a decrease of approximately $0.1 million, or 1.0% lower than gross billings of $12.7 million for the six-months ended June 30, 2024.

Promotional allowances, commissions and other expenses, as described in the footnote below, were $716.6 million for the six-months ended June 30, 2025, an increase of $89.4 million, or 14.2% higher than promotional allowances, commissions and other expenses of $627.2 million for the six-months ended June 30, 2024. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 15.4% from 14.2% for the six-months ended June 30, 2025 and 2024, respectively.

*\*\* Gross billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies,* 

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*as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.*

The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three-Months Ended | Three-Months Ended | Percentage | Six-Months Ended | Six-Months Ended | Percentage |
| (In thousands) | June 30,  | June 30,  | Change | June 30,  | June 30,  | Change |
|  | 2025 | 2024 | 25 vs. 24 | 2025 | 2024 | 25 vs. 24 |
| Gross Billings | $2500676 | $2218152 | 12.7% | $4662866 | $4407085 | 5.8% |
| Deferred Revenue | 9981 | 9978 | 0.3% | 19891 | 19853 | 0.2% |
| Less: Promotional allowances, commissions and other expenses\*\*\* | 399064 | 327533 | 21.8% | 716607 | 627243 | 14.2% |
| Net Sales | $2111593 | $1900597 | 11.1% | $3966150 | $3799695 | 4.4% |

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*\*\*\*Although the expenditures described in this line item are determined in accordance with GAAP and meet GAAP requirements, the presentation thereof does not conform to GAAP presentation requirements. Additionally, our definition of promotional and other allowances may not be comparable to similar items presented by other companies. Promotional and other allowances for our energy drink products primarily include consideration given to our non-alcohol bottlers/distributors or customers including, but not limited to the following: (i) discounts granted off list prices to support price promotions to end-consumers by retailers; (ii) reimbursements given to our bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products; (iii) our agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities; (iv) our agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers; (v) incentives given to our bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals; (vi) discounted and/or free products or cash rebates; (vii) contractual fees given to our bottlers/distributors related to sales made by us direct to certain customers that fall within the bottlers'/distributors' sales territories; and (viii) certain commissions paid based on sales to our bottlers/distributors. The presentation of promotional and other allowances facilitates an evaluation of their impact on the determination of net sales and the spending levels incurred or correlated with such sales. Promotional and other allowances for our energy drink products constitute a material portion of our marketing activities. Our promotional allowance programs for our energy drink products with our numerous bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, ranging from one week to one year. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.*

**Sales**

The table below discloses selected quarterly data regarding sales for the three- and six-months ended June 30, 2025 and 2024, respectively. Data from any one or more quarters or periods is not necessarily indicative of annual results or continuing trends.

Sales of our energy drinks are expressed in unit case volume. A "unit case" means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings). Unit case volume means the number of unit cases (or unit case equivalents) of finished products or concentrates as if converted into finished products sold by us.

Our quarterly results of operations reflect seasonal trends that are primarily the result of increased demand in the warmer months of the year. Beverage sales tend to be lower during the first and fourth quarters of each calendar year. However, our experience with our energy drink products suggests they are less seasonal than the seasonality expected from traditional beverages. In addition, our continued growth internationally may further reduce the impact of seasonality on our business. Quarterly fluctuations may also be affected by other factors including the introduction of new products, the opening of new markets where temperature fluctuations are

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more pronounced, the addition of new bottlers/distributors, changes in the sales mix of our products and changes in advertising and promotional expenses.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-Months Ended  | Three-Months Ended  | Six-Months Ended  | Six-Months Ended  |
| (In thousands, except average net sales per case) | June 30,  | June 30,  | June 30,  | June 30,  |
|  | 2025 | 2024 | 2025 | 2024 |
| Net sales | $2111593 | $1900597 | $3966150 | $3799695 |
| Less: Alcohol Brands segment sales | (37971) | (41564) | (72674) | (97634) |
| Less: Other segment sales | (6408) | (7003) | (12382) | (12536) |
| Adjusted net sales<sup>1</sup> | $2067214 | $1852030 | $3881094 | $3689525 |
| Case sales by segment:<sup>1</sup> |  |  |  |  |
| &nbsp;&nbsp;Monster Energy® Drinks | 190495 | 168745 | 361085 | 335384 |
| &nbsp;&nbsp;Strategic Brands | 58841 | 43449 | 101351 | 88240 |
| Total case sales | 249336 | 212194 | 462436 | 423624 |
| Average net sales per case - Energy Drinks | $8.29 | $8.73 | $8.39 | $8.71 |

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<sup>1</sup>*Excludes Alcohol Brands segment and Other segment net sales.*

Net changes in foreign currency exchange rates had an unfavorable impact on the overall average net sales per case for the three- and six-months ended June 30, 2025.

The following represents case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three-Months Ended | Three-Months Ended | Six-Months Ended | Six-Months Ended |
| (In thousands, except average net sales per case) | June 30, | June 30, | June 30, | June 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Alcohol Brands segment net sales | $37971 | $41564 | $72674 | $97634 |
| Case sales | 2794 | 3023 | 5203 | 7122 |
| Average net sales per case - Alcohol Brands | $13.59 | $13.75 | $13.97 | $13.71 |

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See Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations" for additional information related to net sales.

**Liquidity and Capital Resources**

*Cash and cash equivalents.* At June 30, 2025, we had $1.93 billion in cash and cash equivalents. Of our $1.93 billion of cash and cash equivalents held at June 30, 2025, $1.10 billion was held by our foreign subsidiaries.

*Long-term debt.* In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the "Credit Facilities"). The Credit Facilities consist of a $750.0 million term loan (the "Term Loan") and up to $750.0 million in multicurrency revolving loan commitments (the "Revolving Credit Facility"). The Term Loan was repaid in April 2025 with no additional borrowings permitted. The Revolving Credit Facility matures in May 2029. Borrowings under the Revolving Credit Facility bear interest at a variable rate per annum equal to the applicable rate plus margin (as defined in the Credit Facilities). Borrowings may be repaid at any time during the term of the Revolving Credit Facility and may be reborrowed prior to the maturity date. As of June 30, 2025, no borrowings were outstanding under the Credit Facilities, and the Revolving Credit Facility had remaining availability of $750.0 million.

We believe that cash available from operations, including our cash resources and access to credit, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable, payments of tax liabilities, expansion and development requirements, purchases of capital assets, purchases of equipment, purchases of real property and purchases of shares of our common stock, through at least the next 12 months. Based on our current plans, we estimate that capital

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expenditures (exclusive of common stock repurchases) are likely to be less than $250.0 million through June 30, 2026. However, future business opportunities may cause a change in this estimate.

Purchases of inventories, increases in accounts receivable and other assets, acquisition of property and equipment (including real property, personal property, plant and manufacturing equipment, and coolers), leasehold improvements, advances for or the purchase of equipment for our bottlers, acquisition and maintenance of trademarks, payments of accounts payable, income taxes payable and purchases of our common stock are expected to remain our principal recurring use of cash.

The following summarizes our cash flows for the six-months ended June 30, 2025 and 2024 (in thousands):

Net cash provided by (used in):

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Operating activities | $973616 | $848433 |
| Investing activities | $(357729) | $903304 |
| Financing activities | $(308972) | $(2440475) |

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*Cash flows provided by operating activities.* Cash provided by operating activities was $973.6 million for the six-months ended June 30, 2025, as compared with cash provided by operating activities of $848.4 million for the six-months ended June 30, 2024.

For the six-months ended June 30, 2025, cash provided by operating activities was primarily attributable to net income earned of $931.8 million and adjustments for certain non-cash expenses, consisting primarily of $59.4 million of depreciation and amortization and non-cash lease expense and $53.9 million of stock-based compensation. For the six-months ended June 30, 2025, cash provided by operating activities also increased due to a $104.6 million decrease in inventories, a $71.5 million increase in accrued promotional allowances, a $28.5 million increase in accrued liabilities, a $21.1 million increase in income taxes payable, and a $14.5 million decrease in prepaid income taxes. For the six-months ended June 30, 2025, cash used in operating activities was primarily attributable to a $222.2 million increase in accounts receivable, a $63.7 million increase in prepaid expenses and other assets, a $22.1 million decrease in accrued compensation, and an $8.6 million decrease in deferred revenue.

For the six-months ended June 30, 2024, cash provided by operating activities was primarily attributable to net income earned of $867.4 million and adjustments for certain non-cash expenses, consisting primarily of $46.5 million of depreciation and amortization and non-cash lease expense and $41.3 million of stock-based compensation. For the six-months ended June 30, 2024, cash provided by operating activities also increased due to a $123.5 million decrease in inventories, a $54.2 million increase in accrued promotional allowances, an $11.3 million increase in income taxes payable and a $2.7 million increase in accrued liabilities. For the six-months ended June 30, 2024, cash used in operating activities was primarily attributable to a $197.2 million increase in accounts receivable, a $33.5 million decrease in accounts payable, a $27.0 million decrease in accrued compensation, a $14.0 million increase in prepaid expenses and other assets, a $12.3 million increase in prepaid income taxes and a $7.7 million decrease in deferred revenue.

*Cash flows (used in) provided by investing activities.* Cash used in investing activities was $357.7 million for the six-months ended June 30, 2025, as compared to cash provided by investing activities of $903.3 million for the six-months ended June 30, 2024.

For both the six-months ended June 30, 2025 and 2024, cash used in investing activities was primarily attributable to purchases of available-for-sale investments. To a lesser extent, for both the six-months ended June 30, 2025 and 2024, cash used in investing activities also included the acquisitions of fixed assets consisting of vans and promotional vehicles, coolers and other equipment to support our marketing and promotional activities, production equipment, furniture and fixtures, office and computer equipment, computer software, equipment used for sales and administrative activities, certain leasehold improvements, as well as construction of and/or improvements to real property. For the six-months ended June 30, 2024, cash provided by investing activities was primarily attributable to sales of available-for-sale investments. We expect to use a portion of our cash in excess of our requirements for operations for purchasing short-term and long-term investments, leasehold improvements, the acquisition of capital equipment (specifically, vans, trucks and promotional vehicles, coolers, other promotional equipment, merchandise displays, warehousing racks as well as items of production equipment required to produce certain of our existing and/or new products) to develop our brand in international markets and for other corporate purposes. From time to time, we may also use cash to purchase additional real property related to our beverage business and/or acquire compatible businesses.

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*Cash flows used in financing activities.* Cash used in financing activities was $309.0 million for the six-months ended June 30, 2025, as compared to cash used in financing activities of $2.44 billion for the six-months ended June 30, 2024. The cash used in financing activities for the six-months ended June 30, 2025 was primarily due to repayments on the Credit Facilities and, to a lesser extent, repurchases of our common stock. The cash used in financing activities for the six-months ended June 30, 2024 was primarily the result of repurchases of our common stock. The cash provided by financing activities for the six-months ended June 30, 2025 was primarily attributable to the issuance of our common stock under our stock-based compensation plans. The cash provided by financing activities for the six-months ended June 30, 2024 was primarily attributable to borrowings under the Credit Facilities and, to a lesser extent, the issuance of our common stock under our stock-based compensation plans.

The following represents a summary of the Company's contractual commitments and related scheduled maturities as of June 30, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | Payments due by period (in thousands) | Payments due by period (in thousands) | Payments due by period (in thousands) |
|  |  | Less than | More than |
| Obligations | Total | 1 year | 5 years |
| Contractual Obligations<sup>1</sup> | $491290 | $273273 | $2347 |
| Finance Leases | 6750 | 6716 |  |
| Operating Leases | 58733 | 13093 | 9488 |
| Purchase Commitments<sup>2</sup> | 275394 | 239821 |  |
|  | $832167 | $532903 | $11835 |

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<sup>1</sup>*Contractual obligations include our obligations related to sponsorships and other commitments.*

<sup>2</sup>*Purchase commitments include obligations made by us and our subsidiaries to various suppliers for raw materials used in the production of our products. These obligations vary in terms but are generally satisfied within one year.*

In addition, approximately $4.1 million of unrecognized tax benefits have been recorded as liabilities as of June 30, 2025. It is expected that the amount of unrecognized tax benefits will not significantly change within the next 12 months. As of June 30, 2025, we had $0.9 million of accrued interest and penalties related to unrecognized tax benefits.

**Critical Accounting Policies and Estimates**

Our consolidated financial statements are prepared in accordance with GAAP. GAAP requires us to make estimates and assumptions that affect the reported amounts in our consolidated financial statements. Critical accounting estimates are those that management believes are the most important to the portrayal of our financial condition and results and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. There have been no material changes to our critical accounting policies or estimates from the information provided in "Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 – Organization and Summary of Significant Accounting Policies", included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 ("Form 10-K").

**Recent Accounting Pronouncements**

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 1. Recent Accounting Pronouncements, in Part I, Item 1, of this Quarterly Report on Form 10-Q.

**Inflation**

We believe inflation did not have a significant impact on our results of operations for the three - and six-months ended June 30, 2025.

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**Forward-Looking Statements**

Certain statements made in this report may constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) (the "Exchange Act") regarding the expectations of management with respect to revenues, profitability, adequacy of funds from operations and the Credit Facilities, among other things. All statements containing a projection of revenues, income (loss), earnings (loss) per share, capital expenditures, dividends, capital structure or other financial items, a statement of management's plans and objectives for future operations, or a statement of future economic performance contained in management's discussion and analysis of financial condition and results of operations, including statements related to new products, volume growth and statements encompassing general optimism about future operating results and non-historical information, are forward-looking statements within the meaning of the Exchange Act. Without limiting the foregoing, the words "believes," "thinks," "anticipates," "plans," "expects," "estimates" and similar expressions are intended to identify forward-looking statements.

Management cautions that these statements are qualified by their terms and/or important factors, many of which are outside our control and involve a number of risks, uncertainties and other factors, that could cause actual results and events to differ materially from the statements made including, but not limited to, the following:

● Lack of anticipated demand for our products in domestic and/or international markets;

● Our ability to sustain the current level of sales of and/or achieve growth for our Monster Energy®, Reign Total Body Fuel®, Reign Storm®, Bang Energy® and NOS® brand energy drinks and/or our other products, including our Strategic Brands and Alcohol Brands;

● Decreased demand for our products resulting from changes in consumer preferences, including, but not limited to: changes in demand for different packages, sizes and configurations; changes due to perceived health concerns such as obesity, ingredients in our products or packaging, and alcohol abuse; changes due to product safety concerns; and/or changes due to decreased consumer discretionary spending power;

● The impact on our business of competitive products and pricing pressures and our ability to increase or maintain our market share as a result of actions by competitors, including unsubstantiated and/or misleading claims, false advertising claims and tortious interference, as well as competitors selling misbranded products;

● Our ability to rationalize brands and/or achieve profitability within our Alcohol Brands segment;

● Our ability to absorb, mitigate or pass on cost increases to our bottlers/distributors and/or customers and/or consumers;

● The impact of rising costs, interest rates, and inflation on the discretionary income of our consumers;

● The impact of the imposition of tariffs (including, but not limited to, U.S. tariffs threatened against or imposed on several countries and any resulting retaliatory tariffs) on, among other things, our supply chain, input costs (including aluminum cans), inflation or consumer demand for our products;

● The impact of the policies of the current U.S. presidential administration on our energy drinks relating to concerns about sugar-sweetened beverages, and particular ingredients, such as food dyes, as well as the "generally recognized as safe" (GRAS) process for food ingredients;

● The impact of legislation that has been proposed and/or adopted at the U.S. federal, state and/or municipal level and proposed and/or adopted in certain foreign jurisdictions to limit or restrict the sale of energy drinks (including the prohibition of the sale of energy drinks to certain demographics, at certain establishments, in certain container sizes or pursuant to certain governmental programs, such as the Supplemental Nutrition Assistance Program (SNAP));

● The impact of military conflicts, including supply chain disruptions, volatility in commodity and energy prices, increased economic uncertainty and escalating geopolitical tensions;

● Fluctuations in growth and/or growth rates (positive or negative) of the domestic and international energy drink categories generally, including in the convenience and gas channel (which is our largest channel) and the impact on demand for our products resulting from deteriorating economic conditions and/or financial uncertainties, including a slowdown in consumer spending generally or reduced demand for consumer goods;

● The impact of temporary or permanent facility closures, production slowdowns and disruptions in operations experienced by our manufacturing facilities, our suppliers, bottlers/distributors, co-packers, and/or breweries, including any material disruptions on the production and distribution of our products;

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● Disruption to our and/or our co-packers' manufacturing facilities and operations due to severe weather, natural disasters, climate change, labor-related issues, production difficulties, capacity limitations, cybersecurity incidents or other causes, which could impair our ability to produce or deliver finished products, resulting in a negative impact on our operating results;

● Our ability to modify our manufacturing facilities to comply with safety, health, environmental, and other regulations;

● The consolidation of co-packers leading us to increasingly rely on fewer co-packing groups, certain of which account for a large percentage of our co-packing capacity for our Monster Energy® drinks;

● The impact of logistical issues and delays, including shortages of shipping containers and port of entry congestion;

● We have extensive commercial arrangements with TCCC and, as a result, our future performance is substantially dependent on the success of our relationship with TCCC;

● The consequence of TCCC's bottlers/distributors distributing Coca-Cola brand energy drinks, possible reductions in the number of our SKUs carried by such bottlers/distributors and/or such bottlers/distributors imposing limitations on distributing new product SKUs;

● The effect of TCCC being one of our significant stockholders and the potential divergence of TCCC's interests from those of our other stockholders;

● Our ability to maintain relationships with TCCC system bottlers/distributors and manage their ongoing commitment to focus on our non-alcohol products;

● Disruptions in distribution channels and/or declines in sales due to the termination and/or insolvency of existing and/or new domestic and/or international bottlers/distributors;

● Fluctuations in our inventory levels or those of our bottlers/distributors, planned or otherwise, and the resultant impact on our revenues;

● Unfavorable regulations, including taxation, age restrictions imposed on the sale, purchase, or consumption of our products, marketing restrictions, product registration requirements, tariffs, trade restrictions, container size limitations and/or ingredient restrictions;

● The effect of inquiries from, and/or actions by, state attorneys general, the Federal Trade Commission (the "FTC"), the Food and Drug Administration (the "FDA"), the Bureau of Alcohol, Tobacco, Firearms and Explosives (the "ATF"), municipalities, city attorneys, other government agencies, quasi-government agencies, government officials (including members of the U.S. Congress) and/or analogous central and local agencies and other authorities in the foreign countries in which our products are manufactured and/or distributed into the advertising, marketing, promotion, ingredients, sale and/or consumption of our products, including voluntary and/or required changes to our business practices;

● Our ability to comply with laws, regulations and evolving industry standards regarding consumer privacy and data use and security, including, but not limited to, with respect to the General Data Protection Regulation and the California Consumer Privacy Act of 2018;

● Our ability to achieve profitability and/or repatriate cash from certain of our operations outside the United States;

● Our ability to manage legal and regulatory requirements in foreign jurisdictions, potential difficulties in staffing and managing foreign operations and potentially higher incidence of fraud or corruption and credit risk of foreign customers and/or bottlers/distributors;

● Our ability to produce our products in international markets in which they are sold, thereby reducing freight costs and/or product damages;

● Our ability to effectively manage our inventories;

● Our foreign currency exchange rate risk with respect to our sales, expenses, profits, assets and liabilities denominated in currencies other than the U.S. dollar, which will continue to increase as foreign sales increase;

● Changes in accounting standards may affect our reported profitability;

● Implications of the Organization for Economic Cooperation and Development's base erosion and profit shifting project;

● Any proceedings that may be brought against us by the SEC, the FDA, the FTC, the ATF or other governmental or quasi-governmental agencies or bodies;

● The outcome and/or possibility of future shareholder derivative actions or shareholder securities litigation that may be filed against us and/or against certain of our officers and directors, and the possibility of other private shareholder litigation;

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● The outcome of product liability or consumer fraud litigation and/or class action litigation (or its analog in foreign jurisdictions) regarding the safety of our products and/or the ingredients in our products and/or claims made in connection with our products and/or alleging false advertising, marketing and/or promotion, and the possibility of future product liability and/or class action lawsuits;

● Exposure to significant liabilities due to litigation, legal or regulatory proceedings, including litigation directed at the energy and alcohol beverage industries generally or at the Company in particular;

● Intellectual property injunctions;

● Unfavorable resolution of possible tax matters;

● Uncertainty and volatility in the domestic and global economies, including risk of counterparty default or failure;

● Our ability to address any significant deficiencies or material weakness in our internal controls over financial reporting;

● Our ability to continue to generate sufficient cash flows to support our expansion plans and general operating activities;

● The sufficiency of our existing capital resources and credit facilities;

● Our anticipated use of our existing cash resources and our ability to obtain additional financing in the future;

● Adverse publicity surrounding obesity, alcohol consumption, and other health concerns related to our products, product safety and quality, water usage, environmental impact and sustainability, human rights, our culture, workforce and labor and workplace laws;

● Our ability to meet or comply with sustainability-related expectations, standards, and regulations, including laws implemented by the California legislature and directives adopted by the European Commission;

● Changes in demand that are weather or season related and/or for other reasons, including changes in product category and/or package consumption;

● Changes in cost and availability of certain key ingredients including aluminum cans, as well as disruptions to the supply chain, as a result of climate change and poor or extreme weather conditions;

● The impact of unstable political conditions, civil unrest, large scale terrorist acts, the outbreak or escalation of armed hostilities, major natural disasters and extreme weather conditions (such as wildfires or hurricanes), widespread outbreaks of infectious diseases (such as the COVID-19 pandemic), or unforeseen economic and political changes and local or international catastrophic events;

● The impact on our business of trademark and trade dress infringement proceedings brought against us relating to any of our brands, which could result in an injunction barring us from selling certain of our products and/or require changes to be made to our current trade dress;

● Our ability to implement and/or maintain price increases, including through reductions in promotional allowances;

● An inability to achieve volume growth through product and packaging initiatives;

● Our ability to implement our growth strategy, including expanding our business in existing and new sectors, such as the alcohol beverage sector;

● The inherent operational risks presented by the alcohol beverage industry that may not be adequately covered by insurance or lead to litigation relating to alcohol marketing, advertising, or distribution practices, alcohol abuse problems and other health consequences arising from excessive consumption of or other misuse of alcohol, including death;

● Our inability to transition distribution agreements in our Alcohol Brands segment and/or the impact of higher costs to change distributors for our alcohol beverages;

● The impact of criticism of our products and/or the energy drink and/or alcohol beverage markets generally and/or legislation enacted (whether as a result of such criticism or otherwise) that restricts the marketing or sale of energy drinks and/or alcohol beverages (including prohibiting the sale of energy and/or alcohol drinks at certain establishments or pursuant to certain governmental programs), limits caffeine or alcohol content in beverages, requires certain product labeling disclosures and/or warnings, imposes excise and/or sales taxes, limits product sizes and/or imposes age restrictions for the sale of energy and/or alcohol drinks;

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● Our ability to comply with and/or resulting lower consumer demand and/or lower profit margins for energy drinks and/or alcohol beverages due to proposed and/or future U.S. federal, state and local laws and regulations and/or proposed or existing laws and regulations in certain foreign jurisdictions and/or any changes therein, including changes in taxation requirements (including tax rate changes, new tax laws, new and/or increased excise, sales and/or other taxes on our products and revised tax law interpretations) and environmental laws, as well as the Federal Food, Drug, and Cosmetic Act and regulations or rules made thereunder or in connection therewith by the FDA. In addition, our business may be adversely impacted by changes in other food, drug or similar laws in the United States and internationally as well as laws and regulations or rules made or enforced by the ATF and/or the FTC or their foreign counterparts;

● Disruptions in the timely import or export of our products and/or ingredients including flavors, flavor ingredients and supplement ingredients due to port congestion, strikes and related labor issues or otherwise;

● Our ability to satisfy all criteria set forth in any model energy and/or alcohol drink guidelines, including, without limitation, those adopted by the American Beverage Association, of which we are a member, and/or any international beverage associations and the impact that our failure to satisfy such guidelines may have on our business;

● The effect of unfavorable or adverse public relations, press, articles, comments and/or media attention;

● Changes in the cost, quality and availability of containers, packaging materials, aluminum cans or kegs, the Midwest and other premiums, raw materials, including flavors and flavor ingredients, and other ingredients and juice concentrates, co-packing fees, and our ability to obtain and/or maintain favorable supply arrangements and relationships and procure timely and/or sufficient production of all or any of our products to meet customer demand;

● Any shortages that may be experienced in the procurement of containers and/or other raw materials including, without limitation, water, flavors, flavor ingredients, supplement ingredients, aluminum cans generally, to a limited extent PET containers, 24-ounce aluminum cap cans, 19.2-ounce cans and 550ml BRE aluminum cans with resealable ends;

● Our ability to access, secure and purify sufficient supplies of quality water;

● Limitations in procuring sufficient quantities of aluminum cans;

● In order to secure sufficient quantities of aluminum cans and sufficient co-packing availability in the future, we may be required to commit to minimum purchase volumes and/or minimum co-packing volumes. In the event that we over-estimate future demand for our products and therefore may not purchase such minimum quantities in full, or utilize such minimum co-packing volumes in full, we may incur claims and/or costs or losses in respect of such shortfalls;

● The impact on our cost of sales of corporate activity among the limited number of suppliers from whom we purchase certain raw materials;

● Our ability to pass on to our customers all or a portion of any increases in the costs of raw materials, ingredients, commodities and/or other cost inputs affecting our business;

● Our ability to penetrate new domestic and/or international markets and/or gain approval or mitigate the delay in securing approval for the sale of our products in various countries;

● The effectiveness of sales and/or marketing efforts by us and/or by the bottlers/distributors of our products, most of whom distribute products that may be regarded as competitive with our products;

● Unilateral decisions by bottlers/distributors, buying groups, convenience and gas chains, grocery chains, mass merchandisers, specialty chain stores, e-commerce retailers, e-commerce websites, club stores and other customers to discontinue carrying all or any of our products that they are carrying at any time, restrict the range of our products they carry, impose restrictions or limitations on the sale of our products and/or the sizes of containers of our products and/or devote less resources to the sale of our products;

● The impact of certain activities by competitors and others to persuade regulators and/or retailers and/or customers in certain countries to reduce the permitted or maximum container sizes for our products from those currently being sold and marketed by us;

● The impact of possible trading disputes between our bottler/distributors and their customers and/or one or more buying groups which may result in the delisting of certain of our products, temporarily or otherwise;

● The effects of retailer consolidation on our business and our ability to successfully adapt to the rapidly changing retail landscape, including, but not limited to, competition from new entrants, consolidations by competitors and retailers, and other competitive activities;

● Our ability to adapt to the changing retail landscape with the rapid growth in e-commerce retailers;

● The effects of bottler/distributor consolidation on our business;

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● The costs and/or effectiveness, now or in the future, of our sponsorships and endorsements, marketing and promotional strategies;

● The success of our sports marketing, social media and other general marketing endeavors both domestically and internationally;

● Possible product recalls and/or reformulations of certain of our products and/or market withdrawals of certain of our products due to defective packaging and/or non-compliant formulas or production in one or more jurisdictions;

● The failure of our bottlers and/or co-packers to manufacture our products on a timely basis or at all;

● Our ability to make suitable arrangements and/or procure sufficient capacity for the co-packing of any of our products both domestically and internationally, the timely replacement of discontinued co-packing arrangements and/or limitations on co-packing availability, including for retort production;

● Our ability to make suitable arrangements for the timely procurement of non-defective raw materials;

● Our inability to protect and/or the loss of our intellectual property rights and/or our inability to use our trademarks, trade names or designs and/or trade dress in certain countries;

● Volatility of stock prices which may restrict stock sales, stock purchases or other opportunities as well as negatively impact the motivation of equity award grantees;

● Provisions in our organizational documents and/or control by insiders which may prevent changes in control even if such changes would be beneficial to other stockholders;

● Any disruption in and/or lack of effectiveness of our information technology systems, including a breach of cyber security, that disrupts our business or negatively impacts customer relationships, as well as cybersecurity incidents involving data shared with or by third parties; and

● Succession plans for and/or the recruitment and retention of senior management, other key employees and our employee base in general.

The foregoing list of important factors and other risks detailed from time to time in our reports filed with the SEC is not exhaustive. See "Part II, Item 1A – Risk Factors" for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, our actual results could be materially different from the results described or anticipated by our forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections and may be better or worse than anticipated. Given these uncertainties, you should not rely on forward-looking statements. Forward-looking statements represent our estimates and assumptions only as of the date that they were made. We expressly disclaim any duty to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, in order to reflect changes in circumstances or expectations or the occurrence of unanticipated events except to the extent required by applicable securities laws.

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

There have been no material changes in our market risks during the three-months ended June 30, 2025 compared with the disclosures in Part II, Item 7A of our Form 10-K.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

*Evaluation of Disclosure Controls and Procedures* – Under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are adequate and effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in rules and forms of the SEC and (2) accumulated and communicated to our management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures.

*Changes in Internal Control Over Financial Reporting* – There were no changes in the Company's internal controls over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS**

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 10. Commitments and Contingencies: Litigation in Part I, Item 1, of this Quarterly Report on Form 10-Q.

**ITEM 1A. RISK FACTORS**

In addition to the other information set forth in this Quarterly Report on Form 10-Q, including Management's Discussion and Analysis of Financial Condition and Results of Operations and the condensed consolidated financial statements and related notes, you should carefully consider the risks discussed in "Part I, Item 1A – Risk Factors" in our Form 10-K. If any of these risks occur or continue to occur, our business, reputation, financial condition and/or operating results could be materially adversely affected. We also note that the risk factors described in this report and our Form 10-K are not the only risks facing our Company, and such additional risks or uncertainties that we currently deem to be immaterial or are unknown to us could negatively impact our business, operations, or financial results.

**ITEM 2.**&nbsp;&nbsp;&nbsp;&nbsp;**UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

On August 19, 2024, the Company's Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company's outstanding common stock (the "August 2024 Repurchase Plan"). During the three-months ended June 30, 2025, no shares were repurchased under the August 2024 Repurchase Plan. As of August 6, 2025, $500.0 million remained available for repurchase under the August 2024 Repurchase Plan.

The aggregate amount of the Company's outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $500.0 million as of August 6, 2025.

During the three-months ended June 30, 2025, no shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due.

The following tabular summary reflects the Company's repurchase activity during the quarter ended June 30, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | Maximum Number (or |
|  |  |  |  | Approximate Dollar |
|  |  |  | Total Number of | Value) of Shares that |
|  |  |  | Shares Purchased | May Yet Be Purchased |
|  | Total Number |  | as Part of Publicly | Under the Plans or |
|  | of Shares | Average Price | Announced Plans | Programs |
| Period | Purchased | per Share | or Programs<sup>1</sup> | (In thousands) |
| Apr 1 – Apr 30, 2025 |  | $— |  | $500000 |
| May 1 – May 31, 2025 |  | $— |  | $500000 |
| Jun 1 – Jun 30, 2025 |  | $— |  | $500000 |

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<sup>1</sup> *On August 19, 2024, the Company publicly announced that its Board of Directors authorized the August 2024 Repurchase Plan. Board authorization of the repurchase plan remains in effect until shares in the amount authorized thereunder have been repurchased. See Item 2, "Unregistered Sales of Equity Securities and Use of Proceeds" above for more information.*

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES**

Not applicable.

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**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

During the three-months ended June 30, 2025, none of the Company's directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS**

---

| | |
|:---|:---|
| 3.1 | [Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to our Form 8-K dated June 27, 2023).](https://www.sec.gov/Archives/edgar/data/865752/000110465923074933/tm2319592d1_ex3-1.htm) |
| 3.2 | [Fourth Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3.2 to our Form 8-K dated November 7, 2024).](https://www.sec.gov/Archives/edgar/data/865752/000110465924115332/tm2427782d1_ex3-2.htm) |
| 31.1\* | [Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002](mnst-20250630xex31d1.htm) |
| 31.2\* | [Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002](mnst-20250630xex31d2.htm) |
| 32.1\* | [Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](mnst-20250630xex32d1.htm) |
| 32.2\* | [Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](mnst-20250630xex32d2.htm) |
| 101\* | The following financial information from Monster Beverage Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, (ii) Condensed Consolidated Statements of Income for the three- and six-months ended June 30, 2025 and 2024, (iii) Condensed Consolidated Statements of Comprehensive Income for the three- and six-months ended June 30, 2025 and 2024, (iv) Condensed Consolidated Statements of Stockholders' Equity for the three- and six-months ended June 30, 2025 and 2024, (v) Condensed Consolidated Statements of Cash Flows for the six-months ended June 30, 2025 and 2024, and (vi) the Notes to Condensed Consolidated Financial Statements. |
| 104\* | The cover page from Monster Beverage Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101. |

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<sup>\*</sup>Filed herewith.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
|  | MONSTER BEVERAGE CORPORATION |
|  | Registrant |
| Date: August 7, 2025 | /s/ HILTON H. SCHLOSBERG |
|  | Hilton H. Schlosberg |
|  | Vice Chairman of the Board of Directors |
|  | and Chief Executive Officer |
| Date: August 7, 2025 | /s/ THOMAS J. KELLY |
|  | Thomas J. Kelly |
|  | Chief Financial Officer |

---

## Exhibit 31.1

**EXHIBIT 31.1**

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Hilton Schlosberg, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | August 7, 2025 | /s/ Hilton H. Schlosberg |
|  |  | Hilton H. Schlosberg<br>Vice Chairman of the Board of Directors and Chief Executive Officer |

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## Exhibit 31.2

**EXHIBIT 31.2**

CERTIFICATION PURSUANT TO RULE 13A-14(a) OR 15D-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Thomas Kelly, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Monster Beverage Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: | August 7, 2025 | /s/ Thomas J. Kelly |
|  |  | Thomas J. Kelly<br>Chief Financial Officer |

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## Exhibit 32.1

**EXHIBIT 32.1**

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the "Company") on Form 10-Q for the quarter ended June 30, 2025 as filed with the Securities and Exchange Commission (the "Report"), the undersigned, Hilton H. Schlosberg, Vice Chairman of the Board of Directors and Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: | August 7, 2025 | /s/ Hilton H. Schlosberg |
|  |  | Hilton H. Schlosberg<br>Vice Chairman of the Board of Directors and Chief Executive Officer |

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## Exhibit 32.2

**EXHIBIT 32.2**

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Monster Beverage Corporation (the "Company") on Form 10-Q for the quarter ended June 30, 2025 as filed with the Securities and Exchange Commission (the "Report"), the undersigned, Thomas J. Kelly, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: | August 7, 2025 | /s/ Thomas J. Kelly |
|  |  | Thomas J. Kelly<br>Chief Financial Officer |

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