What Celsius’ latest quarter tells you about the business

Celsius Holdings (CELH) just reported first quarter 2026 results that put fresh numbers behind the investment story, pairing record revenue and higher net income with improving earnings per share.

Sales for the quarter reached US$782.62 million, compared with US$329.28 million in the same period last year. Net income came in at US$110.1 million, up from US$44.42 million, with basic and diluted EPS at US$0.33 versus US$0.15 a year earlier.

Management also continued returning capital to shareholders. Between January 1 and March 31, 2026, the company repurchased 680,102 shares for US$26.1 million. That brought total buybacks under the November 10, 2025 authorization to 1,642,177 shares, costing US$66.02 million and representing 0.64% of shares.

Even with the strong first quarter update, the share price tells a different story. A 1-day share price return of 3.96% comes after the stock fell 36.84% year to date and the 1-year total shareholder return declined 23.43%, pointing to fading momentum despite a still positive 5-year total shareholder return of 50.70%.

If Celsius’ recent swing has you reassessing your watchlist, it could be a good time to widen the lens and look at 19 top founder-led companies

With Celsius’ share price down sharply over the past year while revenue and net income move higher, you have to ask: Is the stock now trading below its worth, or is the market already pricing in future growth?

Most Popular Narrative: 46% Undervalued

At a last close of $30.16 versus a narrative fair value of $55.43, the most followed Celsius story sees a wide gap between price and what the business could be worth over time.

A 17-Year Story That Most Investors Only Discovered in the Last Three. In 2010, Celsius Holdings (CELH) was generating roughly US$5 million in annual revenue, a forgotten energy drink with niche distribution in Scandinavian gyms and a handful of US health food stores. By the end of 2025, the company had crossed US$2 billion in trailing twelve-month revenue and acquired two major energy drink brands. It secured PepsiCo as both its primary distributor and an 11% equity holder. Most retail investors only discovered this stock near the peak in 2023. The ones who understood what actually happened in 2024 and why the crash was a channel inventory problem, not a brand problem, had the best entry point in a decade. This narrative is about understanding which of those two situations you are looking at right now, as the company enters an entirely new chapter.

This valuation story leans on a long operating history, a reset after the PepsiCo inventory shock, and assumptions about future margins and earnings power that the market may not be focusing on yet.

Result: Fair Value of $55.43 (UNDERVALUED)

However, this story can break if Alani Nu underperforms after integration or if Rockstar weighs on margins and erodes the combined earnings profile.

Another take on Celsius’ valuation

There is also a simpler yardstick to keep in mind. Celsius trades on a P/E of 67.3x, compared with 51.3x for its direct peers and 17.6x for the wider Beverage industry. The fair ratio sits at 29.4x, which points to meaningful valuation risk if sentiment cools.

For a closer look at how this pricing gap stacks up against peers and the fair ratio, have a look at See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and concern feels familiar, do not wait for the crowd to decide for you. Instead, review the stock's 3 key rewards and 2 important warning signs

Looking for more investment ideas?

If Celsius has sharpened your thinking, do not stop here; broaden your watchlist with other stocks that fit different income, value, and risk profiles.

• Target dependable cash generators by scanning companies highlighted in the 13 dividend fortresses that focus on higher-yield payouts.
• Hunt for potential bargains by reviewing the 51 high quality undervalued stocks that spotlight businesses trading below their assessed worth.
• Prioritise capital preservation by checking the 65 resilient stocks with low risk scores that emphasise resilience and lower overall risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.