Celsius Holdings, Inc.

Holdings' second quarter 2025 earnings webcast. All screens have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. Thank you. I'd now like to hand the call over to Paul Wiseman, Investor Relations. Please go ahead.

Good morning, and thank you for joining Celsius Holdings' second quarter 2025 earnings webcast. With me today are John Fieldley, Chairman and CEO, Jared Langans, Chief Financial Officer, and Toby David, Chief of Staff. We'll take questions following the prepared remarks. Our second quarter earnings press release was issued this morning with all materials available on our website, ir.celciusholdingsinc.com, and on the SEC's website, sec.gov. An audio replay of this webcast will also be accessible later today. Today's discussion includes forward-looking statements based on our current expectations and information. These statements involve risks and uncertainties, many beyond the company's control. Celsius Holdings disclaims any duty to update forward-looking statements except as required by law. Please review our safe harbor statements and risk factors in today's press release and in our most recent filings with the SEC, which contain additional information and a description of risks that may result in actual results differing materially from those contemplated by our forward-looking statements. We'll present results on both a GAAP and non-GAAP basis. Non-GAAP measures like adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, and their GAAP reconciliations are detailed in our Q2 earnings release. And non-GAAP financial measures should not be used as a substitute for our results reported in accordance with GAAP. With that, I'll turn it over to John.

Good morning, and thank you for joining us. Q2 was a strong quarter for Celsius Holdings and for the energy category at large. Among beverages, energy is outperforming with over 15% year-over-year retail sales growth, with tailwinds coming from new-to-category consumers drawn to functional, zero-sugar innovation and increasingly great value among beverage choices. Celsius Holdings delivered meaningful strength across our portfolio in the second quarter, led by standout performance from the newly acquired Alani New brand and continued positive momentum from our core Celsius brand. For the 13 weeks ended June 29th, total Celsius holdings retail sales grew 29% and volume increased 31%. reflecting broad-based consumer demand and strong execution at retail. Celsius Holdings reported revenue of $739.3 million for the second quarter ending June 30, 2025. The 84% year-over-year increase in revenue was primarily driven by $301.2 million in revenue from the Alani new brand. The Celsius brand contributed $438.1 million of revenue in the quarter. Q2 consolidated gross margin held relatively steady at a 51.5%, down 50 basis points year over year, despite incorporating Alani News' lower margin profile beginning in the second quarter. Overall gross margin was supported by favorable material cost, improved production yields, leveraged gains through our vertical integration initiatives, and strong product and channel mix. Looking toward the back half of this year, we expect margin pressure associated with higher inputs costs, which Jared will discuss further on the call. Adjusted EBITDA was a record in excess of $200 million in Q2 of 2025. We are very pleased with the strong growth of Alani New and the pace of our integration with the teams and operations that Celsius Holdings acquired in the transaction, which closed on April 1st of this year. Our focus today remains on delivering excellent customer service and supporting a robust distribution growth and innovation. As we noted in our Alani New Modeling Call held in May, we expect to achieve $50 million of run rate cost synergies over two years post-closing, contributing to strong pro forma profitability and significant cash flow generation. Celsius Holdings' performance through the first half of the year was driven by strong execution across innovation, marketing, retail activations, and operational discipline. We stay close to the consumer, remain focused on building brand equity, and work hard to deliver value to our retail partners and consumers. Our team continue to operate with great focus and intention. We don't take growth for granted. And that mindset carries us through the first half of this year and positions us well for the back half of 2025 and beyond. I'll turn the call over to Jared shortly to walk through the financials in more detail. But first, I want to talk more about what drove the quarter, how we showed up in market, what we're seeing across our brands and channels, and where we're going from here. Consumers today are making more intentional beverage choices, reaching for functional, better for you products that fit their active and wellness lifestyles. The shift to zero sugar functional energy drinks is fueling one of the fastest growing segments in beverage and Celsius Holdings is defining it. Recent industry reports pointed to double digit category growth in 2025 with momentum coming from new to category consumers. namely females, Gen Z, and the growing number of consumers who are switching to functional energy drinks from other energy sources like RTD cold coffee among them. Younger, more diverse consumers are now leading the growth, and brands that resonate with Gen Z and women, like Celsius and Alani New, are gaining share and building loyalty. The Celsius Holdings portfolio has reached a 43% household penetration, with the Celsius brand at 34% and the Alani New brand at 22% household penetration, with repeat rates over 65%. And on the retail side, buyer surveys continue to rank Celsius Holdings portfolio among the most likely to gain share, confidence we're backing up with strong execution in the market. In tracked U.S. channels, the Reddity Drink energy category grew 15.2% year-over-year in the second quarter, with unit growth of 13.5%. While Celsius Holdings outpaced the category across nearly every key retail metric. Dollar sales. grew 28.9%, nearly double the category. Unit sales increased 31.2%. Total points of distribution and items per store, both rose roughly 23%. Velocity increased 20%, quarter of a quarter. For the last 13 weeks and in June 29th, Celsius Holdings achieved a 17.3% dollar share in RTD energy category, a 180 basis point increase versus the prior period. The Celsius brand delivered resilient growth in the second quarter, growing unit sales 6.1% and dollar sales by 3% to achieve an 11-point share for the 13 weeks ended June 29th. And the Alani brand had a breakout quarter. Dollar sales rose 129% with share up 3.2 points year over year. making it the largest share gainer in RTD Energy and reaching a 6.3 share for the 13 weeks ended June 29th. The Celsius Holdings portfolio also recently surpassed a key retail milestone. achieving $4 billion in the past 52-week retail sales and track channels for the period ending July 20, 2025, a major milestone. That's more than the next eight RTD Energy brands combined in the same period, a clear signal of the category momentum we're leading and the demand our brands have generated. Innovation continues to be a core driver of growth, and both brands delivered meaningful in Q2. Alani New showed extraordinary strength and innovation in the second quarter, led by Sherbert Swirl and Cotton Candy, which drove sales incrementality across the business. Alani New Cotton Candy set sales records and its debut at Walmart by orders of magnitude. And Alani New consumers are already buzzing about the recent arrival of Alani New Witch's Brew, which this year is accompanied by another great LTO, Pumpkin Cream. Importantly, Growth wasn't limited to new items. Alani News core SKUs are sustaining strong velocity and retention, evidence that this is a brand with staying power. Brand loyalty data across the category shows Celsius and Alani brands are clear standouts, particularly among Gen Z and female consumers. The Celsius brand delivered strong innovation in Q2 with the release of two great refreshing fizz-free flavors, including Pink Lemonade and Dragon Fruit Lime. Consumer insights guide our innovation, and the introduction of these two new flavors feeds into strong consumer demand for more great-tasting, zero-sugar, fizz-free energy. The Celsius brand also continues to build scale in e-com, non-track channels, and food service. The Celsius brand was the number one trademark in RTD energy on Amazon during the summer Prime Day event with a 18.4 share for the week ending July 12th, with sales led by our variety packs and top performing flavors. The Elani new brand jumped to a 10.9% share on Amazon during the Prime Day event for the week ending July 12th, up from 6.5% the prior week. Celsius food service volume grew 9.8% year-over-year in the second quarter, representing approximately 12% of our North America Celsius brand sales to PepsiCo. Distribution and activation continues to expand, particularly in lodging, recreation, healthcare, and quick-serve restaurants. International revenue grew 27% year-over-year in the second quarter, with strong contributions from Australia, the UK, and France. These are still early days, but our approach is resonating. Lead with brand, invest in localized execution, and scale with discipline. Internally, we're building our capabilities to support this growth in systems, supply chain, analytics, and operations. In July, we welcomed John Cole, an Executive Vice President of Technology, to help us strengthen cross-functional connectivity and scale our infrastructure for a multi-brand, omni-channel future. John's 30-year career in technology spans name brands like Fanatics, Philip Morris, and Point72, among others. We continue to invest in brand awareness, touching more people in more places more often, focusing on driving trial and loyalty. In June, we launched the next wave of our Live Fit Go marketing campaign. our most ambitious creative yet, connecting purposeful energy to real-world action. Early results are strong with rising-aided awareness and positive feedback from retailers. The Celsius brand also activated key cultural moments like F1 Miami, the CMA Fest, and the Breakaway Festival, while Alani New expanded its reach through influencer engagement and lifestyle partnerships. Looking ahead, we're excited to view Celsius First national TV commercial during NFL broadcast this fall, a major milestone. We're also collaborating with country music star Kelsey Bellarini on branded content that reinforces our growing connection and connectivity with female consumers. We're proud of how our team executed our growth strategy to reach more people in more places and more often in the second quarter and how our brands continue to lead one of the most dynamic categories in beverage. The Celsius and Alani new brands are driving growth, gaining share, staying relevant with the next generation of modern energy drinkers. With that, I'll turn the call over to Jared for more details around our financial results for the quarter and the first half of the year. Jared?