Did You Miss the Celsius Stock Comeback Story?

Investors left Celsius Holdings (NASDAQ: CELH) for dead in 2024. That was a mistake. Shares of Celsius have nearly doubled -- up 99% -- over the past year. Its latest step up came on Thursday, when the company behind sparkling functional beverages posted better-than-expected financial results.

The catalyst for the turnaround isn't difficult to figure out. Just 53 weeks ago, Celsius announced a deal for Alani Nu. Valued at $1.65 billion, it was the right deal at the right time. Celsius was midway through its third consecutive quarter of year-over-year sales declines. Alani Nu offered a smaller but ascending lifestyle brand, catering to a distinctive target audience.

The price seemed too good to be true. Celsius was buying Alani Nu for 3 times trailing sales and 12 times its earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusting for cost savings expected from the corporate combination. At the time, it was fetching an enterprise value that was 4.4 times sales and 37 times EBITDA. And that was with Celsius already trading well below its previous year's peak.

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The business of fizz-ness

Thursday morning's fourth-quarter update hammers home that Alani Nu could be the best acquisition of 2025. The deal that was struck a year ago closed at the start of the second quarter of that year. Celsius' year-over-year revenue growth in the three subsequent quarters has been 84%, 173%, and now 117%, respectively.

Naturally, the performance is padded by the addition of Alani Nu in those nine months, but zoom in even closer. On its own, Alani Nu generated roughly $500 million in sales in 2024. Of the $2.5 billion in revenue Celsius generated in 2025, $1 billion came from Alani Nu in the final three quarters of the year. Reframed in a more jaw-dropping light, Alani Nu's annualized sales are more than $1.3 billion. Celsius paid less than 1.3 times forward sales for Alani Nu.

The U.S. and Canada rights to Rockstar Energy -- that PepsiCo handed to Celsius when it increased its stake and expanded its distribution rights this past summer -- added another $55 million in revenue. The namesake beverage line that was going the wrong way a year ago has turned positive. Celsius brand sales rose 8% to $1.5 billion for all of 2025.

Avoiding going flat again

Celsius has one more quarter of spectacular growth in the tank, and then it's back to organic increases come April. It should be a soft landing. Alani Nu continues to grow. The flagship brand has turned the corner.

Profitability has been another unexpected love song for investors. Celsius got such a great deal on Alani Nu, presumably because it was struggling on the bottom line. The initial $1.8 billion price tag was reduced to $1.65 billion due to a $150 million tax benefit. Thankfully, the combined company is doing great. Adjusted earnings nearly doubled to $1.34 per share for all of 2025.

Since closing on Alani Nu, Celsius has posted earnings beats of 93%, 52%, and 37% in the three subsequent quarters. Celsius didn't set up full guidance for 2026, but momentum is strong. The company points out how it's still scoring triple-digit growth in shelf space for Alani Nu. Scanner growth also shows the flagship brand experiencing a 17% increase in space gains in 2026. Celsius is also scoring well with new rollouts and limited-time offerings to find new ways to engage with its growing fan base.

Analysts are jacking up their price targets after its third consecutive blowout quarterly performance. They now expect an adjusted profit of $1.84 a share this year, up from the $1.55 per share goal they were targeting earlier this week. Despite nearly doubling over the past year, you can buy the stock for less than 30 times forward earnings, a price that becomes even more attractive when you realize how Celsius is smoking those bottom-line projections.

In a world of slow-growth beverage stocks, Celsius is earning its racing stripes. With a pair of $1 billion brands in its arsenal -- and high ceilings domestically and internationally -- it's not just the beverages that are sparkling these days.

Rick Munarriz has positions in Celsius. The Motley Fool has positions in and recommends Celsius. The Motley Fool has a disclosure policy.