Celsius Holdings Sales Fell 12% in Third Quarter
The energy drink brand saw sales dip as it navigated a product cleanup and paused innovation, impacting retail presence.
Updated on Oct. 6, 2026 in Consumer Goods
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Celsius Holdings expects a 12% decline in third-quarter 2026 sales, resulting in a forecasted $803 million revenue figure. The drop follows a strategic decision by the company to phase out specific products and pause new innovation pipelines.
Why it matters
The downturn stems from internal product rationalization and temporary out-of-stocks, which collectively weighed on the brand's reach. Operators should note how the transition away from underperforming SKUs can create short-term volatility in market penetration and shelf space.
The company expects third-quarter sales of $803 million with an adjusted EBITDA margin forecast of 22.4%. While active SKUs increased 5% year over year, brand market share stands at 8.4%, down 2 percentage points from the end of 2025.
The players
Celsius Holdings
A fitness-focused energy drink company that manages nationwide distribution through its extensive retail partnerships.
The details
Celsius is executing a comprehensive cleanup of its product portfolio, reducing the reliance on discontinued items that represented 14% of retail sales in late 2025. By September 19, 2026, these phased-out products accounted for only 2.5% of retail sales. This contraction in the product mix, coupled with a deliberate pause in new innovation, has contributed to a 1.5 percentage point decline in household penetration.
Timeline
Q4 2025: Phase-out products accounted for 14% of retail sales.
September 19, 2026: Phase-out products accounted for 2.5% of retail sales.
Q3 2026: Sales are expected to decline 12% to $803 million.
2026: Total forecasted sales reach $3.2 billion with $711 million in adjusted EBITDA.
2027: The innovation pipeline is scheduled to re-engage, targeting a rebuild of consumer trial.
Market Landscape
Celsius's current move toward product rationalization follows the pattern of SKU pruning seen across the beverage industry as companies optimize portfolios post-expansion. This effort reflects a broader industry shift toward maximizing margin efficiency rather than prioritizing sheer volume.
Retailers and distributors should monitor the brand's SKU availability as the company clears out legacy products. Watch for the 2027 launch cycle as a potential indicator of whether the brand can successfully regain its prior levels of household penetration.
The takeaway
The company's performance emphasizes that clearing out underperforming products can lead to a necessary but painful dip in short-term sales. Operators should track the 2027 innovation pipeline as the key metric for the brand's ability to recover lost market share.
Further reading
For broader trends on how brand portfolios impact retail performance, see our Consumer Goods section.
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Do you trust that major beverage brands will successfully recover from recent sales declines?
