Celsius Holdings posts strong Q1 revenue growth but stock remains undervalued below 18x 2027 EPS.

Celsius Holdings reported a 137.7% year-over-year revenue increase in Q1 2026, reaching $782.6 million, mainly driven by rapid growth in its Alani Nu brand, while the core Celsius brand grew 6%. Despite a drop in gross margins to 48.3%, earnings surpassed expectations with strong EPS and EBITDA growth on normalized gross margins above 50%. The stock trades at a discount below 18 times 2027 EPS estimates, presenting a potential buying opportunity as Alani Nu's expansion and international growth could drive future gains. Investors are advised to consider this opportunity carefully, as the company navigates a transition period.