Celsius eyes Q1 earnings beat after major acquisitions and PepsiCo deal boost growth potential

Celsius (CELH) is expected to report strong Q1 earnings following a transformative 2025 marked by two major acquisitions that expanded its brand portfolio to include two billion-dollar brands. The company also enhanced its distribution through a partnership with PepsiCo and aims for gross margins in the low 50% range this year. Despite past earnings inconsistencies and recent stock multiple compression, Celsius trades at a discount compared to peers and could see a re-rating if it meets consensus estimates. Key risks include dependence on the PepsiCo partnership, brand reputation, and rising input costs, but industry consolidation may support pricing power going forward.