Celsius Holdings, Inc.
For the period ended Mar 31, 2025. Filed May 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 6, 2025
CELH$32.16+7.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0001341766-24-000093
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0001341766-25-000080
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 88 current paragraphs.
33 unchanged; 21 reworded; 32 added; 30 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 2 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
•Our ability to successfully integrate Alani Nu or other businesses that we may acquire;
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•Our ability to achieve the benefits that we expect to realize as a result of the acquisition of Alani Nu;
Current report
•The potential negative impact that we could realize as a result of the acquisition of Alani Nu;
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•Liabilities of Alani Nu that are not known to us;
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•Our reliance on key distributor partnerships;
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•Those factors contained in this Report under the heading, "Risk Factors".
Current report
Our Business
Current report
Executive-Level Overview
Current report
Celsius is a functional energy drink company operating in the United States and internationally. This product is available in two convenient forms: ready-to-drink and an on-the-go portable powder form. Additionally, we offer our Celsius Essentials line, featuring 16-ounce cans enriched with aminos. In 2025, we introduced CELSIUS® Hydration, a line of zero-sugar hydration powders, featuring electrolytes in a variety of fruit-forward flavors. Our product range is widely available across the U.S. and in select territories in Canada in various retail outlets, including grocery stores, natural product stores, convenience stores, fitness centers, mass retailers, vitamin specialty stores, and through online e-commerce platforms. Moreover, our products are offered in select markets in Europe, the Middle East and the Asia-Pacific region as we have continued to expand our global presence.
Current report
We engage in various aspects of developing, manufacturing, processing, marketing, selling, and distributing Celsius, Celsius Essentials, Celsius On-The-Go Powder, and Celsius Hydration. Our operational model strategically relies primarily on co-packers for the manufacture and supply of our products, leveraging their specialized expertise and scalable production capabilities. Additionally, we utilize our in-house manufacturing facility to complement our strategic use of co-packers. This approach allows us to maintain flexibility in responding to market demands and to focus our resources on innovation, marketing, and expanding our distribution channels. We continuously assess and work to optimize our supply chain to ensure quality, consistency and timely delivery to our customers.
Current report
On August 1, 2022, we entered into a long-term distribution agreement with Pepsi, making them our primary distributor in the U.S. and leveraging the right of first offer to facilitate our expansion into Canada. This agreement also helps to enable our potential entry into additional international markets and new distribution channels with Pepsi. In connection with our relationship with Pepsi, we terminated certain previous distributor agreements and shifted certain distribution rights to Pepsi.
Current report
Impact of Tariffs and Macroeconomic Trends
Current report
We continue to monitor macroeconomic conditions and global trade developments, including inflation in key input costs, recently implemented tariffs, and the potential for additional or modified tariffs or export controls. On April 2, 2025, the U.S. presidential administration announced new tariffs, which, along with evolving global trade policies, may contribute to increased supply chain complexity, commodity cost volatility, and broader economic uncertainty. While these developments could pressure our cost structure, based on our current analysis, we do not currently expect them to have a material adverse impact on our results of our operations for the remainder of fiscal year 2025. We are actively evaluating the potential implications of how the evolving tariff policies may impact customer and consumer behavior and the results of our operations.
Current report
Acquisition of Alani Nutrition LLC
Current report
On February 20, 2025, we announced that we had entered into a membership interest purchase agreement to acquire Alani Nu for a total consideration comprising (i) $1,275.0 million in cash, subject to adjustment as set forth in the purchase agreement, (ii) an aggregate of 22,451,224 shares of our common stock and (iii) up to $25.0 million in additional cash consideration, payable only if net sales of Alani Nu’s products meet or exceed an agreed target for 2025. On April 1, 2025, we completed the acquisition and simultaneously entered into a debt financing arrangement. The financing package included a $900.0 million Term Loan B and a $100.0 million Revolving Credit Facility.
Current report
For the three months ended March 31, 2025, revenue was approximately $329.3 million, a decrease of $26.4 million, or 7.4%, from $355.7 million for the three months ended March 31, 2024.
Current report
For the three months ended March 31, 2025, revenue in North America declined by $33.0 million, or 9.7%, compared to the three months ended March 31, 2024. The prior-year quarter benefited from the early launch of our 16oz Celsius Essentials line and the implementation of several promotional activations across key retail and convenience channels at the beginning of the quarter. In contrast, similar promotional efforts during the current-year quarter were launched toward the end of the period. This timing difference, along with the initial launch of the 16oz Celsius Essentials line in the prior year, contributed to the year-over-year sales decline. Additionally, we experienced lower velocity in the current quarter and were fully impacted by the increased promotional allowances and incentive program established in the prior year with our primary distributor.
Current report
Selling, general and administrative expenses ("SG&A") for the three months ended March 31, 2025 were $120.3 million, an increase of $21.3 million or 22% from $99.0 million for the three months ended March 31, 2024.
Current report
The changes within SG&A expenses included:
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•a $12.1 million increase in administrative expenses related primarily to higher acquisition-related costs, including transaction and legal expenses;
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Other Income (Expense)
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Provision for Income Taxes
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For the three months ended March 31, 2025, the Company’s effective tax rate was 27.2%, as compared to 15.8% for the same period in 2024. The increase was primarily driven by a shift in stock-based compensation-related impacts. In the current period, the tax rate was higher than the U.S. federal statutory rate of 21.0% due to disallowed stock-based compensation expense and state income taxes. In the prior-year period, the rate was lower than the statutory rate due to net tax benefits related to stock-based compensation, partially offset by similar disallowed expenses and state taxes.
Current report
The Company is subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. The Company’s tax returns for tax years beginning 2020 remain subject to potential examination by the taxing authorities.
Current report
Our primary sources of liquidity are cash flows from operations and our existing cash balances. We believe that cash available from operations, including our cash resources, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable and other assets, and purchases of capital assets and equipment for the next twelve months and beyond.
Current report
On April 1, 2025, we completed the acquisition of Alani Nu for a total consideration comprising (i) $1,275.0 million in cash paid at closing, subject to adjustment as set forth in the purchase agreement, (ii) an aggregate of 22,451,224 shares of our common stock and (iii) up to $25.0 million in additional cash consideration, payable only if net sales of Alani Nu’s products meet or exceed an agreed upon target for 2025.
Current report
In connection with our acquisition of Alani Nu, on April 1, 2025, we, together with certain of our subsidiaries as guarantors, the lenders and issuing banks from time to time party thereto and UBS AG, Stamford Branch, as administrative agent and collateral agent, entered into a secured credit agreement (the “Credit Agreement”). The Credit Agreement provides for a term loan facility in an aggregate principal amount of up to $900 million (the “Term Loan Facility”), which was fully drawn to fund a portion of the purchase price for Alani Nu, and a revolving credit facility
Current report
in an aggregate principal amount of up to $100 million (the “Revolving Facility”), which may include the issuance of letters of credit in a stated face amount of up to, but not exceeding, $50 million. The Term Loan Facility matures on April 1, 2032, and the Revolving Facility matures on April 1, 2030.
Current report
Borrowings under the Credit Agreement bear interest, in the case of the Revolving Facility, (A) at a rate equal to (1) the highest of (w) the U.S. prime rate, (x) the Federal Funds Rate plus 0.5%, (y) the sum of the benchmark rate for an interest period of one month plus 1.00%, and (z) 1.00%, plus (2) a margin of 2.0% in the case of alternate base rate loans and (B) a rate equal to term SOFR or EURIBOR rate plus a margin of 3.0% in the case of benchmark rate loans and, in the case of the Term Loan Facility, (A) at a rate equal to (1) the highest of (w) the U.S. prime rate, (x) the Federal Funds Rate plus 0.5%, (y) the sum of the benchmark rate for an interest period of one month plus 1.00%, and (z) 1.00%, plus (2) a margin of 2.25% in the case of alternate base rate loans and (B) a rate equal to term SOFR or EURIBOR plus a margin of 3.25% in the case of benchmark rate loans. Subsequent to the delivery of our financial statements for the first full fiscal quarter following our acquisition of Alani Nu, the interest rate margins under the Term Loan Facility and the Revolving Facility will be subject to step-downs based on the first lien net leverage ratio. The applicable interest rate will be adjusted quarterly on a prospective basis based upon the first lien net leverage ratio in accordance with the terms of the Credit Agreement. The Term Loan Facility and Revolving Facility are secured by a first priority security interest in our and the other borrowers’ and guarantors’ cash, accounts receivable, intellectual property, books and records and related assets and certain intellectual property of other subsidiaries.
Current report
We believe our current liquidity position, ongoing cash flow from operations, and access to financing facilities, including the Revolving Facility, are sufficient to meet our near-term and long-term obligations, including integration efforts and other strategic investments following the acquisition of Alani Nu.
Current report
Cash flows used in financing activities totaled $10.6 million for the three months ended March 31, 2025, compared to $5.9 million for the same period in 2024, representing a $4.7 million increase. The increase was primarily driven by higher repurchases of common stock for tax withholding obligations related to the vesting of stock based compensation awards and by debt issuance costs incurred in connection with the debt financing arranged for the Alani acquisition, and decreased proceeds from stock option exercises.
Current report
The majority of cash used in financing activities in both periods was attributable to dividend payments on our Series A Preferred Stock, which totaled $6.8 million in each of the three-month periods ended March 31, 2025 and 2024.
Removed paragraphs (30)
Previous report
Business Overview
Previous report
Celsius is a growing company in the functional energy drink category in the United States (U.S.) and internationally. We engage in the development, processing, marketing, sale, and distribution of functional energy drinks to a broad range of consumers. We provide differentiated products that offer clinically proven and innovative formulas meant to positively impact the lives of our consumers. Our brand has also proven to be attractive to a broad range of customers, including fitness enthusiasts.
Previous report
Our flagship asset, CELSIUS®, is marketed as a premium lifestyle and energy drink formulated to power active lifestyles. This product line comes in two versions, a 12-ounce ready-to-drink form and an on-the-go powder form. During 2023, we introduced a new CELSIUS® Essentials line, available in 16-ounce cans. Our products are currently offered in major retail channels across the U.S., including conventional grocery, natural, convenience, fitness, mass market, vitamin specialty and e-commerce. Additionally, our products are currently offered in certain Canadian, European, Middle Eastern, and Asia-Pacific markets.
Previous report
An integral part of our value proposition is our focus on the functional energy drink and liquid supplement category, ensuring our products have clear and proven benefits. This is why we invest in research and development from the start and utilize our proprietary MetaPlus formulation in our portfolio, a blend of ginger root, guarana seed extract, chromium, vitamins, and green tea extract.
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During 2024, we have continued to develop our U.S. Pepsi relationship as well as expanding our international presence through the following arrangements:
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•In January 2024, we announced Pepsi as our exclusive distributor in Canada, as well as a new relationship with Lucozade Ribena Suntory Limited ("Suntory") to serve as our exclusive sales and distribution partner in the United Kingdom and the Republic of Ireland.
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•In March 2024, we entered into a definitive manufacturing, sales, and distribution agreement with Frucor Suntory Australia Pty Limited and Frucor Suntory New Zealand Limited (both part of the Suntory Group) to expand into the Australia and New Zealand markets. Sales under this arrangement are expected to begin in the fourth quarter of 2024.
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•In March 2024, we entered into an incentive program with Pepsi which is intended to better align our businesses as we look to grow and expand our product portfolio across the U.S. The ultimate impact of the incentive program on the Company's revenue and margin will be dependent upon achieving the intended outcomes of the program.
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•In April 2024, we entered into a definitive sales and distribution agreement with Orangina Schweppes France (part of the Suntory Group) to expand into France. Sales under this arrangement are expected to begin in the fourth quarter of 2024.
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•In August 2024, we entered into a definitive sales and distribution agreement with Schweppes Suntory Benelux SA (part of the Suntory Group) to expand into Belgium, Netherlands, and Luxembourg. Sales under this arrangement are expected to begin in the first quarter of 2025.
Previous report
We were incorporated in the State of Nevada on April 26, 2005. Our common stock is listed on the Nasdaq Capital Market, and on November 13, 2023, a three-for-one forward stock split of our common stock was made effective for stockholders of record at the close of business on such date.
Previous report
For the three months ended September 30, 2024, revenue was approximately $265.7 million, compared to $384.8 million for the three months ended September 30, 2023. Revenue from our largest distributor declined $123.9 million in the three months ended September 30, 2024, compared to the same period last year, which was primarily driven by inventory optimization. Concurrently, related retailer promotional allowances created revenue headwinds that would have otherwise been offset by proportional distributor sell-in during the quarter.
Previous report
For the three months ended September 30, 2024, gross profit decreased by $71.9 million, or 37%, to $122.2 million, from $194.1 million for the three months ended September 30, 2023. Gross profit margin was 46% for the three months ended September 30, 2024, a decrease from 50% for the same period in 2023. The decrease in gross profit was due to promotional allowances, incentives, and other billbacks as a percentage of gross revenue. These programs are driven by consumer purchases and sales from our distributors into retail, neither of which correlated with the sales that we made to our distributors this quarter due to supply chain optimization conducted by our largest distributor. Although gross profit as a percentage of revenue was lower year over year, we did receive the benefit of lower outbound freight and materials as a percentage of gross revenue in the three months ended September 30, 2024, compared to the same period last year.
Previous report
For the quarter ended September 30, 2024, selling, general and administrative ("SG&A") expenses totaled approximately $125.4 million, up 30% or $29.0 million from $96.4 million for the third quarter of 2023.
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The increase in SG&A expenses primarily consisted of:
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•a $2.2 million increase in other SG&A expenses.
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Other Income
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Net (loss) Income Attributable to Common Stockholders
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Nine Months Ended September 30, 2024 compared to nine months ended September 30, 2023
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Revenue
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For the nine months ended September 30, 2024, revenue was approximately $1,023.4 million compared to $970.6 million for the nine months ended September 30, 2023. This growth was primarily driven by increased revenues in North America, which experienced continued gains in distribution points, shelf space, and SKUs per location, offset in part by inventory optimization from our largest distributor, increased macroeconomic headwinds, and a decline in growth in the total energy drink category.
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European revenues for the nine months ended September 30, 2024 were $47.1 million, which increased by $15.5 million or 49% from the same period in 2023. The revenue increase in Europe was predominantly driven by successful innovation launches. Asia-Pacific revenues contributed an additional $2.1 million. Other international markets generated approximately $5.2 million in revenue for the nine months ended September 30, 2024.
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Gross Profit
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Selling, General and Administrative Expenses
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For the nine months ended September 30, 2024, SG&A expenses totaled $339.3 million, up 31% or approximately $79.8 million from $259.5 million in the same quarter of 2023.
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The increase in SG&A expenses primarily consisted of:
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Other Income
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Other income for the nine months ended September 30, 2024 was $31.0 million, which reflects an increase of $14.5 million versus $16.5 million for the nine months ended September 30, 2023. The increase was primarily attributable to interest income earned on cash held in our money market accounts, partially offset by foreign exchange rate transaction loss.
Previous report
Our primary sources of liquidity are cash flows from operations and our existing cash balances. Please refer to Part 1, Item 1A, "Risk Factors" of our 2023 Annual Report and Part II, Item 1A "Risk Factors" of this Report for specific risk factors that could have a material impact on our operations. We believe that our current cash resources are sufficient to fund our cash outflows for both our short and long-term cash needs.
Previous report
Cash flows used in financing activities totaled $18.5 million for the nine months ended September 30, 2024, which compares to cash used in financing activities of $18.9 million for the nine months ended September 30, 2023. The main driver for cash used in financing activities for both periods was cash dividends paid on our outstanding shares of Series A Preferred Stock, all of which is held by Pepsi.
Reworded paragraphs (21)
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Note Regarding Forward-Looking Statements
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Cautionary Note Regarding Forward-Looking Statements
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This Report contains forward-looking statements that are based on the current expectations of our Company and management about future events within the meaning of the United States Private Securities Litigation Reform Act of 1995 (“PSLRA”), Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are made in reliance of the safe harbor protections provided thereunder. While we have specifically identified certain information as being forward-looking in the context of its presentation, we caution you that all statements contained in this Report that are not clearly historical in nature, including statements regarding the strategic investment by and long term partnership with PepsiCo, Inc. ("Pepsi"); the acquisition of Big Beverages Contract Manufacturing, L.L.C ("Big Beverages"); anticipated financial performance; management’s plans and objectives for international expansion and future operations globally; the successful development, commercialization, and timing of new products; business prospects; outcomes of regulatory proceedings; market conditions; the current and future market size for existing or new products; any stated or implied outcomes with regards to the foregoing; and other matters are forward-looking. Without limiting the generality of the preceding sentences, any time we use the words “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects” and, in each case, their negative or other various or comparable terminology, and similar expressions, we intend to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include, without limitation:
Current wording
This Report contains forward-looking statements that are based on the current expectations of our Company and management about future events within the meaning of the United States Private Securities Litigation Reform Act of 1995 ("PSLRA"), Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are made in reliance of the safe harbor protections provided thereunder. While we have specifically identified certain information as being forward-looking in the context of its presentation, we caution you that all statements contained in this Report that are not clearly historical in nature, including statements regarding our ability to successfully integrate Alani Nutrition LLC ("Alani Nu"); the strategic investment by and long term partnership with PepsiCo, Inc. ("Pepsi"); anticipated financial performance; management’s plans and objectives for international expansion and future operations globally; the successful development, commercialization, and timing of new products; business prospects; outcomes of regulatory proceedings; market conditions; the current and future market size for existing or new products; any stated or implied outcomes with regards to the foregoing; and other matters are forward-looking.
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•Our ability to successfully generate demand through the use of third-parties, including celebrities, social media influencers, and others, may expose us to risk of negative publicity, litigation, and/or regulatory enforcement action;
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•Our ability to successfully estimate and/or generate demand through the use of third-parties, including celebrities, social media influencers, and others, may expose us to risk of negative publicity, litigation, and/or regulatory enforcement action;
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•Our ability to successfully complete or manage strategic transactions, successfully integrate and manage our acquired businesses, brands or bottling operations, or successfully realize a significant portion of the anticipated benefits of our joint ventures or strategic relationships, including the acquisition of Big Beverages;
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•Our ability to successfully complete or manage strategic transactions, successfully integrate and manage our acquired businesses, brands or bottling operations, or successfully realize a significant portion of the anticipated benefits of our joint ventures or strategic relationships;
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•The impact of changes in government regulation and our ability to comply with existing regulation concerning energy drinks; and
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•The impact of changes in government regulation and our ability to comply with existing regulation concerning energy drinks;
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•Other statements regarding our future operations, financial condition, prospects and business strategies.
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•Other statements regarding our future operations, financial condition, prospects and business strategies; and
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Forward-looking statements and information involve risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such statements, including without limitation, the risks and uncertainties disclosed or referenced in Part I,Item 1A "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "2023 Annual Report"). Therefore, caution should be taken not to place undue reliance on any such forward-looking statements. Much of the information in this Report that looks toward future performance is based on various factors and important assumptions about future events that may or may not actually occur. As a result, our operations and financial results in the future could differ materially and substantially from those we have discussed in the forward-looking statements included in this Report. We assume no obligation (and specifically disclaim any such obligation) to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
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Forward-looking statements and information involve risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such statements, including without limitation, the risks and uncertainties disclosed or referenced in Part I, Item 1ARisk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 Annual Report"). Therefore, caution should be taken not to place undue reliance on any such forward-looking statements. Much of the information in this Report that looks toward future performance is based on various factors and important assumptions about future events that may or may not actually occur. As a result, our operations and financial results in the future could differ materially and substantially from those we have discussed in the forward-looking statements included in this Report. We assume no obligation (and specifically disclaim any such obligation) to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
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European revenues for the three months ended September 30, 2024 were $16.2 million, compared to $11.0 million for the three months ended September 30, 2023. The revenue increase in Europe was predominantly driven by successful innovation launches. Asia-Pacific revenues contributed an additional $0.6 million. Other international markets generated approximately $1.8 million in revenue for the three months ended September 30, 2024.
Current wording
European revenues for the three months ended March 31, 2025 were approximately $18.7 million, representing an increase of $4.5 million, or 31.9%, from the three months ended March 31, 2024. Other international markets generated approximately $1.8 million in revenue during the three months ended March 31, 2025, with Asia-Pacific revenues contributing an additional $2.2 million for the three months ended March 31, 2025. Total international revenue grew 41% year-over-year, primarily driven by the Company’s continued international expansion. Excluding markets launched in 2024, international revenue increased 9% compared to the prior-year period, reflecting organic growth across existing geographies.
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The following table sets forth revenues by geographical location:
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The following table sets forth the amount of revenues by geographical location for the three months ended March 31, 2025 and March 31, 2024:
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For the nine months ended September 30, 2024, gross profit increased by $46.6 million, or 10%, to $513.5 million, from $466.9 million for the same period in 2023. Gross profit margins reflected an increase to 50% for the nine months ended September 30, 2024 from 48% for the same period in 2023. Gross profit margin improvements resulted from decreases in raw and package material unit cost and reduced outbound freight cost as a percentage of revenue partially offset by increased promotional allowances as a percentage of revenue from the reduction in disproportionate distributor sell-in.
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For the three months ended March 31, 2025, gross profit decreased by $9.8 million to $172.4 million, a decrease of 5.4% from $182.2 million for the three months ended March 31, 2024. Gross profit margin increased to 52.3% for the three months ended March 31, 2025 from 51.2% for the three months ended March 31, 2024. Gross profit margin improvements resulted from decreases in raw and package material unit costs, partially offset by increased promotional allowances as a percentage of revenue.
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•a $9.3 million increase in employee costs, reflecting our ongoing investments to support growth; and
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•a $4.9 million increase in employee costs, reflecting our ongoing investments to support growth;
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•a $17.5 million increase in marketing investments;
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•a $2.8 million increase in marketing investments, driven by initiatives and events aimed at enhancing brand awareness to reflect our commitment to long-term growth, helping to ensure that our brand remains top-of-mind with consumers and well-positioned in an increasingly competitive market; and
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•a $2.8 million decrease in all other SG&A expenses.
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•a $1.5 million increase in all other SG&A expenses.
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Other income for the three months ended September 30, 2024 was $11.4 million, which reflects an increase of $4.4 million versus $7.0 million for the three months ended September 30, 2023. The increase was primarily attributable to greater interest income earned on cash held in our money market accounts.
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Total other income for the three months ended March 31, 2025 was $9.0 million, which reflects a decrease of $0.3 million from $9.3 million for the three months ended March 31, 2024. This decrease was primarily attributed to lower interest income earned on cash held in our money market accounts, driven by a decline in market interest rates.
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Net income attributable to common stockholders for the nine months ended September 30, 2024 was $131.0 million, representing basic earnings per share of $0.56 based on a basic weighted average of 233.2 million shares outstanding. In comparison, for the nine months ended September 30, 2023, net income attributable to common stockholders was $142.6 million, representing basic earnings per share of $0.62 based on a basic weighted average of 230.5 million shares outstanding. Diluted earnings per share was $0.55 and $0.60 for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Net income attributed to common stockholders for the three months ended March 31, 2025 was $34.4 million, representing basic earnings per share of $0.15 based on a basic weighted average of 235.2 million shares outstanding. In comparison, for the three months ended March 31, 2024 the Company's net income attributed to common stockholders was $64.8 million, representing basic earnings per share of $0.28 based on a weighted average of 232.8 million shares outstanding. Diluted earnings per share was $0.15 and $0.27 for the three months ended March 31, 2025 and 2024, respectively.
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As of September 30, 2024 and December 31, 2023, we had cash and cash equivalents of approximately $903.7 million and $756.0 million, respectively, and working capital of approximately $1,074.0 million and $928.3 million, respectively.
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As of March 31, 2025, we had cash and cash equivalents of approximately $977.3 million and working capital of $993.6 million.
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Purchases of inventories, increases in accounts receivable and other assets, equipment purchases (including coolers), advances to certain of our co-packers, payments of accounts payable, and income taxes are expected to remain our principal recurring uses of cash and material cash requirements.
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Purchases of inventories, increases in accounts receivable and other assets, equipment purchases (including coolers), advances to certain co-packers and distributors, and payments of accounts payable and income taxes are expected to remain our principal recurring uses of cash and material cash requirements.
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Cash flows for the nine months ended September 30, 2024 and September 30, 2023
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Cash flows for the three months ended March 31, 2025 and 2024
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Cash flows provided by operating activities totaled approximately $187.2 million for the nine months ended September 30, 2024, which compares to $136.0 million of cash provided by operating activities for the nine months ended September 30, 2023. The approximately $51.2 million increase in operating cash generated is primarily driven by an increase in working capital, partially offset by a decrease in net income and higher tax payments.
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Cash flows provided by operating activities totaled $103.4 million for three months ended March 31, 2025, which compares to $134.6 million net cash provided by operating activities for the three months ended March 31, 2024. The $31.2 million decrease was attributable to a decrease in net income and changes in working capital, including the timing of certain payments and strategic inventory management.
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Cash flows used in investing activities totaled approximately $21.0 million for the nine months ended September 30, 2024, which compares to cash used in investing activities of $9.5 million for the nine months ended September 30, 2023. The increase in cash used in investing activities was primarily due to increased purchases of property and equipment, with purchases of approximately $18.0 million in the current year period versus $12.7 million for the nine months ended September 30, 2023 and our purchase of a non-marketable equity security during the third quarter of 2024. For the nine months ended September 30, 2023, property and equipment purchases were partially offset by collections from our note receivable received from our China licensee of approximately $3.2 million.
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Cash flows used in investing activities totaled $6.9 million for three months ended March 31, 2025, compared to cash used in investing activities of $4.5 million for the three months ended March 31, 2024, related to increased purchases of property, plant and equipment.
Previous wording
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, which requires us to make estimates and assumptions that affect the reported amounts in our consolidated financial statements. Critical accounting estimates are those that management believes are the most important to the portrayal of our financial condition and results and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. There have been no material changes to our critical accounting policies or estimates from those described in Part II, Item 7,"Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our 2023 Annual report.
Current wording
Our condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, which requires us to make estimates and assumptions that affect the reported amounts in our condensed consolidated financial statements. Critical accounting estimates are those that management believes are the most important to the portrayal of our financial condition and results and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. There have been no material changes to our critical accounting policies or estimates from those described in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Annual Report.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Without limiting the generality of the preceding sentences, any time we use the words “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and, in each case, their negative or other various or comparable terminology, and similar expressions, we intend to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include, without limitation:
Current report — wording carried from elsewhere
•Our ability to successfully achieve the benefits of our recent acquisition of Big Beverages Contract Manufacturing L.L.C. ("Big Beverages"), a co-packer;
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Net loss attributable to common stockholders for the three months ended September 30, 2024 was $0.6 million, resulting in basic loss per share of $(0.00), based on a basic weighted average of 233.7 million shares outstanding. In comparison, for the three months ended September 30, 2023, net income attributable to common stockholders was $70.4 million, representing basic earnings per share of $0.30 based on a basic weighted average of 231.0 million shares outstanding. Diluted (loss) earnings per share was $(0.00) and $0.30 for the three months ended September 30, 2024 and 2023, respectively.
Previous report — wording carried elsewhere
The following table sets forth revenues by geographical location:
Previous report — wording carried elsewhere
•a $56.0 million increase in marketing investments;
Previous report — wording carried elsewhere
•a $26.6 million increase in employee costs, reflecting our ongoing investments to support growth; and