Monster Beverage Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose to $2.35 billion: Net sales were $2.35 billion. Currency added $89.3 million to net sales. Excluding currency effects, net sales rose 22.1 percent. Source
• Operating and net income increased: Operating income was $730.0 million, and net income was $569.5 million. Diluted EPS was $0.58, against $0.45 a year earlier, reflecting the reported (GAAP) figures. Source
• Outside-US sales reached 45 percent: Sales to customers outside the United States were about 45 percent of net sales, against 40 percent. Excluding currency, these sales rose 32.7 percent to $973.3 million. Source
• Operating expense ratio improved: Operating expenses rose to $563.4 million from $478.2 million. They fell to 23.9 percent of net sales from 25.8 percent. Source
• Gross margin declined 1.5 points: Gross profit was 55.0 percent of net sales, down from 56.5 percent. Management attributed the decline to several factors and noted that pricing actions partly offset them. Source
• Adjusted operating income grew 24.1 percent: Adjusted operating income was $733.5 million, against $591.2 million. The adjusted figures exclude a $6.1 million litigation provision or adjustment, with no comparable amount in the prior year. Source
• Share repurchases of $100.0 million: The company bought about 1.4 million shares in the quarter at an average price of $73.86, a total of about $100.0 million. Source

“The global energy drink category continues to demonstrate solid growth, driven by increased consumer demand.”

Hilton H. Schlosberg, Chief Executive Officer

What changed from last quarter

• New: The Monster Energy Drinks segment description now includes FLRT total wellness energy drinks, which the prior-quarter release did not list. Source

Results and growth drivers

• Net sales rose to $2.35 billion: Net sales were $2.35 billion. Currency added $89.3 million to net sales. Excluding currency effects, net sales rose 22.1 percent. Source
• Operating and net income increased: Operating income was $730.0 million, and net income was $569.5 million. Diluted EPS was $0.58, against $0.45 a year earlier, reflecting the reported (GAAP) figures. Source
• Tax rate and other income rose: The effective tax rate was 24.1 percent, up from 23.4 percent. Interest and other income, net, was $20.2 million, compared with $8.3 million. Source

Segments and regions

• Monster Energy Drinks grew on currency-neutral basis: Monster Energy Drinks segment net sales grew 22.8 percent excluding currency. Currency added about $82.0 million to the segment. Source
• Strategic Brands sales rose: Strategic Brands, which covers energy brands acquired from The Coca-Cola Company plus Predator and Fury, grew 21.4 percent excluding currency effects. Source
• Outside-US sales reached 45 percent: Sales to customers outside the United States were about 45 percent of net sales, against 40 percent. Excluding currency, these sales rose 32.7 percent to $973.3 million. Source
• Alcohol and Other segments declined: Alcohol Brands segment net sales fell 5.9 percent to $32.7 million. The Other segment, mainly American Fruits and Flavors products sold to third parties, fell 12.0 percent to $5.3 million. Source

“We delivered a strong start to the year, with net sales increasing 26.9 percent, operating income increasing 28.1 percent and net income per diluted share increasing 27.6 percent for the 2026 first quarter.”

Hilton H. Schlosberg, Chief Executive Officer

Operating costs

• Operating expense ratio improved: Operating expenses rose to $563.4 million from $478.2 million. They fell to 23.9 percent of net sales from 25.8 percent. Source
• Selling expenses fell as a share of sales: Selling expenses were $195.0 million, or 8.3 percent of net sales, against 9.3 percent. Distribution expenses rose to 4.4 percent of net sales from 4.2 percent. Source
• General and administrative costs fell as a share: General and administrative expenses were $265.5 million, or 11.3 percent of net sales, against 12.3 percent a year earlier. Source
• Stock compensation rose with retirement-clause awards: Stock-based compensation was $28.3 million, up from $20.7 million. The increase included $4.0 million tied to equity awards with a retirement clause. Source

Gross and operating margins

• Gross margin declined 1.5 points: Gross profit was 55.0 percent of net sales, down from 56.5 percent. Management attributed the decline to several factors and noted that pricing actions partly offset them. Source
• Adjusted gross margin ex-alcohol lower: Adjusted gross profit as a share of net sales excluding Alcohol Brands was 55.3 percent, against 57.1 percent in the prior-year quarter. Source
• Operating and net margins rose: Operating income was 31.0 percent of net sales, against 30.7 percent. Net income was 24.2 percent of net sales, against 23.9 percent. Source

“Net sales crossed the $2.0 billion threshold for the first time in the Company’s history for a fiscal first quarter.”

Hilton H. Schlosberg, Chief Executive Officer

Adjusted results and Alcohol Brands

• Adjusted operating income grew 24.1 percent: Adjusted operating income was $733.5 million, against $591.2 million. The adjusted figures exclude a $6.1 million litigation provision or adjustment, with no comparable amount in the prior year. Source
• Alcohol Brands charges smaller: Excluded Alcohol Brands impairment charges were $0.1 million, against $2.4 million. Excluded Alcohol Brands losses were $9.6 million, against $19.1 million. Source
• Deferred revenue recognition unchanged: Net sales and gross profit each include $9.9 million of deferred revenue recognition in both the 2026 and 2025 first quarters. Source

Capital, cash and returns to shareholders

• Share repurchases of $100.0 million: The company bought about 1.4 million shares in the quarter at an average price of $73.86, a total of about $100.0 million. Source
• Repurchase capacity down to $400 million: As of May 6, 2026, about $400.0 million remained under the authorized program. The prior release gave about $500.0 million as of February 26, 2026. Source
• Cash and investments balances shifted: Cash and equivalents were $2,039.7 million, against $2,088.1 million at December 31, 2025. Short-term investments rose to $945.3 million from $677.1 million. Source
• Receivables and inventories increased: Accounts receivable, net, rose to $1,882.8 million from $1,618.1 million. Inventories rose to $828.3 million from $799.6 million. Source

Strategy and category

• Product innovation kept central: Management said growth of core offerings and continued product innovation remain central to the company's long-term growth strategy. Source
• Energy drink category growing: The CEO described the global energy drink category as showing solid growth driven by increased consumer demand. The release gives no category size figures. Source
• Outside-US share a quarterly high: Management said the outside-US share of net sales is the highest the company has recorded for a single quarter. Source

Figures management reported

Risks management discussed

• Operational: Freight-in costs rose because production moved out-of-orbit to meet higher demand, a cost pressure management named. Source
• Operational: Aluminum can costs and geographic sales mix reduced gross profit as a share of net sales, partly offset by pricing actions. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.