Monster Beverage Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose 20.2 percent: Net sales reached $2.54 billion. Currency added $48.5 million; currency-adjusted growth was 17.9 percent, and growth excluding Alcohol Brands was 20.8 percent. Source
• Net income and diluted EPS grew: Net income reached $584.5 million, up 19.6 percent. Diluted EPS was $0.59 against $0.50, and operating margin was 29.2 percent against 29.9 percent. Source
• Monster Energy Drinks drove growth: Monster Energy Drinks segment sales reached $2.36 billion. Currency added about $45.3 million, and currency-adjusted growth was 19.3 percent. Source
• Gross margin edged higher: Gross profit was 55.9 percent of net sales against 55.7 percent. Pricing actions and product mix were partly offset by aluminum can, geographic mix and freight-in costs. Source
• Selling costs rose on marketing: Selling expenses reached 10.6 percent of net sales against 9.3 percent. Spending was aimed at a broader audience and higher household penetration. Source
• No repurchases in second quarter: The company made no repurchases of its common stock in the second quarter. Source

“Our international operations continued their meaningful contribution to revenue growth.”

Hilton H. Schlosberg, Chief Executive Officer

What changed from last quarter

• New: Board declared a two-for-one stock split, to be effected as a 100% stock dividend. The Q1 release did not mention a split. Source

Quarter results and growth

• Net sales rose 20.2 percent: Net sales reached $2.54 billion. Currency added $48.5 million; currency-adjusted growth was 17.9 percent, and growth excluding Alcohol Brands was 20.8 percent. Source
• Net income and diluted EPS grew: Net income reached $584.5 million, up 19.6 percent. Diluted EPS was $0.59 against $0.50, and operating margin was 29.2 percent against 29.9 percent. Source
• Adjusted figures excluded Alcohol Brands: Adjusted net income excludes Alcohol Brands segment results and a litigation item. Adjusted diluted EPS was $0.60 against $0.52. Source
• Six-month sales rose 23.3 percent: Currency added $137.8 million to six-month net sales. Currency-adjusted growth was 19.8 percent, and growth excluding Alcohol Brands was 20.4 percent. Source

Segments and international sales

• Monster Energy Drinks drove growth: Monster Energy Drinks segment sales reached $2.36 billion. Currency added about $45.3 million, and currency-adjusted growth was 19.3 percent. Source
• Strategic Brands grew 10.6 percent: Strategic Brands covers acquired energy brands plus Predator and Fury. Currency-adjusted growth was 8.1 percent. Source
• Alcohol Brands and Other sales declined: Alcohol Brands net sales fell to $32.2 million. The Other segment, mainly American Fruits and Flavors products sold to third parties, fell to $5.4 million. Source
• International sales rose to 46 percent: Sales outside the United States reached $1.16 billion, about 46 percent of net sales against 41 percent. Currency-adjusted international growth was 29.0 percent. Source

“The energy drink category continues to attract new consumers, expand usage occasions and increase household penetration.”

Hilton H. Schlosberg, Chief Executive Officer

Gross margin and pricing

• Gross margin edged higher: Gross profit was 55.9 percent of net sales against 55.7 percent. Pricing actions and product mix were partly offset by aluminum can, geographic mix and freight-in costs. Source
• Margin excluding alcohol held steady: Excluding the Alcohol Brands segment, adjusted gross profit was 56.3 percent of adjusted net sales against 56.2 percent a year earlier. Source
• Six-month gross margin was lower: Six-month gross profit was 55.5 percent of net sales against 56.1 percent in the prior-year period. Source

Operating expenses and marketing

• Selling costs rose on marketing: Selling expenses reached 10.6 percent of net sales against 9.3 percent. Spending was aimed at a broader audience and higher household penetration. Source
• Distribution costs rose as a share: Distribution expenses rose to 4.7 percent of net sales from 3.9 percent, and to $118.8 million in dollar terms. Source
• General and administrative costs fell: G&A fell to 11.5 percent of net sales from 12.6 percent. Stock-based compensation was $35.7 million against $33.2 million. Source
• Operating expense ratio rose: Adjusted operating expenses, less the Alcohol Brands segment, were 26.5 percent of net sales against 24.4 percent a year earlier. Source

“We remain focused on the growth of our existing core offerings as well as the continued introduction of product innovations, which remain central to our long-term growth strategy”

Hilton H. Schlosberg, Chief Executive Officer

Six-month results and tax

• Six-month operating income rose: Six-month operating expenses were $1.24 billion against $1.02 billion, and six-month operating margin was 30.1 percent against 30.3 percent. Source
• Six-month net income and EPS rose: Six-month net income rose 23.9 percent to $1.15 billion. Adjusted six-month diluted EPS was $1.18 against $0.99. Source
• Second-quarter tax rate was lower: The effective tax rate was 23.9 percent against 24.4 percent in the second quarter. The six-month rate was 24.0 percent against 23.9 percent. Source
• Deferred revenue recognition unchanged: Deferred revenue recognized was $10.0 million in each second quarter and $19.9 million in each six-month period, in both years presented. Source

Cash, balance sheet and shares

• Cash and short-term investments rose: Cash reached $2.19 billion and short-term investments $1.23 billion, against $2.09 billion and $677.1 million at December 31, 2025. Long-term investments were $781.3 million. Source
• Receivables and payables both grew: Accounts receivable reached $1.90 billion from $1.62 billion, inventories $867.7 million from $799.6 million, and accounts payable $753.8 million from $566.0 million. Source
• Equity and shares outstanding rose: Stockholders’ equity was $9.36 billion against $8.25 billion. Shares outstanding were 979.5 million, against 978.1 million at December 31, 2025. Source

Share repurchases

• No repurchases in second quarter: The company made no repurchases of its common stock in the second quarter. Source
• About $900 million left for buybacks: Approximately $900.0 million remained available under previously authorized programs at August 5, 2026, against $400.0 million at May 6 in the first-quarter release. Source
• First-quarter buyback of 1.4 million shares: In the first quarter, the company bought about 1.4 million shares at an average $73.86, roughly $100.0 million in total.

Coming up, as management said on 6 August 2026

• Split distribution and trading dates: Stock dividend to be distributed after close on August 10, 2026. The company anticipates split-adjusted trading beginning August 11, 2026. Source
• Marketing plan for new launches: Management plans increased marketing across new platforms and partnerships, including social, digital and media, supporting existing products and new launches. Source

Figures management reported

Risks management discussed

• Operational: Aluminum can and freight-in cost increases partly offset margin gains, and management named them as factors in the quarter. Source

Earlier plans management reported on

• Not stated: Management refers to the split as previously announced. The release gives no status beyond the distribution and trading dates. Source

Other quarters

• Q1 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.