Monster Beverage Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales grew 16.7 percent: Currency added $8.1 million to net sales; on a foreign currency adjusted basis, growth was 16.3 percent. Source
• Adjusted EPS rose 8.5 percent: GAAP diluted EPS was $0.29, up from $0.27. Adjusted figures exclude Alcohol Brands, litigation items and the property impairment, as shown in the reconciliation tables. Source
• Monster Energy Drinks segment grew: The segment reached $2.37 billion. Currency added about $7.5 million; on a foreign currency adjusted basis, growth was 16.7 percent. Source
• Outside-US sales reached 47 percent: Sales to customers outside the United States were about 47 percent of net sales, up from 43 percent. LATAM net sales rose 48.8 percent in dollars, mainly from Brazil. Source
• Gross margin fell to 54.7 percent: Management cited higher aluminum can costs, geographical sales mix and higher freight-in costs, partly offset by pricing actions. Source
• Marketing investment continued to increase: Management said it continued increased investment across new platforms and partnerships, including social, digital and media, to support existing products and new launches. Source
• Buybacks resumed in third quarter: No shares were repurchased in the second quarter, so third-quarter purchases mark a resumption of repurchase activity under existing programs. Source

“We delivered another quarter of strong top-line performance in both our domestic and international markets, with record quarterly net sales increasing 16.7 percent to $2.56 billion.”

Hilton H. Schlosberg, Chief Executive Officer

Guidance

What changed from last quarter

• New: No repurchases occurred in the second quarter; the company bought shares in the third quarter under previously authorized programs. Source
• New: Kona, Hawaii land and real property were reclassified as held-for-sale, and an impairment charge was recognized in the third quarter. Source
• New: The two-for-one split, which the prior release said would be distributed after August 10, 2026, was issued and began trading at split-adjusted prices on August 11. Source

Results and growth drivers

• Net sales grew 16.7 percent: Currency added $8.1 million to net sales; on a foreign currency adjusted basis, growth was 16.3 percent. Source
• Adjusted EPS rose 8.5 percent: GAAP diluted EPS was $0.29, up from $0.27. Adjusted figures exclude Alcohol Brands, litigation items and the property impairment, as shown in the reconciliation tables. Source
• Operating and net income both rose: Adjusted operating income, excluding the same items, rose 7.1 percent to $748.1 million. Net income rose 8.4 percent to $568.4 million. Source
• Nine-month sales grew 20.9 percent: Currency added $145.9 million over nine months; on a foreign currency adjusted basis, growth was 18.6 percent. Nine-month diluted EPS was $0.87, against $0.74. Source
• Deferred revenue included in sales: Recognition of deferred revenue is part of reported net sales; the nine-month amount was $30.2 million, against $30.0 million a year earlier. Source

Segments and regions

• Monster Energy Drinks segment grew: The segment reached $2.37 billion. Currency added about $7.5 million; on a foreign currency adjusted basis, growth was 16.7 percent. Source
• Strategic Brands grew 19.8 percent: The segment covers energy brands acquired from The Coca-Cola Company plus the affordable Predator and Fury brands. Currency added about $0.6 million. Source
• Alcohol Brands and Other declined: Alcohol Brands covers craft beers, flavored malt beverages and hard seltzers. The Other segment, mainly certain American Fruits and Flavors products, fell 29.5 percent to $4.8 million. Source
• Outside-US sales reached 47 percent: Sales to customers outside the United States were about 47 percent of net sales, up from 43 percent. LATAM net sales rose 48.8 percent in dollars, mainly from Brazil. Source

“Our new product launches this quarter, including additions to the Monster Energy®, Java Monster®, Mother® and FLRT™ product lines, reflect our ongoing commitment to innovation alongside the continued growth of our core offerings,”

Hilton H. Schlosberg, Chief Executive Officer

Costs and margins

• Gross margin fell to 54.7 percent: Management cited higher aluminum can costs, geographical sales mix and higher freight-in costs, partly offset by pricing actions. Source
• Distribution costs rose on freight: Distribution expenses rose as a share of net sales, which management attributed mainly to increased freight and fuel expenses. Source
• Selling expenses rose on marketing: Selling expenses also rose as a share of net sales, mainly on social, digital, media and other marketing. The purpose of that spend is covered in the next section. Source
• G&A rose to 11.9 percent of sales: General and administrative expenses included a property impairment charge and digital transformation expenses, both covered in the impairment section below. Source
• Operating expenses reached 26.6 percent: Operating expenses totaled $682.0 million, against $549.1 million a year earlier. Adjusted operating expenses excluding Alcohol Brands were 25.4 percent of sales, against 23.9 percent. Source

Marketing and product launches

• Marketing investment continued to increase: Management said it continued increased investment across new platforms and partnerships, including social, digital and media, to support existing products and new launches. Source
• Spend aimed at broader reach: Management said the selling expense increase was aimed at reaching a broader consumer audience and raising household penetration. Source
• Launch dates and sales not given: The release names new items on the Monster Energy, Java Monster, Mother and FLRT lines, but gives no launch dates or launch sales. Source

“LATAM, in particular, had a solid 2026 third quarter with net sales increasing 48.8 percent in dollars, primarily driven by our operations in Brazil.”

Hilton H. Schlosberg, Chief Executive Officer

Capital and shareholder returns

• Buybacks resumed in third quarter: No shares were repurchased in the second quarter, so third-quarter purchases mark a resumption of repurchase activity under existing programs. Source
• Short-term investments more than doubled: Compared with December 31, 2025, short-term investments more than doubled and long-term investments also rose, according to the balance sheet. Source
• Interest income rose year over year: Interest and other income, net, was higher in both the quarter and the nine months; the release gives no separate explanation of the increase. Source
• Stock split completed in August: The two-for-one split was effected as a 100 percent stock dividend, and the financial statements were updated retroactively to reflect it. Source

Impairment, digital spend and tax

• Kona property written down: The impairment charge sits in general and administrative expenses and is excluded from adjusted results. The property moved to held-for-sale status. Source
• Digital transformation costs stay in adjusted G&A: The $14.7 million of digital transformation expenses remained in both GAAP and adjusted G&A. The release does not describe the initiatives in detail. Source
• Adjusted G&A share of sales: Adjusted G&A excluded the Alcohol Brands segment, litigation items and the impairment. As a share of sales excluding Alcohol Brands, it was 10.8 percent, against 10.7 percent. Source
• Tax rate rose on lower deduction: Management attributed the higher rate to a lower stock-based compensation deduction and more income in higher-tax jurisdictions, partly offset by a lower valuation allowance. Source

Figures management reported

Risks management discussed

• Operational: Higher aluminum can and freight-in costs reduced gross margin; management said pricing actions partly offset the effect. Source
• External: Higher freight and fuel costs increased distribution expenses in the quarter. Source
• Financial: A lower stock-based compensation deduction and more income in higher-tax jurisdictions raised the effective tax rate. Source

Earlier plans management reported on

• Not stated: The release refers to the split as previously announced and describes its completion, without stating a status word. Source
• Not stated: Management said it continued the increased marketing investment from its earlier plan, without giving a status. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.