Monster Beverage (NASDAQ:MNST) executives told investors the company delivered “another quarter of strong financial results and cash generation” in the fourth quarter of 2025, with net sales surpassing $2 billion for a fiscal fourth quarter for the first time in company history. On the earnings call, management highlighted market share gains in many global markets, continued momentum in zero-sugar offerings, and a broad innovation pipeline supported by marketing and its global distribution partnership with The Coca-Cola Company and its bottling system.
Energy category trends and marketing highlights
Management said the global energy drink category “remains healthy with continued robust growth,” citing increased household penetration, a wide range of offerings across price points, and the category’s functionality and lifestyle positioning. The company also pointed to growing consumption occasions across day parts.
Marketing and sponsorship activity remained a key theme. Management highlighted Monster-sponsored McLaren winning the Constructors’ Championship for the second year in a row, with Lando Norris winning his first Drivers’ Championship and Oscar Piastri finishing third. Monster also pointed to:
- “Lando Norris Zero Sugar” building momentum in EMEA and expanding to 38 EMEA and OSP markets, with a limited-time U.S. offer in Q4 and a full U.S. rollout expected later in Q1 2026.
- A “Call of Duty” partnership that distributed 650 million branded cans across more than 40 markets in Q4.
- The Monster-sponsored Ducati team winning the MotoGP World Championship, including Marc Márquez winning the Riders’ Championship.
- Ongoing performance from the Monster Ultra family, including a viral social media lift for Ultra White and the launch of Ultra Wild Passion in the U.S.
Q4 financial performance and segment results
Net sales increased 17.6% to $2.13 billion in the 2025 fourth quarter from $1.81 billion a year earlier. Foreign exchange provided a favorable impact of $27.7 million, and net sales increased 16.1% on a foreign-currency adjusted basis. Management noted that approximately 42% of Q4 net sales came from customers outside the U.S., up from 39% in the prior-year period.
By segment, Monster Energy Drinks net sales rose 18.9% to $1.99 billion (up 17.5% FX-neutral). Strategic Brands net sales increased 7.8% to $110 million (up 4.7% FX-neutral). The Alcohol Brands segment declined 16.8% to $29 million from $34.9 million.
Gross profit was 55.5% of net sales versus 55.3% a year ago. Management attributed the improvement primarily to pricing actions, supply chain optimization, and product mix, partially offset by higher can costs and geographic mix. Distribution expense was $88.9 million (4.2% of sales) versus $77.6 million (4.3%). Selling expense was $219.7 million (10.3%) versus $193.4 million (10.7%).
General and administrative expense was $332.1 million (15.6%) versus $350.3 million (19.3%), with management noting items including stock-based compensation of $39 million (up from $22.2 million), alcohol brand impairment charges of $51.2 million (versus $130.7 million a year ago), $5.1 million in professional services tied to the new AFF San Fernando facility, and $6.6 million related to digital transformation initiatives.
Operating income increased 42.3% to $542.6 million. Adjusted operating income rose 16% to $617.6 million. The effective tax rate was 21% versus 29.9% a year earlier, which management attributed to higher stock-based compensation deductions, a higher mix of income in lower-tax jurisdictions, and release of valuation allowances on certain foreign deferred tax assets. Diluted earnings per share rose to $0.46 from $0.28, while adjusted diluted EPS increased to $0.51 from $0.39.
Regional performance: U.S. strength and accelerating international growth
In the U.S. and Canada, net sales increased 13.3% year-over-year. Management said results reflected healthy category growth, share gains, and execution, with the zero-sugar portfolio a “significant contributor,” led by Monster Energy Ultra. Citing Nielsen, management said the Ultra family grew 24% in Q4, with Ultra White up 32%.
Monster also emphasized the role of full-sugar products. Management said full-sugar offerings grew 9.1% and represented “more than 1/3 of the company’s total year’s gains.” Juice Monster grew 37%, while Java Monster (including Killer Brew) rose 7.8% despite softness in energy coffee.
Internationally, net sales to customers outside the U.S. increased 26.9% to $903.3 million (23.1% FX-neutral to $875.6 million). Regionally:
- EMEA: Net sales increased 32.6% in dollars and 25.9% FX-neutral. Gross margin in the region rose to 35.8% from 32.7%, driven by execution, cooler placements, and space gains, with growth across Monster Ultra and Juice Monster. Management also highlighted growth in affordable brands Fury and Predator in Africa, saying Predator and Fury combined ranked as the number one energy drink brand by value in measured African countries.
- Asia Pacific: Net sales increased 11.5% in dollars and 13.9% FX-neutral. Management said a systems disruption at its Japanese distributor reduced APAC sales by an estimated 6% to 7% in the quarter, with operations returning to normal on Feb. 1. Japan sales declined 15.2% (13.4% FX-neutral), and management estimated Japan would have grown 4% to 5% without the disruption. South Korea sales declined due to inventory fluctuations despite continued market leadership. China sales increased 78.9% (78.3% FX-neutral), and India increased 54.2% (62.3% FX-neutral). Monster’s January launch in Thailand was described as exceeding expectations.
- Latin America and the Caribbean: Net sales increased 90.8% in dollars and 15.1% FX-neutral, with gross margin rising to 45.1% from 42.7%. Brazil grew 27.1% in dollars (21.2% FX-neutral) and Mexico grew 11.7% in dollars (3.8% FX-neutral), though Mexico shipments were impacted by bottler inventory movements even as scanner data showed stronger growth in depletions. Argentina net sales declined due to pricing changes under a revised operating model, while management said volumes increased.
Pricing, costs, and tariffs; innovation cadence and digital transformation
Management said the Q4 impact of tariffs and higher aluminum prices was “modest,” though tariffs affected the Midwest Premium for aluminum and raised can costs. The company said it does not believe current tariffs will materially impact operating results, but it expects a further modest cost increase in at least the first half of 2026 compared to Q4 2025, and it will continue hedging strategies.
On pricing, management said November 1, 2025 pricing actions in the U.S. performed in line with expectations with “limited volume sensitivity,” and the company will continue to evaluate additional price increases domestically and internationally.
Innovation will be more staggered in 2026 compared with prior years, management said, with launches across the first half and additional fall innovation not yet announced. The company also noted participation in America250 celebrations with limited-time offers including Monster Energy Ultra Red, White & Blue Razz, Juice Monster Strawberry Lemonade, and Bang American Berry.
Monster also provided an update on its multi-year digital transformation initiative. Management said it began a comprehensive effort in 2025 to modernize enterprise platforms, including an upgrade to SAP S/4HANA, with a planned go-live date of January 1, 2028.
Monster Brewing, buybacks, and early 2026 sales trend
In the alcohol segment, management said Blind Lemon Hard Lemonade continued its national rollout, while the first sub-line of The Beast Unleashed, Beast Perfect Ten, began shipping in the first quarter of 2026. Planned spring 2026 innovations include a national beer called Stunt Double and a spirit-based RTD called Just Five, along with additional seasonal craft offerings.
The company did not repurchase shares in Q4 2025. As of February 25, 2026, approximately $500 million remained available under its existing repurchase authorization.
For January 2026, Monster estimated sales were up approximately 20.5% versus January 2025 on a reported basis (and 16.7% FX-neutral), while cautioning that single-month results can be affected by selling days, promotions, pricing timing, and bottler inventory and production schedules.
About Monster Beverage (NASDAQ:MNST)
Monster Beverage Corporation (NASDAQ: MNST) is an American beverage company best known for its Monster Energy brand of energy drinks. The company’s product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.
Originally organized around the Hansen’s Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.
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