Monster Beverage Corp (MNST): Results of Operations and Financial Condition
Monster Beverage Corp (MNST) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Investor Relations Strategic Public Relations PondelWilkinson Inc. 2945 Townsgate Road, Suite 200 Westlake Village, CA 91361 T (310) 279 5980 W www.pondel.com CONTACTS: NEWS RELEASE Mark Astrachan SVP, Investor Relations & Corporate Development (951) 739-6200 Roger S
How this was made
The 30-second read
Why it matters
The filing discloses Q2 revenue, earnings, segment performance, and key cost-line movements (distribution, selling, G&A) plus foreign-currency impacts, which can drive revisions to near-term estimates.
Market read
Traders can update MNST earnings expectations based on the reported Q2 growth rates, margin drivers, and the shift in expense structure.
What to watch
Gross margin improved despite higher aluminum can and freight-in costs, but the sustainability of that offset versus future input inflation is not addressed in the excerpt.
Monster Beverage reports 2026 second-quarter net sales growth of 20.2 percent and diluted EPS growth of 19.0 percent
Second-quarter net sales, operating income, net income and diluted earnings per share all increased by double digits, led by the Monster Energy Drinks segment and international sales growth. Gross margin improved modestly despite higher aluminum can and freight-in costs, while operating-expense intensity increased with marketing investment.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, 2026 second quarterGAAP | $2.54 billion | – | 20.2 percent |
| Net changes in foreign currency exchange rates impact on net sales, 2026 second quarterother | $48.5 million | – | – |
| Net sales on a foreign currency adjusted basis, 2026 second quarternon-GAAP | increased 17.9 percent | – | 17.9 percent |
| Net sales excluding the Alcohol Brands segment, 2026 second quarternon-GAAP | increased 20.8 percent | – | 20.8 percent |
| Net sales excluding the Alcohol Brands segment on a foreign currency adjusted basis, 2026 second quarternon-GAAP | increased 18.5 percent | – | 18.5 percent |
| Net sales to customers outside the United States, 2026 second quarterGAAP | $1.16 billion | – | 34.6 percent |
| Net sales to customers outside the United States as a percentage of total reported net sales, 2026 second quarterGAAP | approximately 46 percent | – | – |
| Net sales to customers outside the United States on a foreign currency adjusted basis, 2026 second quarternon-GAAP | $1.11 billion | – | 29.0 percent |
| Gross profit as a percentage of net sales, 2026 second quarterGAAP | 55.9 percent | – | – |
| Adjusted gross profit as a percentage of net sales excluding the Alcohol Brands segment, 2026 second quarternon-GAAP | 56.3 percent | – | – |
| Distribution expenses, 2026 second quarterGAAP | $118.8 million | – | – |
| Distribution expenses as a percentage of net sales, 2026 second quarterGAAP | 4.7 percent of net sales | – | – |
| Selling expenses, 2026 second quarterGAAP | $269.2 million | – | – |
| Selling expenses as a percentage of net sales, 2026 second quarterGAAP | 10.6 percent of net sales | – | – |
| General and administrative expenses, 2026 second quarterGAAP | $291.2 million | – | – |
| General and administrative expenses as a percentage of net sales, 2026 second quarterGAAP | 11.5 percent of net sales | – | – |
| Stock-based compensation, 2026 second quarterGAAP | $35.7 million | – | – |
| Operating expenses, 2026 second quarterGAAP | $679.2 million | – | – |
| Adjusted operating expenses, 2026 second quarternon-GAAP | $662.7 million | – | – |
| Operating expenses as a percentage of net sales, 2026 second quarterGAAP | 26.8 percent | – | – |
| Adjusted operating expenses as a percentage of net sales, less the Alcohol Brands segment, 2026 second quarternon-GAAP | 26.5 percent | – | – |
| Operating income, 2026 second quarterGAAP | $740.4 million | – | 17.2 percent |
| Adjusted operating income, 2026 second quarternon-GAAP | $748.1 million | – | 13.3 percent |
| Effective tax rate, 2026 second quarterGAAP | 23.9 percent | – | – |
| Net income, 2026 second quarterGAAP | $584.5 million | – | 19.6 percent |
| Adjusted net income, 2026 second quarternon-GAAP | $590.5 million | – | 15.7 percent |
| Net income per diluted share, 2026 second quarterGAAP | $0.59 | – | 19.0 percent |
| Adjusted net income per diluted share, 2026 second quarternon-GAAP | $0.60 | – | 15.2 percent |
| Net sales, six-months ended June 30, 2026GAAP | $4.89 billion | – | 23.3 percent |
| Net changes in foreign currency exchange rates impact on net sales, six-months ended June 30, 2026other | $137.8 million | – | – |
| Net sales on a foreign currency adjusted basis, six-months ended June 30, 2026non-GAAP | increased 19.8 percent | – | 19.8 percent |
| Net sales excluding the Alcohol Brands segment on a foreign currency adjusted basis, six-months ended June 30, 2026non-GAAP | increased 20.4 percent | – | 20.4 percent |
| Gross profit as a percentage of net sales, six-months ended June 30, 2026GAAP | 55.5 percent | – | – |
| Operating expenses, six-months ended June 30, 2026GAAP | $1.24 billion | – | – |
| Operating income, six-months ended June 30, 2026GAAP | $1.47 billion | – | – |
| Effective tax rate, six-months ended June 30, 2026GAAP | 24.0 percent | – | – |
| Net income, six-months ended June 30, 2026GAAP | $1.15 billion | – | 23.9 percent |
| Net income per diluted share, six-months ended June 30, 2026GAAP | $1.17 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Monster Energy DrinksNet changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy Drinks segment of approximately $45.3 million for the 2026 second quarter. | $2.36 billion | – | 21.6 percent |
| Strategic BrandsNet changes in foreign currency exchange rates had a favorable impact on net sales for the Strategic Brands segment of approximately $3.3 million for the 2026 second quarter. | $143.7 million | – | 10.6 percent |
| Alcohol BrandsComprised of various craft beers, flavored malt beverages and hard seltzers. | $32.2 million | – | decreased 15.2 percent |
| OtherPrimarily includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary of the Company, sold to independent third-party customers. | $5.4 million | – | decreased 15.3 percent |
Capital returns
- During the 2026 second quarter, no shares of the Company’s common stock were repurchased.
- As of August 5, 2026, approximately $900.0 million remained available for repurchase under the previously authorized repurchase programs.
- The Company’s Board of Directors approved and declared a two-for-one stock split of its common stock to be effected in the form of a 100% stock dividend.
- The stock dividend will be distributed after close of trading on August 10, 2026.
- The Company anticipates its common stock to begin trading at the split-adjusted price on August 11, 2026.
What drove it
- Pricing actions and product sales mix primarily drove the increase in gross profit as a percentage of net sales.
- Net sales to customers outside the United States increased 34.6 percent to $1.16 billion.
- The Monster Energy Drinks segment increased 21.6 percent to $2.36 billion.
- Selling expenses increased primarily due to increased social, digital, media and other marketing expenses, including sponsorships and endorsements.
- The Company is focused on growth of existing core offerings and continued introduction of product innovations.
Concerns
- Increased aluminum can costs, geographical sales mix and increased freight-in costs partially offset the gross-margin benefit from pricing actions and product sales mix.
- Operating expenses as a percentage of net sales were 26.8 percent, compared with 25.8 percent in the 2025 second quarter.
- Adjusted operating expenses as a percentage of net sales, less the Alcohol Brands segment, were 26.5 percent, compared with 24.4 percent in the 2025 second quarter.
- Alcohol Brands segment net sales decreased 15.2 percent to $32.2 million.
- Other segment net sales decreased 15.3 percent to $5.4 million.
- Gross profit as a percentage of net sales for the six-months ended June 30, 2026 was 55.5 percent, compared with 56.1 percent in the comparable period last year.
What to watch
- International net sales growth and the share of total reported net sales generated outside the United States.
- Marketing investment across social, digital and media platforms, including sponsorships and endorsements.
- Aluminum can costs, geographical sales mix and freight-in costs.
- Performance of the Alcohol Brands segment.
- New product launches and continued growth of existing core offerings.
Analysis
Monster Beverage reported a strong 2026 second quarter. Net sales increased 20.2 percent to $2.54 billion, while net income increased 19.6 percent to $584.5 million and diluted net income per share increased 19.0 percent to $0.59. On a foreign currency adjusted basis, net sales increased 17.9 percent. For the six-months ended June 30, 2026, net sales increased 23.3 percent to $4.89 billion and net income increased 23.9 percent to $1.15 billion.
The Monster Energy Drinks segment was the principal source of growth, with net sales increasing 21.6 percent to $2.36 billion. Strategic Brands also grew, with net sales increasing 10.6 percent to $143.7 million. International operations made a meaningful contribution, as net sales to customers outside the United States increased 34.6 percent to $1.16 billion and represented approximately 46 percent of total reported net sales. Foreign currency was favorable to reported second-quarter net sales by $48.5 million.
Second-quarter gross profit as a percentage of net sales improved to 55.9 percent from 55.7 percent. The company attributed the increase primarily to pricing actions and product sales mix, partially offset by increased aluminum can costs, geographical sales mix and increased freight-in costs. Expense investment rose materially, with selling expenses increasing to $269.2 million, principally because of increased social, digital, media and other marketing expenses, including sponsorships and endorsements. Operating expenses represented 26.8 percent of net sales, compared with 25.8 percent in the prior-year quarter.
Operating income increased 17.2 percent to $740.4 million, and adjusted operating income increased 13.3 percent to $748.1 million. The effective tax rate declined to 23.9 percent from 24.4 percent. The main areas requiring attention are the declines in Alcohol Brands and Other segment sales, the higher operating-expense ratio, and the first-half gross-profit percentage decline to 55.5 percent from 56.1 percent. The release provided no forward financial guidance. The company did not repurchase shares during the quarter, though approximately $900.0 million remained available under authorized repurchase programs as of August 5, 2026.
Management, verbatim
We delivered a strong 2026 second quarter, with net sales increasing 20.2 percent and net income per diluted share increasing 19.0 percent.
Hilton H. Schlosberg, Chief Executive Officer
Our international operations continued their meaningful contribution to revenue growth, with net sales to customers outside the United States increasing 34.6 percent in the 2026 second quarter to approximately 46 percent of total net sales.
Hilton H. Schlosberg, Chief Executive Officer
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
Not in the filing
stated, not guessed- Forward revenue, gross margin, operating expenses, tax rate and other financial guidance
- Prior guidance for comparison
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Capital expenditures
- Dividend declaration or payment information
- Quarter-over-quarter comparisons for reported financial metrics
- Gross profit dollars for the 2026 second quarter and six-month period
- Adjusted six-month operating income, net income, diluted earnings per share, gross margin and operating expenses
- Segment results for the six-month period
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Monster Beverage’s SEC 8-K (Item 2.02) with an attached earnings release for the quarter ended June 30, 2026.
Ticker impact
Monster Beverage reported 2026 Q2 net sales up 20.2% to $2.54B and net income up 19.6% to $584.5M in an 8-K.
Likely supportive for near-term sentiment, with focus on whether higher selling expenses translate into sustained household penetration.
The filing provides specific GAAP and non-GAAP growth rates, segment sales trends, and cost drivers, which are direct inputs to earnings expectations and valuation.
Market effects
Reinforces demand and pricing power in the energy and beverage category, while highlighting cost pressure from packaging inputs.
International sales rose to $1.16B (about 46% of total), supporting growth narrative outside the US.
Foreign currency had a favorable impact on revenue, which may matter for multinational beverage peers’ reported growth comparisons.
Counterpoint
Selling expenses jumped sharply as a share of sales, so the market may question whether the growth is becoming less efficient.
Key entities
- issuerMonster Beverage Corporation
Reported 2026 second-quarter financial results in an SEC 8-K, including net sales, net income, EPS, and segment trends.
- executiveHilton H. Schlosberg
CEO quoted on delivering strong Q2 net sales growth and EPS growth.
