Celsius Holdings, Inc. (CELH) Cash Flow Statement

The OCF/NI ratio ranged from 6.11 in 2026Q2 to -4.83 in 2025Q4, with net income often diverging sharply from cash generation. This suggests that accruals, particularly inventory and receivables, are driving reported earnings, and investors should focus on cash conversion trends rather than net income alone. The 2026Q2 spike in OCF was largely due to a $113.1M working capital inflow, which may not be sustainable.

FCF margins have ranged from 44.3% to -18.0% over the past ten quarters, with no clear upward trend. The 2026Q2 FCF of $205.5M appears robust, but it follows a quarter of negative FCF, indicating that cash generation is lumpy and not yet stable. This volatility suggests that the market should not extrapolate any single quarter's FCF as indicative of a sustainable trajectory.

CapEx/Rev has stayed consistently low, ranging from 1.0% to 2.3%, which is typical for a beverage company relying on third-party manufacturers. This suggests that most of the company's capital is directed toward working capital and brand investment rather than physical assets. The low capital intensity supports the potential for high returns on invested capital, but it also means that any shift toward in-house production could materially alter cash flow dynamics.

The extreme swings in working capital, particularly in 2025Q3 and 2025Q4, suggest that the PepsiCo distribution transition has created significant timing mismatches between revenue recognition and cash collection. The 2026Q2 inflow of $113.1M may indicate a reversal of prior outflows, but the pattern remains unpredictable. Investors should monitor retail scanner data versus reported revenue to gauge whether these swings reflect true consumer demand or channel inventory adjustments.

Buybacks were minimal through 2025, but jumped to $95.5M in 2026Q2, suggesting management may view the stock as undervalued or is offsetting dilution from stock-based compensation. Dividends have been consistent at roughly $14M per quarter, but the total payout remains modest relative to operating cash flow. The acquisition of $1.3B in 2025Q2, likely related to the Rockstar integration, represents a significant deployment that may pressure future cash flows.

The cumulative OCF exceeds net income by $519.8M, indicating that non-cash charges like depreciation and stock-based compensation, along with working capital swings, have boosted cash flow relative to earnings. However, this divergence is not consistent, as some quarters show OCF below net income. This suggests that the quality of earnings is mixed, and investors should be cautious about relying on either metric alone to assess the company's financial health.