Monster Beverage Corp 10-Q for FY2026 Q1

Monster Beverage Corp (MNST)

10-Q 2026-05-08 For: 2026-03-31

Added on May 08, 2026

About this 10-Q

Monster Beverage Corp filed this 10-Q on May 8, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.35B; up 26.9% from $1.85B a year earlier
Net income: $569.49M; up 28.6% from net income of $442.99M a year earlier

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Delaware		47-1809393
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNST	Nasdaq Global Select Market


Large accelerated filer ☒		Accelerated filer ☐
Non-accelerated filer ☐		Smaller reporting company ☐
		Emerging growth company ☐


Part I.	FINANCIAL INFORMATION		Page No.

Item 1.	Condensed Consolidated Financial Statements (Unaudited)

	Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025		3

	Condensed Consolidated Statements of Income for the Three-Months Ended March 31, 2026 and 2025		4

	Condensed Consolidated Statements of Comprehensive Income for the Three-Months Ended March 31, 2026 and 2025		5

	Condensed Consolidated Statements of Stockholders’ Equity for the Three-Months Ended March 31, 2026 and 2025		6

	Condensed Consolidated Statements of Cash Flows for the Three-Months Ended March 31, 2026 and 2025		7

	Notes to Condensed Consolidated Financial Statements		9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		38

Item 4.	Controls and Procedures		38

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings		39

Item 1A.	Risk Factors		39

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		39

Item 3.	Defaults Upon Senior Securities		40

Item 4.	Mine Safety Disclosures		40

Item 5.	Other Information		40

Item 6.	Exhibits		40

	Signatures		41


		March 31,			December 31,
		2026			2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	2,039,700		$	2,088,117
Short-term investments			945,293			677,084
Accounts receivable, net			1,882,808			1,618,072
Inventories			828,260			799,623
Prepaid expenses and other current assets			166,477			103,551
Prepaid income taxes			49,073			74,637
Total current assets			5,911,611			5,361,084

INVESTMENTS			770,400			487,329
PROPERTY AND EQUIPMENT, net			1,074,598			1,081,544
DEFERRED INCOME TAXES, net			189,055			188,646
GOODWILL			1,331,643			1,331,643
OTHER INTANGIBLE ASSETS, net			1,380,311			1,379,268
OTHER ASSETS			185,915			159,431
Total Assets		$	10,843,533		$	9,988,945

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	783,859		$	565,974
Accrued liabilities			396,864			306,085
Accrued promotional allowances			402,440			384,070
Deferred revenue			46,448			45,323
Accrued compensation			69,740			114,023
Income taxes payable			115,713			32,305
Total current liabilities			1,815,064			1,447,780

DEFERRED REVENUE			155,281			159,991
OTHER LIABILITIES			146,153			127,066

COMMITMENTS AND CONTINGENCIES (Note 10)

STOCKHOLDERS’ EQUITY:
Common stock - $0.005 par value; 5,000,000 shares authorized; 1,134,502 shares issued and 977,916 shares outstanding as of March 31, 2026; 1,132,906 shares issued and 978,113 shares outstanding as of December 31, 2025			5,673			5,665
Additional paid-in capital			5,476,746			5,430,847
Retained earnings			9,923,701			9,354,216
Accumulated other comprehensive loss			(69,336)			(60,841)
Common stock in treasury, at cost; 156,586 shares and 154,793 shares as of March 31, 2026 and December 31, 2025, respectively			(6,609,749)			(6,475,779)
Total stockholders’ equity			8,727,035			8,254,108
Total Liabilities and Stockholders’ Equity		$	10,843,533		$	9,988,945


		Three-Months Ended
		March 31,
		2026			2025
NET SALES		$	2,353,291		$	1,854,558

COST OF SALES			1,059,942			806,596

GROSS PROFIT			1,293,349			1,047,962

OPERATING EXPENSES			563,391			478,217

OPERATING INCOME			729,958			569,745

INTEREST and OTHER INCOME, net			20,170			8,272

INCOME BEFORE PROVISION FOR INCOME TAXES			750,128			578,017

PROVISION FOR INCOME TAXES			180,643			135,024

NET INCOME		$	569,485		$	442,993

NET INCOME PER COMMON SHARE:
Basic		$	0.58		$	0.45
Diluted		$	0.58		$	0.45

WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic			978,309			973,622
Diluted			988,258			981,282


													Accumulated
							Additional						Other								Total
		Common stock					Paid-in			Retained			Comprehensive			Treasury stock					Stockholders’
		Shares		Amount			Capital			Earnings			(Loss) Income			Shares		Amount			Equity
Balance, December 31, 2025		1,132,906		$	5,665		$	5,430,847		$	9,354,216		$	(60,841)		(154,793)		$	(6,475,779)		$	8,254,108

Stock-based compensation		—			—			27,944			—			—		—			—			27,944
Stock options/awards		1,596			8			17,955			—			—		—			—			17,963
Unrealized gain (loss), net on available-for-sale securities		—			—			—			—			(4,324)		—			—			(4,324)
Repurchase of common stock		—			—			—			—			—		(1,793)			(133,970)			(133,970)
Foreign currency translation		—			—			—			—			(24,664)		—			—			(24,664)
Net gain (loss) on commodity derivatives		—			—			—			—			20,493		—			—			20,493
Net income		—			—			—			569,485			—		—			—			569,485
Balance, March 31, 2026		1,134,502		$	5,673		$	5,476,746		$	9,923,701		$	(69,336)		(156,586)		$	(6,609,749)		$	8,727,035


	Three-Months Ended March 31, 2026
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA¹		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,258,277	$	525,529	$	189,693	$	215,155	$	2,188,654
Strategic Brands		50,462		60,694		12,198		3,366		126,720
Alcohol Brands		32,657		—		—		—		32,657
Other		5,260		—		—		—		5,260
Total Net Sales	$	1,346,656	$	586,223	$	201,891	$	218,521	$	2,353,291


	Three-Months Ended March 31, 2025
					Asia Pacific		Latin
	U.S. and				(including		America and
Net Sales	Canada		EMEA¹		Oceania)		Caribbean		Total
Monster Energy® Drinks	$	1,080,337	$	346,071	$	132,019	$	157,121	$	1,715,548
Strategic Brands		43,630		38,504		12,504		3,694		98,332
Alcohol Brands		34,703		—		—		—		34,703
Other		5,975		—		—		—		5,975
Total Net Sales	$	1,164,645	$	384,575	$	144,523	$	160,815	$	1,854,558


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than		greater than
March 31, 2026	Cost		Gains		Losses		Value		12 Months		12 Months
Available-for-sale
Short-term:
Commercial paper	$	150,976	$	—	$	—	$	150,976	$	—	$	—
Certificates of deposit		7,157		—		—		7,157		—		—
Municipal securities		3,370		—		2		3,368		2		—
U.S. government agency securities		26,696		—		8		26,688		8		—
U.S. treasuries		555,812		—		69		555,743		69		—
Corporate bonds		201,655		—		294		201,361		294		—
Long-term:
Municipal securities		596		—		2		594		2		—
U.S. government agency securities		37,511		—		123		37,388		123		—
U.S. treasuries		402,428		—		1,421		401,007		1,421		—
Corporate bonds		332,551		—		1,140		331,411		1,140		—
Total	$	1,718,752	$	—	$	3,059	$	1,715,693	$	3,059	$	—


	March 31, 2026
	Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	150,976	$	150,976
Certificates of deposit		7,157		7,157
Municipal securities		3,370		3,368
U.S. government agency securities		26,696		26,688
U.S. treasuries		555,812		555,743
Corporate bonds		201,655		201,361
Due 1 - 10 years:
Municipal securities		596		594
U.S. government agency securities		37,511		37,388
U.S. treasuries		402,428		401,007
Corporate bonds		332,551		331,411
Total	$	1,718,752	$	1,715,693


	December 31, 2025
	Amortized Cost		Fair Value
Less than 1 year:
Commercial paper	$	90,418	$	90,419
Certificates of deposit		12,728		12,728
Municipal securities		674		675
U.S. treasuries		489,007		489,499
Corporate bonds		83,639		83,763
Due 1 - 10 years:
Municipal securities		1,206		1,207
U.S. treasuries		259,613		259,966
Corporate bonds		225,867		226,156
Total	$	1,163,152	$	1,164,413


March 31, 2026	Level 1		Level 2		Level 3		Total
Cash	$	1,095,693	$	—	$	—	$	1,095,693
Money market funds		899,583		—		—		899,583
Commercial paper		—		150,976		—		150,976
Certificates of deposit		—		51,581		—		51,581
Municipal securities		—		3,962		—		3,962
U.S. government agency securities		—		64,076		—		64,076
U.S. treasuries		—		956,750		—		956,750
Corporate bonds		—		532,772		—		532,772
Foreign currency derivatives		—		(974)		—		(974)
Commodity derivatives		—		54,097		—		54,097
Total	$	1,995,276	$	1,813,240	$	—	$	3,808,516

Amounts included in:
Cash and cash equivalents	$	1,995,276	$	44,424	$	—	$	2,039,700
Short-term investments		—		945,293		—		945,293
Accounts receivable, net		—		52,777		—		52,777
Prepaid expenses and other current assets		—		218		—		218
Other assets		—		2,385		—		2,385
Investments		—		770,400		—		770,400
Accrued liabilities		—		(2,137)		—		(2,137)
Other liabilities		—		(120)		—		(120)
Total	$	1,995,276	$	1,813,240	$	—	$	3,808,516


		March 31,		December 31,
		2026		2025
Raw materials		$	318,520	$	322,604
Work in process			1,076		1,114
Finished goods			508,664		475,905
		$	828,260	$	799,623


	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands*		Other		Total
Balance at December 31, 2025	$	693,644	$	637,999	$	—	$	—	$	1,331,643
Acquisitions		—		—		—		—		—
Balance at March 31, 2026	$	693,644	$	637,999	$	—	$	—	$	1,331,643


	Three-Months Ended
	March 31,
	2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	569,485		$	442,993
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		28,400			24,848
Non-cash lease expense		3,636			4,014
(Gain) loss on disposal of property and equipment		(684)			324
Loss on impairment of property and equipment		—			2,279
Stock-based compensation		28,294			20,727
Deferred income taxes		(413)			135
Effect on cash of changes in operating assets and liabilities:
Accounts receivable		(249,066)			(109,557)
Inventories		(33,498)			19,594
Prepaid expenses and other assets		(70,639)			(3,995)
Prepaid income taxes		23,368			11,912
Accounts payable		164,698			11,768
Accrued liabilities		86,996			33,661
Accrued promotional allowances		23,713			30,785
Accrued compensation		(45,500)			(37,338)
Income taxes payable		83,355			61,674
Other liabilities		(3,670)			(1,885)
Deferred revenue		(3,489)			(4,339)
Net cash provided by operating activities		604,986			507,600

CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of available-for-sale investments		197,709			—
Purchases of available-for-sale investments		(696,089)			—
Purchases of property and equipment		(20,604)			(29,056)
Proceeds from sale of property and equipment		819			1,147
Additions to intangibles		(3,531)			(5,343)
Decrease in other assets		1,011			2,397
Net cash used in investing activities		(520,685)			(30,855)

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on short-term debt		(2,113)			(2,045)
Payments on credit facilities		—			(175,000)
Issuance of common stock		17,963			48,093


		March 31,		December 31,
		2026		2025
Land		$	189,225	$	188,889
Leasehold improvements			32,976		33,456
Furniture and fixtures			13,271		13,263
Office and computer equipment			25,072		25,191
Equipment			618,769		611,269
Buildings			408,488		410,189
Vehicles			93,465		83,066
Assets under construction			54,897		55,252
			1,436,163		1,420,575
Less: accumulated depreciation and amortization			(361,565)		(339,031)
		$	1,074,598	$	1,081,544


		March 31,		December 31,
		2026		2025
Amortizing intangibles		$	138,103	$	137,664
Accumulated amortization			(88,641)		(86,999)
			49,462		50,665
Non-amortizing intangibles			1,330,849		1,328,603
		$	1,380,311	$	1,379,268


2026 (from April 1, 2026 to December 31, 2026)	$	7,955
2027		9,053
2028		8,165
2029		4,590
2030		4,590
2031 and thereafter		15,109
	$	49,462


	Accumulated Net		Currency		Unrealized Gains
	Gains (Losses)		Translation		(Losses) on
	on Commodity		Gains		Available-for-
	Derivatives		(Losses)		Sale Securities		Total
Balance at December 31, 2025	$	45,955	$	(108,059)	$	1,263	$	(60,841)
Other comprehensive income (loss) before reclassifications		32,639		(24,664)		(4,324)		3,651
Amounts reclassified from accumulated other comprehensive loss		(12,146)		—		—		(12,146)
Net current-period other comprehensive income (loss)		20,493		(24,664)		(4,324)		(8,495)
Balance at March 31, 2026	$	66,448	$	(132,723)	$	(3,061)	$	(69,336)


	Three-Months Ended March 31,
	2026		2025
Dividend yield	0.0	%	0.0	%
Expected volatility	25.5	%	26.7	%
Risk-free interest rate	4.1	%	4.2	%
Expected term	6.1	years	6.2	years


				Weighted-
				Average
		Weighted-		Remaining
	Number of	Average		Contractual	Aggregate
	Shares	Exercise Price		Term	Intrinsic
Options	(in thousands)	Per Share		(in years)	Value
Outstanding at January 1, 2026	22,161	$	42.80	5.8	$	750,594
Granted 01/01/26 - 03/31/26	894	$	77.11
Exercised	(620)	$	28.96
Cancelled or forfeited	(31)	$	53.32
Outstanding at March 31, 2026	22,404	$	44.54	5.8	$	629,728
Vested and expected to vest in the future at March 31, 2026	21,688	$	44.14	5.7	$	618,077
Exercisable at March 31, 2026	13,689	$	37.81	4.5	$	474,335


	Number of Shares	Weighted-Average Grant-Date
	(in thousands)	Fair Value
Non-vested at January 1, 2026	2,040	$	53.15
Granted 01/01/26 - 03/31/26¹	986	$	68.99
Vested	(976)	$	50.99
Forfeited/cancelled	(2)	$	55.09
Non-vested at March 31, 2026	2,048	$	61.81


	Gross Unrecognized Tax
	Benefits
Balance at December 31, 2025	$	3,230
Additions for tax positions related to the current year		—
Additions for tax positions related to the prior years		348
Decreases for tax positions related to the prior years		—
Balance at March 31, 2026	$	3,578


	Three-Months Ended
	March 31,
	2026	2025
Weighted-average shares outstanding:
Basic	978,309	973,622
Dilutive	9,949	7,660
Diluted	988,258	981,282

● Monster Energy®	● Full Throttle®
● Monster Energy Ultra®	● Burn®
● Rehab Monster®	● Mother®
● Monster Energy® Nitro	● Nalu®
● Java Monster®	● Ultra Energy®
● Punch Monster®	● Play® and Power Play® (stylized)
● Juice Monster®	● Relentless®
● Reign Total Body Fuel®	● BPM®
● Reign Storm®	● BU®
● Storm^TM	● Samurai®
● Bang Energy®	● Live+®
● FLRT^TM	● Predator®
● NOS®	● Fury®


	Three-Months Ended						Percentage
(In thousands, except per share amounts)	March 31,						Change
	2026			2025			26 vs. 25
Net sales¹	$	2,353,291		$	1,854,558		26.9	%
Cost of sales		1,059,942			806,596		31.4	%
Gross profit*¹		1,293,349			1,047,962		23.4	%
Gross profit as a percentage of net sales		55.0	%		56.5	%

Operating expenses		563,391			478,217		17.8	%
Operating expenses as a percentage of net sales		23.9	%		25.8	%

Operating income¹		729,958			569,745		28.1	%
Operating income as a percentage of net sales		31.0	%		30.7	%

Interest and other income, net		20,170			8,272		143.8	%

Income before provision for income taxes¹		750,128			578,017		29.8	%

Provision for income taxes		180,643			135,024		33.8	%

Income taxes as a percentage of income before taxes		24.1	%		23.4	%

Net income	$	569,485		$	442,993		28.6	%
Net income as a percentage of net sales		24.2	%		23.9	%

Net income per common share:
Basic	$	0.58		$	0.45		27.9	%
Diluted	$	0.58		$	0.45		27.6	%

Energy drink case sales (in thousands) (in 192‑ounce case equivalents)		274,460			213,100		28.8	%


	Three-Months Ended
(In thousands, except average net sales per case)	March 31,
	2026		2025
Net sales	$	2,353,291	$	1,854,558
Less: Alcohol Brands segment sales		(32,657)		(34,703)
Less: Other segment sales		(5,260)		(5,975)
Adjusted net sales¹	$	2,315,374	$	1,813,880

Case sales by segment:¹
Monster Energy® Drinks		214,902		170,590
Strategic Brands		59,558		42,510
Total case sales		274,460		213,100
Average net sales per case - Energy Drinks	$	8.44	$	8.51


	Payments due by period (in thousands)
			Less than		1‑3		3‑5		More than
Obligations	Total		1 year		years		years		5 years
Contractual Obligations¹	$	684,937	$	390,557	$	247,223	$	47,039	$	118
Finance Leases		4,221		4,195		23		3		—
Operating Leases		90,248		18,816		36,617		27,598		7,217
Purchase Commitments²		207,992		187,450		20,542		—		—
	$	987,398	$	601,018	$	304,405	$	74,640	$	7,335


					Maximum Number (or
					Approximate Dollar
				Total Number of	Value) of Shares that
				Shares Purchased	May Yet Be Purchased
	Total Number			as Part of Publicly	Under the Plans or
	of Shares	Average Price		Announced Plans	Programs
Period	Purchased¹	per Share		or Programs²	(In thousands)
Jan 1 – Jan 31, 2026	—	$	—	—	$	500,000
Feb 1 – Feb 28, 2026	202	$	81.10	—	$	500,000
Mar 1 – Mar 31, 2026	1,793,100	$	74.65	1,353,991	$	400,000
Total	1,793,302	$	74.65	1,353,991	$	400,000


3.1		Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to our Form 8-K dated June 27, 2023).

3.2		Fourth Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3.2 to our Form 8-K dated November 7, 2024).

31.1*		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101*		The following financial information from Monster Beverage Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, (ii) Condensed Consolidated Statements of Income for the three-months ended March 31, 2026 and 2025, (iii) Condensed Consolidated Statements of Comprehensive Income for the three-months ended March 31, 2026 and 2025, (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three-months ended March 31, 2026 and 2025, (v) Condensed Consolidated Statements of Cash Flows for the three-months ended March 31, 2026 and 2025, and (vi) the Notes to Condensed Consolidated Financial Statements.

104*		The cover page from Monster Beverage Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.

	MONSTER BEVERAGE CORPORATION
	Registrant

Date: May 7, 2026	/s/ HILTON H. SCHLOSBERG
	Hilton H. Schlosberg
	Vice Chairman of the Board of Directors
	and Chief Executive Officer

Date: May 7, 2026	/s/ THOMAS J. KELLY
	Thomas J. Kelly
	Chief Financial Officer