[10-Q] Monster Beverage Corp Quarterly Earnings Report

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

10-Q

Rhea-AI Filing Summary

Monster Beverage delivered strong growth for the quarter ended March 31, 2026, with net sales of $2.35 billion, up 26.9% from $1.85 billion a year earlier. Net income rose to $569.5 million, compared with $443.0 million, and diluted earnings per share increased to $0.58 from $0.45.

Energy drink case volume climbed 28.8% to 274.5 million 192‑ounce equivalents, led by the Monster Energy Drinks segment, which generated $2.19 billion of net sales. International markets were a key driver, with sales outside the United States reaching $1.06 billion, or 45% of total net sales.

Gross profit grew to $1.29 billion, though gross margin slipped to 55.0% from 56.5%, mainly due to geographic mix and higher aluminum can and freight-in costs, partly offset by prior pricing actions. Operating income improved to $730.0 million, or 31.0% of net sales, while operating expenses grew more slowly than revenue.

Cash flow from operating activities was robust at $605.0 million, supporting continued investment and capital returns. The company ended the quarter with $2.04 billion in cash and cash equivalents and $1.72 billion in available-for-sale investments, with no borrowings outstanding under its credit facilities.

Monster continued returning capital to shareholders, repurchasing about 1.4 million shares for roughly $100.0 million under its August 2024 repurchase authorization, which still has $400.0 million remaining. The Alcohol Brands segment remained a small contributor, with $32.7 million in net sales and a reduced operating loss of $9.6 million.

Insights

Monster posted strong top- and bottom-line growth, with particularly robust international expansion.

Monster Beverage showcased powerful volume-driven growth. Net sales rose 26.9% to $2.35 billion, while net income climbed 28.6% to $569.5 million. Energy drink case volume increased 28.8% to 274.5 million, indicating broad-based demand rather than purely price-driven gains.

Profitability remained healthy. Gross margin eased to 55.0% from 56.5%, reflecting geography and higher aluminum and freight-in costs, but operating margin edged up to 31.0% as operating expenses grew slower than revenue. International sales reached $1.06 billion, or 45% of net sales, underscoring the importance of non-U.S. markets.

Cash generation was strong, with operating cash flow of $605.0 million. The company held $2.04 billion in cash and $1.72 billion in investments and had no borrowings under its main credit facilities as of March 31 2026, supporting ongoing share repurchases and strategic flexibility.

Core energy drinks drive results, while Alcohol Brands remains a small, loss-making segment.

The Monster Energy Drinks segment delivered net sales of $2.19 billion, about 93% of total net sales, with foreign currency-adjusted growth above 20%. Strategic Brands added $126.7 million in net sales, also growing strongly, mainly from Burn, Predator and Fury.

The Alcohol Brands segment generated $32.7 million in net sales and an operating loss of $9.6 million, although this loss narrowed significantly versus the prior year due to lower general and administrative expenses. This highlights that earnings are still overwhelmingly driven by non-alcohol energy drinks.

Management continued to invest in marketing and distribution while controlling overhead. Operating expenses rose 17.8% to $563.4 million, less than the pace of sales growth, helping improve operating leverage. Future filings may further detail how new product launches and geographic expansion contribute to segment profitability.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

05/07/2026 - 08:07 PM

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2026

Commission File Number 001-18761

MONSTER BEVERAGE CORPORATION

(Exact name of registrant as specified in its charter)


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

1 Monster Way

Corona, California 92879

(Address of principal executive offices) (Zip code)

(951) 739 - 6200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No __

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes X No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes __ No X

The registrant had 978,008,110 shares of common stock, par value $0.005 per share, outstanding as of April 30, 2026.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

MARCH 31, 2026

INDEX


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

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2026 AND DECEMBER 31, 2025

(In Thousands, Except Par Value) (Unaudited)


		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

See accompanying notes to condensed consolidated financial statements.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE-MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands, Except Per Share Amounts) (Unaudited)


		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

See accompanying notes to condensed consolidated financial statements.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands) (Unaudited)


	Three-Months Ended
	March 31,
	2026		2025
Net income, as reported	$	569,485	$	442,993
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustment		(24,664)		63,971
Change in net unrealized gain (loss) on available-for-sale investments		(4,324)		—
Change in net gain (loss) on commodity derivatives		20,493		2,570
Other comprehensive income (loss)		(8,495)		66,541
Comprehensive income	$	560,990	$	509,534

See accompanying notes to condensed consolidated financial statements.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE-MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands) (Unaudited)


													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


													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, 2024		1,126,329		$	5,632		$	5,144,922		$	7,448,784		$	(269,487)		(153,250)		$	(6,372,133)		$	5,957,718

Stock-based compensation		—			—			20,727			—			—		—			—			20,727
Stock options/awards		2,366			11			48,082			—			—		—			—			48,093
Repurchase of common stock		—			—			—			—			—		(302)			(16,633)			(16,633)
Foreign currency translation		—			—			—			—			63,971		—			—			63,971
Net gain (loss) on commodity derivatives		—			—			—			—			2,570		—			—			2,570
Net income		—			—			—			442,993			—		—			—			442,993
Balance, March 31, 2025		1,128,695		$	5,643		$	5,213,731		$	7,891,777		$	(202,946)		(153,552)		$	(6,388,766)		$	6,519,439

See accompanying notes to condensed consolidated financial statements.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands) (Unaudited)


	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
Purchases of common stock held in treasury		(133,970)			(16,633)
Net cash used in financing activities		(118,120)			(145,585)

Effect of exchange rate changes on cash and cash equivalents		(14,598)			38,972

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(48,417)			370,132
CASH AND CASH EQUIVALENTS, beginning of period		2,088,117			1,533,287
CASH AND CASH EQUIVALENTS, end of period	$	2,039,700		$	1,903,419

SUPPLEMENTAL INFORMATION:
Cash paid during the period for:
Interest	$	41		$	4,174
Income taxes	$	71,424		$	61,646

See accompanying notes to condensed consolidated financial statements.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands) (Unaudited) (Continued)

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS

Included in accrued liabilities as of March 31, 2026 and 2025 were additions to other intangible assets of $1.8 million and $5.1 million, respectively.

Included in accounts payable as of March 31, 2026 and 2025 were property and equipment purchases of $0.7 million and $4.0 million, respectively.

Included in accounts payable as of March 31, 2026 were available-for-sale short-term investment purchases of $28.4 million.

Included in accounts payable as of March 31, 2026 were available-for-sale long-term investment purchases of $28.8 million.

See accompanying notes to condensed consolidated financial statements.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

1.	BASIS OF PRESENTATION

Reference is made to the Notes to Consolidated Financial Statements, in Monster Beverage Corporation and Subsidiaries (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2025 for a summary of significant accounting policies utilized by the Company and its consolidated subsidiaries and other disclosures, which should be read in conjunction with this Quarterly Report on Form 10-Q (“Form 10-Q”).

The Company’s condensed consolidated financial statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) rules and regulations applicable to interim financial reporting. They do not include all the information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP. The information set forth in these interim condensed consolidated financial statements for the three-months ended March 31, 2026 and 2025, respectively, is unaudited and reflects all adjustments, which include only normal recurring adjustments and which in the opinion of management are necessary to make the interim condensed consolidated financial statements not misleading. Results of operations for periods covered by this report may not necessarily be indicative of results of operations for the full year.

The preparation of financial statements in conformity with GAAP necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Recent Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Disaggregation of Income Statement Expenses. The amendments in this update require the Company to disaggregate key expense categories such as purchases of inventory, employee compensation, depreciation and intangible asset amortization, within its financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is evaluating the impact ASU 2024-03 will have on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update require internal-use software development cost capitalization to begin when both of the following occur: management has authorized and committed to funding the software project, and it is probable that the project will be completed and that the software will be used to perform its intended function. The amendments also eliminate the accounting considerations of software development stages. The amendments in ASU 2025-06 are effective for fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact ASU 2025-06 will have on its consolidated financial statements.

2.	REVENUE RECOGNITION

Revenues are accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and FLRT^TM total wellness energy drinks, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, flavored malt beverages (“FMBs”) and hard seltzers and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers and full service beverage distributors (“bottlers/distributors”). In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, FMBs and hard seltzers primarily to beer distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of March 31, 2026 and December 31, 2025.

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expenses after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company’s energy drink products primarily include consideration given to the Company’s non-alcohol bottlers/distributors or customers, including, but not limited to, the following:

●

discounts granted off list prices to support price promotions to end-consumers by retailers;

●

reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

●

the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

●

the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

●

incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

●

discounted and/or free products or cash rebates;

●

contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

●

commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

Disaggregation of Revenue

The following tables disaggregate the Company’s revenue by geographical markets and reportable segments:


	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

¹Europe, Middle East and Africa (“EMEA”)

Contract Liabilities

Amounts received from certain bottlers/distributors at the inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of March 31, 2026 and December 31, 2025, the Company had $201.7 million and $205.3 million, respectively, of deferred revenue, which is included in current and long-term deferred revenue in the Company’s condensed consolidated balance sheets. During both the three-months ended March 31, 2026 and 2025, $9.9 million of deferred revenue was recognized in net sales. See Note 8.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

3.INVESTMENTS

The following table summarizes the Company’s investments at:


									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	$	—


									Continuous		Continuous
			Gross		Gross				Unrealized		Unrealized
			Unrealized		Unrealized				Loss Position		Loss Position
	Amortized		Holding		Holding		Fair		less than		greater than
December 31, 2025	Cost		Gains		Losses		Value		12 Months		12 Months
Available-for-sale
Short-term:
Commercial paper	$	90,418	$	1	$	—	$	90,419	$	—	$	—
Certificates of deposit		12,728		—		—		12,728		—		—
Municipal securities		674		1		—		675		—		—
U.S. treasuries		489,007		492		—		489,499		—		—
Corporate bonds		83,639		124		—		83,763		—		—
Long-term:
Municipal securities		1,206		1		—		1,207		—		—
U.S. treasuries		259,613		353		—		259,966		—		—
Corporate bonds		225,867		289		—		226,156		—		—
Total	$	1,163,152	$	1,261	$	—	$	1,164,413	$	—	$	—

During the three-months ended March 31, 2026, realized gains or losses recognized on the sale of investments were not significant. During the three-months ended March 31, 2025, no investments were sold.

The Company’s investments at March 31, 2026 carried investment grade credit ratings.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following table summarizes the underlying contractual maturities of the Company’s investments at:


	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

4.	FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

●

Level 1: Quoted prices in active markets for identical assets or liabilities.

●

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

●

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:


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


December 31, 2025	Level 1		Level 2		Level 3		Total
Cash	$	1,244,954	$	—	$	—	$	1,244,954
Money market funds		787,293		—		—		787,293
Commercial paper		—		90,419		—		90,419
Certificates of deposit		—		68,597		—		68,597
Municipal securities		—		1,882		—		1,882
U.S. treasuries		—		749,465		—		749,465
Corporate bonds		—		309,919		—		309,919
Foreign currency derivatives		—		(1,474)		—		(1,474)
Commodity derivatives		—		35,188		—		35,188
Total	$	2,032,247	$	1,253,996	$	—	$	3,286,243

Amounts included in:
Cash and cash equivalents	$	2,032,247	$	55,870	$	—	$	2,088,117
Short-term investments		—		677,084		—		677,084
Accounts receivable, net		—		33,667		—		33,667
Other assets		—		3,530		—		3,530
Investments		—		487,329		—		487,329
Accrued liabilities		—		(3,484)		—		(3,484)
Total	$	2,032,247	$	1,253,996	$	—	$	3,286,243

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the three-months ended March 31, 2026, or during the year-ended December 31, 2025, and there were no changes in the Company’s valuation techniques.

5.	INVENTORIES

Inventories consist of the following at:


		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

6.	PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following at:


		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

Total depreciation and amortization expense was $25.7 million and $20.5 million for the three-months ended March 31, 2026 and 2025, respectively.

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(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

7.GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the three-months ended March 31, 2026 and 2025 by reportable segment:


	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


	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands*		Other		Total
Balance at December 31, 2024	$	693,644	$	637,999	$	—	$	—	$	1,331,643
Acquisitions		—		—		—		—		—
Balance at March 31, 2025	$	693,644	$	637,999	$	—	$	—	$	1,331,643

*Accumulated goodwill impairment balance was $86.3 million related entirely to Alcohol Brands. There were no impairments prior to the year ended December 31, 2024.

Intangible assets consist of the following at:


		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

Amortizing intangibles primarily consist of computer software, tradenames and customer relationships. All amortizing intangibles have been assigned an estimated finite useful life, and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally three to ten years. Total amortization expense was $2.7 million and $4.3 million for the three-months ended March 31, 2026 and 2025, respectively. For the three-months ended March 31, 2026 and 2025, no impairment charges were recorded to intangible assets.

The following is the future estimated amortization expense related to amortizing intangibles as of March 31, 2026:


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

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(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

8.	DISTRIBUTION AGREEMENTS

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, or at the inception of certain sales/marketing programs are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective agreement, generally 20 years or program duration, as the case may be. Revenue recognized was $9.9 million for both the three-months ended March 31, 2026 and 2025.

DEBT

In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders (the “Original Credit Agreement”), which provided for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities previously consisted of a $750.0 million term loan (the “Term Loan”) and up to $750.0 million in multicurrency revolving loan commitments (the “Revolving Credit Facility”). The Term Loan was repaid in April 2025 with no additional borrowings permitted. In addition, pursuant to Amendment No. 1 to the Original Credit Agreement, dated as of October 17, 2025, among the Company, JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders (the “Amended Credit Agreement”), the Company’s aggregate borrowing capacity under the Revolving Credit Facility has been reduced to $500.0 million. Borrowings under the Revolving Credit Facility bear interest at a variable rate per annum equal to the applicable rate plus margin (as defined in the Amended Credit Agreement). Borrowings may be repaid at any time during the term of the Revolving Credit Facility and may be reborrowed prior to the maturity date, which is set to occur in May 2029. As of March 31, 2026, no borrowings were outstanding under the Credit Facilities, and the Company was in compliance with all covenants under the Amended Credit Agreement.

Additionally, the Company has a line of credit of up to $15.0 million with HSBC Bank (China) Company Limited, Shanghai Branch. As of March 31, 2026, no amount was outstanding on this line of credit.

10.	COMMITMENTS AND CONTINGENCIES

The Company had purchase commitments aggregating approximately $207.9 million at March 31, 2026, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms but are generally satisfied within one year.

The Company had contractual obligations aggregating approximately $684.9 million at March 31, 2026, which related primarily to sponsorships and other marketing activities.

Litigation — From time to time in the normal course of business, the Company is named in litigation, including labor and employment matters, personal injury matters, consumer class actions, intellectual property matters and claims from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation, in aggregate, will likely not have a material adverse effect on the Company’s financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, and any related insurance reimbursements. As of March 31, 2026 and December 31, 2025, $30.1 million and $36.2 million, respectively, of loss contingencies were included in the Company’s accompanying condensed consolidated balance sheets.

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(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

11.	ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, after tax, for the three-months ended March 31, 2026 and 2025 are as follows:


	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)


	Accumulated Net		Currency		Unrealized Gains
	Gains (Losses)		Translation		(Losses) on
	on Commodity		Gains		Available-for-
	Derivatives		(Losses)		Sale Securities		Total
Balance at December 31, 2024	$	443	$	(269,930)	$	—	$	(269,487)
Other comprehensive income (loss) before reclassifications		2,570		63,971		—		66,541
Net current-period other comprehensive income (loss)		2,570		63,971		—		66,541
Balance at March 31, 2025	$	3,013	$	(205,959)	$	—	$	(202,946)

12.	TREASURY STOCK

On August 19, 2024, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “August 2024 Repurchase Plan”). During the three-months ended March 31, 2026, the Company purchased approximately 1.4 million shares of its common stock at an average purchase price of $73.86 per share, for a total amount of approximately $100.0 million under the August 2024 Repurchase Plan. As of May 6, 2026, approximately $400.0 million remained available for repurchase under the August 2024 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is approximately $400.0 million as of May 6, 2026.

During the three-months ended March 31, 2026, 0.4 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $33.9 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying condensed consolidated balance sheet at March 31, 2026.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

13.	STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant at March 31, 2026: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan, including the Monster Beverage Corporation Deferred Compensation Plan as a sub-plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as Amended and Restated on February 23, 2022, including the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub-plan thereunder.

The Company recorded $28.3 million and $20.7 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the three-months ended March 31, 2026 and 2025, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the three-months ended March 31, 2026 and 2025 was $5.5 million and $7.2 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted as of March 31, 2026 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:


	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

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury zero-coupon yield curve in effect at the time of grant for the expected term of the option.

Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

The following table summarizes the Company’s activities with respect to its stock option plans as follows:


				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

The weighted-average grant-date fair value of options granted during the three-months ended March 31, 2026 and 2025 was $26.54 per share and $19.83 per share, respectively.

The total intrinsic value of options exercised during the three-months ended March 31, 2026 and 2025 was $30.4 million and $48.1 million, respectively.

Cash received from option exercises under all plans for the three-months ended March 31, 2026 and 2025 was $18.0 million and $48.1 million, respectively.

At March 31, 2026, there was $121.4 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 2.5 years.

Restricted Stock Units and Performance Share Units

The cost of stock-based compensation for restricted stock units and performance share units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date.

The following table summarizes the Company’s activities with respect to non-vested restricted stock units and performance share units as follows:


	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

¹The grant activity for performance share units is recorded based on the target performance level earning 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the three-months ended March 31, 2026 and 2025 was $77.11 and $55.08 per share, respectively.

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As of March 31, 2026, 1.9 million restricted stock units and performance share units are expected to vest over their respective terms.

At March 31, 2026, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $91.2 million, which is expected to be recognized over a weighted-average period of 2.4 years.

Other Share-Based Awards

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until the date of settlement. At March 31, 2026, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2027, 2028 and 2029.

At March 31, 2026, there was $2.4 million of unrecognized compensation expense related to non-vested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.5 years.

14.	INCOME TAXES

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the three-months ended March 31, 2026:


	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

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s condensed consolidated financial statements. As of March 31, 2026, the Company had approximately $1.0 million in accrued interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, the resultant impact on the Company’s effective tax rate would not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2022 through 2025 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are generally subject to examination for the 2021 through 2025 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2021 through 2025 tax years.

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(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

15.	EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations is presented below (in thousands):


	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

For the three-months ended March 31, 2026 and 2025, options and awards outstanding totaling 0.2 million shares and 9.7 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

16.	SEGMENT INFORMATION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and FLRT^TM total wellness energy drinks, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, FMBs and hard seltzers and (iv) Other segment, which is comprised of the AFF Third-Party Products.

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided in the Company’s reportable segments, as management does not measure or allocate such assets on a segment basis.

The Company’s chief operating decision maker is the chief executive officer (the “CEO”). The CEO assesses segments’ performance by using each segment’s operating income and considers budget-to-actual variances on a periodic basis (at least quarterly)

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when making decisions about operational planning, including resource allocation. Further, the CEO uses segments’ operating income when comparing the results of each segment with one another.

The tables below provide information about the Company’s reportable segments, including the corporate and unallocated category.

Three-Months Ended March 31, 2026


	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Net sales¹	$	2,188,654	$	126,720	$	32,657	$	5,260	$	2,353,291

Cost of sales		990,657		43,565		22,147		3,573
Gross profit		1,197,997		83,155		10,510		1,687		1,293,349

Distribution expense		97,888		2,670		2,270		10
Selling and marketing expense		177,926		12,846		4,204		40
Nonmanufacturing payroll expense		50,051		2,880		9,711		432
Other segment items²		23,253		875		3,972		824
Segment profit (loss)¹		848,879		63,884		(9,647)		381		903,497

Reconciliation of segment profit (loss)
Interest and other income, net										20,170
Unallocated amounts:
Corporate payroll expenses										(117,658)
Corporate overhead expenses, excluding payroll										(55,881)

Income before provision for income taxes									$	750,128

Depreciation and amortization	$	21,670	$	294	$	1,884	$	282	$	24,130
Unallocated depreciation and amortization										4,270
Total depreciation and amortization									$	28,400

¹For the Monster Energy® Drinks segment, includes $9.9 million related to the recognition of deferred revenue.

²Other segment items for each reportable segment include:

Monster Energy® Drinks – travel and entertainment expense, professional services expense, and certain overhead expenses

Strategic Brands – travel and entertainment expense, and certain overhead expenses

Alcohol Brands – travel and entertainment expense, professional services expense, depreciation and amortization expense, and certain overhead expenses

Other – professional services expense, and certain overhead expenses

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Three-Months Ended March 31, 2025


	Monster
	Energy®		Strategic		Alcohol
	Drinks		Brands		Brands		Other		Total
Net sales¹	$	1,715,548	$	98,332	$	34,703	$	5,975	$	1,854,558

Cost of sales		745,696		30,687		25,436		4,777
Gross profit		969,852		67,645		9,267		1,198		1,047,962

Distribution expense		73,445		1,111		2,998		—
Selling and marketing expense		154,534		11,295		6,338		113
Nonmanufacturing payroll expense		42,807		2,450		9,322		713
Other segment items²		18,714		893		12,099		136
Segment profit (loss)¹		680,352		51,896		(21,490)		236		710,994

Reconciliation of segment profit (loss)
Interest and other income, net										8,272
Unallocated amounts:
Corporate payroll expenses										(97,101)
Corporate overhead expenses, excluding payroll										(44,148)

Income before provision for income taxes									$	578,017

Depreciation and amortization	$	16,625	$	259	$	5,094	$	124	$	22,102
Unallocated depreciation and amortization										2,746
Total depreciation and amortization									$	24,848

¹For the Monster Energy® Drinks segment, includes $9.9 million related to the recognition of deferred revenue.

²Other segment items for each reportable segment include:

Monster Energy® Drinks – travel and entertainment expense, professional services expense, and certain overhead expenses

Strategic Brands – travel and entertainment expense, and certain overhead expenses

Alcohol Brands – depreciation and amortization expense, travel and entertainment expense, professional services expense, and certain overhead expenses

Other – professional services expense, and certain overhead expenses

Coca-Cola Europacific Partners accounted for approximately 17% and 14% of the Company’s net sales for the three-months ended March 31, 2026 and 2025, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 9% and 10% of the Company’s net sales for the three-months ended March 31, 2026 and 2025, respectively.

Net sales to customers outside the United States amounted to $1.06 billion and $733.2 million for the three-months ended March 31, 2026 and 2025, respectively. Such sales were approximately 45% and 40% of net sales for the three-months ended March 31, 2026 and 2025, respectively.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

Goodwill and other intangible assets for the Company’s reportable segments were as follows at:


	March 31,			December 31,
	2026			2025
Goodwill and other intangible assets:
Monster Energy® Drinks	$	1,718,207		$	1,716,824
Strategic Brands		982,543			982,543
Alcohol Brands		11,204			11,544
Other		—			—
	$	2,711,954		$	2,710,911

17.	RELATED PARTY TRANSACTIONS

TCCC controls approximately 20.9% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, were $36.4 million and $25.8 million for the three-months ended March 31, 2026 and 2025, respectively, and are included as a reduction to net sales.

TCCC commissions, based on sales to TCCC independent bottlers, were $16.2 million and $9.4 million for the three-months ended March 31, 2026 and 2025, respectively, and are included in operating expenses.

Net sales to the TCCC Subsidiaries for the three-months ended March 31, 2026 and 2025 were $65.1 million and $58.1 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $5.9 million and $6.4 million for the three-months ended March 31, 2026 and 2025, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $13.1 million and $11.7 million for the three-months ended March 31, 2026 and 2025, respectively.

Accounts receivable, accounts payable, accrued promotional allowances and accrued liabilities related to the TCCC Subsidiaries were as follows at:


	March 31,		December 31,
	2026		2025
Accounts receivable, net	$	176,940	$	166,618
Accounts payable	$	(39,040)	$	(37,775)
Accrued promotional allowances	$	(19,178)	$	(24,898)
Accrued liabilities	$	(66,038)	$	(28,458)

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts) (Unaudited)

One director of the Company through certain trusts, and a family member of one director have ownership interests in a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the three-months ended March 31, 2026 and 2025 were $1.3 million and $1.6 million, respectively.

The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During the three-months ended March 31, 2026, the Company incurred no expenses in relation to the aircraft. During the three-months ended March 31, 2025, the Company incurred expenses of $0.04 million in relation to the aircraft.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity (“VIE”) for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE’s assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company’s condensed consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Business

When this report uses the words “the Company”, “we”, “us”, and “our”, these words refer to Monster Beverage Corporation and its subsidiaries, unless the context otherwise requires. Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries primarily develop and market energy drinks, and to a lesser extent, craft beers, flavored malt beverages (“FMBs”) and hard seltzers.

Pricing Actions

We implemented price increases in the fourth quarter of 2025 (for core brands and packages) in the United States and at various times in certain international markets during 2025 (collectively, the “Pricing Actions”). The Pricing Actions positively impacted gross profit margins in 2026 as compared to 2025.

Overview

We develop, market, sell and distribute energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names:

● 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®

We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man® IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum^TM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast^TM, Beast® Tea, Blind Lemon®, Blinder Lemon^TM and other brands.

We have four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and FLRT^TM total wellness energy drinks, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as our affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, FMBs and hard seltzers and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

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During the three-months ended March 31, 2026, we continued to expand our existing drink portfolio by adding additional products to our portfolio in a number of countries and further developed our distribution markets. During the three-months ended March 31, 2026, we sold the following new products to our customers:

●

Bang Energy® Lime Pop Drop

●

FLRT^TMBerry Tempting^TM

●

FLRT^TMGuava Lava^TM

●

FLRT^TMStrawberry Fling^TM

●

FLRT^TMSunset Squeeze^TM

●

Full Throttle® Red Apple

●

Juice Monster® Strawberry Lemonade

●

NOS® Grand Prix Guava^TM

●

Reign Total Body Fuel® Watermelon Sour Gummy

●

Relentless® White Citrus

In the normal course of business, we discontinue certain products and/or product lines. Those products or product lines discontinued in the three-months ended March 31, 2026, either individually or in aggregate, did not have a material adverse impact on our financial position, results of operations or liquidity.

Our net sales were $2.35 billion for the three-months ended March 31, 2026. Net changes in foreign currency exchange rates had a favorable impact on net sales of approximately $89.3 million for the three-months ended March 31, 2026. Net sales on a foreign currency adjusted basis increased 22.1% for the three-months ended March 31, 2026.

The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Net sales of our Monster Energy® Drinks segment were $2.19 billion for the three-months ended March 31, 2026. Net sales of our Strategic Brands segment were $126.7 million for the three-months ended March 31, 2026. Net sales of our Alcohol Brands segment were $32.7 million for the three-months ended March 31, 2026. Net sales of our Other segment were $5.3 million for the three-months ended March 31, 2026.

Our Monster Energy® Drinks segment represented 93.0% and 92.5% of our net sales for the three-months ended March 31, 2026 and 2025, respectively. Our Strategic Brands segment represented 5.4% and 5.3% of our net sales for the three-months ended March 31, 2026 and 2025, respectively. Our Alcohol Brands segment represented 1.4% and 1.9% of our net sales for the three-months ended March 31, 2026 and 2025, respectively. Our Other segment represented 0.2% and 0.3% of our net sales for the three-months ended March 31, 2026 and 2025, respectively.

Our growth strategy includes further developing our domestic markets and expanding our international business. Net sales to customers outside the United States were $1.06 billion for the three-months ended March 31, 2026, an increase of approximately $329.3 million, or 44.9% higher than net sales to customers outside of the United States of $733.2 million for the three-months ended March 31, 2025. Such sales were approximately 45% and 40% of net sales for the three-months ended March 31, 2026 and 2025, respectively. Net changes in foreign currency exchange rates had a favorable impact on net sales to customers outside of the United States of approximately $89.3 million for the three-months ended March 31, 2026. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 32.7% for the three-months ended March 31, 2026.

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Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. Our alcohol customers are primarily beer distributors who in turn sell to retailers within the alcohol distribution system. Percentages of our gross billings to our various customer types for the three- months ended March 31, 2026 and 2025 are reflected below. Such information includes sales made by us directly to the customer types concerned, which include our full service beverage bottlers/distributors in the United States. Such full service beverage bottlers/distributors in turn sell certain of our products to some of the same customer types listed below. We limit our description of our customer types to include only our sales to our full service bottlers/distributors without reference to such bottlers/distributors’ sales to their own customers.


	Three-Months Ended
	March 31,
	2026		2025
U.S. full service bottlers/distributors	41	%	45	%
International full service bottlers/distributors	47	%	41	%
Club stores and e-commerce retailers	8	%	9	%
Retail grocery, direct convenience, specialty chains and wholesalers	2	%	2	%
Alcohol, value stores and other	2	%	3	%

Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Holdings, LLC, Coca-Cola Southwest Beverages LLC, The Coca-Cola Bottling Company of Northern New England, Inc., Swire Pacific Holdings, Inc. (USA), Liberty Coca-Cola Beverages, LLC, Coca-Cola Europacific Partners, Coca-Cola Hellenic, Coca-Cola FEMSA, Swire Coca-Cola (China), COFCO Coca-Cola, Coca-Cola Beverages Africa, Coca-Cola İçecek and certain other TCCC network bottlers, Asahi Soft Drinks, Co., Ltd., Wal-Mart, Inc. (including Sam’s Club), Costco Wholesale Corporation and Amazon.com, Inc.

Our alcohol customers include Reyes Beverage Group, Ben E. Keith Company, J.J. Taylor Distributing and Admiral Beverage Corporation.

A decision by any large customer to decrease amounts purchased from us or to cease carrying our products could have a material adverse effect on our financial condition and consolidated results of operations.

Coca-Cola Europacific Partners accounted for approximately 17% and 14% of the Company’s net sales for the three-months ended March 31, 2026 and 2025, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 9% and 10% of the Company’s net sales for the three-months ended March 31, 2026 and 2025, respectively.

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Results of Operations

The following table sets forth key statistics for the three-months ended March 31, 2026 and 2025.


	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	%

¹Includes $9.9 million for both the three-months ended March 31, 2026 and 2025, related to the recognition of deferred revenue.

*Gross profit may not be comparable to that of other entities since some entities include all costs associated with their distribution process in cost of sales, whereas others exclude certain costs and instead include such costs within another line item such as operating expenses. We include out-bound freight and warehouse costs in operating expenses rather than in cost of sales.

Three-Months Ended March 31, 2026 Compared to the Three-Months Ended March 31, 2025.

Net Sales

Net sales were $2.35 billion for the three-months ended March 31, 2026, an increase of approximately $498.7 million, or 26.9% higher than net sales of $1.85 billion for the three-months ended March 31, 2025. Net sales increased primarily due to increased worldwide sales of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had a favorable impact on net sales of approximately $89.3 million for the three-months ended March 31, 2026. Net sales on a foreign currency adjusted basis increased 22.1% for the three-months ended March 31, 2026.

Net sales for the Monster Energy® Drinks segment were $2.19 billion for the three-months ended March 31, 2026, an increase of approximately $473.1 million, or 27.6% higher than net sales of $1.72 billion for the three-months ended March 31, 2025. Net sales increased primarily due to increased worldwide sales of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately $82.0 million for the three-months ended March 31, 2026. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 22.8% for the three-months ended March 31, 2026.

Net sales for the Strategic Brands segment were $126.7 million for the three-months ended March 31, 2026, an increase of approximately $28.4 million, or 28.9% higher than net sales of $98.3 million for the three-months ended March 31, 2025. Net sales for the Strategic Brands segment increased primarily due to increased sales of our Burn®, Predator®, and Fury® brand energy drinks. Net

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changes in foreign currency exchange rates had a favorable impact on net sales of approximately $7.3 million for the Strategic Brands segment for the three-months ended March 31, 2026. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 21.4% for the three-months ended March 31, 2026. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment primarily as a result of bottler production schedules.

Net sales for the Alcohol Brands segment were $32.7 million for the three-months ended March 31, 2026, a decrease of approximately $2.0 million, or 5.9% lower than net sales of $34.7 million for the three-months ended March 31, 2025. The decrease in net sales for the three-months ended March 31, 2026 was primarily due to decreased sales of craft beers.

Net sales for the Other segment were $5.3 million for the three-months ended March 31, 2026, a decrease of approximately $0.7 million, or 12.0% lower than net sales of $6.0 million for the three-months ended March 31, 2025.

Case sales for our energy drink products, in 192-ounce case equivalents, were 274.5 million cases for the three-months ended March 31, 2026, an increase of approximately 61.4 million cases or 28.8% higher than case sales of 213.1 million cases for the three-months ended March 31, 2025. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased marginally to $8.44 for the three-months ended March 31, 2026 from $8.51 for the three-months ended March 31, 2025.

Case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, were 2.3 million cases for the three-months ended March 31, 2026, a decrease of approximately 0.1 million cases or 5.7% lower than case sales of 2.4 million cases for the three-months ended March 31, 2025. Barrel sales for our craft beers, FMBs and hard seltzers, in 31 U.S. gallon equivalents, were 0.11 million barrels for the three-months ended March 31, 2026, a decrease of approximately 0.01 million barrels or 5.7% lower than barrel sales of 0.12 million barrels for the three-months ended March 31, 2025.

Gross Profit

Gross profit was $1.29 billion for the three-months ended March 31, 2026, an increase of approximately $245.4 million, or 23.4% higher than the gross profit of $1.05 billion for the three-months ended March 31, 2025. The increase in gross profit dollars was primarily the result of the increase in net sales.

Gross profit as a percentage of net sales decreased to 55.0% for the three-months ended March 31, 2026 from 56.5% for the three-months ended March 31, 2025. The decrease in gross profit as a percentage of net sales for the three-months ended March 31, 2026 was primarily the result of geographical sales mix, increased aluminum can costs and increased freight-in costs, partially offset by the Pricing Actions.

Operating Expenses

Total operating expenses were $563.4 million for the three-months ended March 31, 2026, an increase of approximately $85.2 million, or 17.8% higher than total operating expenses of $478.2 million for the three-months ended March 31, 2025.

The increase in operating expenses was primarily due to increased payroll expenses of $28.3 million, distribution expenses of $25.3 million and selling and marketing expenses of $22.7 million. Operating expenses as a percentage of net sales for the three-months ended March 31, 2026 and 2025 were 23.9% and 25.8%, respectively.

Operating Income

Operating income was $730.0 million for the three-months ended March 31, 2026, an increase of approximately $160.2 million, or 28.1% higher than operating income of $569.7 million for the three-months ended March 31, 2025. Operating income as a percentage of net sales increased to 31.0% for the three-months ended March 31, 2026 from 30.7% for the three-months ended March 31, 2025.

Operating income was $233.8 million and $142.6 million for the three-months ended March 31, 2026 and 2025, respectively, for our international operations, exclusive of Canada.

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Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $848.9 million for the three-months ended March 31, 2026, an increase of approximately $168.5 million, or 24.8% higher than operating income of $680.4 million for the three-months ended March 31, 2025. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in net sales.

Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $63.9 million for the three-months ended March 31, 2026, an increase of approximately $12.0 million, or 23.1% higher than operating income of $51.9 million for the three-months ended March 31, 2025. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.

Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $9.6 million for the three-months ended March 31, 2026, a decrease of approximately $11.8 million, or 55.1% lower than the operating loss of $21.5 million for the three-months ended March 31, 2025. The decrease in operating loss for the three-months ended March 31, 2026 was primarily due to decreased general administrative expenses of $8.1 million.

Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $0.4 million for the three-months ended March 31, 2026, as compared to operating income of $0.2 million for the three-months ended March 31, 2025.

Interest and Other Income, net

Interest and other income, net, was $20.2 million for the three-months ended March 31, 2026, as compared to interest and other income, net, of $8.3 million for the three-months ended March 31, 2025. Interest income was $28.6 million and $16.8 million for the three-months ended March 31, 2026 and 2025, respectively. Interest expense was $0.6 million and $4.0 million for the three-months ended March 31, 2026 and 2025, respectively. Foreign currency transaction losses were $6.8 million and $3.7 million for the three-months ended March 31, 2026 and 2025, respectively.

Provision for Income Taxes

Provision for income taxes was $180.6 million for the three-months ended March 31, 2026, an increase of $45.6 million from the provision for income taxes of $135.0 million for the three-months ended March 31, 2025. The effective combined federal, state and foreign tax rate increased to 24.1% from 23.4% for the three-months ended March 31, 2026 and 2025, respectively.

Net Income

Net income was $569.5 million for the three-months ended March 31, 2026, an increase of $126.5 million, or 28.6% higher than net income of $443.0 million for the three-months ended March 31, 2025.

Key Business Metrics

We use certain key metrics and financial measures not prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) to evaluate and manage our business. For a further discussion of how we use key metrics and certain non-GAAP financial measures, see “Non-GAAP Financial Measures and Other Key Metrics.”

Non-GAAP Financial Measures and Other Key Metrics

Gross Billings**

Three-Months Ended March 31, 2026 Compared to the Three-Months Ended March 31, 2025.

Gross billings were $2.77 billion for the three-months ended March 31, 2026, an increase of approximately $603.7 million, or 27.9% higher than gross billings of $2.16 billion for the three-months ended March 31, 2025. Gross billings increased primarily due to increased worldwide sales of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had a favorable impact on gross billings of approximately $107.9 million for the three-months ended March 31, 2026. Gross billings on a foreign currency adjusted basis increased 22.9% for the three-months ended March 31, 2026.

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Gross billings for the Monster Energy® Drinks segment were $2.58 billion for the three-months ended March 31, 2026, an increase of approximately $571.8 million, or 28.5% higher than gross billings of $2.01 billion for the three-months ended March 31, 2025. Gross billings increased primarily due to increased worldwide sales of our Monster Energy® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had a favorable impact on gross billings for the Monster Energy® Drinks segment of approximately $100.7 million for the three-months ended March 31, 2026. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 23.5% for the three-months ended March 31, 2026.

Gross billings for the Strategic Brands segment were $149.2 million for the three-months ended March 31, 2026, an increase of $35.5 million, or 31.2% higher than gross billings of $113.8 million for the three-months ended March 31, 2025. Gross billings for the Strategic Brands segment increased primarily due to increased sales of our Burn®, Predator®, and Fury® brand energy drinks. Net changes in foreign currency exchange rates had a favorable impact on gross billings in the Strategic Brands segment of approximately $7.3 million for the three-months ended March 31, 2026. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 24.8% for the three-months ended March 31, 2026.

Gross billings for the Alcohol Brands segment were $33.5 million for the three-months ended March 31, 2026, a decrease of approximately $2.7 million, or 7.5% lower than gross billings of $36.2 million for the three-months ended March 31, 2025. The decrease in gross billings for the three-months ended March 31, 2026 was primarily due to decreased sales of craft beers.

Gross billings for the Other segment were $5.4 million for the three-months ended March 31, 2026, a decrease of $0.8 million, or 12.9% lower than gross billings of $6.1 million for the three-months ended March 31, 2025.

Promotional allowances, commissions and other expenses, as described in the footnote below, were $422.5 million for the three-months ended March 31, 2026, an increase of $105.0 million, or 33.1% higher than promotional allowances, commissions and other expenses of $317.5 million for the three-months ended March 31, 2025. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 15.3% from 14.7% for the three-months ended March 31, 2026 and 2025, respectively.

**Gross billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.

The following table reconciles the non-GAAP financial measure of gross billings with the most directly comparable GAAP financial measure of net sales:


	Three-Months Ended				Percentage
(In thousands)	March 31,				Change
	2026		2025		26 vs. 25
Gross Billings	$	2,765,929	$	2,162,190	27.9	%
Deferred Revenue		9,902		9,910	(0.1)	%
Less: Promotional allowances, commissions and other expenses***		422,540		317,542	33.1	%
Net Sales	$	2,353,291	$	1,854,558	26.9	%

***Although the expenditures described in this line item are determined in accordance with GAAP and meet GAAP requirements, the presentation thereof does not conform to GAAP presentation requirements. Additionally, our definition of promotional and other allowances may not be comparable to similar items presented by other companies. Promotional and other allowances for our energy drink products primarily include consideration given to our non-alcohol bottlers/distributors or customers including, but not limited to the following: (i) discounts granted off list prices to support price promotions to end-consumers by retailers; (ii) reimbursements given to our bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products; (iii) our agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities; (iv) our agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers; (v) incentives given to our bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals; (vi) discounted and/or free products or cash rebates; (vii) contractual fees

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given to our bottlers/distributors related to sales made by us direct to certain customers that fall within the bottlers’/distributors’ sales territories; and (viii) certain commissions paid based on sales to our bottlers/distributors. The presentation of promotional and other allowances facilitates an evaluation of their impact on the determination of net sales and the spending levels incurred or correlated with such sales. Promotional and other allowances for our energy drink products constitute a material portion of our marketing activities. Our promotional allowance programs for our energy drink products with our numerous bottlers/distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, ranging from one week to one year. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Sales

The table below discloses selected quarterly data regarding sales for the three-months ended March 31, 2026 and 2025, respectively. Data from any one or more quarters or periods is not necessarily indicative of annual results or continuing trends.

Sales of our energy drinks are expressed in unit case volume. A “unit case” means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings). Unit case volume means the number of unit cases (or unit case equivalents) of finished products or concentrates as if converted into finished products sold by us.

Our quarterly results of operations reflect seasonal trends that are primarily the result of increased demand in the warmer months of the year. Beverage sales tend to be lower during the first and fourth quarters of each calendar year. However, our experience with our energy drink products suggests they are less seasonal than the seasonality expected from traditional beverages. In addition, our continued growth internationally may further reduce the impact of seasonality on our business. Quarterly fluctuations may also be affected by other factors including the introduction of new products, the opening of new markets where temperature fluctuations are more pronounced, the addition of new bottlers/distributors, changes in the sales mix of our products and changes in advertising and promotional expenses.


	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

¹Excludes Alcohol Brands segment and Other segment net sales.

Net changes in foreign currency exchange rates had a favorable impact on the overall average net sales per case for the three-months ended March 31, 2026.

The following represents case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents:


	Three-Months Ended
(In thousands, except average net sales per case)	March 31,
	2026		2025
Alcohol Brands segment net sales	$	32,657	$	34,703
Case sales		2,267		2,403
Average net sales per case - Alcohol Brands	$	14.41	$	14.44

See Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” for additional information related to net sales.

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Liquidity and Capital Resources

Cash and cash equivalents. At March 31, 2026, we had $2.04 billion in cash and cash equivalents, $945.3 million in short-term investments, and $770.4 million in long-term investments, including commercial paper, certificates of deposit, municipal securities, U.S. government agency securities, U.S. treasuries and corporate bonds. We maintain our investments for cash management purposes and not for purposes of speculation. Our risk management policies emphasize credit quality (primarily based on short-term ratings by nationally recognized statistical rating organizations) in selecting and maintaining our investments. We regularly assess the market risk of our investments and believe our current policies and investment practices adequately limit those risks. However, certain of these investments are subject to general credit, liquidity, market and interest rate risks. These market risks associated with our investment portfolio may have an adverse effect on our future results of operations, liquidity and financial condition.

Of our $2.04 billion of cash and cash equivalents held at March 31, 2026, $968.1 million was held by our foreign subsidiaries. No short-term or long-term investments were held by our foreign subsidiaries at March 31, 2026.

Long-term debt. In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders (the “Original Credit Agreement”), which provided for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities previously consisted of a $750.0 million term loan (the “Term Loan”) and up to $750.0 million in multicurrency revolving loan commitments (the “Revolving Credit Facility”). The Term Loan was repaid in April 2025 with no additional borrowings permitted. In addition, pursuant to Amendment No. 1 to the Original Credit Agreement, dated as of October 17, 2025, among the Company, JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders (the “Amended Credit Agreement”), the Company’s aggregate borrowing capacity under the Revolving Credit Facility has been reduced to $500.0 million. Borrowings under the Revolving Credit Facility bear interest at a variable rate per annum equal to the applicable rate plus margin (as defined in the Amended Credit Agreement). Borrowings may be repaid at any time during the term of the Revolving Credit Facility and may be reborrowed prior to the maturity date, which is set to occur in May 2029. As of March 31, 2026, no borrowings were outstanding under the Credit Facilities, and the Company was in compliance with all covenants under the Amended Credit Agreement. As of May 6, 2026, the Revolving Credit Facility had remaining availability of $500.0 million.

We believe that cash available from operations, including our cash resources and access to credit, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable, payments of tax liabilities, expansion and development requirements, purchases of capital assets, purchases of equipment, purchases of real property and purchases of shares of our common stock, through at least the next 12 months. Based on our current plans, we estimate that capital expenditures (exclusive of common stock repurchases) are likely to be less than $250.0 million through March 31, 2027. However, future business opportunities may cause a change in this estimate.

Purchases of inventories, increases in accounts receivable and other assets, acquisition of property and equipment (including real property, personal property, plant and manufacturing equipment, and coolers), leasehold improvements, advances for or the purchase of equipment for our bottlers, acquisition and maintenance of trademarks, payments of accounts payable, income taxes payable and purchases of our common stock are expected to remain our principal recurring use of cash.

The following summarizes our cash flows for the three-months ended March 31, 2026 and 2025 (in thousands):

Net cash provided by (used in):


		2026			2025
Operating activities		$	604,986		$	507,600
Investing activities		$	(520,685)		$	(30,855)
Financing activities		$	(118,120)		$	(145,585)

Cash flows provided by operating activities. Cash provided by operating activities was $605.0 million for the three-months ended March 31, 2026, as compared with cash provided by operating activities of $507.6 million for the three-months ended March 31, 2025.

For the three-months ended March 31, 2026, cash provided by operating activities was primarily attributable to net income earned of $569.5 million and adjustments for certain non-cash expenses, consisting primarily of $32.0 million of depreciation and

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amortization and non-cash lease expense and $28.3 million of stock-based compensation. For the three-months ended March 31, 2026, cash provided by operating activities also increased due to a $164.7 million increase in accounts payable, an $87.0 million increase in accrued liabilities, an $83.4 million increase in income taxes payable, a $23.7 million increase in accrued promotional allowances, and a $23.4 million decrease in prepaid income taxes. For the three-months ended March 31, 2026, cash used in operating activities was primarily attributable to a $249.1 million increase in accounts receivable, a $70.6 million increase in prepaid expenses and other assets, a $45.5 million decrease in accrued compensation, and a $33.5 million increase in inventories.

For the three-months ended March 31, 2025, cash provided by operating activities was primarily attributable to net income earned of $443.0 million and adjustments for certain non-cash expenses, consisting primarily of $28.9 million of depreciation and amortization and non-cash lease expense and $20.7 million of stock-based compensation. For the three-months ended March 31, 2025, cash provided by operating activities also increased due to a $61.7 million increase in income taxes payable, a $33.7 million increase in accrued liabilities, a $30.8 million increase in accrued promotional allowances, a $19.6 million decrease in inventories, an $11.9 million decrease in prepaid income taxes, and an $11.8 million increase in accounts payable. For the three-months ended March 31, 2025, cash used in operating activities was primarily attributable to a $109.6 million increase in accounts receivable, a $37.3 million decrease in accrued compensation, a $4.3 million decrease in deferred revenue, and a $4.0 million increase in prepaid expenses and other assets.

Cash flows used in investing activities. Cash used in investing activities was $520.7 million for the three-months ended March 31, 2026, as compared to cash used in investing activities of $30.9 million for the three-months ended March 31, 2025.

For the three-months ended March 31, 2026, cash used in investing activities was primarily attributable to purchases of available-for-sale investments. To a lesser extent, for both the three-months ended March 31, 2026 and 2025, cash used in investing activities also included the acquisitions of fixed assets consisting of vans and promotional vehicles, coolers and other equipment to support our marketing and promotional activities, production equipment, furniture and fixtures, office and computer equipment, equipment used for sales and administrative activities, certain leasehold improvements, as well as construction of and/or improvements to real property. For the three-months ended March 31, 2026, cash provided by investing activities was primarily attributable to sales of available-for-sale investments. We expect to continue to use a portion of our cash in excess of our requirements for operations to purchase short-term and long-term investments, leasehold improvements, and capital equipment (specifically, vans, trucks and promotional vehicles, coolers, other promotional equipment, merchandise displays, warehousing racks as well as items of production equipment required to produce certain of our existing and/or new products) to develop our brand in international markets and for other corporate purposes. From time to time, we may also use cash to purchase additional real property related to our beverage business and/or acquire compatible businesses.

Cash flows used in financing activities. Cash used in financing activities was $118.1 million for the three-months ended March 31, 2026, as compared to cash used in financing activities of $145.6 million for the three-months ended March 31, 2025. The cash used in financing activities for the three-months ended March 31, 2026 was primarily attributable to repurchases of our common stock. The cash used in financing activities for the three-months ended March 31, 2025 was primarily due to repayments on the Credit Facilities and, to a lesser extent, repurchases of our common stock. The cash provided by financing activities for both the three-months ended March 31, 2026 and 2025 was primarily attributable to the issuance of our common stock under our stock-based compensation plans.

The following represents a summary of the Company’s contractual commitments and related scheduled maturities as of March 31, 2026:


	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

¹Contractual obligations include our obligations related to sponsorships and other commitments.

²Purchase commitments include obligations made by us and our subsidiaries to various suppliers for raw materials used in the production of our products. These obligations vary in terms but are generally satisfied within one year.

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In addition, approximately $3.6 million of unrecognized tax benefits have been recorded as liabilities as of March 31, 2026. As of March 31, 2026, we had $1.0 million of accrued interest and penalties related to unrecognized tax benefits.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with GAAP. GAAP requires us to make estimates and assumptions that affect the reported amounts in our consolidated financial statements. Critical accounting estimates are those that management believes are the most important to the portrayal of our financial condition and results and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. There have been no material changes to our critical accounting policies or estimates from the information provided in “Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 – Organization and Summary of Significant Accounting Policies”, included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“Form 10-K”).

Recent Accounting Pronouncements

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 1. Recent Accounting Pronouncements, in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Inflation

We believe inflation did not have a significant impact on our results of operations for the three-months ended March 31, 2026.

Forward-Looking Statements

Certain statements made in this report may constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) (the “Exchange Act”) regarding the expectations of management with respect to revenues, profitability, and adequacy of funds from operations and the Revolving Credit Facility, among other things. All statements containing a projection of revenues, income (loss), earnings (loss) per share, capital expenditures, dividends, capital structure or other financial items, a statement of management’s plans and objectives for future operations, or a statement of future economic performance contained in management’s discussion and analysis of financial condition and results of operations, including statements related to new products, volume growth and statements encompassing general optimism about future operating results and non-historical information, are forward-looking statements within the meaning of the Exchange Act. Without limiting the foregoing, the words “believes,” “thinks,” “anticipates,” “plans,” “expects,” “estimates” and similar expressions are intended to identify forward-looking statements.

Management cautions that these statements are qualified by their terms and/or important factors, many of which are outside our control and involve a number of risks, uncertainties and other factors, that could cause actual results and events to differ materially from the statements made including, but not limited to, the following:

●

our ability to sustain and/or surpass the current level of sales of our products, to adapt to changing consumer preferences, and to effectively respond to competitive products and pricing pressures;

●

our ability to implement our growth strategy, including expanding our business in existing and new sectors and achieving profitability within our Alcohol Brands segment;

●

our ability to adapt to the changing retail landscape with the rapid growth in e-commerce retailers and e-commerce websites;

●

our ability to absorb, reduce or pass on to our bottlers/distributors increases in costs and expenses, including, but not limited to, increases to the cost of aluminum and other raw materials, the Midwest Premium, and freight costs;

●

the impact of the current U.S. presidential administration’s policies on our energy drinks due to concerns about sugar-sweetened beverages, particular ingredients, such as food dyes, and the “generally recognized as safe” (GRAS) process;

●

the impact of proposed or adopted domestic and/or foreign legislation to limit or restrict the sale of energy drinks (including the prohibition of the sale of energy drinks to certain demographics, at certain establishments, in certain container sizes or pursuant to certain governmental programs, such as the Supplemental Nutrition Assistance Program (SNAP));

●

the impact of changes in U.S. trade policies, including the imposition of additional tariffs;

●

the impact of adverse changes in our costs, supply chain, inflation or consumer demand for our products;

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●

the imposition of new and/or increased excise sales and/or other taxes on our products;

●

our extensive commercial arrangements with The Coca-Cola Company (TCCC) and, as a result, our future performance’s substantial dependence on the success of our relationship with TCCC;

●

the effects of unilateral decisions by bottlers/distributors and/or retailers on our business, including their distribution and placement of our products, their consolidation, their discontinuation, or restriction of the range of, all or any of our products that they carry, their limitations on the sale or sizes of our products and/or their allocation of less resources to the sale of our products;

●

changes in the price and/or availability of raw materials and other supply chain issues, such as the availability of products, suitable production facilities and/or co-packing arrangements;

●

possible recalls of our products and/or the consequences and costs of defective production;

●

disruption to our manufacturing facilities and operations related to climate, labor, production difficulties, capacity limitations, regulations or other causes;

●

disruption to and/or lack of effectiveness of our information technology systems, including internal and external cybersecurity threats and breaches;

●

adverse publicity surrounding obesity, alcohol consumption and other health concerns related to our products, product safety and quality;

●

liabilities resulting from legal or regulatory proceedings, government investigations, and/or injunctions;

●

the inherent operational risks, including the abuse or misuse of our products, presented by the alcoholic beverage industry and/or related claims that may not be adequately covered by insurance or may lead to litigation;

●

the current uncertainty and volatility in the national and global economy and changes in demand due to such economic conditions, including a slowdown in consumer spending generally; and

●

the impact of military and geopolitical conflicts, including supply chain disruptions, volatility in commodity prices, increased economic uncertainty and escalating geopolitical tensions.

The foregoing list of important factors and other risks detailed from time to time in our reports filed with the SEC is not exhaustive. See “Part II, Item 1A – Risk Factors” for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, our actual results could be materially different from the results described or anticipated by our forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections and may be better or worse than anticipated. Given these uncertainties, you should not rely on forward-looking statements. Forward-looking statements represent our estimates and assumptions only as of the date that they were made. We expressly disclaim any duty to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, in order to reflect changes in circumstances or expectations or the occurrence of unanticipated events except to the extent required by applicable securities laws.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risks during the three-months ended March 31, 2026 compared with the disclosures in Part II, Item 7A of our Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures – Under the supervision and with the participation of the Company’s management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are adequate and effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in rules and forms of the SEC and (2) accumulated and communicated to our management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting – There were no changes in the Company’s internal controls over financial reporting during the quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

The information required by this Item is incorporated herein by reference to the Notes to Condensed Consolidated Financial Statements - Note 10. Commitments and Contingencies: Litigation in Part I, Item 1, of this Quarterly Report on Form 10-Q.

ITEM 1A.RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations and the condensed consolidated financial statements and related notes, you should carefully consider the risks discussed in “Part I, Item 1A – Risk Factors” in our Form 10-K. If any of these risks occur or continue to occur, our business, reputation, financial condition and/or operating results could be materially adversely affected. We also note that the risk factors described in this report and our Form 10-K are not the only risks facing our Company, and such additional risks or uncertainties that we currently deem to be immaterial or are unknown to us could negatively impact our business, operations, or financial results.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following tabular summary reflects the Company’s repurchase activity during the quarter ended March 31, 2026.


					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

¹The total number of shares purchased includes (1) shares repurchased, if any, pursuant to the August 2024 Repurchase Plan and (2) shares repurchased, if any, to satisfy exercise price and/or tax withholding obligations in connection with exercises of employee stock options and/or the vesting of restricted stock issued to employees.

²On August 19, 2024, the Company publicly announced that its Board of Directors authorized the August 2024 Repurchase Plan. Board authorization of the repurchase plan remains in effect until shares in the amount authorized thereunder have been repurchased.

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ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.OTHER INFORMATION

During the three-months ended March 31, 2026, none of the Company’s directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

ITEM 6.EXHIBITS


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.

^*Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	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

Source: View Original Filing on SEC EDGAR

[10-Q] Monster Beverage Corp Quarterly Earnings Report

Rhea-AI Filing Summary

Positive

Negative

Insights

[10-Q] Monster Beverage Corp Quarterly Earnings Report

Rhea-AI Filing Summary

Positive

Negative

Insights

Equity Analyst positive

Consumer & Beverages Specialist positive