Our Business

Monster Beverage Corporation is a holding company that conducts business through its consolidated subsidiaries. The company primarily develops and markets energy drinks, as well as craft beers, flavored malt beverages, and hard seltzers.

Overview

Monster Beverage Corporation has four operating and reportable segments:

1. Monster Energy® Drinks: This segment includes the company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Bang Energy® drinks, Storm TM and Reign Storm® total wellness energy drinks, and FLRT TM total wellness energy drinks.

2. Strategic Brands: This segment includes the various energy drink brands acquired from The Coca-Cola Company in 2015, as well as the company’s affordable energy brands, Predator® and Fury®.

3. Alcohol Brands: This segment includes the company’s craft beers, flavored malt beverages, and hard seltzers.

4. Other: This segment includes certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary, to independent third-party customers.

The company’s net sales were $2.54 billion for the three-months ended June 30, 2026, with the Monster Energy® Drinks segment representing 92.8% of net sales. Net sales to customers outside the United States were $1.16 billion, or 46% of total net sales, for the three-months ended June 30, 2026.

Pricing Actions

The company implemented price increases in the fourth quarter of 2025 for core brands and packages in the United States, as well as at various times in certain international markets during 2025. These pricing actions positively impacted gross profit margins in 2026 compared to 2025.

Results of Operations

For the three-months ended June 30, 2026, the company reported:

• Net sales of $2.54 billion, an increase of 20.2% compared to the prior year period.
• Gross profit of $1.42 billion, an increase of 20.7% compared to the prior year period.
• Operating income of $740.4 million, an increase of 17.2% compared to the prior year period.
• Net income of $584.5 million, an increase of 19.6% compared to the prior year period.

The increase in net sales, gross profit, operating income, and net income was primarily driven by increased worldwide sales of the company’s Monster Energy® brand energy drinks due to increased consumer demand.

Key Business Metrics

The company uses certain non-GAAP financial measures and key metrics to evaluate its business, including gross billings, energy drink case sales, and average net sales per case. Gross billings, which represent amounts invoiced to customers net of cash discounts, returns, and excise taxes, increased 19.7% to $2.99 billion for the three-months ended June 30, 2026 compared to the prior year period.

Liquidity and Capital Resources

As of June 30, 2026, the company had $2.19 billion in cash and cash equivalents, $1.23 billion in short-term investments, and $781.3 million in long-term investments. The company believes its cash available from operations, including its cash resources and access to credit, will be sufficient to meet its working capital and other needs for at least the next 12 months.

Outlook

The company’s growth strategy includes further developing its domestic markets and expanding its international business. The company faces various risks and uncertainties, including the ability to sustain sales growth, adapt to changing consumer preferences, absorb cost increases, and navigate regulatory and competitive challenges. Overall, the company reported strong financial performance for the three-months ended June 30, 2026, driven by increased demand for its Monster Energy® brand products.