Monster Beverage (MNST) investor relations material

Executive summary

• Net sales for Q2 2026 reached $2.54 billion, up 20.2% year-over-year, with double-digit growth in all regions and international sales up 34.6%, now 46% of total sales; Monster Energy® Drinks segment accounted for 92.8% of net sales.

• Net income rose 19.6% to $584.5 million, with diluted EPS up 19% to $0.59 and adjusted EPS up 15.2% to $0.60.

• Gross profit margin improved to 55.9%, driven by pricing actions and product mix, partially offset by higher aluminum and freight costs.

• Strong performance was supported by product innovation, robust marketing, and partnerships, including with The Coca-Cola Company.

• Energy drink category remains healthy with robust global growth and increasing household penetration, especially in zero sugar and affordable segments.

Financial highlights

• Gross profit for Q2 2026 was $1.42 billion, up 20.7% year-over-year; gross margin was 55.9%, up from 55.7% in Q2 2025.

• Operating income increased 17.2% to $740.4 million; adjusted operating income rose 13.3% to $748.1 million.

• Net income margin was 23.0%; operating margin was 29.2%.

• Cash and cash equivalents at June 30, 2026 were $2.19 billion.

• Net cash provided by operating activities for the first half of 2026 was $1.11 billion.

Outlook and guidance

• Management expects continued international growth, further expansion of the energy drink portfolio, and robust innovation pipeline with new launches planned for fall 2026 and 2027.

• Selective price increases planned for Q4 2026 in the U.S. and later in EMEA; ongoing review of pricing opportunities.

• Digital transformation underway, with SAP S/4HANA go-live planned for January 2028.

• Capital expenditures projected to be less than $250 million through June 2027.

• Sufficient liquidity and access to credit expected to cover working capital and expansion needs for at least the next 12 months.