Monster Beverage
MNST · NasdaqMore cans, not higher prices, carried the quarter
Energy drink cases rose to 304.9 million from 249.3 million while sales per case slipped to $8.20, so volume drove the 20.2% sales rise.
Q2 FY2026, the quarter to Jun 30, 2026 · 10-Q filed Aug 7, 2026
- Operating margin
- 29.2%
- Net income
- $584.5M
- Free cash flow, quarter
- $460.8M
Largest source of revenue: Monster Energy Drinks, 92.9% of the total.
Where Monster Beverage's money goes
- 01
More cans, not higher prices, carried the quarter
Energy drink cases rose to 304.9 million from 249.3 million while sales per case slipped to $8.20, so volume drove the 20.2% sales rise.
Why it matters
Energy drink case sales were 304.9 million this quarter against 249.3 million a year earlier, while average net sales per case for energy drinks fell to $8.20 from $8.29. Net sales grew 20.2% to $2.54B and the Monster Energy Drinks segment 21.6% to $2.36B. The filing attributes the rise to "increased worldwide sales of our Monster Energy® brand energy drinks as a result of increased consumer demand", with favorable currency moves adding to it.1
Price per case fell even though the company raised prices. The filing credits "the Pricing Actions and product sales mix" for a gross margin that rose to 55.9% from 55.7%. At the same time lower-priced lines grew: Strategic Brands, home of the affordable Predator and Fury brands, grew 10.7% to $143.7M, and the filing says Monster Energy Drinks earn more per case than Strategic Brands.1
AnalysisAnalysis: the average price per case reflects where the cases were sold as much as what each can costs. Growth abroad and in affordable brands lowers the average even while U.S. prices rise. Case volume is therefore the number that explains this quarter's growth, and a widening gap between case growth and sales growth would show mix diluting faster than pricing adds back.
- 02
Nearly half of sales now come from outside the U.S.
Sales to customers outside the United States were about 46% of net sales, up from 41% a year earlier, so home and abroad now weigh almost evenly.
Why it matters
Sales to customers outside the United States were about 46% of net sales this quarter, against 41% a year earlier. By region, U.S. and Canada brought in $1.45B, 57.2% of net sales; EMEA $632.8M, 24.9%; Latin America and Caribbean $234.1M, 9.2%; and Asia Pacific $219.0M, 8.6%.1
The route abroad runs largely through Coca-Cola system bottlers. Coca-Cola Europacific Partners, the largest customer the filing names, accounted for about 16% of net sales, up from 15% a year earlier. The filing also says currency moves had a favorable effect on sales outside the United States this quarter, so part of the shift reflects exchange rates rather than cases alone.1
AnalysisAnalysis: a company that makes nearly half its sales abroad carries a different set of exposures than one led by its home market: currency, local price tiers and the priorities of a few large bottlers. The same shift that adds cases also pulls the average price per case down, which ties this finding to the volume story.
- 03
Spending for reach grew faster than gross profit
Operating expenses absorbed 47.8% of gross profit against 46.3% a year earlier, so operating income grew 17.2%, slower than sales at 20.2%.
Why it matters
Operating expenses rose 24.7% to $679.2M while gross profit rose 20.7% to $1.42B. Operating expenses were 26.8% of net sales against 25.8% a year earlier. Operating income still grew 17.2% to $740.4M, but the operating margin fell 0.73 points to 29.2%.1
The filing names selling and marketing, distribution and payroll as the main increases. It says the higher marketing spend, including sponsorships and endorsements, was "in order to reach a broader consumer audience and increase household penetration." Out-bound freight and warehouse costs sit in operating expenses, so distribution costs that rise with volume land here rather than in cost of sales.1
AnalysisAnalysis: this reads as a choice to give up some margin for reach while volume is growing. Whether it pays shows in later quarters. If cases keep growing without spending rising as fast, the share of gross profit taken by operating expenses would ease back; if that share keeps climbing, the operating margin carries the cost.
- 04
Interest and a lower tax rate lifted net income
Net income rose 19.6% against 17.2% for operating income, as interest and other income nearly doubled and the effective tax rate eased to 23.9%.
Why it matters
Interest and other income, net, was $27.8M against $15.1M a year earlier, 3.6% of pre-tax income against 2.3%. The provision for income taxes was 23.9% of pre-tax income against 24.4%. Net income grew 19.6% to $584.5M, and diluted earnings per share were $0.59 against $0.50.1
AnalysisAnalysis: these lines added to growth this quarter but sit outside the operating business. Interest income depends on cash balances and rates, and the tax rate moves with mix and one-off items, so operating income growth of 17.2% is the cleaner read of how the business itself grew.
Sources
- 1.Monster Beverage 10-Q for the period to 2026-06-30 (the filing), Aug 7, 2026, read Nov 2, 2026
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Growth, profit and margin
Revenue went from $3.0B in FY2016 to $8.3B in FY2025, the operating margin from 35.6% to 29.2%, over 9 years.
- Revenue$8.3B
- Operating income$2.4B
- Operating margin29.2%
- Period
- Q2 FY2026
- Revenue
- $2.5B
- Operating income
- $740.4M
- Operating margin
- 29.2%
- Net income
- $584.5M
- Free cash flow
- $460.8M
Does the profit turn into cash?
Q2 FY2026: free cash flow of $460.8M against net income of $584.5M in the quarter.
- Operating cash flow$2.1B
- Capital expenditure$132.3M
- Free cash flow$2.0B
- Net income$1.9B
Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.
Financial data and sources
How the revenue mix has shifted
Each breakdown the filing reports, as shares of revenue, for every period it restates.
REVENUE RECOGNITION - Disaggregation of Revenue (Details). The filing restates this breakdown for 1 period.
Click a member to isolate it across the years shown.
The figures
Margins, cash and growth for the period, each with what it was computed from.
Where revenue comes from
Every breakdown the filing reports for the period, with each item's share.
Segments
| Monster Energy Drinks | $2.4B | 92.9% |
| Strategic Brands | $143.7M | 5.7% |
| Alcohol Brands | $32.2M | 1.3% |
| Other | $5.4M | 0.2% |
Geographic markets
| U.S. and Canada | $1.5B | 57.2% |
| Emea | $632.8M | 24.9% |
| Latin America and Caribbean | $234.1M | 9.2% |
| Asia Pacific (including Oceania) | $219.0M | 8.6% |
What it costs
The cost lines beneath operating income, each as a share of revenue, then the operating result.
Costs are reported by function: what it cost to make what was sold, then the expenses of selling, developing and administering.
| Cost line | Q2 FY2026 | Of revenue | Source |
|---|---|---|---|
| Cost of sales | $1.1B | 44.1% | Source10-Q, us-gaap:CostOfGoodsAndServicesSold, as reported in the 10-Q filed 2026-08-07 |
| Operating income | $740.4M | 29.2% | Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-08-07 |
Operating figures the company states
From the text of the filing rather than its statements, each with the sentence that states it.
View source
The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased marginally to $8.20 for the three-months ended June 30, 2026 from $8.29 for the three-months ended June 30, 2025.
View source
Coca-Cola Europacific Partners accounted for approximately 16% and 15% of the Company's net sales for the three-months ended June 30, 2026 and 2025, respectively.
View source
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 June 30, 2026, a decrease of approximately 0.03 million barrels or 16.1% lower than barrel sales of 0.14 million barrels for the three-months ended June 30, 2025.
View source
Case sales for our craft beers, FMBs and hard seltzers, in 192-ounce equivalents, were 2.3 million cases for the three-months ended June 30, 2026, a decrease of approximately 0.5 million cases or 16.1% lower than case sales of 2.8 million cases for the three-months ended June 30, 2025.
View source
Case sales for our energy drink products, in 192-ounce case equivalents, were 304.9 million cases for the three-months ended June 30, 2026, an increase of approximately 55.6 million cases or 22.3% higher than case sales of 249.3 million cases for the three-months ended June 30, 2025.
View source
Such sales were approximately 46% and 41% of net sales for the three-months ended June 30, 2026 and 2025, respectively.
The statements, as filed
The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.
Income statement13 lines, as presented in the 10-Q
Cash flow statement2 lines, as presented in the 10-Q
Year to date, as a quarterly filing reports it.
| Line | Q2 FY2026 | A year earlier | Change | Source |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $584.5M | $488.8M | +20% | Source10-Q, us-gaap:ProfitLoss, as reported in the 10-Q filed 2026-08-07 |
| Condensed consolidated statements of cash flows | ||||
| CASH AND CASH EQUIVALENTS, end of period | $2.19B | $1.93B | +14% | Source10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-08-07 |
Balance sheet30 lines, as presented in the 10-Q
About this data
- Source
- Monster Beverage 10-Q, accession 0001104659-26-092193, filed Aug 7, 2026, read on Nov 2, 2026.
- History
- From the SEC's XBRL company facts, the value from the latest filing that stated each period.
- Reading
- Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
- Version
- methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
What holds Monster Beverage's model up, and what could bend it
Competitive edge
A brand owner that needs little capital
Capital spending was 1.9% of net sales and 9.5% of operating cash flow, with bottlers and distributors doing most of the physical work.
The detail
Capital spending was $48.4M this quarter against $509.2M of operating cash flow and $2.54B of net sales. Free cash flow was $460.8M, 18.2% of net sales. Last fiscal year, capital spending was $132.3M on $8.29B of net sales, and free cash flow of $1.97B was larger than net income of $1.91B.1
The filing describes its non-alcohol customers as "primarily full service beverage bottlers/distributors", and says Strategic Brands earns mainly by selling "concentrates" and/or "beverage bases" to authorized bottling and canning operations, which combine them with sweeteners and water and package the drink themselves.1
AnalysisAnalysis: the advantage holds while partners' plants and trucks stay available on workable terms, and it lets cash from growth go elsewhere instead of into new capacity. Caveat: this quarter operating cash flow was 0.87 times net income, below last fiscal year's 1.10 times, and single quarters swing with working capital.
Gross margin has climbed back for three years
Gross margin rose in each of the last three fiscal years, reaching 55.8%, and the filing credits this quarter's 55.9% to pricing and mix.
The detail
In FY2022 gross profit was $3.17B on net sales of $6.31B; by last fiscal year it was $4.63B on $8.29B. Annual gross margin rose in each year between, reaching 54.0% in FY2024 and 55.8% last fiscal year. This quarter it was 55.9%, against 55.7% a year earlier.1
For this quarter the filing attributes the increase to "the Pricing Actions and product sales mix, partially offset by increased aluminum can costs, geographical sales mix and increased freight-in costs." Pricing therefore more than covered higher can and freight costs, while selling more abroad pulled the other way.1
AnalysisAnalysis: raising prices while case volume keeps growing is a sign of a brand people ask for by name. Caveat: annual gross margin was 60.3% in the earliest year of this record, so the recovery is not complete, and the company books out-bound freight in operating expenses, so the ratio does not compare directly with peers that book it in cost of sales.
What to watch
One bottler accounts for about a sixth of sales
Coca-Cola Europacific Partners was about 16% of net sales, up from 15%, and the filing describes a substantial dependence on its relationship with Coca-Cola.
The detail
Coca-Cola Europacific Partners accounted for about 16% of net sales this quarter against 15% a year earlier. The filing names "substantial dependence on the success of our relationship with TCCC" among its risks, along with unilateral decisions by bottlers or retailers, such as dropping products, limiting sizes or giving the brand less effort, and the effect of any large customer buying less.1
AnalysisAnalysis: the same network that keeps capital spending low concentrates the route to market. Growth is coming most from abroad, where Coca-Cola system bottlers carry the brand, so a change in a large bottler's priorities would likely show first in the international figures.
Can and freight costs press on the margin
The filing names aluminum can and freight-in costs as drags on gross margin this quarter; pricing offset them, leaving the margin reliant on price increases that stick.
The detail
Gross margin rose to 55.9% from 55.7% despite "increased aluminum can costs, geographical sales mix and increased freight-in costs." Among its risks the company names its ability to absorb, reduce or pass on to bottlers higher costs for aluminum and other raw materials, the Midwest Premium and freight, along with tariffs and supply chain disruption from geopolitical conflicts.1
AnalysisAnalysis: average net sales per case slipped to $8.20 from $8.29 even with price increases, as more sales came from lower-priced markets and brands. Another rise in can costs would need further price increases or a mix that stops diluting, or the gross margin would give back part of its recent recovery.
Proposed rules could narrow where energy drinks sell
The filing names U.S. policy attention to sugar-sweetened beverages, food dyes and the GRAS process, plus possible limits on sales by age, venue and container size.
The detail
It names U.S. administration policy concerns about sugar-sweetened beverages, food dyes and the "generally recognized as safe" (GRAS) process; laws that could restrict energy drink sales by age, venue, container size or under programs such as SNAP; new or higher excise taxes; and adverse publicity about health concerns.1
AnalysisAnalysis: none of these shows in the quarter's figures, where the Monster Energy Drinks segment was 92.9% of net sales. With so much of the business in one category, a broad restriction would weigh on the whole company rather than one line, and the zero-sugar and reformulated products would have to carry any shift.
Sources
- 1.Monster Beverage 10-Q for the period to 2026-06-30 (the filing), Aug 7, 2026, read Nov 2, 2026
Monster Beverage, further in
Member research, then your own questions on ChatGPT.
What could change the outlook
What Monster Beverage's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.
- What volume-led growth depends on from here
Which figures would show first whether pricing, mix and marketing spend keep working together, and where the bottler and input cost exposures sit.
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Have a question about Monster Beverage?
Explore its profit drivers, competitive edge, risks, or your own investment and business questions with CXProWealth on ChatGPT.
- How much of Monster's sales growth this quarter came from more cases rather than a higher price per case?
- Why are Monster's operating expenses growing faster than its gross profit, and what would bring that share back down?
- How exposed is Monster to Coca-Cola Europacific Partners as more of its sales come from outside the United States?
Business Lens describes Monster Beverage from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.