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.

​

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.

​

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.

​

​

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.

​

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.

​

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.

​

​

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 FLRTTM 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.

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

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

1_Europe, 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.

​

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.

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.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

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

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

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.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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.

​

9.	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.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

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.

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 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

1_The 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.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

​

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.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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 FLRTTM 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.

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.

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.

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.

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)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

​

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

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

2_Other 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

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

​

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

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

2_Other 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.

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)

​

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.

​

​