10-QPeriod: Q2 FY2026

Monster Beverage Corp Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 7, 2026For Securities:MNST

Summary

Monster Beverage Corporation (MNST) reported strong financial results for the quarter and six months ended June 30, 2026. Net sales saw a significant increase of 20.2% for the quarter and 23.3% for the six-month period, driven by robust demand for its Monster Energy® brand. The company demonstrated effective cost management, with gross profit increasing by 20.7% in the quarter and 22.0% in the six months, leading to a 19.6% rise in net income for the quarter and a 23.9% increase for the six-month period. Despite increased operating expenses, particularly in selling and marketing, Monster Beverage maintained healthy operating margins, reflecting the strength of its core business and strategic pricing actions. The company also reported substantial cash flow from operations, reinforcing its solid financial position and capacity for future investments and shareholder returns.

Key Highlights

  • 1Net sales grew by 20.2% to $2.54 billion for the three months ended June 30, 2026, and by 23.3% to $4.89 billion for the six months ended June 30, 2026, primarily driven by increased global demand for Monster Energy® brand products.
  • 2Gross profit increased by 20.7% for the quarter and 22.0% for the six months, reaching $1.42 billion and $2.71 billion, respectively. Gross profit margin slightly improved to 55.9% for the quarter, reflecting effective pricing actions and product mix, partially offset by rising costs.
  • 3Net income rose by 19.6% to $584.5 million for the three months and by 23.9% to $1.15 billion for the six months, demonstrating strong earnings growth.
  • 4Operating income showed healthy growth, increasing by 17.2% to $740.4 million for the quarter and by 22.4% to $1.47 billion for the six months.
  • 5The company's international sales experienced substantial growth, with a 34.6% increase for the quarter and a 29.0% increase on a foreign currency-adjusted basis, highlighting successful global expansion.
  • 6Monster Beverage ended the period with a strong liquidity position, holding $2.19 billion in cash and cash equivalents and $1.23 billion in short-term investments.
  • 7The company's Board of Directors has approved a two-for-one stock split, to be effected as a 100% stock dividend, expected to take place after market close on August 10, 2026.

Frequently Asked Questions

The primary driver of Monster Beverage's revenue growth was the increased worldwide sales of its Monster Energy® brand energy drinks, fueled by strong consumer demand. International sales also contributed significantly, with a notable increase of 34.6% compared to the prior year period.

Monster Beverage effectively managed its costs through strategic pricing actions implemented in late 2025 and during 2025 in international markets. These actions, combined with a favorable product sales mix, helped to offset increases in costs such as aluminum can prices and freight-in expenses. While operating expenses, particularly selling and marketing, increased, the company maintained healthy operating margins due to strong revenue growth.

Monster Beverage maintains a very strong financial position with $2.19 billion in cash and cash equivalents and $1.23 billion in short-term investments as of June 30, 2026. The company generated significant cash flow from operations and has access to a $500 million revolving credit facility with no outstanding borrowings. Management believes its existing cash resources and credit facilities are sufficient to meet its working capital, capital expenditure, and other commitments for at least the next 12 months.

The Monster Energy® Drinks segment remains the dominant revenue contributor, accounting for approximately 92.8% of net sales in the quarter. The Strategic Brands segment saw modest growth, while the Alcohol Brands segment experienced a decrease in net sales. The 'Other' segment also saw a slight decline. Overall, the company's performance is heavily reliant on the continued success of its core energy drink portfolio.