10-K – 2026-02-27 – mnst-20251231x10k.htm

Revenue Recognition – See Note 2.
Cost of Sales – Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company’s finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.
Operating Expenses – Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company’s prior distributors, impairment charges on goodwill and other intangible assets, depreciation and other general and administrative costs.
Freight-Out Costs – For the years ended December 31, 2025, 2024 and 2023, freight-out costs amounted to $ 237.0 million, $ 224.2 million and $ 223.6 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.
Advertising and Promotional Expenses – The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company’s promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $ 599.9 million, $ 584.1 million and $ 528.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income.
Income Taxes – The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.
The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Stock-Based Compensation – The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost 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. See Note 13.
Net Income Per Common Share – In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.
Concentration of Risk – Certain of the Company’s products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company’s revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.
The Coca-Cola Company (“TCCC”), through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”), accounted for approximately 3 %, 3 % and 2 % of the Company’s net sales for the years ended December 31, 2025, 2024 and 2023, respectively.
Coca-Cola Europacific Partners accounted for approximately 15 %, 14 % and 13 % of the Company’s net sales for the years ended December 31, 2025, 2024 and 2023, respectively.
Coca-Cola Consolidated, Inc. accounted for approximately 10 % of the Company’s net sales for each of the years ended December 31, 2025, 2024 and 2023.
Credit Risk – The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors (“bottlers/distributors”), 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 performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management’s expectations.
Fair Value of Financial Instruments – The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.
Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP 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 period. Actual results could differ from those estimates.
Recent Accounting Pronouncements – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

2024. The Company adopted ASU 2023-09 on a prospective basis during the year ended December 31, 2025, which did not have a material impact on the Company’s financial position, results of operations and liquidity.
In November 2024, the FASB issued 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 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 and Bang 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, 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/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.
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 December 31, 2025 and 2024.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

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 expense 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 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Disaggregation of Revenue
The following table disaggregates the Company’s revenue by geographical markets and reportable segments:
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Year Ended December 31, 2025

​
​
​
​
​
​
​
​
​
​
​
Latin
​
​
​

​
​
​
​
​
​
​
​
Asia Pacific
​
America
​
​
​

​
​
U.S. and
​
​
​
​
(including
​
and
​
​
​

Net Sales
  ​ ​ ​
Canada
  ​ ​ ​
EMEA 1
  ​ ​ ​
Oceania)
  ​ ​ ​
Caribbean
  ​ ​ ​
Total

Monster Energy® Drinks
​
$
4,704,483
​
$
1,702,767
​
$
581,290
​
$
677,331
​
$
7,665,871

Strategic Brands
​
 
208,452
​
 
196,801
​
 
42,823
​
 
20,640
​
 
468,716

Alcohol Brands
​
​
134,720
​
​
—
​
​
—
​
​
—
​
​
134,720

Other
​
 
25,036
​
 
—
​
 
—
​
 
—
​
 
25,036

Total Net Sales
​
$
5,072,691
​
$
1,899,568
​
$
624,113
​
$
697,971
​
$
8,294,343

​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Year Ended December 31, 2024

​
​
​
​
​
​
​
​
​
​
​
Latin
​
​
​

​
​
​
​
​
​
​
​
Asia Pacific
​
America
​
​
​

​
​
U.S. and
​
​
​
​
(including
​
and
​
​
​

Net Sales
  ​ ​ ​
Canada
  ​ ​ ​
EMEA 1
  ​ ​ ​
Oceania)
  ​ ​ ​
Caribbean
  ​ ​ ​
Total

Monster Energy® Drinks
​
$
4,320,026
​
$
1,399,461
​
$
500,145
​
$
644,965
​
$
6,864,597

Strategic Brands
​
 
205,948
​
 
163,905
​
 
40,891
​
 
21,489
​
 
432,233

Alcohol Brands
​
​
172,313
​
​
—
​
​
—
​
​
—
​
​
172,313

Other
​
 
23,566
​
 
—
​
 
—
​
 
—
​
 
23,566

Total Net Sales
​
$
4,721,853
​
$
1,563,366
​
$
541,036
​
$
666,454
​
$
7,492,709

​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Year Ended December 31, 2023

​
​
​
​
​
​
​
​
​
​
​
Latin
​
​
​

​
​
​
​
​
​
​
​
Asia Pacific
​
America
​
​
​

​
​
U.S. and
​
​
​
​
(including
​
and
​
​
​

Net Sales
  ​ ​ ​
Canada
  ​ ​ ​
EMEA 1
  ​ ​ ​
Oceania)
  ​ ​ ​
Caribbean
  ​ ​ ​
Total

Monster Energy® Drinks
​
$
4,202,537
​
$
1,257,471
​
$
484,459
​
$
610,622
​
$
6,555,089

Strategic Brands
​
 
199,183
​
 
133,188
​
 
29,990
​
 
14,228
​
 
376,589

Alcohol Brands
​
​
184,855
​
​
—
​
​
—
​
​
—
​
​
184,855

Other
​
 
23,494
​
 
—
​
 
—
​
 
—
​
 
23,494

Total Net Sales
​
$
4,610,069
​
$
1,390,659
​
$
514,449
​
$
624,850
​
$
7,140,027

​
1 Europe, Middle East and Africa (“EMEA”)
Contract Liabilities
Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of December 31, 2025 and 2024, the Company had $ 205.3 million and $ 224.8 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company’s accompanying consolidated balance sheet. During the years ended December 31, 2025, 2024 and 2023, $ 40.0 million, $ 39.9 million and $ 40.0 million, respectively, of deferred revenue, was recognized in net sales. See Note 8.
​

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

3. INVESTMENTS
The following table summarizes the Company’s investments at December 31, 2025. The Company held no short-term or long-term investments at December 31, 2024.
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
​
​
​
​
​
​
​
​
​
​
​
​
Continuous
​
Continuous

​
​
​
​
​
Gross
​
Gross
​
​
​
​
Unrealized
​
Unrealized

​
​
​
​
​
Unrealized
​
Unrealized
​
​
​
​
Loss Position
​
Loss Position

​
​
Amortized
​
Holding
​
Holding
​
Fair
​
less than 12
​
greater than 

December 31, 2025
  ​ ​ ​
Cost
  ​ ​ ​
Gains
  ​ ​ ​
Losses
  ​ ​ ​
Value
  ​ ​ ​
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 years ended December 31, 2025, 2024 and 2023, realized gains or losses recognized on the sale of investments were not significant.
The Company’s investments at December 31, 2025 carried investment grade credit ratings.
The following table summarizes the underlying contractual maturities of the Company’s investments at December 31, 2025. The Company held no short-term or long-term investments at December 31, 2024.
​
​

​

​

​

​

​

​

​
​
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

​
​

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Table of Contents
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

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.

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:
​
​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024
  ​ ​ ​
Level 1
  ​ ​ ​
Level 2
  ​ ​ ​
Level 3
  ​ ​ ​
Total

Cash
​
$
1,103,647
​
$
—
​
$
—
​
$
1,103,647

Money market funds
​
 
396,306
​
 
—
​
 
—
​
 
396,306

Certificates of deposit
​
​
—
​
​
33,334
​
​
—
​
​
33,334

Foreign currency derivatives
​
 
—
​
 
799
​
 
—
​
 
799

Commodity derivatives
​
​
—
​
​
( 785 )
​
​
—
​
​
( 785 )

Total
​
$
1,499,953
​
$
33,348
​
$
—
​
$
1,533,301

​
​
​
​
​
​
​
​
​
​
​
​
​

Amounts included in:
​
​
​
​
​
​
​
​
​
​
​
​

Cash and cash equivalents
​
$
1,499,953
​
$
33,334
​
$
—
​
$
1,533,287

Accounts receivable, net
​
 
—
​
 
5,991
​
 
—
​
 
5,991

Other assets
​
​
—
​
​
6
​
​
—
​
​
6

Accrued liabilities
​
 
—
​
 
( 5,952 )
​
 
—
​
 
( 5,952 )

Other liabilities
​
​
—
​
​
( 31 )
​
​
—
​
​
( 31 )

Total
​
$
1,499,953
​
$
33,348
​
$
—
​
$
1,533,301

​
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 years ended December 31, 2025 and 2024, and there were no changes in the Company’s valuation techniques.
Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis may include items such as property and equipment, goodwill and other intangible assets. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Nonrecurring fair value measurements were not material for the year ended December 31, 2025.
​
5 . INVENTORIES
Inventories consist of the following at December 31:
​
​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024

Raw materials
​
$
322,604
​
$
232,698

Work in process
​
​
1,114
​
​
1,200

Finished goods
​
 
475,905
​
 
503,209

​
​
$
799,623
​
$
737,107

​
​

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

6. PROPERTY AND EQUIPMENT, Net
Property and equipment consist of the following at December 31:
​
​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024

Land
​
$
188,889
​
$
178,056

Leasehold improvements
​
 
33,456
​
 
31,132

Furniture and fixtures
​
 
13,263
​
 
11,416

Office and computer equipment
​
 
25,191
​
 
28,029

Equipment
​
 
611,269
​
 
561,408

Buildings
​
 
410,189
​
 
280,663

Vehicles
​
​
83,066
​
​
72,564

Assets under construction
​
 
55,252
​
 
178,980

​
​
 
1,420,575
​
 
1,342,248

Less: accumulated depreciation and amortization
​
 
( 339,031 )
​
 
( 295,224 )

​
​
$
1,081,544
​
$
1,047,024

​
Total depreciation and amortization expense recorded was $ 95.1 million, $ 72.9 million and $ 63.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. Assets under construction are not depreciated until in service date.
​
7. GOODWILL AND OTHER INTANGIBLE ASSETS
The following is a roll-forward of goodwill for the years ended December 31, 2025 and 2024 by reportable segment:
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Monster
​
​
​
​
​
​
​
​

​
​
Energy®
​
Strategic
​
Alcohol
​
​
​
​

​
  ​ ​ ​
Drinks
  ​ ​ ​
Brands
  ​ ​ ​
Brands*
  ​ ​ ​
Other
  ​ ​ ​
Total

Balance at December 31, 2024
​
$
693,644
​
$
637,999
​
$
—
​
$
—
​
$
1,331,643

Acquisitions
​
​
—
​
​
—
​
​
—
​
​
—
​
​
—

Balance at December 31, 2025
​
$
693,644
​
$
637,999
​
$
—
​
$
—
​
$
1,331,643

​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Monster 
​
​
​
​
​
​
​
​

​
​
Energy®
​
Strategic
​
Alcohol
​
​
​
​

​
  ​ ​ ​
Drinks
  ​ ​ ​
 Brands
  ​ ​ ​
Brands*
  ​ ​ ​
Other
  ​ ​ ​
Total

Balance at December 31, 2023
​
$
693,644
​
$
637,999
​
$
86,298
​
$
—
​
$
1,417,941

Acquisitions
​
 
—
​
 
—
​
 
—
​
 
—
​
 
—

Impairments*
​
 
—
​
 
—
​
 
( 86,298 )
​
 
—
​
 
( 86,298 )

Balance at December 31, 2024
​
$
693,644
​
$
637,999
​
$
—
​
$
—
​
$
1,331,643

​
*Accumulated goodwill impairment balance at December 31, 2025 and 2024 was $ 86.3 million related entirely to Alcohol Brands. There were no impairments prior to the year ended December 31, 2024 .

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Intangible assets consist of the following at:
​
​

​

​

​

​

​

​

​
  ​ ​ ​
December 31, 
  ​ ​ ​
December 31, 

​
  ​ ​ ​
2025
  ​ ​ ​
2024

Amortizing intangibles
​
$
137,664
​
$
183,800

Accumulated amortization
​
 
( 86,999 )
​
 
( 86,703 )

​
​
 
50,665
​
 
97,097

Non-amortizing intangibles
​
 
1,328,603
​
 
1,317,155

​
​
$
1,379,268
​
$
1,414,252

​
No impairment charges were recorded to goodwill and other indefinite-lived intangible assets for the year ended December 31, 2025. For the year ended December 31, 2024, as a result of operating and financial performance not meeting projections due in part to challenges in the category, as well as a decrease in projected ongoing operating and financial performance related to the Alcohol Brands reporting unit, the Company determined that the conditions indicated that indefinite-lived intangible assets within the Alcohol Brands reporting unit were more-likely-than-not impaired and performed an impairment test to compare the fair value of these indefinite-lived intangible assets, consisting of goodwill, trademarks and permits, with their respective carrying values and with the carrying value of the Alcohol Brands reporting unit. As a result of this analysis, the Company recorded impairment charges of $ 86.3 million related to goodwill of the Alcohol Brands reporting unit for the year ended December 31, 2024. Further, for the years ended December 31, 2024 and 2023, impairment charges of $ 40.8 million and $ 38.7 million were recorded to other indefinite-lived intangible assets related primarily to the Alcohol Brands segment. Impairment charges are included in operating expenses in the consolidated statements of income.
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 recorded was $ 19.3 million, $ 7.5 million and $ 5.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the year ended December 31, 2025, impairment charges of $ 38.4 million were recorded to certain finite-lived intangible assets related to the Alcohol Brands segment. No impairment charges were recorded to finite-lived intangible assets for the years ended December 31, 2024 and 2023. Impairment charges are included in operating expenses in the consolidated statements of income.
The following is the future estimated amortization expense related to amortizing intangibles as of December 31, 2025:
​
​

​

​

​

Year Ending December 31:
  ​ ​ ​
​
​

2026
​
$
10,568

2027
​
​
9,104

2028
​
​
6,706

2029
​
​
4,590

2030
​
​
4,590

2031 and thereafter
​
​
15,107

​
​
$
50,665

​
At December 31, 2025, non-amortizing other intangible assets primarily consist of indefinite-lived tradenames, flavors and formulas.
​

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

8. DISTRIBUTION AGREEMENTS
In accordance with ASC 420 “Exit or Disposal Cost Obligations”, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. Termination costs recognized were no t significant for the years ended December 31, 2025, 2024 and 2023.
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, are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years . Revenue recognized was $ 21.4 million, $ 21.5 million and $ 21.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
​
9. DEBT
The Company repaid the outstanding balance on long-term debt in April 2025. As of December 31, 2024, the Company’s long-term debt consisted of the following:
​
​

​

​

​

​
​
December 31, 

​
  ​ ​ ​
2024

Term loan
​
$
375,000

Revolving credit facility
​
 
—

Total debt
​
 
375,000

Less: unamortized debt issuance costs
​
 
( 1,049 )

Total debt, net of unamortized debt issuance costs
​
 
373,951

Less: current portion of long-term debt
​
 
—

Long-term debt
​
$
373,951

​
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 December 31, 2025, 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 December 31, 2025, no amount was outstanding on this line of credit.
​

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

10. COMMITMENTS AND CONTINGENCIES
Contractual Obligations – The Company had the following contractual obligations related primarily to sponsorships and other marketing activities as of December 31, 2025:
​
​

​

​

​

Year Ending December 31:
  ​ ​ ​
​
 

2026
​
$
318,009

2027
​
​
116,925

2028
​
​
75,540

2029
​
​
48,902

2030
​
​
10,420

2031 and thereafter
​
​
437

​
 
$
570,233

​
Purchase Commitments – The Company had purchase commitments aggregating approximately $ 216.6 million at December 31, 2025, 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 purchases various raw material items, including, but not limited to, flavors, ingredients, supplement ingredients, containers, milk, glucose, sucralose and cream, from a limited number of suppliers. An interruption in supply from any of such resources could result in the Company’s inability to produce certain products for limited or possibly extended periods of time. The aggregate value of purchases from suppliers of such limited resources described above for the years ended December 31, 2025, 2024 and 2023 was $ 661.6 million, $ 577.0 million and $ 590.5 million, respectively.
Guarantees – The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to: (i) certain agreements with the Company’s officers, directors and employees under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship, (ii) certain distribution or purchase agreements under which the Company may have to indemnify the Company’s customers from any claim, liability or loss arising out of any actual or alleged injury or damages suffered in connection with the consumption or purchase of the Company’s products or the use of Company trademarks, and (iii) certain real estate leases, under which the Company may be required to indemnify property owners for liabilities and other claims arising from the Company’s use of the applicable premises. The terms of such obligations vary and typically, a maximum obligation is not explicitly stated. Generally, the Company believes that its insurance coverage is adequate to cover any resulting liabilities or claims.
Litigation – From time to time in the normal course of business, the Company is named in litigation, including mediation, arbitration, administrative proceedings, labor and employment matters, personal injury matters, consumer class actions, intellectual property matters, data privacy matters, and claims, including 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 December 31, 2025 and 2024, $ 36.2 million and $ 16.8 million, respectively, of loss contingencies were included in the Company’s accompanying consolidated balance sheets.
​

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

11. ACCUMULATED OTHER COMPREHENSIVE LOSS
The components of accumulated other comprehensive loss, after tax, are as follows at December 31:
​
​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024

Accumulated net unrealized gain (loss) on available-for-sale securities
 
$
1,263
 
$
—

Accumulated foreign currency translation gain (loss)
​
​
( 108,059 )
​
​
( 269,930 )

Accumulated net gain (loss) on commodity derivatives
​
​
45,955
​
​
443

Total accumulated other comprehensive loss
 
$
( 60,841 )
 
$
( 269,487 )

​
​
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 year ended December 31, 2025, no shares were repurchased under the August 2024 Repurchase Plan. As of February 26, 2026, $ 500.0 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 $ 500.0 million as of February 26, 2026.
During the year ended December 31, 2025, 1.5 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 $ 103.6 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 consolidated balance sheet at December 31, 2025.
13. STOCK-BASED COMPENSATION
The Company has two stock-based compensation plans under which shares were available for grant as of December 31, 2025: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan (the “2020 Omnibus Incentive Plan”), which includes 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 (the “2017 Directors Plan”), which includes the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub plan thereunder. The 2020 Omnibus Incentive Plan was approved by the Board of Directors on April 14, 2020 and approved by the stockholders of the Company at the annual meeting of the Company’s stockholders held on June 3, 2020 (the “Effective Date”). The 2020 Omnibus Incentive Plan replaced the Monster Beverage Corporation 2011 Omnibus Incentive Plan (the “2011 Omnibus Incentive Plan”).
The 2020 Omnibus Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other share-based awards up to an aggregate of 92,338,734 shares of the Company’s common stock, comprised of 64,000,000 new shares of common stock reserved under the 2020 Omnibus Incentive Plan, which were authorized on the Effective Date, and 28,338,734 shares of common stock that were available for grant under the 2011 Omnibus Incentive Plan as of December 31, 2019 and prior to the Effective Date. Shares authorized under the 2020 Omnibus Incentive Plan are reduced by one (1) share for options or stock appreciation rights granted under the 2020 Omnibus Incentive Plan and for any grants after December 31, 2019 under the 2011 Omnibus Incentive Plan, and by 2.6 shares for each share granted or issued with respect to a Full Value Award under either the 2020 Omnibus Incentive Plan or for any shares granted after December 31, 2019 under the 2011 Omnibus Incentive Plan. A “Full Value Award” is an award other than an incentive stock option, a non-qualified stock option, or a stock appreciation right, which is settled by the issuance of shares. Options granted under the 2020 Omnibus Incentive Plan may be incentive stock options under Section 422 of the Internal Revenue Code, as amended (the “Code”), or non-qualified stock options.
Shares previously granted under the 2011 Omnibus Incentive Plan after December 31, 2019 and prior to the Effective Date of the 2020 Omnibus Incentive Plan reduced the number of shares available for grant under the 2020 Omnibus Incentive Plan. As of December 31, 2025, 23,062,505 shares of the Company’s common stock have been granted, net of cancellations, and 62,964,030 shares

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

(as adjusted for Full Value Awards) of the Company’s common stock remain available for grant under the 2020 Omnibus Incentive Plan.
The Compensation Committee of the Board of Directors (the “Compensation Committee”) has sole and exclusive authority to grant stock awards to all employees who are not new hires and to all new hires who are subject to Section 16 of the Exchange Act (“Section 16”). Each of the Compensation Committee and the Executive Committee of the Board of Directors (the “Executive Committee”) independently has the authority to grant stock awards to (i) new hires and (ii) employees receiving a promotion, in each case, who are not Section 16 employees. Awards granted by the Executive Committee are not subject to approval or ratification by the Board of Directors or the Compensation Committee. Options granted under the 2020 Omnibus Incentive Plan generally vest over a three - to five-year period from the grant date and are generally exercisable up to 10 years after the grant date. Restricted stock units granted under the 2020 Omnibus Incentive Plan generally vest over a three - or five-year period from the grant date. Performance share units will generally vest based on an award recipient’s continuous employment through a cumulative three -year performance period and the achievement of financial performance goals specified for the applicable award during such performance period.
In 2016, the Company adopted the Deferred Compensation Plan (as a sub plan to the 2011 Omnibus Incentive Plan), pursuant to which eligible employees may elect to defer cash and/or equity based compensation and to receive the deferred amounts, together with an investment return (positive or negative), either at a pre-determined time in the future or upon termination of employment with the Company or its subsidiaries or affiliates that are participating employers under the Deferred Compensation Plan, as provided under the Deferred Compensation Plan and in relevant deferral elections. Deferrals under the Deferred Compensation Plan are unfunded and unsecured. As of December 31, 2025 deferrals under the Deferred Compensation Plan are solely comprised of cash compensation and equity compensation and are not material in the aggregate.
In 2017, the Company adopted the 2017 Directors Plan, a successor plan to the 2009 Monster Beverage Corporation Stock Incentive Plan for Non-Employee Directors. The 2017 Directors Plan permits the granting of stock options, stock appreciation rights, restricted shares or restricted stock units, deferred awards, dividend equivalents, and other share-based awards up to an aggregate of 2,500,000 shares of common stock of the Company to non-employee directors of the Company.
Each calendar year, a non-employee director will receive an annual retainer and annual equity award, as provided for in the 2017 Directors Plan, which may be modified from time to time. In February 2022, the Board of Directors amended and restated the 2017 Directors Plan to provide for increases to the annual cash retainer and annual equity retainer that non-employee directors are entitled to receive. Currently, non-employee directors receive an annual equity retainer of approximately $ 175,000 in the form of restricted stock units at each annual meeting of the Company’s stockholders or promptly thereafter. A non-employee director’s annual award of restricted stock units will generally vest on the earliest to occur of: (a) the last business day immediately preceding the annual meeting of the Company’s stockholders in the calendar year following the calendar year in which the grant date occurs, (b) a Change of Control (as defined in the 2017 Directors Plan), (c) the non-employee director’s death, or (d) the date of the non-employee director’s separation from service due to disability, so long as the non-employee director remains a non-employee director through such date. The Board of Directors may in its discretion award non-employee directors stock options, stock appreciation rights, restricted stock and other share-based awards in lieu of or in addition to restricted stock units. The Board of Directors may amend or terminate the 2017 Directors Plan at any time, subject to certain limitations set forth in the 2017 Directors Plan. As of December 31, 2025, 316,259 shares of the Company’s common stock had been granted under the 2017 Directors Plan, and 2,183,741 shares of the Company’s common stock remain available for grant.
In 2017, the Company adopted the Deferred Compensation Plan for Non-Employee Directors (as a sub plan to the 2017 Directors Plan), pursuant to which the Board of Directors may permit non-employee directors to elect, at such times and in accordance with rules and procedures (or sub-plan) adopted by the Board of Directors (which are intended to comply with Section 409A of the Code, as applicable), to receive all or any portion of such non-employee director’s compensation, whether payable in cash or in equity, on a deferred basis. Deferrals under the Deferred Compensation Plan for Non-Employee Directors are unfunded and unsecured. As of December 31, 2025, deferrals under the Deferred Compensation Plan for Non-Employee Directors are solely comprised of cash compensation and equity compensation and are not material in the aggregate. The 2017 Directors Plan was adopted to effectuate any such deferrals. The 2017 Directors Plan is administered by the Board of Directors. Each award granted under the 2017 Directors Plan will be evidenced by a written agreement and will contain the terms and conditions that the Board of Directors deems appropriate.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

In February 2022, as part of the Board of Directors’ amendment and restatement of the 2017 Directors Plan, such amendment and restatement also introduced the requirement for each non-employee director to satisfy the share ownership guidelines set forth below, as may be modified by the Board of Directors from time to time. The current share ownership guidelines provide that non-employee directors of the Company must:
● Hold shares of Company common stock having a total value of five times the annual retainer payable to a non-employee director (excluding any portion of the annual retainer attributable to a non-employee director’s service as a member of a subcommittee, as a chair of a subcommittee or as the lead independent director, as applicable). For this purpose, deferred shares or deferred restricted stock units will be deemed held, to the extent vested.
● The minimum stock ownership level must be achieved by each non-employee director by the fifth anniversary of such non-employee director’s initial appointment to the Board of Directors.
● Once achieved, ownership of the guideline amount should be maintained for so long as the non-employee director retains his or her seat on the Board of Directors.
● There may be rare instances where these guidelines would place a hardship on a non-employee director. In these cases or in similar circumstances, the Board of Directors will make the final decision as to developing an alternative stock ownership guideline for a non-employee director that reflects the intention of these guidelines and his or her personal circumstances.

The Company recorded $ 125.7 million, $ 91.0 million and $ 68.8 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the years ended December 31, 2025, 2024 and 2023, 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 years ended December 31, 2025, 2024 and 2023 was $ 37.1 million, $ 12.9 million and $ 62.2 million, respectively.
Stock Options
Under the Company’s stock-based compensation plans, all stock options granted through December 31, 2025 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 (i) employee stock options based on the estimated fair value of the options on the date of grant and (ii) for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, in each case 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:
​
​

​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024
  ​ ​ ​
2023
 

Dividend yield
​
0.0
%  
0.0
%  
0.0
%  

Expected volatility
​
26.7
%  
27.4
%  
27.6
%  

Risk-free interest rate
​
4.19
%  
4.18
%  
3.75
%  

Expected term
​
6.2 Years
​
6.4 Years
​
6.3 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.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

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.
The following table summarizes the Company’s activities with respect to its stock option plans as follows:
​
​

​

​

​

​

​

​

​

​

​

​

​
​
​
​
​
​
​
Weighted
​
​
​

​
​
​
​
Weighted
​
Average
​
​
​

​
​
​
​
Average
​
Remaining
​
​
​

​
​
Number of
​
Exercise
​
Contractual
​
​
​

​
​
Shares (in
​
Price Per
​
Term (in
​
Aggregate

Options
  ​ ​ ​
thousands)
  ​ ​ ​
Share
  ​ ​ ​
years)
  ​ ​ ​
Intrinsic Value

Outstanding at January 1, 2025
 
27,088
​
$
38.98
 
5.8
​
$
400,207

Granted 01/01/25 - 03/31/25
 
1,299
​
$
55.09
​
​
​
​
​

Granted 04/01/25 - 06/30/25
 
21
​
$
60.28
​
​
​
​
​

Granted 07/01/25 - 09/30/25
 
—
​
$
—
​
​
​
​
​

Granted 10/01/25 - 12/31/25
 
23
​
$
66.51
​
​
​
​
​

Exercised
 
( 5,942 )
​
$
27.69
​
​
​
​
​

Cancelled or forfeited
 
( 328 )
​
$
52.58
​
​
​
​
​

Outstanding at December 31, 2025
 
22,161
​
$
42.80
 
5.8
​
$
750,594

Vested and expected to vest in the future at December 31, 2025
​
21,554
​
$
42.49
​
5.8
​
$
736,616

Exercisable at December 31, 2025
 
11,219
​
$
34.42
 
4.0
​
$
474,047

​
The following table summarizes information about stock options outstanding and exercisable at December 31, 2025:
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
​
​
​
​
Options Outstanding
​
Options Exercisable

​
​
​
​
​
​
​
​
Weighted
​
​
​
​
​
​
​
 

​
​
​
​
​
​
​
​
Average
​
Weighted
​
Number
​
Weighted

​
​
​
​
​
​
Number
​
Remaining
​
Average
​
Exercisable
​
Average

Range of Exercise
​
Outstanding
​
Contractual
​
Exercise
​
(in
​
Exercise

Prices ($)
  ​ ​ ​ ​
(in thousands)
  ​ ​ ​
Term (Years)
  ​ ​ ​
Price ($)
  ​ ​ ​
thousands)
  ​ ​ ​
Price ($)

$
20.91
-
$
29.37
 
3,854
 
1.7
 
$
26.52
 
3,854
 
$
26.52

$
29.84
-
$
31.20
 
3,111
 
3.6
 
$
30.40
 
3,111
 
$
30.40

$
31.73
-
$
33.71
 
40
 
4.1
 
$
32.80
 
40
 
$
32.80

$
36.62
-
$
36.62
 
3,497
 
6.2
 
$
36.62
 
1,561
 
$
36.62

$
38.96
-
$
48.30
 
2,823
 
6.7
 
$
45.85
 
1,358
 
$
44.91

$
48.90
-
$
48.90
 
20
 
5.7
 
$
48.90
 
14
 
$
48.90

$
50.82
-
$
50.82
 
3,360
 
7.2
 
$
50.82
 
827
 
$
50.82

$
51.38
-
$
59.52
 
1,470
 
9.1
 
$
54.90
 
30
 
$
53.86

$
60.30
-
$
60.30
 
3,960
 
8.2
 
$
60.30
 
424
 
$
60.30

$
63.83
-
$
66.51
 
26
 
9.8
 
$
66.13
 
—
 
$
—

​
​
​
​
​
 
22,161
 
5.8
 
$
42.80
 
11,219
 
$
34.42

​
The weighted-average grant-date fair value of options granted during the years ended December 31, 2025, 2024 and 2023 was $ 19.90 per share, $ 21.40 per share and $ 18.28 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 was $ 214.7 million, $ 83.1 million and $ 333.5 million, respectively.
Cash received from option exercises under all plans for the years ended December 31, 2025, 2024 and 2023 was $ 164.6 million, $ 79.0 million and $ 130.3 million, respectively.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

At December 31, 2025, there was $ 116.0 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.4 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:
​
​

​

​

​

​

​

​
​
​
​
Weighted-

​
​
Number of
​
Average

​
​
Shares (in
​
Grant-Date

​
  ​ ​ ​
thousands)
  ​ ​ ​
Fair Value

Non-vested at January 1, 2025
​
1,682
​
$
46.16

Granted 01/01/25 - 03/31/25 1
​
1,017
​
$
55.08

Granted 04/01/25 - 06/30/25
​
33
​
$
62.68

Granted 07/01/25 - 09/30/25
​
1
​
$
61.59

Granted 10/01/25 - 12/31/25
​
7
​
$
66.72

Vested
​
( 635 )
​
$
39.42

Forfeited/cancelled
​
( 65 )
​
$
42.83

Non-vested at December 31, 2025
​
2,040
​
$
53.15

​
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 years ended December 31, 2025, 2024 and 2023 was $ 55.40 , $ 58.77 and $ 51.24 per share, respectively. As of December 31, 2025, 1.7 million of restricted stock units and performance share units are expected to vest.
At December 31, 2025, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $ 55.8 million, which is expected to be recognized over a weighted-average period of 2.2 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 date of settlement. At December 31, 2025, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2026, 2027 and 2028.
At December 31, 2025, there was $ 2.9 million of unrecognized compensation expense related to nonvested 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 1.7 years.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Employee and Non-Employee Share-Based Compensation Expense
The table below shows the amounts recognized in the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 for share-based compensation related to employees and non-employees.
Employee and non-employee share-based compensation expense of $ 125.7 million for the year ended December 31, 2025 is comprised of $ 12.7 million relating to incentive stock options, $ 4.6 million relating to other share-based awards and $ 108.4 million relating to non-qualified stock options, restricted stock units and performance share units.
Employee and non-employee share-based compensation expense of $ 91.0 million for the year ended December 31, 2024 is comprised of $ 12.5 million relating to incentive stock options, $ 0.1 million relating to other share-based awards and $ 78.4 million relating to non-qualified stock options, restricted stock units and performance share units.
Employee and non-employee share-based compensation expense of $ 68.8 million for the year ended December 31, 2023 is comprised of $ 10.3 million relating to incentive stock options, $ 1.2 million relating to other share-based awards and $ 57.3 million relating to non-qualified stock options, restricted stock units and performance share units.
​
​

​

​

​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024
  ​ ​ ​
2023

Operating expenses
 
$
125,687
 
$
90,985
 
$
68,836

Total employee and non-employee share-based compensation expense included in income, before income tax
​
​
125,687
​
​
90,985
​
​
68,836

Less: Amount of income tax benefit recognized in earnings
​
​
( 39,745 )
​
​
( 16,006 )
​
​
( 64,401 )

Amount charged against net income
 
$
85,942
 
$
74,979
 
$
4,435

​
​
14. INCOME TAXES
The Company evaluated the various provisions of the Tax Reform Act, including, the global intangible low-taxed income (“GILTI”) and the foreign derived intangible income provisions. The Company will treat any U.S. tax on foreign earnings under GILTI as a current period expense when incurred.
Consolidated retained earnings at December 31, 2025 included undistributed after-tax earnings from certain non-U.S. subsidiaries that were not indefinitely reinvested. At December 31, 2025, the Company had a deferred tax liability of $ 10.0 million for the estimated taxes associated with the repatriation of these earnings. Undistributed earnings of approximately $ 22.5 million in foreign subsidiaries were indefinitely reinvested in foreign operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings was not practicable.
The domestic and foreign components of the Company’s income before provision for income taxes are as follows:
​
​

​

​

​

​

​

​

​

​

​

​
​
Year Ended December 31, 

​
  ​ ​ ​
2025
  ​ ​ ​
2024
  ​ ​ ​
2023

Domestic*
 
$
2,302,984
 
$
1,540,619
 
$
1,809,418

Foreign*
​
​
179,545
​
​
448,840
​
​
259,064

Income before provision for income taxes
 
$
2,482,529
 
$
1,989,459
 
$
2,068,482

​
*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $ 110.3 million, $ 108.4 million and $ 101.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

98

Table of Contents
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Components of the provision for income taxes are as follows:
​
​

​

​

​

​

​

​

​

​

​

​
​
Year Ended December 31, 

​
  ​ ​ ​
2025
  ​ ​ ​
2024
  ​ ​ ​
2023

Current:
​
​
​
​
​
​
​
​
​

Federal
 
$
308,032
 
$
273,825
 
$
259,911

State
​
​
61,927
​
​
55,087
​
​
47,079

Foreign
​
​
202,791
​
​
145,118
​
​
99,563

​
​
​
572,750
​
​
474,030
​
​
406,553

​
​
​
​
​
​
​
​
​
​

Deferred:
​
​
​
​
​
​
​
​
​

Federal
​
​
304
​
​
11,395
​
​
42,237

State
​
​
( 1,228 )
​
​
( 900 )
​
​
2,376

Foreign
​
​
( 1,309 )
​
​
( 12,772 )
​
​
( 13,936 )

​
​
​
( 2,233 )
​
​
( 2,277 )
​
​
30,677

​
​
​
​
​
​
​
​
​
​

Valuation allowance
​
​
6,580
​
​
8,658
​
​
264

​
 
$
577,097
 
$
480,411
 
$
437,494

​
A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate after the adoption of ASU 2023-09 for the year ended December 31, 2025 is as follows:
​
​

​

​

​

​

​

​

​
  ​ ​ ​
2025
 

U.S. federal statutory tax rate
​
$
521,331
  ​ ​ ​
21.0
%

State and local income tax, net of federal income tax effect 1
​
 
49,399
 
2.0
%

Foreign tax effect
​
 
36,628
 
1.5
%

Effect of cross-border tax laws 2
​
 
( 1,390 )
 
( 0.1 )
%

Tax Credits
​
 
  ​
 
  ​
​

Foreign tax credits
​
 
( 21,357 )
 
( 0.9 )
%

Energy-related tax credits
​
 
( 4,335 )
 
( 0.2 )
%

Change in valuation allowance
​
 
12,378
 
0.5
%

Nontaxable or nondeductible Items
​
 
( 9,830 )
 
( 0.4 )
%

Changes in unrecognized tax benefit
​
 
837
 
0.0
%

Other adjustments
​
 
( 6,564 )
 
( 0.2 )
%

Effective tax rate
​
$
577,097
 
23.2
%

​
(1)
State taxes in California , Illinois, Minnesota, Michigan, New Jersey and New York make up the majority (greater than 50%) of the tax effect in this category.

(2)
Includes the impact of any tax credits.

​

99

Table of Contents
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

A reconciliation of the total provision for income taxes after applying the U.S. federal statutory rate of 21 % to income before provision for income taxes to the reported provision for income taxes prior to the adoption of ASU 2023-09 are as follows for the years ended:
​
​

​

​

​

​

​

​

​
​
Year ended December 31,

​
  ​ ​ ​
2024
  ​ ​ ​
2023

U.S. federal tax expense at statutory rates
 
$
417,786
 
$
434,381

State income taxes, net of federal tax benefit
​
​
38,850
​
​
39,416

Permanent differences
​
​
( 21,298 )
​
​
( 27,235 )

Stock-based compensation
​
​
5,266
​
​
( 43,846 )

Residual tax on undistributed foreign earnings
​
​
3,903
​
​
8,423

Other
​
​
( 10,843 )
​
​
( 5,132 )

Foreign rate differential
​
​
38,089
​
​
31,223

Valuation allowance
​
​
8,658
​
​
264

​
 
$
480,411
 
$
437,494

​
Cash paid for income taxes, net of refunds received, by jurisdiction for the year ended December 31, 2025 is as follows:
​
​

​

​

​

​
  ​ ​ ​
2025

Federal
​
$
321,000

State
​
 
51,407

Foreign
​
 
  ​

Brazil
​
 
38,351

Ireland
​
 
28,495

Other
​
 
110,865

​
​
$
550,118

​
The amount of cash income taxes paid by the Company during the years ended December 31, 2024 and 2023 was $ 476.2 million and $ 423.2 million, respectively.

100

Table of Contents
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Major components of the Company’s deferred tax assets (liabilities) at December 31, 2025 and 2024 are presented in the table below. Certain amounts as of December 31, 2024 have been reclassified to conform to the presentation as of December 31, 2025.
​
​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024

Deferred tax assets:
​
​
​
​
​
​

Capitalization of inventory costs
​
$
11,326
​
$
13,253

Accrued compensation
​
​
16,722
​
​
13,941

Deferred revenue
​
​
48,208
​
​
53,802

Stock-based compensation
​
​
18,704
​
​
19,649

Net operating loss carryforward
​
​
25,632
​
​
33,159

Termination payments
​
​
32,920
​
​
39,489

Operating lease liabilities
​
​
13,078
​
​
13,201

Intangible assets
​
​
100,129
​
​
84,455

Accrued liabilities
​
​
21,824
​
​
16,725

Foreign tax credit carryforward
​
​
12,378
​
​
—

Other deferred tax assets
​
​
81,214
​
​
76,593

Total gross deferred tax assets
 
$
382,135
 
$
364,267

​
​
​
​
​
​
​

Deferred tax liabilities:
​
​
​
​
​
​

Amortization of intangibles
 
$
( 107,473 )
 
$
( 93,511 )

Operating lease ROU assets
​
​
( 13,078 )
​
​
( 13,201 )

Bang transaction gain
​
​
( 11,672 )
​
​
( 11,740 )

Depreciation
​
​
( 56,344 )
​
​
( 57,168 )

Other deferred tax liabilities
​
​
( 13,749 )
​
​
( 12,741 )

Total gross deferred tax liabilities
​
$
( 202,316 )
​
$
( 188,361 )

​
​
​
​
​
​
​

Valuation allowance
​
​
( 45,245 )
​
​
( 38,665 )

​
​
​
​
​
​
​

Net deferred tax assets
 
$
134,574
 
$
137,241

​
During the years ended December 31, 2025, 2024 and 2023, the Company recorded valuation allowances against certain deferred tax assets from cumulative net operating losses incurred by certain foreign subsidiaries of the Company, state income tax related to cumulative net operating losses incurred by certain U.S. subsidiaries, and foreign tax credit carryforwards. The effect of the valuation allowances and the subsequent related impact on the Company’s overall tax rate was to increase the Company’s provision for income taxes by $ 6.6 million, $ 8.6 million and $ 0.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, the Company had net state operating loss carryforwards of approximately $ 96.0 million and net foreign operating loss carryforwards of approximately $ 77.0 million. Of these amounts, $ 68.4 million of net foreign operating loss carryforwards may be carried forward indefinitely. The remaining $ 104.6 million of net state and foreign operating loss carryforwards will begin to expire in 2026.

101

Table of Contents
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2025, 2024 and 2023:
​
​

​

​

​

​
  ​ ​ ​
Gross Unrecognized Tax 

​
​
Benefits

Balance at December 31, 2022
​
$
3,020

Additions for tax positions related to the current year
​
 
—

Additions for tax positions related to the prior year
​
 
739

Decreases for tax positions related to prior years
​
 
( 650 )

Balance at December 31, 2023
​
$
3,109

Additions for tax positions related to the current year
​
​
—

Additions for tax positions related to the prior year
​
​
631

Decreases for tax positions related to prior years
​
​
( 1,114 )

Balance at December 31, 2024
​
$
2,626

Additions for tax positions related to the current year
​
​
—

Additions for tax positions related to the prior year
​
​
1,440

Decreases for tax positions related to prior years
​
 
( 836 )

Balance at December 31, 2025
​
$
3,230

​
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. As of December 31, 2025, the Company had accrued approximately $ 0.9 million in interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, it would not have a significant impact on the Company’s effective tax rate.
It is expected that any change in the amount of unrecognized tax benefit change within the next 12 months will 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.
15. EARNINGS PER SHARE
A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations for the years ended December 31, 2025, 2024 and 2023 is presented below (in thousands):
​
​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024
  ​ ​ ​
2023

Weighted-average shares outstanding:
​
​
​
​
​
​

Basic
​
975,887
​
1,004,566
​
1,044,887

Dilutive securities
​
8,564
​
8,541
​
13,094

Diluted
​
984,451
​
1,013,107
​
1,057,981

​
For the years ended December 31, 2025, 2024 and 2023, options and awards outstanding totaling 6.5 million shares, 7.8 million shares and 3.3 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.
​

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

16. EMPLOYEE BENEFIT PLAN
Employees of the Company may participate in the Monster Beverage Corporation 401(k) Plan, a defined contribution plan, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute into a traditional plan with pretax salary or into a Roth plan with after tax salary up to statutory limits. The Company contributes 50 % of the employee contribution, up to 8 % of each employee’s earnings, which vest over four years (2 years of service = 50 % , 3 years of service = 75 % , 4 years of service = 100 % ). Matching contributions were $ 11.3 million, $ 10.4 million and $ 8.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
​
17 . 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 and Bang 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) 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

The tables below provide information about the Company’s reportable segments, including the corporate and unallocated category.
​
Year Ended December 31, 2025
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Monster
​
​
​
​
​
​
​
​
​
​
​

​
​
Energy®
​
Strategic
​
Alcohol
​
​
​
​
​

​
  ​ ​ ​
Drinks
  ​ ​ ​
Brands
  ​ ​ ​
Brands
  ​ ​ ​
Other
  ​ ​ ​
Total

Net sales 1
​
$
7,665,871
​
$
468,716
​
$
134,720
​
$
25,036
​
$
8,294,343

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Cost of sales
 
​
3,394,604
 
​
146,913
 
​
102,303
 
​
18,328
 
​
—

Gross profit
 
​
4,271,267
 
​
321,803
 
​
32,417
 
​
6,708
 
​
4,632,195

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Distribution expense
 
​
314,933
 
​
6,257
 
​
9,897
 
​
—
 
​
—

Selling and marketing expense
 
​
714,958
 
​
61,633
 
​
26,447
 
​
421
 
​
—

Nonmanufacturing payroll expense
 
​
177,027
 
​
9,556
 
​
35,212
 
​
2,147
 
​
—

Intangibles impairment
 
​
—
 
​
—
 
​
38,411
 
​
—
 
​
—

Other segment items 2
 
​
87,845
 
​
3,600
 
​
49,410
 
​
698
 
​
—

Segment profit (loss) 1
​
​
2,976,504
​
​
240,757
​
​
( 126,960 )
​
​
3,442
​
​
3,093,743

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Reconciliation of segment profit (loss)
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Interest and other income, net
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​
 
​
63,175

Unallocated amounts:
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Corporate payroll expenses
​
​
​
​
​
​
​
​
​
​
​
​
​
​
( 445,742 )

Corporate overhead expenses, excluding payroll
​
​
​
​
​
​
​
​
​
​
​
​
​
​
( 228,647 )

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Income before provision for income taxes
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​
 
$
2,482,529

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Depreciation and amortization
​
$
78,504
​
$
1,104
​
$
19,467
​
$
1,218
​
$
100,293

Unallocated depreciation and amortization
​
​
​
​
​
​
​
​
​
​
​
​
​
​
14,148

Total depreciation and amortization
​
​
​
​
​
​
​
​
​
​
​
​
​
$
114,441

​
1 For the Monster Energy® Drinks segment, includes $ 40.0 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 - property and equipment impairment, depreciation and amortization expense, travel and entertainment expense, professional services expense, and certain overhead expenses
Other - professional services expense, and certain overhead expenses

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Year Ended December 31, 2024
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Monster
​
​
​
​
​
​
​
​
​
​
​

​
​
Energy®
​
Strategic
​
Alcohol
​
​
​
​
​

​
  ​ ​ ​
Drinks
  ​ ​ ​
Brands
  ​ ​ ​
Brands
  ​ ​ ​
Other
  ​ ​ ​
Total

Net sales 1
​
$
6,864,597
​
$
432,233
​
$
172,313
​
$
23,566
​
$
7,492,709

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Cost of sales
 
​
3,170,993
 
​
125,099
 
​
131,590
 
​
16,149
 
​
—

Gross profit
 
​
3,693,604
 
​
307,134
 
​
40,723
 
​
7,417
 
​
4,048,878

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Distribution expense
 
​
322,464
 
​
6,030
 
​
13,621
 
​
19
 
​
—

Selling and marketing expense
 
​
672,582
 
​
55,629
 
​
27,652
 
​
235
 
​
—

Nonmanufacturing payroll expense
 
​
164,091
 
​
8,790
 
​
36,884
 
​
2,174
 
​
—

Goodwill and intangibles impairment
 
​
—
 
​
—
 
​
127,098
 
​
—
 
​
—

Other segment items 2
 
​
72,011
 
​
2,933
 
​
35,784
 
​
342
 
​
—

Segment profit (loss) 1
 
​
2,462,456
 
​
233,752
 
​
( 200,316 )
 
​
4,647
 
​
2,500,539

​
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​

Reconciliation of segment profit (loss)
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Interest and other income, net
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​
 
​
59,165

Unallocated amounts:
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Corporate payroll expenses
​
​
​
​
​
​
​
​
​
​
​
​
​
​
( 377,382 )

Corporate overhead expenses, excluding payroll
​
​
​
​
​
​
​
​
​
​
​
​
​
​
( 192,863 )

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Income before provision for income taxes
​
​
​
​
​
​
​
​
​
​
​
​
​
$
1,989,459

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Depreciation and amortization
​
$
53,117
​
$
942
​
$
14,290
​
$
200
​
$
68,549

Unallocated depreciation and amortization
​
​
​
​
​
​
​
​
​
​
​
​
​
​
11,885

Total depreciation and amortization
​
​
​
​
​
​
​
​
​
​
​
​
​
$
80,434

​
1 For the Monster Energy® Drinks segment, includes $ 39.9 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 expens e, and certain overhead expenses
Other - travel and entertainment expense, and certain overhead expenses
​

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Year Ended December 31, 2023
​
​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
​
Monster
​
​
​
​
​
​
​
​
​
​
​

​
​
Energy®
​
Strategic
​
Alcohol
​
​
​
​
​

​
  ​ ​ ​
Drinks
  ​ ​ ​
Brands
  ​ ​ ​
Brands
  ​ ​ ​
Other
  ​ ​ ​
Total

Net sales 1
​
$
6,555,089
​
$
376,589
​
$
184,855
​
$
23,494
​
$
7,140,027

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Cost of sales
 
​
3,094,906
 
​
104,980
 
​
129,607
 
​
16,328
 
​
—

Gross profit
 
​
3,460,183
 
​
271,609
 
​
55,248
 
​
7,166
 
​
3,794,206

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Distribution expense
 
​
306,516
 
​
6,184
 
​
10,931
 
​
47
 
​
—

Selling and marketing expense
 
​
601,550
 
​
48,937
 
​
24,814
 
​
266
 
​
—

Nonmanufacturing payroll expense
 
​
146,236
 
​
6,446
 
​
34,192
 
​
1,996
 
​
—

Intangibles impairment
​
​
—
​
​
300
​
​
38,400
​
​
—
​
​
—

Other segment items 2
 
​
67,137
 
​
2,596
 
​
28,035
 
​
1,293
 
​
—

Segment profit (loss) 1
 
​
2,338,744
 
​
207,146
 
​
( 81,124 )
 
​
3,564
 
​
2,468,330

​
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​

Reconciliation of segment profit (loss)
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Interest and other income, net
 
​
  ​
 
​
  ​
 
​
  ​
 
​
  ​
 
​
115,127

Unallocated amounts:
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Corporate payroll expenses
​
​
​
​
​
​
​
​
​
​
​
​
​
​
( 331,743 )

Corporate overhead expenses, excluding payroll
​
​
​
​
​
​
​
​
​
​
​
​
​
​
( 183,232 )

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Income before provision for income taxes
​
​
​
​
​
​
​
​
​
​
​
​
​
$
2,068,482

​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​

Depreciation and amortization
​
$
37,606
​
$
793
​
$
15,745
​
$
1,264
​
$
55,408

Unallocated depreciation and amortization
​
​
​
​
​
​
​
​
​
​
​
​
​
​
13,490

Total depreciation and amortization
​
​
​
​
​
​
​
​
​
​
​
​
​
$
68,898

​
1 For the Monster Energy® Drinks segment, includes $ 40.0 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 - depreciation and amortization expense, and certain overhead expenses
Coca-Cola Europacific Partners accounted for approximately 15 %, 14 % and 13 % of the Company’s net sales for the years ended December 31, 2025, 2024 and 2023, respectively.
Coca-Cola Consolidated, Inc. accounted for approximately 10 % of the Company’s net sales for each of the years ended December 31, 2025, 2024 and 2023.
Net sales to customers outside the United States amounted to $ 3.44 billion, $ 2.96 billion and $ 2.71 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Such sales were approximately 41 %, 40 % and 38 % of net sales for the years ended December 31, 2025, 2024 and 2023, respectively.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Goodwill and other intangible assets for the Company’s reportable segments as of December 31, 2025 and 2024 were as follows:
​
​

​

​

​

​

​

​

​
  ​ ​ ​
2025
  ​ ​ ​
2024

Goodwill and other intangible assets:
​
​
​
​
​
​

Monster Energy® Drinks
​
$
1,716,824
​
$
1,703,256

Strategic Brands
​
 
982,543
​
 
982,035

Alcohol Brands
​
​
11,544
​
​
60,604

Other
​
 
—
​
 
—

​
​
$
2,710,911
​
$
2,745,895

​
​
18. 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, for the year ended December 31, 2025 were $ 115.4 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2025 were $ 46.6 million, and are included in operating expenses in the consolidated statements of income.
TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2024 were $ 91.2 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2024 were $ 37.3 million, and are included in operating expenses in the consolidated statements of income.
TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2023 were $ 66.8 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2023 were $ 32.0 million, and are included in operating expenses in the consolidated statements of income.
Net sales to the TCCC Subsidiaries for the years ended December 31, 2025, 2024 and 2023 were $ 251.0 million, $ 216.4 million and $ 137.9 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 $ 25.8 million, $ 28.0 million and $ 29.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $ 54.2 million, $ 41.9 million and $ 35.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

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MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular Dollars in Thousands, Except Per Share Amounts)
​

Accounts receivable, accounts payable, accrued promotional allowances and accrued liabilities related to the TCCC Subsidiaries were as follows at:
​
​

​

​

​

​

​

​

​
​
December 31, 
​
December 31, 

​
  ​ ​ ​
2025
  ​ ​ ​
2024

Accounts receivable, net
​
$
166,618
​
$
112,686

Accounts payable
​
$
( 37,775 )
​
$
( 29,095 )

Accrued promotional allowances
​
$
( 24,898 )
​
$
( 16,914 )

Accrued liabilities
​
$
( 28,458 )
​
$
( 22,595 )

​
One director of the Company through certain trusts, and a family member of one director are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the years ended December 31, 2025, 2024 and 2023 were $ 5.8 million, $ 5.9 million and $ 4.0 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 years ended December 31, 2025, 2024 and 2023, the Company incurred costs of $ 0.06 million, $ 0.05 million and $ 0.14 million, respectively.
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 consolidated financial statements.
​
​

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Table of Contents
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023 (Dollars in Thousands)

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Balance at
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Charged to
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Balance at

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beginning
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cost and
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end of

Description
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of period
  ​ ​ ​
expenses
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Deductions
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period

Allowance for doubtful accounts, sales returns and cash discounts:
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2025
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$
7,124
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$
19,303
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$
( 20,427 )
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$
6,000

2024
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$
7,638
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$
20,695
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$
( 21,209 )
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$
7,124

2023
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$
10,460
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$
20,991
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$
( 23,813 )
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$
7,638

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Allowance on deferred tax assets and unrecognized tax benefits:
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2025
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$
41,968
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$
7,417
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$
—
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$
49,385

2024
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$
33,692
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$
8,276
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$
—
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$
41,968

2023
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$
33,166
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$
526
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$
—
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$
33,692

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