MNST · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Monster Beverage Corp · 2026-08-07 · Importance 65 · Surprise 48 · From source text

Second-quarter gross profit increased 20.7% to $1.42 billion, while gross margin expanded to 55.9% from 55.7%. The improvement reflected the 2025 Pricing Actions and product sales mix. Higher aluminum can costs, geographic sales mix and freight-in costs partially offset the margin benefit. For the first six months, gross margin declined to 55.5% from 56.1% because geographic mix, aluminum can costs and freight-in costs outweighed pricing and product-mix benefits.

Key facts

• Gross profit was $1,419,634 thousand for the three-months ended June 30, 2026, a 20.7% increase from $1,176,413 thousand for the three-months ended June 30, 2025. source
• Gross profit was $2,712,983 thousand for the six-months ended June 30, 2026, a 22.0% increase from $2,224,375 thousand for the six-months ended June 30, 2025. source
• Cost of sales was $1,117,839 thousand for the three-months ended June 30, 2026, a 19.5% increase from $935,180 thousand for the three-months ended June 30, 2025. source
• The increase in gross profit percentage for the three-months ended June 30, 2026 was primarily the result of the Pricing Actions and product sales mix, partially offset by increased aluminum can costs, geographical sales mix and increased freight-in costs. source
• The decrease in gross profit percentage for the six-months ended June 30, 2026 was primarily the result of geographical sales mix, increased aluminum can costs and increased freight-in costs, partially offset by the Pricing Actions and product sales mix. source
• The Pricing Actions positively impacted gross profit margins in 2026 as compared to 2025. source
• Gross profit as a percentage of net sales was 55.9% for the three-months ended June 30, 2026, up from 55.7% for the three-months ended June 30, 2025. source
• Gross profit as a percentage of net sales decreased to 55.5% for the six-months ended June 30, 2026 from 56.1% for the six-months ended June 30, 2025. source

Impact estimates