MNST · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Monster Beverage Corp · 2026-11-06 · Importance 36 · Surprise 40 · No source text

Gross profit increased 14.4% to $1.401 billion in the three months ended September 30, 2026, while gross margin declined to 54.7% from 55.7%. For the nine months, gross profit rose 19.3% to $4.114 billion, while gross margin fell to 55.2% from 56.0%. Higher aluminum can costs, geographic sales mix and freight-in costs reduced margins; the 2025 U.S. and 2025–2026 international Pricing Actions partly offset the pressure, with product sales mix also partly offsetting the nine-month decline.

Key facts

• Three-month 2026 gross profit was $1.40 billion, up 14.4% from $1.22 billion in 2025, primarily as a result of increased net sales. source
• Nine-month 2026 gross profit was $4.11 billion, up 19.3% from $3.45 billion in 2025, primarily as a result of increased net sales. source
• Gross margin declined to 54.7% in the three months ended September 30, 2026 from 55.7% in 2025, primarily due to higher aluminum can costs, geographical sales mix, and freight-in costs, partially offset by pricing actions. source
• Gross margin declined to 55.2% for the nine months ended September 30, 2026 from 56.0% in 2025, primarily due to geographical sales mix, aluminum can costs, and freight-in costs, partly offset by pricing actions and product sales mix. source
• Monster Beverage Corp identified its ability to absorb, reduce, or pass on cost increases—including aluminum and other raw materials, the Midwest Premium, freight, and fuel costs—to bottlers and distributors as a risk. source
• Monster Beverage Corp identified changes in U.S. trade policies, including additional tariffs, as a potential business risk. source
• Monster Beverage Corp identified changes in raw-material prices or availability and supply-chain issues, including product availability, suitable production facilities, or co-packing arrangements, as risks. source
• Monster Beverage Corp identified military and geopolitical conflicts as risks that could cause supply-chain disruptions, commodity-price volatility, increased economic uncertainty, escalating tensions, and policy, legislative, or regulatory changes affecting its business. source

Impact estimates