Financial Analysis

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 Companys 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 Co …

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9. DEBT The Company repaid the outstanding balance on long-term debt in April 2025. As of December 31, 2024, the Companys 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 Companys 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 t …

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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) …

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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 Companys 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 Companys 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 …

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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 Companys financial assets and liabilities that are recorded at fair valu …

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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 Companys 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 Companys 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. Components of the provision for income taxes are as follows: Year Ended De …

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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 employees 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. …

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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 Companys 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 i …

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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 Companys 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 Companys 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 Companys 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 Companys Strategic Brands segment primarily generates net ope …

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17 . SEGMENT INFORMATION The Company has four operating and reportable segments: (i) Monster Energy Drinks segment, which is primarily comprised of the Companys 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 Companys 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 Companys 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 Companys 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 sol …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing