Monster Beverage MNST · USD

17.SEGMENT INFORMATIONThe 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.

2.REVENUE RECOGNITIONRevenues 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.

10.COMMITMENTS AND CONTINGENCIESContractual 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​$ 318,0092027​​ 116,9252028​​ 75,5402029​​ 48,9022030​​ 10,4202031 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.

9.DEBTThe 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, ​ ​ ​ ​2024Term loan​$ 375,000Revolving credit facility​ —Total debt​ 375,000Less: unamortized debt issuance costs​ (1,049)Total debt, net of unamortized debt issuance costs​ 373,951Less: 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.

14.INCOME TAXESThe 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 ​ ​ ​2023Domestic* $ 2,302,984 $ 1,540,619 $ 1,809,418Foreign*​​ 179,545​​ 448,840​​ 259,064Income 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.Components of the provision for income taxes are as follows:​​​​​​​​​​​​​Year Ended December 31, ​ ​ ​ ​2025 ​ ​ ​2024 ​ ​ ​2023Current:​​​​​​​​​Federal $ 308,032 $ 273,825 $ 259,911State​​ 61,927​​ 55,087​​ 47,079Foreign​​ 202,791​​ 145,118​​ 99,563​​​ 572,750​​ 474,030​​ 406,553​​​​​​​​​​Deferred:​​​​​​​​​Federal​​ 304​​ 11,395​​ 42,237State​​ (1,228)​​ (900)​​ 2,376Foreign​​ (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 effect1​ 49,399 2.0%Foreign tax effect​ 36,628 1.5%Effect of cross-border tax laws2​ (1,390) (0.1)%Tax Credits​ ​ ​​Foreign tax credits​ (21,357) (0.9)%Energy-related tax credits​ (4,335) (0.

13.STOCK-BASED COMPENSATIONThe 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.

Our Chief Information Officer and his team are responsible for leading our cybersecurity strategy, policy, standards, architecture, and processes. Our cybersecurity leadership team has more than 40 years of combined experience in cyber and information security matters. Our cybersecurity program is also supported by our Chief Compliance Officer and other members of senior management. We conduct periodic reviews of our program by internal and external experts with the results of those reviews reported to senior management and the Board. Moreover, pursuant to our Audit Committee Charter, as amended and restated, the Audit Committee of our Board (the “Audit Committee”) reviews our cybersecurity matters with our Chief Information Officer at each of its quarterly meetings. We have procedures in place for addressing potential cybersecurity risks when selecting and managing our relationships with third-party service providers and other business partners. For example, we require certain third-party service providers and other business partners to provide us with SOC II reports that demonstrate alignment with data and cybersecurity standards. We also actively engage with industry participants as part of our continuing efforts to evolve our cybersecurity governance.Our cybersecurity team promptly informs our Incident Response Team of potentially material cybersecurity incidents, including with respect to such incidents involving our third-party service providers. The Chief Information Officer briefs our Chief Executive Officer and reports to the Audit Committee. The Audit Committee, in turn and if appropriate, briefs the Board on, among other matters, potentially material cybersecurity incidents, our cyber risks and threats, the status of projects to strengthen our enterprise systems (such as employee cybersecurity training), an assessment of the cybersecurity program, and the emerging threat landscape. The Cybersecurity and Compliance Steering Committee, comprised of senior members of management, convenes on a quarterly basis to review matters related to strengthening our cybersecurity posture and providing cybersecurity governance.As of the date of this filing, we have not identified any cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition.

3.INVESTMENTSThe 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 MonthsAvailable-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 ValueLess than 1 year:​​​​​​Commercial paper​$ 90,418​$ 90,419Certificates of deposit ​ 12,728​ 12,728Municipal securities​ 674​ 675U.S. treasuries​​ 489,007​​ 489,499Corporate bonds​​ 83,639​​ 83,763Due 1 - 10 years:​​​​​​Municipal securities​ 1,206​ 1,207U.S.