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MNSTMonster Beverage

Consumer staples · Soft Drinks · Nasdaq

When this report uses the words “the Company”, “we”, “us” and “our”, these words refer to Monster Beverage Corporation and its subsidiaries, unless the context otherwise requires. 10-K, Item 1

Employees
6,891
Headquarters
Corona, CA
CEO
Hilton H. Schlosberg
Next results
around Feb 25, 2027
Compare with peers → Embed

10-K 0001104659-26-020831 (2026-02-27) vs 10-K 0001410578-25-000248 (2025-02-28)

SectionCompared textWords nowChanged
Risk FactorsItem 1A14,791 8.4%
MD&AItem 79,939 19.3%
Legal ProceedingsItem 3600 31.6%
Accounting PoliciesItem 8 (note not found)0 not compared

The redline: what was cut and what was added

In each section, the paragraph that changed most, marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

MD&A 160 words changed in this paragraph; it is 61% similar to last year's version.
Long-term debt. In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, lenders (the “Original Credit Agreement”), which provides provided for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities consist 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 matures May 2027, 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 matures May 2029. has been reduced to $500.0 million. Borrowings under the Revolving Credit Facilities 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 Credit Facilities and, in the case of the Revolving Credit Facility, Facility and may be reborrowed prior to the maturity date. date, which is set to occur in May 2029. As of December 31, 2024, 2025, no borrowings of $375.0 million remained were outstanding on under the Term Loan. Credit Facilities, and the Company was in compliance with all covenants under the Amended Credit Agreement. As of February 27, 2025, borrowings of $225.0 million remained outstanding on the Term Loan. As of December 31, 2024, 26, 2026, the Revolving Credit Facility had remaining availability of $750.0 $500.0 million.

Source: Item 7, 10-K 0001104659-26-020831 vs Item 7, 10-K 0001410578-25-000248

Risk Factors 139 words changed in this paragraph; it is 64% similar to last year's version.
Global economic uncertainties, including highly inflationary economies and foreign currency exchange rates and rising interest rates, affect businesses such as ours in a number of ways, making it difficult to accurately forecast and plan our future business activities. There can be no assurance that economic improvements will occur, or that they would be sustainable, or that they would enhance conditions in markets relevant to us. In addition, we cannot predict the duration and severity of disruptions in any of our markets or the impact they may have on our customers or business, as our expansion outside of the United States has increased our exposure to any developments or crises in African, Asian, Central and South American, European, Middle Eastern and other international markets. Unfavorable economic conditions Moreover, geopolitical tensions have created, and may continue to create, supply chain and financial uncertainties, including economic slowdowns and recessions, and unstable political conditions, including civil unrest and governmental changes, in risk due to our major international markets could undermine global consumer confidence and reduce consumers’ purchasing power, thereby reducing demand reliance on aluminum for our products. The foregoing also includes the impact of several elections worldwide, including the 2024 U.S. elections, packaging and the resulting policy shifts, the impact of such new policies implemented by the U.S. potential for increased costs due to tariffs or other jurisdictions particularly with respect to tax and trade policies, including tariffs, and the impact of sanctions and related activities by the U.S., European Union, or other jurisdictions and any increased economic uncertainty and volatility in commodity prices that it poses. shortages.

Source: Item 1A, 10-K 0001104659-26-020831 vs Item 1A, 10-K 0001410578-25-000248

Legal Proceedings 27 words changed in this paragraph; it is 80% similar to last year's version.
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 million, respectively, of loss contingencies were included in the Company’s accompanying consolidated balance sheet. As of December 31, 2023, $0.3 million of loss contingencies were included in the Company’s accompanying consolidated balance sheet. sheets.

Source: Item 3, 10-K 0001104659-26-020831 vs Item 3, 10-K 0001410578-25-000248

Every change, by type

Sentences and paragraphs of MNST's Risk Factors and MD&A, 10-K 2026-02-27 against 10-K 2025-02-28. Each links to the text at sec.gov.

Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.

The full word listadverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would

AddedRisk Factors
disputes between our bottler/distributors and their customers or buying groups may result in the delisting of certain of the Company’s products, temporarily or otherwise. Bottler/distributor consolidation may also have an adverse impact on our business.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedRisk Factors
are a member, and/or any international beverage associations, it could negatively affect our overall reputation, which in turn could have a negative impact on our business, financial condition and results of operations.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedRisk Factors
We rely on artificial intelligence (“AI”) technologies to support and enhance various aspects of our products, services, and internal operations. These systems may not perform as intended and expose us to risks. In particular, AI models can generate inaccurate, biased, or unpredictable outputs, and failures in data quality, system design, or oversight could result in operational disruptions, security or privacy incidents, reputational challenges, and other harms. Because AI systems can be complex and difficult to fully evaluate or

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedRisk Factors
audit, we may be unable to detect errors or vulnerabilities in a timely manner. If we are unable to effectively implement, monitor, and manage these technologies, our business, financial condition, and results of operations could be adversely affected.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedRisk Factors
We operate in a global market, and our use of AI is subject to different levels of regulations in different markets. These differences, as well as changes in the way AI is regulated—including potential new requirements governing transparency, accountability, data usage, and model controls—could increase our compliance costs, limit the use of certain technologies, or require changes to our products and processes. Any failure to comply with emerging AI regulatory frameworks could result in enforcement actions, fines, or other adverse consequences.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedRisk Factors
We are upgrading our enterprise resource planning system, including implementing SAP S4 HANA with a planned go-live date of January 1, 2028, in order to improve operational efficiency, scalability, and overall business management. These upgrades involve personnel training, data migration, and potential security and stability risks, and any significant delays or failures could disrupt our business and negatively affect our operations and financial results.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedRisk Factors
are being considered by various U.S. states. These laws and regulations impose operational requirements, including disclosures to consumers about personal data practices, opt-out and consent choices and required contractual terms with certain third parties, as well as obligations to provide notice to individuals, third parties, and/or regulators in the event of certain cybersecurity incidents involving personal data. In China, for instance, the Personal Information Protection Law also imposes requirements on the collection, use, and cross-border transfer of personal information, and noncompliance may result in penalties and operational restrictions.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedRisk Factors
At December 31, 2025, we had $2.09 billion in cash and cash equivalents, $677.1 million in short-term investments and $487.3 million in long-term investments, including commercial paper, certificates of deposit, municipal securities, U.S. treasuries and corporate bonds. Certain of these investments are subject to general credit, liquidity, market and interest rate risks. These risks associated with our investment portfolio may have an adverse effect on our future results of operations, liquidity and financial condition.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
If we are unable to satisfy all criteria set forth in any model energy drink guidelines, including, without limitation, those adopted by the American Beverage Association, Association in the future, of which we are a member, and/or any international beverage associations, it could negatively affect our overall reputation, which in turn could have a negative impact on our business, financial condition and results of operations.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Also, Additionally, our operations outside of the United States are subject to risks relating to to: appropriate compliance with legal and regulatory requirements in local jurisdictions, potential jurisdictions; difficulties in staffing and managing local operations, which has, at times, necessitated enhanced local training, communications, and business partner management; higher rates of product damages, particularly when products are shipped long distances, potentially distances; higher incidence of fraud and/or corruption, such as invoicing fraud or kickback schemes; credit risk of local customers and distributors distributors; and potentially adverse tax consequences.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Increased frequency or duration frequency, duration, and intensity of extreme weather conditions and/or natural disasters could also impair our production capabilities, disrupt our supply chain and/or chain, impact demand for our products. products, and/or create financial risk due to rising insurance premiums or the inability to maintain coverage.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
For a additional discussion regarding cybersecurity risks from cybersecurity threats that are reasonably likely to affect the Company, and potential related impacts on us, see “Part I, Item 1A – Risk Factors – Our use of information technology exposes us to the risk of cybersecurity attacks incidents and other interruptions that could disrupt our business operations and adversely impact our reputation and results of operations,” “Cybersecurity attacks, incidents, business interruptions, and compliance issues experienced by third parties could materially and adversely affect our financial condition, results of operation and cash flows” and “If we fail to comply with data privacy and personal data protection laws and emerging cybersecurity laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which may negatively impact our business and operating results.”

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Treasury Report, report, “Competition in the Market Markets for Beer, Wine Wine, and Spirits” (the “Treasury Report”), Spirits,” which promises assesses competitive conditions and potential barriers to evaluate the impact of consolidation on marketplace competition. entry.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
We do not believe any statements made by us in our promotional materials or set forth on our product labels are false or misleading or noncompliant with local law, or that our products are in any way unsafe, and we vigorously defend such lawsuits.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Our products compete with all liquid refreshments and in some cases with products of much larger competitors, refreshments, including the products of numerous nationally and internationally known producers such as TCCC, Starbucks Corporation, PepsiCo, Red Bull GmbH, KDP, Molson Coors, Constellation Brands, AB InBev, The Boston Beer Company and The Mark Anthony Group.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
For the year ended December 31, 2024, 2025, we recorded $86.3 million and $40.8 $38.4 million of impairment charges related to goodwill and to certain other indefinite lived finite-lived intangible assets, respectively. assets in the Alcohol Brands segment.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
A material product recall could adversely affect the availability of our profitability products, our profitability, including the loss of product sales from the destruction of product inventory, and our brand image and corporate reputation.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
For example, the Organization for Economic Cooperation and Development (“OECD”) has recommended changes to numerous long-standing international tax principles through its base erosion and profit shifting (“BEPS”) project. project and, as recently as early January 2026, has agreed upon an OECD BEPS global minimum tax framework.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
An unfavorable report on the health effects of caffeine, other ingredients in energy drinks or energy drinks generally, or criticism or negative publicity regarding the caffeine content and/or any other ingredients in our products or energy drinks generally, including product safety concerns, concerns (regardless of the validity or scientific merit of any such reports, criticism, or negative publicity), could have an adverse effect on our business, financial condition and results of operations.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Our products compete with a wide range of drinks, both non-alcohol and alcohol, produced by a relatively large number of domestic and international manufacturers, some of which have substantially greater financial, marketing and distribution resources than we do. manufacturers.

Read it in 10-K 2026-02-27 at sec.gov ↗

Quiet changesRisk Factors
The Cybersecurity and Compliance Steering Committee, comprised of senior members of management, convenes on a quarterly basis to review all matters related to strengthening our cybersecurity posture and providing cybersecurity governance.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedMD&A
Cash and cash equivalents. As of December 31, 2025, we had $2.09 billion in cash and cash equivalents, $677.1 million in short-term investments, and $487.3 million in long-term investments, including commercial paper, certificates of deposit, municipal securities, U.S. treasuries and corporate bonds. We maintain our investments for cash management purposes and not for purposes of speculation. Our risk management policies emphasize credit quality (primarily based on short-term ratings by nationally recognized statistical rating organizations) in selecting and maintaining our investments. We regularly assess the market risk of our investments and believe our current policies and investment practices adequately limit those risks. However, certain of these investments are subject to general credit, liquidity, market and interest rate risks. These market risks associated with our investment portfolio may have an adverse effect on our future results of operations, liquidity and financial condition.

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedMD&A
our ability to sustain and/or surpass the current level of sales of our products, to adapt to changing consumer preferences, and to effectively respond to competitive products and pricing pressures;

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedMD&A
the impact of the current U.S. presidential administration’s policies on our energy drinks due to concerns about sugar-sweetened beverages, particular ingredients, such as food dyes, and the “generally recognized as safe” (GRAS) process;

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedMD&A
the impact of proposed or adopted domestic and/or foreign legislation to limit or restrict the sale of energy drinks (including the prohibition of the sale of energy drinks to certain demographics, at certain establishments, in certain container sizes or pursuant to certain governmental programs, such as the Supplemental Nutrition Assistance Program (SNAP));

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedMD&A
changes in the price and/or availability of raw materials and other supply chain issues, such as the availability of products, suitable production facilities and/or co-packing arrangements;

Read it in 10-K 2026-02-27 at sec.gov ↗

AddedMD&A
disruption to our manufacturing facilities and operations related to climate, labor, production difficulties, capacity limitations, regulations or other causes;

Read it in 10-K 2026-02-27 at sec.gov ↗

RemovedMD&A
Additionally, the increase in operating expenses was primarily due to increased general and administrative expenses of $110.0 million (primarily impairment charges related to the Alcohol Brands segment), increased selling and marketing expenses of $80.5 million (primarily sponsorships and endorsements), increased payroll expenses of $68.7 million and increased distribution expenses (including storage and warehouse) of $18.5 million.

Read it in 10-K 2025-02-28 at sec.gov ↗

RemovedMD&A
Our ability to sustain the current level of sales of and/or achieve growth for our Monster Energy®, Reign Total Body Fuel®, Reign Storm®, Bang Energy® and NOS® brand energy drinks and/or our other products, including our Strategic Brands and Alcohol Brands;

Read it in 10-K 2025-02-28 at sec.gov ↗

RemovedMD&A
Decreased demand for our products resulting from changes in consumer preferences, including, but not limited to: changes in demand for different packages, sizes and configurations; changes due to perceived health concerns such as obesity, ingredients in our products or packaging, and alcohol abuse; changes due to product safety concerns; and/or changes due to decreased consumer discretionary spending power;

Read it in 10-K 2025-02-28 at sec.gov ↗

RemovedMD&A
The impact on our business of competitive products and pricing pressures and our ability to increase or maintain our market share as a result of actions by competitors, including unsubstantiated and/or misleading claims, false advertising claims and tortious interference, as well as competitors selling misbranded products;

Read it in 10-K 2025-02-28 at sec.gov ↗

RemovedMD&A
Changes in U.S. trade policies as a result of any legislation proposed by the recently inaugurated U.S. presidential administration or U.S. Congress, which include tariffs on aluminum;

Read it in 10-K 2025-02-28 at sec.gov ↗

RemovedMD&A
Fluctuations in growth and/or growth rates (positive or negative) of the domestic and international energy drink categories generally, including in the convenience and gas channel (which is our largest channel) and the impact on demand for our products resulting from deteriorating economic conditions and/or financial uncertainties, including a slowdown in consumer spending generally or reduced demand for consumer goods;

Read it in 10-K 2025-02-28 at sec.gov ↗

RemovedMD&A
The impact of temporary or permanent facility closures, production slowdowns and disruptions in operations experienced by our manufacturing facilities, our suppliers, bottlers/distributors, co-packers, and/or breweries, including any material disruptions on the production and distribution of our products;

Read it in 10-K 2025-02-28 at sec.gov ↗

RewordedMD&A
For the year ended December 31, 2024, 2025, cash provided by operating activities also increased due to a $211.5 $98.3 million decrease increase in inventories, accrued promotional allowances, an $18.4 $81.3 million increase in accrued liabilities, a $13.4 $78.5 million increase in other liabilities, accounts payable, a $9.7 million increase in accrued promotional allowances, a $9.4 $27.8 million increase in income taxes payable, and a $9.0 million decrease in prepaid expenses and other assets, a $5.9 $17.8 million increase in accrued compensation and a $3.1 million decrease in prepaid income taxes. compensation.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $2.98 billion for the year ended December 31, 2025, an increase of approximately $514.0 million, or 20.9% higher than operating income of $2.46 billion for the year ended December 31, 2024, an increase of approximately $123.7 million, or 5.3% higher than operating income of $2.34 billion for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $240.8 million for the year ended December 31, 2025, an increase of approximately $7.0 million, or 3.0% higher than operating income of $233.8 million for the year ended December 31, 2024, an increase of approximately $26.6 million, or 12.8% higher than operating income of $207.1 million for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $127.0 million for the year ended December 31, 2025, a decrease of approximately $73.4 million, or 36.6% lower than operating loss of $200.3 million for the year ended December 31, 2024, an increase of approximately $119.2 million, or 146.9% higher than operating loss of $81.1 million for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $3.4 million for the year ended December 31, 2025, a decrease of approximately $1.2 million, or 25.9% lower than operating income of $4.6 million for the year ended December 31, 2024, an increase of approximately $1.1 million, or 30.4% higher than operating income of $3.6 million for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Operating loss for the Alcohol Brands segment, exclusive of the Alcohol Brands segment impairment charges and corporate and unallocated expenses, was $200.3 $73.3 million and $61.6 million for the year years ended December 31, 2025 and 2024, an increase of approximately $119.2 million, or 146.9% higher than operating loss of $81.1 million for the year ended December 31, 2023. respectively.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment were $7.67 billion for the year ended December 31, 2025, an increase of approximately $210.0 million $801.3 million, or 11.7% higher than net sales of $6.86 billion for the year ended December 31, 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
For the year ended December 31, 2024, 2025, cash provided by operating activities was primarily attributable to net income earned of $1.51 $1.91 billion and adjustments for certain non-cash expenses, consisting of $127.1 $129.8 million impairment of goodwill depreciation and other intangibles, $91.0 amortization and non-cash lease expense, $125.7 million of stock-based compensation, $80.4 $38.4 million impairment of depreciation intangibles, and amortization, $13.5 million of non-cash lease expense and $8.2 $12.0 million impairment of property and equipment.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
For the year ended December 31, 2024, 2025, cash used in operating activities was primarily attributable to a $93.9 $300.6 million increase in accounts receivable, a $61.5 $39.3 million decrease increase in accounts payable prepaid expenses and other assets, a $17.4 $34.9 million increase in inventories, a $23.0 million decrease in deferred revenue. revenue, and a $21.1 million increase in prepaid income taxes.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
We implemented price increases (i) effective November 1, in the fourth quarters of fiscal years 2025 and 2024 (for core brands and packages) and April 1, 2023 (for limited pack sizes) in the United States, States and (ii) at various times in certain international markets during 2025 and 2024 and 2023 (collectively, the “Pricing Actions”).

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Operating income was $536.3 $659.3 million and $409.3 $536.3 million for the years ended December 31, 2024 2025 and 2023, 2024, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. international operations, exclusive of Canada.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Borrowings under the Credit Facilities may be repaid at any time during the term of the Credit Facilities and, in the case of the Revolving Credit Facility, Facility and may be reborrowed prior to the maturity date. date, which is set to occur in May 2029.

Read it in 10-K 2026-02-27 at sec.gov ↗

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