Monster Beverage Corp (MNST) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Monster Beverage Corp surfaced in its latest filing.

• Transitioned all third-party U.S. distribution rights to TCCC's network
• TCCC distribution coordination agreement includes non-compete provisions until its termination
• TCCC distribution agreements prohibit TCCC distributors from distributing competitive energy drink products
• As of February 13, 2026, Mr. Sacks and Mr. Schlosberg together beneficially own approximately 8.1% of outstanding common stock, and TCCC owns approximately 20.9%February 13, 2026
• TCCC is obligated to vote its shares in excess of 20% in proportion to non-TCCC shares on change-of-control proposals
• Outsourced manufacturing of most non-alcohol finished goods to bottlers and contract packers in 20252025
• Primary flavors for Monster Energy drinks are developed and manufactured at AFF facilities in Southern California and Athy, Ireland
• Bang Energy beverages and certain other energy drinks are manufactured at facilities in Phoenix, Arizona and Norwalk, California
• Certain alcohol products are manufactured at Monster Brewing Company facilities in Longmont, Colorado, Brevard, North Carolina, and Grand Rapids, Michigan
• PepsiCo entered into a long-term strategic distribution arrangement with Celsius Holdings, Inc. in August 2022August 2022
• Acquired substantially all assets of Bang Energy on July 31, 2023, including the Bang Energy drink businessJuly 31, 2023
• Acquired Monster Brewing Company in February 2022, a craft beer and hard seltzer companyFebruary 2022
• In 2025, recognized impairment charges of $38.4 million for finite-lived intangible assets and $15.3 million for property and equipment in the Alcohol Brands segment2025
• Net sales outside the United States were approximately 41%, 40%, and 38% of consolidated net sales for 2025, 2024, and 2023 respectively
• Derivative instruments used to manage a portion of risk related to aluminum for cans
• Hurricanes Helene and Milton in September and October 2024 impacted sales and forced temporary closure of the Brevard, North Carolina brewerySeptember and October 2024
• In early 2025, AFF manufacturing facility in Southern California temporarily closed due to air pollution from Los Angeles wildfiresearly 2025
• Experienced limited recalls of certain products in Canada, Europe, and the United States in recent years
• Upgrading enterprise resource planning system to SAP S4 HANA with planned go-live date of January 1, 2028January 1, 2028
• 2022 through 2025 U.S. federal income tax returns are subject to examination by the IRS
• State income tax returns subject to examination for 2021 through 2025 tax years
• United Kingdom and Ireland income tax returns subject to examination for 2021 through 2025 tax years
• On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, including broad tax reform provisionsJuly 4, 2025
• As of December 31, 2025, goodwill totaled $1.33 billion and other intangible assets totaled $1.38 billionDecember 31, 2025
• Aggregate foreign currency transaction gains (losses) for 2025, 2024, 2023 were $(11.9) million, $(26.4) million, and $(60.2) million respectively
• Forward currency exchange contracts used to manage a portion of foreign exchange risk
• During fiscal year ended December 31, 2025, stock price ranged from high of $78.31 to low of $45.702025
• At December 31, 2025, held $2.09 billion in cash and cash equivalents, $677.1 million in short-term investments, and $487.3 million in long-term investmentsDecember 31, 2025