Monster Beverage · Earnings release

Investor Relations

Strategic Public Relations

PondelWilkinson Inc.

W www.pondel.com

CONTACTS:

NEWS

RELEASE

Mark Astrachan

SVP, Investor Relations & Corporate Development

Roger S. Pondel / Judy Lin

PondelWilkinson Inc.

MONSTER BEVERAGE REPORTS 2026 SECOND QUARTER

FINANCIAL RESULTS

2026 Second Quarter Highlights

·

Net Sales rise 20.2 percent to $2.54 billion

·

Net Income increases 19.6 percent to $584.5 million (15.7 percent to

$590.5 million on a non-GAAP adjusted basis)1

·

Net Income Per Diluted Share increases 19.0 percent to $0.59 per share

(15.2 percent to $0.60 per share on a non-GAAP adjusted basis)

1The tables at the end of this press release provide

a reconciliation of non-GAAP financial measures to the Company’s results, as reported under GAAP. (See “Reconciliation of

GAAP and Non-GAAP Information” below).

Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three- and six-months ended June 30, 2026.

Net sales for the 2026 second quarter increased

20.2 percent to $2.54 billion, from $2.11 billion in the same period last year. Net changes in foreign currency exchange rates had a favorable

impact on net sales for the 2026 second quarter of $48.5 million. Net sales on a foreign currency adjusted basis (non-GAAP) increased

Net sales, excluding the Alcohol Brands segment

(non-GAAP), increased 20.8 percent in the 2026 second quarter. Net sales, excluding the Alcohol Brands segment, on a foreign currency

adjusted basis (non-GAAP), increased 18.5 percent in the 2026 second quarter.

Net sales for the Company’s Monster Energy®

Drinks segment, which primarily includes the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy

drinks, Bang Energy® drinks, StormTM and Reign Storm® total wellness energy drinks and FLRTTM total wellness

energy drinks, increased 21.6 percent to $2.36 billion for the 2026 second quarter, from $1.94 billion for the 2025 second quarter. Net

changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately

$45.3 million for the 2026 second quarter. Net sales on a foreign currency adjusted basis (non-GAAP) for the Monster Energy® Drinks

segment increased 19.3 percent in the 2026 second quarter.

(more)

Monster Beverage Corporation

Net sales for the Company’s Strategic

Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the

Company’s affordable energy brands, Predator® and Fury®, increased 10.6 percent to $143.7 million for the 2026 second

quarter, from $129.9 million in the 2025 second quarter. Net changes in foreign currency exchange rates had a favorable impact on

net sales for the Strategic Brands segment of approximately $3.3 million for the 2026 second quarter. Net sales on a foreign

currency adjusted basis (non-GAAP) for the Strategic Brands segment increased 8.1 percent in the 2026 second quarter.

Net sales for the Alcohol Brands segment, which

is comprised of various craft beers, flavored malt beverages and hard seltzers, decreased 15.2 percent to $32.2 million for the 2026 second

quarter, from $38.0 million in the 2025 second quarter.

Net sales for the Company’s Other segment,

which primarily includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary of the Company, sold to independent

third-party customers, decreased 15.3 percent to $5.4 million for the 2026 second quarter, from $6.4 million in the 2025 second quarter.

Net sales to customers outside the United States

increased 34.6 percent to $1.16 billion in the 2026 second quarter, from $864.2 million in the 2025 second quarter, representing approximately

46 percent and 41 percent of total reported net sales for the 2026 and 2025 second quarters, respectively. Net sales to customers outside

the United States, on a foreign currency adjusted basis (non-GAAP), increased 29.0 percent to $1.11 billion in the 2026 second quarter.

Gross profit as a percentage of net sales for the

2026 second quarter was 55.9 percent, compared with 55.7 percent in the 2025 second quarter. The increase in gross profit as a percentage

of net sales for the 2026 second quarter was primarily the result of pricing actions and product sales mix, partially offset by increased

aluminum can costs, geographical sales mix and increased freight-in costs. Adjusted gross profit (non-GAAP)

as a percentage of net sales, excluding the Alcohol Brands segment, for the 2026 second quarter was 56.3 percent, compared with 56.2 percent

in the 2025 second quarter.

Distribution expenses for the 2026 second quarter

were $118.8 million, or 4.7 percent of net sales, compared with $82.0 million, or 3.9 percent of net sales, in the 2025 second quarter.

Selling expenses for the 2026 second quarter were

$269.2 million, or 10.6 percent of net sales, compared with $196.9 million, or 9.3 percent of net sales, in the 2025 second quarter. The

increase in selling expenses for the 2026 second quarter was primarily due to increased social, digital, media and other marketing expenses,

including sponsorships and endorsements, in order to reach a broader consumer audience and increase household penetration.

General and administrative expenses for the 2026

second quarter were $291.2 million, or 11.5 percent of net sales, compared with $265.9 million, or 12.6 percent of net sales, for the

2025 second quarter. Stock-based compensation was $35.7 million for the 2026 second quarter, compared with $33.2 million in the 2025 second

quarter.

Operating expenses for the 2026 second quarter

were $679.2 million, compared with $544.8 million in the 2025 second quarter. Adjusted operating expenses (non-GAAP) for the 2026 second

quarter were $662.7 million, compared with $505.6 million in the 2025 second quarter. Operating expenses as a percentage of net sales

for the 2026 second quarter were 26.8 percent, compared with 25.8 percent in the 2025 second quarter. Adjusted operating expenses (non-GAAP)

as a percentage of net sales, less the Alcohol Brands segment, were 26.5 percent and 24.4 percent for the 2026 and 2025 second quarters,

respectively.

(more)

Monster Beverage Corporation

Operating income for the 2026 second quarter increased

17.2 percent to $740.4 million, from $631.6 million in the 2025 second quarter. Adjusted operating income (non-GAAP) for the 2026 second

quarter increased 13.3 percent to $748.1 million, from $660.1 million in the 2025 second quarter.

The effective tax rate for the 2026 second quarter

was 23.9 percent, compared with 24.4 percent in the 2025 second quarter.

Net income for the 2026 second quarter increased

19.6 percent to $584.5 million, from $488.8 million in the 2025 second quarter. Adjusted net income (non-GAAP) for the 2026 second quarter

increased 15.7 percent to $590.5 million, from $510.4 million in the 2025 second quarter. Net income per diluted share for the 2026 second

quarter increased 19.0 percent to $0.59, from $0.50 in the 2025 second quarter. Adjusted net income per diluted share (non-GAAP) for the

2026 second quarter increased 15.2 percent to $0.60, from $0.52 in the second quarter of 2025.

Hilton H. Schlosberg, Chief Executive Officer,

said, “We delivered a strong 2026 second quarter, with net sales increasing 20.2 percent and net income per diluted share increasing

“Our international operations continued their

meaningful contribution to revenue growth, with net sales to customers outside the United States increasing 34.6 percent in the 2026 second

quarter to approximately 46 percent of total net sales.

“The energy drink category continues to attract

new consumers, expand usage occasions and increase household penetration. Our 2026 marketing strategy includes increased marketing investments

across a variety of new platforms and partnerships, including social, digital and media, to support both existing product offerings and

new product launches, as well as reach a broadening consumer base for the Company.

“We remain focused on the growth of our existing

core offerings as well as the continued introduction of product innovations, which remain central to our long-term growth strategy,”

Mr. Schlosberg added.

Net sales for the six-months ended June 30,

2026 increased 23.3 percent to $4.89 billion, from $3.97 billion in the comparable period last year. Net changes in foreign currency exchange

rates had a favorable impact of $137.8 million on net sales for the six-months ended June 30, 2026. Net sales on a foreign currency

adjusted basis (non-GAAP) increased 19.8 percent in the six-months ended June 30, 2026. Net sales, excluding the Alcohol Brands segment,

on a foreign currency adjusted basis (non-GAAP), increased 20.4 percent in the six-months ended June 30, 2026.

Gross profit as a percentage of net sales for the

six-months ended June 30, 2026 was 55.5 percent, compared with 56.1 percent in the comparable period last year.

Operating expenses for the six-months ended June 30,

2026 were $1.24 billion, compared with $1.02 billion in the comparable period last year.

Operating income for the six-months ended June 30,

2026 increased to $1.47 billion, from $1.20 billion in the comparable period last year.

The effective tax rate for the six-months ended

June 30, 2026 was 24.0 percent, compared with 23.9 percent in the comparable period last year.

Net income for the six-months ended June 30,

2026 increased 23.9 percent to $1.15 billion, from $931.8 million in the comparable period last year. Net income per diluted share

for the six-months ended June 30, 2026 was $1.17, compared with $0.95 in the comparable period last year.

(more)

Monster Beverage Corporation

Share Repurchase Program

During the 2026 second quarter, no shares of the

Company’s common stock were repurchased. As of August 5, 2026, approximately $900.0 million remained available for repurchase

under the previously authorized repurchase programs.

Stock Split

As previously announced, the Company’s Board

of Directors approved and declared a two-for-one stock split of its common stock to be effected in the form of a 100% stock dividend.

The stock dividend will be distributed after close of trading on August 10, 2026. The Company anticipates its common stock to begin

trading at the split-adjusted price on August 11, 2026.

Investor Conference Call

The Company will host an investor conference call

today, August 6, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will be open to all interested

investors through a live audio web broadcast via the internet at www.monsterbevcorp.com in the “Events & Presentations”

section. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.

Monster Beverage Corporation

Based in Corona, California, Monster Beverage

Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s

subsidiaries develop and market energy drinks, including Monster Energy® drinks, Monster Energy Ultra® energy drinks, Juice Monster®

and Punch Monster® Energy + Juice energy drinks, Java Monster® and Monster Killer Brew® non-carbonated coffee + energy drinks,

Rehab® Monster® non-carbonated energy drinks, Monster Energy® Nitro energy drinks, Reign Total Body Fuel® high performance

energy drinks, StormTM and Reign Storm® total wellness energy drinks, NOS® energy drinks, Full Throttle® energy

drinks, Bang Energy® drinks, FLRT™ total wellness energy drinks, BPM® energy drinks, BU® energy drinks, Burn® energy

drinks, Live+® energy drinks, Mother® energy drinks, Nalu® energy drinks, Play® and Power Play® (stylized) energy

drinks, Relentless® energy drinks, Samurai® energy drinks, Ultra Energy® drinks, Predator® energy drinks and Fury®

energy drinks. The Company’s subsidiaries also develop and market craft beers, flavored malt beverages and hard seltzers under

a number of brands, including Jai Alai® IPA, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin® hard seltzers, The BeastTM,

Blind Lemon® and Blinder Lemon™. For more information visit www.monsterbevcorp.com.

(more)

Monster Beverage Corporation

Caution Concerning Forward-Looking Statements

Certain statements made in this announcement

may constitute “forward-looking statements” within the meaning of the U.S. federal securities laws, as amended, regarding

the expectations of management with respect to our future operating results and other future events including revenues and profitability.

The Company cautions that these statements are based on management’s current knowledge and expectations and are subject to certain

risks and uncertainties, many of which are outside of the control of the Company, that could cause actual results and events to differ

materially from the statements made herein. Such risks and uncertainties include, but are not limited to, the following: the timing and

completion of the stock split; 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; our ability to implement our growth strategy,

including expanding our business in existing and new sectors and achieving profitability within our Alcohol Brands segment; our ability

to adapt to the changing retail landscape with the rapid growth in e-commerce retailers and e-commerce websites; our ability to absorb,

reduce or pass on to our bottlers/distributors increases in costs and expenses, including, but not limited to, increases to the cost of

aluminum and other raw materials, the Midwest Premium, and freight costs; 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; 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)); the impact

of changes in U.S. trade policies, including the imposition of additional tariffs; the impact of adverse changes in our costs, supply

chain, inflation or consumer demand for our products; the imposition of new and/or increased excise sales and/or other taxes on our products;

our extensive commercial arrangements with The Coca-Cola Company (TCCC) and, as a result, our future performance’s substantial dependence

on the success of our relationship with TCCC; the effects of unilateral decisions by bottlers/distributors and/or retailers on our business,

including their distribution and placement of our products, their consolidation, their discontinuation, or restriction of the range of,

all or any of our products that they carry, their limitations on the sale or sizes of our products, and/or their allocation of less resources

to the sale of our products; 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; possible recalls of our products and/or the consequences and

costs of defective production; disruption to our manufacturing facilities and operations related to climate, labor, production difficulties,

capacity limitations, regulations or other causes; disruption to and/or lack of effectiveness of our information technology systems, including

internal and external cybersecurity threats and breaches; adverse publicity surrounding obesity, alcohol consumption and other health

concerns related to our products, product safety and quality; liabilities resulting from legal or regulatory proceedings, government investigations,

and/or injunctions; the inherent operational risks, including the abuse or misuse of our products presented by the alcoholic beverage

industry and/or related claims that may not be adequately covered by insurance or may lead to litigation; the current uncertainty and

volatility in the national and global economy and changes in demand due to such economic conditions, including a slowdown in consumer

spending generally; and the impact of military and geopolitical conflicts, including supply chain disruptions, volatility in commodity

prices, increased economic uncertainty and escalating geopolitical tensions. For a more detailed discussion of these and other risks that

could affect our operating results, see the Company’s reports filed with the Securities and Exchange Commission, including our annual

report on Form 10-K for the year ended December 31, 2025 and our subsequently filed quarterly report. The Company’s actual

results could differ materially from those contained in the forward-looking statements. The Company assumes no obligation to update any

forward-looking statements, whether as a result of new information, future events or otherwise.

# # #

(tables below)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION

(In Thousands, Except Per Share Amounts) (Unaudited)

Three-Months Ended

Six-Months Ended

Net sales1

$

$

$

$

Cost of sales

Gross profit1

Gross profit as a percentage of net sales

%

%

%

%

Operating expenses

Operating expenses as a percentage of net sales

%

%

%

%

Operating income1

Operating income as a percentage of net sales

%

%

%

%

Interest and other income, net

Income before provision for income taxes1

Provision for income taxes

Income taxes as a percentage of income before taxes

%

%

%

%

Net income

$

$

$

$

Net income as a percentage of net sales

%

%

%

%

Net income per common share:

Basic

$

$

$

$

Diluted

$

$

$

$

Weighted average number of shares of common stock and common stock equivalents:

Basic

Diluted

Energy drink case sales (in thousands) (in 192-ounce case equivalents)

Average net sales per case2

$

$

$

$

1Includes

$10.0 million for both the three-months ended June 30, 2026 and 2025, related to the recognition of deferred revenue. Includes $19.9

million for both the six-months ended June 30, 2026 and 2025, related to the recognition of deferred revenue.

2Excludes Alcohol Brands segment

and Other segment net sales.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Par Value)

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

$

Short-term investments

Accounts receivable, net

Inventories

Prepaid expenses and other current assets

Prepaid income taxes

Total current assets

INVESTMENTS

PROPERTY AND EQUIPMENT, net

DEFERRED INCOME TAXES, net

GOODWILL

OTHER INTANGIBLE ASSETS, net

OTHER ASSETS

Total Assets

$

$

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

$

Accrued liabilities

Accrued promotional allowances

Deferred revenue

Accrued compensation

Income taxes payable

Total current liabilities

DEFERRED REVENUE

OTHER LIABILITIES

STOCKHOLDERS’ EQUITY:

Common stock - $0.005 par value;

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

)

)

Common stock in treasury, at cost; 156,588 shares and 154,793 shares as of June 30, 2026 and December 31, 2025, respectively

)

)

Total stockholders’ equity

Total Liabilities and Stockholders’ Equity

$

$

Reconciliation of GAAP

and Non-GAAP Information

($ in Thousands, Except Per

Share Amounts, unaudited)

The Company believes the following non-GAAP items

are useful to investors in evaluating the Company’s ongoing operating and financial results. The non-GAAP items should be considered

in addition to, and not in lieu of, U.S. GAAP financial measures. The non-GAAP financial measures do not represent a comprehensive basis

of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

)

N/A

Adjusted Net Sales – FX Neutral

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Adjusted Net Sales – Less Alcohol

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Currency Impact

)

N/A

)

N/A

Adjusted Net Sales – FX Neutral/Less Alcohol

$

$

%

$

$

%

Monster Energy® Drinks

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Segment

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

)

N/A

Adjusted Net Sales

$

$

%

$

$

%

Strategic Brands Segment

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

)

N/A

Adjusted Net Sales

$

$

%

$

$

%

Foreign

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

)

N/A

Adjusted Net Sales

$

$

%

$

$

%

Reconciliation of GAAP and Non-GAAP Information

($ in Thousands, Except Per Share Amounts, unaudited)

- continued

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Gross Profit

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Adjusted Gross Profit

$

$

%

$

$

%

Adjusted Gross Profit as a percentage of Adjusted Net Sales – Less Alcohol

%

%

%

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Operating Expenses

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Litigation Provisions/ Adjustments

)

)

)

Adjusted Operating Expenses

$

$

%

$

$

%

Adjusted Operating Expenses as a percentage of Adjusted Net Sales – Less Alcohol

%

%

%

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Operating Income

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions/ Adjustments

)

Adjusted Operating Income

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Income

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions/ Adjustments

)

Adjusted Net Income

$

$

%

$

$

%

Adjustments in this table are net

of tax.

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Income per common share - Diluted

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions/ Adjustments

-

-

Adjusted Net Income per common share - Diluted

$

$

%

$

$

%

Adjustments in this table are net of tax.