Celsius Holdings Inc. (NASDAQ: CELH) reported third-quarter earnings that missed analysts' expectations, leading to a share price drop of up to 11%. The company reported break-even earnings per share of $0.00, missing the consensus estimate of $0.03 and falling from $0.30 in the same period last year. Revenue decreased to $265.75 million, slightly below analysts' expectations of $267.55 million, and down from $384.8 million in the prior year. The decrease in revenue and margins was attributed to a significant reduction in orders from its largest distributor, PepsiCo, due to a sizable supply chain optimization program implemented during the quarter. CFO Edwin Negrón-Carballo said, "Gross and operating margins in the third quarter fell short due to significantly reduced orders because our largest distributor implemented a sizable, successful, and efficient supply chain optimization program in the quarter." CEO John Fieldly added that this optimization had an outsized and adverse impact on operating results but has largely stabilized. Analyst Kaumil Gajrawala from Jefferies noted that Pepsi's inventory reduction was $4 million worse than the high end of their range.