Celsius Holdings stock jumped 35% in premarket trading on Friday, as the company posted quarterly earnings and sales that came ahead of Wall Street expectations and announced an acquisition deal that could rekindle its growth.

For the fourth quarter of 2024, the energy drink maker posted net sales of $332.2 million and earnings of 14 cents per share. Analysts polled by FactSet had expected $328 million and 11 cents, respectively.

The earnings results came after the company announced that it would acquire rival Alani Nu, another growing energy-drink brand fueled by social-media influencers, for $1.8 billion, comprising a mix of cash and stock.

“We believe we have the right strategy to drive sustained, long-term growth, and we expect that the acquisition of Alani Nu will further strengthen Celsius’ position as an innovative leader in the large, growing global energy category,” said Celsius CEO John Fieldly in a statement.

The acquisition “offers a compelling strategic rationale and strong financial benefits,” said CFO Jarrod Langhans. “We believe our capital allocation strategy is fully aligned with our vision to be a high-growth leader and deliver the greatest value to our consumers and shareholders.”

The deal is likely Celsius’ response to reboot investor confidence in the company’s growth potential.

After quickly growing its market share over the past few years, Celsius shares have slumped since May as the brand run into troubles with its expansion plans. PepsiCo, its major distributor in the U.S., reduced orders as it adjusts the amount of inventory it holds, further hurting Celsius’ financial results.

For the three months ended in September, Celsius reported earnings and revenue that both missed Wall Street estimates. Total sales declined 30% from the year-ago quarter and the company barely broke even, compared with per-share earnings of 30 cents a year ago.

Investors are concerned that weakness in consumer spending could bring headwinds to the energy drink sector as well. Dominating brands like Red Bull and Monster Beverage are fighting to win back lost market share. Beverage giants like Keurig Dr Pepper and Molson Coors have also invested in energy-drink brands. 

The smaller Alani Nu, which has a strong following of young women, has been making market-share gains. The acquisition would add a fast-growing brand under Celsius’s belt as its own growth has been slowing.

Celsius stock already shot up nearly 15% on Wednesday after the company announced that it would report earnings on Thursday and participate in a well-known consumer analyst conference on Friday, where executives will make a presentation. The sudden notice seems to have led the market to believe that it has good news to share.

Investors will closely watch what management says about its 2025 outlook—as well as plans to integrate Alani Nu—on Thursday’s earnings call, and at Friday’s presentation at the Consumer Analyst Group of New York Conference.