U.S. Net Revenue up 59.8%, Net Income of $0.5 Million,
and Positive Adjusted EBITDA[1] of $0.9 Million
KEY HIGHLIGHTS
l Record net revenue of $11.5 million, up 10.3% from $10.4 million in Q3 2025, the highest quarterly net revenue in the Company's history. Excluding the change in estimate tied to the termination of the Canadian exclusive distribution agreement in Q3 2025 (hereafter called “change in estimate” or “one-time adjustment”), net revenue grew 27% on a comparable basis1.
l U.S. net revenue increased 59.8% to $2.8 million, driven by expanded natural-channel distribution, including a nationwide listing at a leading U.S. natural retailer beginning in late June 2026.
l Canadian net revenue rose 19% on a comparable basis1 excluding the Q3 2025 one-time adjustment, while reported net revenue was essentially stable against a strong prior year quarter, reflecting continued momentum under the direct distribution model and strengthened retail execution.
l Gross margin of 61.9%, compared to 71.3% in Q3 2025, or 65.9% excluding the prior year one-time adjustment. The comparable decline reflects higher trade investment: elevated promotional activity in the quarter together with client mix.
l Net income of $0.5 million ($0.02 per share) and Adjusted EBITDA1 of $0.9 million. Third consecutive trailing-twelve-month period of positive Adjusted EBITDA1, with trailing-twelve-month net revenue of approximately $39.0 million, up approximately 23%.
l Strong balance sheet with $25.6 million in cash and short-term investments, no debt, and $10.0 million in undrawn credit facilities, for $35.6 million of total available liquidity.
Montréal, Québec, September 9, 2026 – GURU Organic Energy Corp. (TSX: GURU) (“GURU” or the “Company”), Canada’s leading organic energy drink brand[2], today announced its results for the third quarter and nine-month period ended July 31, 2026. All amounts are in Canadian dollars unless otherwise indicated.
|
Financial Highlights (in thousands of dollars, except per share data) |
Three months ended July 31 |
Nine months ended July 31 |
||
|
|
2026 |
2025 |
2026 |
2025 |
|
|
$ |
$ |
$ |
$ |
|
Net revenue |
11,508 |
10,435 |
28,882 |
24,626 |
|
Gross profit |
7,126 |
7,436 |
18,115 |
15,893 |
|
Net income (loss) |
498 |
1,298 |
(838) |
(1,415) |
|
Basic and diluted earnings (loss) per share |
0.02 |
0.04 |
(0.03) |
(0.05) |
|
Adjusted EBITDA1 |
864 |
1,550 |
73 |
(714) |
QUOTE FROM CARL GOYETTE, PRESIDENT AND CEO
“Our third quarter set a record for net revenue, clear evidence that demand for GURU is accelerating. We are comparing against a third quarter last year that included a significant one-time benefit, so our reported year-over-year margin and earnings understate the progress we are making. On a comparable basis, we grew the top line, improved operating leverage, achieved profitability and stayed disciplined while investing in new listings and innovation.
“In the United States, net revenue grew 60%, supported by a nationwide natural-channel listing that went live at the end of June. We are building real, durable distribution in this market. With $35.6 million of total available liquidity, no debt, and a third consecutive trailing-twelve-month period of positive Adjusted EBITDA, we are entering the balance of the year from a position of strength.”
BUSINESS PERFORMANCE
Canada: Underlying Demand Accelerating
Canadian net revenue was essentially stable year over year at $8.7 million in Q3 2026, against a strong prior year quarter that included a one-time adjustment tied to the termination of the Canadian exclusive distribution agreement. Excluding that adjustment, Canadian net revenue grew 19% on a comparable basis1, reflecting strengthened direct retailer relationships, improved distribution, and expansion across grocery, convenience, and wholesale club channels.
Product innovation continued to perform. GURU Zero Dragon Fruit Cherry Sorbet, launched in Q1 2026, remained a top performer, and GURU Zero Orange Raspberry Sorbet, the sixth product in the Zero Sugar line, was listed across Quebec retailers and online channels in North America during Q2 2026, supported by the “Boost Your Summer” campaign launched in May 2026 and a limited-time 18-pack Sorbet wholesale-club format in Quebec.
United States: Distribution Expanding
U.S. net revenue increased 59.8% to $2.8 million, led by expanded natural-channel distribution, including a nationwide listing at a leading U.S. natural retailer that began at the end of June 2026. The Company continues to build durable points of distribution to support sustained U.S. growth.
Online: Strong Amazon Prime Day
During Amazon Prime Day (June 2026), GURU dollar sales grew 17% year over year in Canada and 14% in the United States, and GURU ranked #1 in the Sports Energy Drinks category on Amazon Canada, recording its strongest single sales day to date in both marketplaces on the opening day of the event.
LOOKING AHEAD
GURU enters the balance of fiscal 2026 with strong underlying demand, expanding U.S. distribution, and a disciplined investment posture. In-market activation of GURU Zero Tropical Sorbet began in mid-August 2026, and the Company held its first-ever GURU Hydration Week from July 27 to August 2, 2026, a dedicated consumer activation whose results will be substantially reflected in the fourth quarter. Priorities include maturing new client listings, continued pricing and trade discipline, and selective brand investment in high-return channels.
RESULTS OF OPERATIONS
Net revenue totaled $11.5 million in Q3 2026, up 10.3% from $10.4 million in Q3 2025, the highest quarterly net revenue in the Company’s history. Excluding the prior year change in estimate, net revenue grew 27% on a comparable basis1. Canadian net revenue was essentially stable at $8.7 million (up 0.1%) against a strong prior year quarter that included the one-time adjustment. Excluding that adjustment, Canadian net revenue grew 19% on a comparable basis1. U.S. net revenue increased 59.8% to $2.8 million (up 57.1% in U.S. dollars).
Gross profit was $7.1 million in Q3 2026, compared to $7.4 million in Q3 2025. Gross margin was 61.9%, compared to 71.3% in Q3 2025, or 65.9% excluding the prior year one-time adjustment. On a comparable basis, gross margin declined approximately 400 basis points, primarily reflecting higher trade investment from elevated promotional activity in the quarter, together with client mix, as new client listings carry higher upfront trade investment. Q3 2025 was the first quarter to reflect the May 22, 2025 termination of the Canadian exclusive distribution agreement, and several promotional windows were missed during the transition period; as a result, the prior year quarter carried lighter trade investment, widening the reported year-over-year comparison. Under the direct distribution model, GURU’s structural gross margin operates in the low-to-mid-60s; the third quarter reflects elevated trade investment as the Company, now a full year into direct distribution, executed a fuller promotional calendar compared with the prior year period and supported new U.S. natural-channel listings. Quarter-to-quarter fluctuations around the structural level are expected.
SG&A expenses totaled $6.7 million in Q3 2026, up 6.4% from $6.3 million in Q3 2025, reflecting planned investment behind the Company’s U.S. natural-channel distribution expansion and innovation activation, together with professional fees related to the matters described under the Recent Developments section in the Company's Q3 2026 MD&A, which management expects to normalize as those matters are resolved. As a percentage of net revenue, SG&A improved to 58.5% from 60.6%, reflecting operating leverage as revenue scaled.
The Company generated net income of $0.5 million, or $0.02 per share (basic and diluted), and Adjusted EBITDA1 of $0.9 million in Q3 2026. As disclosed in the Q3 2025 MD&A, the prior year quarter benefited from a one-time adjustment, which did not recur; management views the trailing-twelve-month basis as a more representative measure given seasonality and the timing of investment. On a trailing-twelve-month basis, net revenue was approximately $39.0 million (up approximately 23%) and Adjusted EBITDA1 remained positive, the third consecutive trailing-twelve-month period of positive Adjusted EBITDA1.
Nine-month results: Net revenue increased 17.3% to $28.9 million. Excluding the prior year one-time adjustment, net revenue increased approximately 24% on a comparable basis1. Gross profit was $18.1 million, with gross margin of 62.7%, compared to 64.5% a year earlier, or 62.3% excluding the prior year change in estimate, essentially flat on a comparable basis. Net loss improved 40.8% to $0.8 million, or $(0.03) per share, and Adjusted EBITDA was positive at approximately $0.1 million, compared to a loss of $0.7 million in the same period of fiscal 2025.
Financial position: $25.6 million in cash and short-term investments, no long-term debt, and $10.0 million undrawn credit facility, for total available liquidity of $35.6 million.
CONFERENCE CALL AND WEBCAST
GURU will hold a conference call to discuss its third quarter 2026 results tomorrow, September 10, 2026, at 10:00 a.m. ET. Participants can access the call as follows:
· Via webcast: https://edge.media-server.com/mmc/p/hfj9ptab
· Via telephone: 1-833-630-1956 (toll free) or 1-412-317-1837 for international dial-in
· A webcast replay will be available on GURU's website until September 30, 2026.
About GURU Organic Energy
GURU Organic Energy Corp. (TSX: GURU) is a dynamic, fast-growing beverage company that launched the world’s first natural, plant-based energy drink in 1999. The Company markets organic energy drinks in Canada and the United States through an estimated distribution network of about 25,000 points of sale, and through www.guruenergy.com and Amazon. GURU has built a category-defining brand with a clean list of organic ingredients, including natural caffeine, and no artificial sweeteners, zero sucralose and zero aspartame, which offer consumers Good Energy® that never comes at the expense of their health. The Company is committed to achieving its mission of cleaning up the energy drink industry in Canada and the United States. For more information, go to www.guruenergy.com or follow us @guruenergydrink on Instagram, @guruenergy on Facebook and @guruenergydrink on TikTok.
For Further Information, Please Contact:
|
INVESTORS: Ingy Sarraf, COO & CFO 514-845-4878
strat.eko Francois Kalos |
MEDIA: Lyla Radmanovich PELICAN PR |
Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking information includes, but is not limited to, information with respect to the Company’s objectives and the strategies to achieve these objectives, as well as information with respect to management’s beliefs, plans, expectations, anticipations, estimates, and intentions. This forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “believe”, or “continue”, the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Forward-looking information is provided for the purposes of assisting the reader in understanding the Company and its business, operations, prospects, and risks at a point in time in the context of historical and possible future developments and therefore the reader is cautioned that such statements may not be appropriate for other purposes. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond management’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the following risk factors, which are discussed in greater detail under the “RISK FACTORS” section of the annual information form for the year ended October 31, 2025: management of growth; reliance on key personnel; reliance on key customers; changes in consumer preferences; significant changes in government regulation; criticism of energy drink products and/or the energy drink market; economic downturn and continued uncertainty in the financial markets and other adverse changes in general economic or political conditions, as well as geopolitical developments, global inflationary pressure or other major macroeconomic phenomena; global or regional catastrophic events; fluctuations in foreign currency exchange rates; inflation; revenues derived entirely from energy drinks; increased competition; relationships with co-packers and distributors and/or their ability to manufacture and/or distribute GURU’s products; seasonality; relationships with existing customers; changing retail landscape; increases in costs and/or shortages of raw materials and/or ingredients and/or fuel and/or costs of co-packing; failure to accurately estimate demand for its products; history of negative cash flow and no assurance of continued profitability or positive EBITDA; repurchase of common shares; intellectual property rights; maintenance of brand image or product quality; retention of the full-time services of senior management; climate change; litigation; information technology systems; fluctuation of quarterly operating results; changes in government policies and international trade regulations; conflicts of interest; consolidation of retailers, wholesalers and distributors and key players’ dominant position; compliance with data privacy and personal data protection laws; management of new product launches; use of third-party marketing, including celebrities and influencers; review of regulations on advertising claims, as well as those other risk factors identified in other public materials, including those filed with Canadian securities regulatory authorities from time to time and which are available on SEDAR+ at www.sedarplus.ca. Additional risks and uncertainties not currently known to management or that management currently deems to be immaterial could also cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Although the forward-looking information contained herein is based upon what management believes are reasonable assumptions as at the date they were made, investors are cautioned against placing undue reliance on these statements, since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning availability of capital resources, business performance, market conditions, and customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that management anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on the business, financial condition, or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and management does not undertake to update or amend such forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Non-GAAP and Other Financial Measures
This press release includes certain non-GAAP and other supplementary financial measures to help assess GURU’s financial performance. Those measures do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). Management’s method of calculating these measures may differ from the methods used by other issuers and, accordingly, GURU’s definitions of these non-GAAP measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as an alternative to IFRS measures.
Adjusted EBITDA
Adjusted EBITDA is defined as net income or loss before income taxes, net financial (income) expenses, depreciation and amortization, and stock-based compensation expense. This measure is a non-GAAP financial measure and is not an earnings or cash flow measure or a measure of financial condition recognized by IFRS. As such, it should not be construed as an alternative to “net income,” as determined in accordance with IFRS, as an alternative to “cash flows from operating activities” as a measure of liquidity and cash flows or as an indicator of the Company’s performance or financial condition. The exclusion of net finance expense eliminates the impact on earnings derived from non-operational activities and the exclusion of depreciation, amortization and share-based compensation eliminates the non-cash impact of these items. Management believes that Adjusted EBITDA is a useful measure of financial performance without the variation caused by the impacts of the excluded items described above because it provides an indication of the Company’s ability to seize growth opportunities in a cost-effective manner and finance its ongoing operations. Excluding these items does not imply that they are necessarily non-recurring. Management believes this measure, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results and underlying performance in a manner similar to management. Although Adjusted EBITDA is frequently used by securities analysts, lenders, and others in their evaluation of companies, it has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under IFRS.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
|
|
Three months ended July 31 |
Nine months ended July 31 |
||
|
2026 |
2025 |
2026 |
2025 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Net income (loss) |
498 |
1,298 |
(838) |
(1,415) |
|
Net financial income |
(154) |
(209) |
(566) |
(659) |
|
Depreciation and amortization |
210 |
206 |
768 |
693 |
|
Income taxes |
50 |
19 |
93 |
64 |
|
Stock-based compensation expense |
260 |
236 |
616 |
603 |
|
Adjusted EBITDA |
864 |
1,550 |
73 |
(714) |