Successful Canadian Distribution Transition Puts GURU Back in Direct Relationship with its Customers, Driving Flexibility, Growth and Strong Earnings
Key Highlights:
· First profitable quarter since becoming public in 2020, with net income of $1.3 million in Q3 versus a $2.2 million loss in Q3 2024; year-to-date net loss decreased 79% to $1.4 million.
· Record net revenue of $10.4 million in Q3, up 31.4% from $7.9 million in Q3 2024.
· Gross margin expanded to 71.3% in Q3, including a one-time change in estimate related to the termination of the Canadian exclusive distribution agreement. Excluding this adjustment, gross margin was 65.9%, compared to 55.4% last year.
· Continued strong financial position with $24.2 million in cash, cash equivalents and short-term investments, no debt, and $10 million of unused credit facilities as of July 31, 2025.
· Strong commercial momentum as the Company expanded its Canadian distribution agreements, launched GURU Zero in Canada, and posted record performance on Amazon with July becoming the highest sales month ever in Canada and the U.S.
Montréal, Québec, September 11, 2025 – GURU Organic Energy Corp. (TSX: GURU) (“GURU” or the “Company”), Canada’s leading organic energy drink brand[1], today announced its results for the third quarter and nine-month period ended July 31, 2025. All amounts are in Canadian dollars unless otherwise indicated.
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Financial Highlights (in thousands of dollars, except per share data) |
Three months ended July 31
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Nine months ended July 31 |
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2025 |
2024 |
2025 |
2024 |
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$ |
$ |
$ |
$ |
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Net revenue |
10,435 |
7,940 |
24,626 |
23,087 |
|
Gross profit |
7,436 |
3,538 |
15,893 |
12,648 |
|
Net income (loss) |
1,298 |
(2,230) |
(1,415) |
(6,760) |
|
Basic and diluted income (loss) per share |
0.04 |
(0.07) |
(0.05) |
(0.22) |
|
Adjusted EBITDA[2] |
1,550 |
(2,221) |
(714) |
(6,872) |
Quote from Carl Goyette, President and CEO
“Q3 was a defining quarter for GURU. With the successful transition to our new Canadian distribution model, we are now firmly in control of our destiny, with greater flexibility to manage our business, deepen retailer relationships, and set the pace for our growth. We also returned to profitability with a 12.4% net margin, showing that when prioritized, GURU can deliver strong earnings, like in the past, while continuing to invest in our brand and innovation.”
Business Performance
Canada: Q3 marked the successful execution of GURU’s transition to a direct distribution model, supported by national and regional distributors, which resulted in sales growth of 35.0% to $8.7 million. Strong in-store activation and retail execution contributed to record sales in July, alongside innovation launches, including GURU Zero Wild Ruby Red and Wild Ice Pop, followed by Wild Strawberry Watermelon in Quebec. This successful transition positions GURU for stronger direct relationships with retailers and improved execution flexibility going forward.
United States: Sales grew 16.4% to $1.8 million in Q3, supported by online momentum and retail distribution gains. Amazon sales reached a record high in July, marking the highest sales month ever in Canada and the U.S., with Prime Day sales up 40% in Canada and 96% in the U.S., compared to 2024. Innovation momentum continued in retail as well, with Zero Wild Berry showing strong early traction at Whole Foods and on track to become a leading SKU.
Marketing: The refreshed brand identity and targeted digital campaigns delivered record consumer engagement and efficiency, contributing to momentum on Amazon, growth in new-to-brand customers, and subscriber community expansion.
Supply Chain: The supply chain team successfully scaled operations to support the Canadian transition while maintaining a 99.5% fill rate — underscoring the Company’s operational discipline and resilience.
Outlook
In Q4 2025, GURU launched GURU Island Breeze Punch at Quebec retailers and online across North America, along with an 18-pack Zero variety rotation in Canadian wholesale clubs. Early sell-through of the 18-pack has exceeded expectations, already resulting in replenishment orders from wholesale partners.
These launches, combined with continuing U.S. expansion, direct distribution in Canada and consistent brand activation, position the Company for sustained growth and increased visibility and market share in the healthy and growing energy drink category.
GURU’s Q3 results confirm that the Company is on a clear path toward sustained profitability. With expanding margins, strong innovation performance, and a simplified go-to-market model, GURU is executing with focus and discipline. Backed by a robust cash position and a growing partner network, the Company is entering the second half of the year with confidence — and is well positioned to deliver profitable growth while continuing to scale its impact in the energy drink industry.
Results of Operations
Net revenue increased 31.4% year-over-year to $10.4 million in Q3 2025, reflecting Canadian retail replenishment following the distribution transition, expanded distribution agreements, and strong U.S. online momentum. Results also include a one-time change in estimate related to the termination of the Company’s Canadian exclusive distribution agreement. Canadian sales grew 35.0% to $8.7 million, while U.S. sales rose 16.4% to $1.8 million.
Gross profit reached $7.4 million, compared to $4.4 million in Q3 2024. Gross margin expanded to a record 71.3%. Excluding the one-time adjustment, gross margin was 65.9%, up from 55.4% last year.
SG&A expenses declined 9.4% year-over-year to $6.3 million, with sales and marketing investments down 15.7% as the Company continued to optimize its brand investment mix.
Net income totaled $1.3 million, compared to a net loss of $2.2 million in Q3 2024. Adjusted EBITDA improved to $1.6 million from a loss of $1.5 million, reflecting operating leverage from revenue growth, gross margin expansion (including the change in estimate), and cost discipline.
For the nine-month period, net revenue increased 6.7% to $24.6 million, gross profit rose 25.7% to $15.9 million, net loss improved 79.1% to $1.4 million, and Adjusted EBITDA loss improved 90.0% to $0.7 million.
Conference call and webcast
GURU will hold a conference call to discuss its third quarter 2025 results today, September 11, 2025, at 10:00 a.m. ET. Participants can access the call as follows:
· Via webcast: https://edge.media-server.com/mmc/p/t4k9ny8v
· 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, 2025.
About GURU Products
GURU energy drinks are made from a short list of plant-based active ingredients, including natural caffeine, and no artificial sweeteners, zero sucralose and zero aspartame. These carefully sourced ingredients are crafted into unique blends that push your body to go further and your mind to be sharper.
To explore GURU's range of organic energy drinks, visit www.guruenergy.com or find us on Amazon.
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 an inspiring 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 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:
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GURU Organic Energy Investors Carl Goyette, President and CEO Ingy Sarraf, Chief Financial Officer 514-845-4878 |
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strat.eko Francois Kalos |
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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, 2024: 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; termination of the PepsiCo distribution agreement and the return to a direct distribution model; accounting treatment of the PepsiCo warrants; 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
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Three months ended July 31 |
Nine months ended July 31 |
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2025 |
2024 |
2025 |
2024 |
|
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(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Net income (loss) |
1,298 |
(2,230) |
(1,415) |
(6,760) |
|
Net financial income |
(209) |
(371) |
(659) |
(1,164) |
|
Depreciation and amortization |
206 |
227 |
693 |
690 |
|
Income taxes |
19 |
17 |
64 |
21 |
|
Stock-based compensation expense |
236 |
136 |
603 |
341 |
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Adjusted EBITDA |
1,550 |
(2,221) |
(714) |
(6,872) |