GURU ORGANIC ENERGY REPORTS RECORD Q1 REVENUE OF $8.8 MILLION AND THIRD CONSECUTIVE EBITDA-POSITIVE QUARTER

Gross Margin Expanded to 63.0% and Net Loss Improved Year-over-Year

KEY HIGHLIGHTS

·       Record Q1 net revenue of $8.8 million, up 14.7% from $7.7 million in Q1 2025, marking the strongest first quarter in the Company's history.

·       Gross margin expanded to 63.0%, up 345 basis points from 59.5% in Q1 2025, reflecting the continued structural benefits of the Canadian direct distribution model, disciplined pricing strategies, and operational efficiencies.

·       Third consecutive EBITDA-positive quarter: Adjusted EBITDA[1] reached $0.01 million, compared to a loss of $1.1 million in Q1 2025, the Company's first EBITDA-positive Q1 since going public, demonstrating improved operating leverage during the seasonally softer first quarter.

·       Net loss improved 78.4% to $0.3 million, compared to a net loss of $1.3 million in Q1 2025.

·       Strong financial position with $28.2 million in cash, cash equivalents, and short-term investments, and $10.0 million in unused credit facilities, providing liquidity to support growth initiatives.

 

·       Continued innovation momentum: Launch of GURU’s Sorbet-inspired Zero Sugar series in January with Dragon Fruit Cherry Sorbet, followed by a second flavour, Zero Orange Raspberry Sorbet, in March. The series will be supported by a seasonal marketing campaign starting in May and a limited-time wholesale club activation in Quebec.

 

Montréal, Québec, March 12, 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 first quarter ended January 31, 2026. All amounts are in Canadian dollars unless otherwise indicated.

 

Financial Highlights (in thousands of dollars, except per share data)	Three months ended January 31
	2026	2025
	$	$
Net revenue	8,826	7,695
Gross profit	5,556	4,579
Net Loss	(290)	(1,284)
Basic and diluted income (loss) per share	(0.01)	(0.04)
Adjusted EBITDA1	9	(1,057)

 

Quote from Carl Goyette, President and CEO

"Q1 2026 marked the third consecutive quarter of positive Adjusted EBITDA and the strongest first quarter in GURU’s history. Net revenue increased 14.7%, gross margin expanded to 63.0%, and continued disciplined cost management further amplified operating leverage, highlighting the structural benefits of our Canadian direct distribution model.

"Canada delivered strong growth, driven by impactful innovations and disciplined retail execution. In the U.S., shipment performance was temporarily influenced by distributor inventory dynamics and prior-year wholesale club sales timing. U.S. consumer takeaway trends in the natural channel remain healthy, with February reflecting a normalization of distributor inventory levels and a meaningful recovery in reorder activity.

"Over the last several quarters, we have clearly demonstrated our ability to execute and deliver profitable growth. Trailing twelve-month net revenue rose 17%, alongside positive Adjusted EBITDA of $0.8 million — a defining achievement that underscores the strength of our business model and marks our first sustained period of growth with profitability as a public company. With this milestone now behind us, we are turning our full attention to accelerating brand growth across Canada and the U.S., while maintaining disciplined cost management."

BUSINESS PERFORMANCE

Canada: Continuing Growth Under Direct Distribution

Canadian net revenue increased 27.9% to $7.2 million in Q1 2026, reflecting continued momentum in the Zero Sugar innovation line and strengthened retail execution under the direct distribution model.

Innovation remains the primary growth driver. GURU successfully launched GURU Zero Dragon Fruit Cherry Sorbet at Quebec retailers and online across North America, with encouraging early retail and e-commerce performance. 

United States: Consumer Demand Remains Strong; Distributor Inventories Normalizing

U.S. sales declined to $1.7 million, compared to $2.1 million in Q1 2025, a decrease of 20.7% in Canadian dollars or 18.5% in its functional currency. The decline primarily reflects elevated distributor inventory levels entering the quarter and a strong comparative period in Q1 2025 driven by wholesale club timing.

Consumer scan data shows continued positive demand trends across U.S. natural retail accounts where GURU is currently listed, including Whole Foods, with combined sales up approximately 15% over the last 12 weeks versus the same period last year[3].

Early Q2 shipment activity shows encouraging signs of recovery, with February shipments up over 50% versus the prior year as distributor inventory levels normalize. Consumer scan data continues to support underlying demand strength.

OUTLOOK: ENTERING FISCAL 2026 WITH MOMENTUM

GURU enters Q2 2026 with continued innovation momentum, a strengthened gross margin profile and a solid liquidity position. Priorities for fiscal 2026 include:

·       Expanding distribution and activation across Canada and the U.S., with a focus on wholesale clubs, grocery, and premium retail channels.

 

·       Continued Zero Sugar innovation, including the Q2 launch of GURU Zero Orange Raspberry Sorbet at Quebec retailers and online across North America.

 

·       Maintaining pricing discipline and optimizing trade investment.

 

·       Preserving cost control while selectively investing in high-return brand and e-commerce initiatives.

 

Management remains focused on disciplined execution, margin protection, and sustained progress toward profitable growth.

Results of Operations

Net revenue increased 14.7% year-over-year to $8.8 million in Q1 2026, the highest Q1 in the Company's history, driven by strong Canadian performance. 

Gross profit totaled $5.6 million, up from $4.6 million in Q1 2025. Gross margin expanded by 345 basis points to 63.0% from 59.5%, reflecting pricing discipline, trade optimization and operational efficiencies under the direct distribution model.

SG&A expenses totaled $6.1 million, in line with Q1 2025. As a percentage of net revenue, SG&A improved to 68.7% in Q1 2026 from 78.8% in Q1 2025, reflecting operating leverage on higher revenue. Sales and marketing expenses declined 7.7% to $3.0 million from $3.2 million in Q1 2025, representing 33.9% of net revenue versus 42.1% a year ago.

Net loss improved 78.4% to $0.3 million, or $(0.01) per share, compared to a net loss of $1.3 million, or $(0.04) per share, in Q1 2025. The improvement reflects revenue growth, gross margin expansion and disciplined cost management.

Adjusted EBITDA was $0.01 million in Q1 2026, compared to a loss of $1.1 million in Q1 2025. This marks the Company's first EBITDA-positive Q1 since going public and the third consecutive EBITDA-positive quarter.

The Company ended the quarter with $28.2 million in cash, cash equivalents, and short-term investments, and $10 million in unused credit facilities, providing ample liquidity to support growth initiatives.

Conference Call and Webcast

GURU will hold a conference call to discuss its first quarter 2026 results today, March 12, 2026, at 10:00 a.m. ET. Participants can access the call as follows:

·       Via webcast: https://edge.media-server.com/mmc/p/dwnawk93

·       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 March 31, 2026.

 

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:

GURU Organic Energy Carl Goyette, President and CEO Ingy Sarraf, Chief Financial Officer 514-845-4878 investors@guruenergy.com

strat.eko Francois Kalos francois.kalos@guruenergy.com

 

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 Loss to Adjusted EBITDA

	Three months ended January 31
	2026	2025
(In thousands of Canadian dollars)	$	$
Net Loss	(290)	(1,284)
Net financial income	(236)	(228)
Depreciation and amortization	348	275
Income taxes	19	24
Stock-based compensation expense	168	156
Adjusted EBITDA	9	(1,057)