Second Consecutive Profitable Quarter Caps a Year of Margin Expansion, Improved Profitability, and Strong Momentum Entering Fiscal 2026
Key Highlights:
· Record Q4 net revenue of $10.1 million, up 41.5% year-over-year; record fiscal 2025 net revenue of $34.7 million, up 14.9%.
· GURU delivered two consecutive profitable quarters, with record net revenue in both Q3 and Q4, reflecting sustained demand across Canada and the U.S.
· Transformational fiscal year: Net loss improved to $1.4 million, down from $9.4 million in fiscal 2024; Adjusted EBITDA loss improved to $0.3 million, approaching break-even.
· Structural margin expansion and cash generation: Gross margin expanded by 940 basis points to 64.7% for fiscal 2025; generating $3.3 million in operating cash flow versus a $9.3 million outflow in fiscal 2024.
· Strengthened financial position to $28.5 million in cash, cash equivalents, and short-term investments ($24.2 million as of July 31, 2025) and $10.0 million in unused credit facilities.
· Continued commercial momentum: During the Black Friday–Cyber Monday (BFCM) event, GURU delivered record performance on Amazon in Canada and the U.S., with strong unit sales growth and further market share gains. Prime Day and Prime Big Deal Days earlier in the year also contributed positively to full-year momentum. GURU also held the #1 innovation position in Quebec for the fourth consecutive year (2022-2025).
Montréal, Québec, January 22, 2026 – GURU Organic Energy Corp. (TSX: GURU) (“GURU” or the “Company”), Canada’s leading organic energy drink brand[1], today announced its results for the fourth quarter and fiscal year ended October 31, 2025. All amounts are in Canadian dollars unless otherwise indicated.
|
Financial Highlights (in thousands of dollars, except per share data) |
Three months ended October 31 |
Fiscal year ended October 31 |
||
|
|
2025 |
2024 |
2025 |
2024 |
|
|
$ |
$ |
$ |
$ |
|
Net revenue |
10,122 |
7,155 |
34,748 |
30,242 |
|
Gross profit |
6,586 |
4,087 |
22,480 |
16,736 |
|
Net income (loss) |
38 |
(2,650) |
(1,377) |
(9,410) |
|
Basic and diluted income (loss) per share |
0.00 |
(0.09) |
(0.05) |
(0.31) |
|
Adjusted EBITDA[2] |
459 |
(2,261) |
(255) |
(9,132) |
Quote from Carl Goyette, President and CEO
"Fiscal 2025 was a pivotal year for GURU. We delivered profitability in both the third and fourth quarters, with record net revenue in each, demonstrating strong consumer demand in Canada and the U.S. This performance highlights the early benefits of our enhanced control over distribution, pricing, and retailer activation.
“Our second half results demonstrated the power of our model, with high structural margins, disciplined cost management, and improved cash generation. Retail performance accelerated across Canada, supported by innovation and the rollout of two new 18-count variety packs at a national wholesale club retailer. GURU also maintained its position as Quebec’s #1 innovation brand.
“In e-commerce, we delivered record results during Black Friday–Cyber Monday, supported by strong Prime Day and Prime Big Deal Days earlier in the year. With over $28 million in cash, strong momentum, and a robust innovation pipeline, GURU is well positioned as we enter fiscal 2026.”
A YEAR OF TRANSFORMATION AND PROFITABILITY PROGRESSION
Fiscal 2025 marked a significant year of operational transformation, margin expansion, and progress toward profitability. The successful midyear transition to direct distribution in Canada improved retailer engagement and strengthened the Company’s control over pricing, promotions and inventory.
Net loss improved from $9.4 million in fiscal 2024 to $1.4 million in fiscal 2025, while Adjusted EBITDA loss improved to $0.3 million, reflecting continued progress toward break-even.
This year also delivered 940 basis points of margin expansion driven by efficiencies from the new business model, improved pricing, disciplined promotional activity and a termination adjustment related to the Company’s Canadian exclusive distribution agreement disclosed in Q3.
SECOND HALF ACCELERATION: Q3 AND Q4 VALIDATE MODEL STRENGTH
GURU delivered its first two consecutive profitable quarters since going public, with both Q3 and Q4 delivering record net revenue. These results reflect strong execution across retail channels, wholesale clubs, e-commerce and digital activation in Canada and the U.S.
In the second half of fiscal 2025:
· Gross margins consistently exceeded 65%.
· Revenue growth accelerated to record levels.
· SG&A expenses remained tightly managed.
· Retail performance in Canada improved significantly in key banners.
GURU’s omnichannel model — combining retail, wholesale club, e-commerce and digital — continued to strengthen, with exceptional results during Black Friday-Cyber Monday (BFCM), and strong contribution from Prime Day and Prime Big Deal Days earlier in the year.
BUSINESS PERFORMANCE
Canada: Innovation and Agility
Canadian sales increased 16.9% in fiscal 2025, with Q4 up 45.1%. The second half of the year was marked by strong retail execution, innovation momentum and the rollout of two new 18-count variety packs across 29 wholesale club warehouses nationwide.
Innovation remained a key differentiator: GURU ranked as Quebec’s #1 innovation performer for the fourth consecutive year (2022–2025), led this year by Zero Wild Ice Pop.
United States: Strength across Retail and E-Commerce
U.S. sales increased 29.3% in Q4, supported by strong consumer takeaway across the natural retail channel and Whole Foods, collectively up 22% in scanned dollar sales.
Amazon delivered record BFCM results, with robust year-over-year growth in Canada and the U.S. Earlier in the year, Prime Day and Prime Big Deal Days contributed significantly to momentum, including GURU reaching the #2 brand position in Canada during the October event.
Continued Innovation Momentum
GURU expanded its Zero Sugar line in Canada and the U.S., including Wild Berry, Wild Ruby Red, Wild Ice Pop, and Wild Strawberry Watermelon. Early velocities remain strong across channels. Island Breeze Punch, launched in Q4, is showing strong early sell-through. The Company also launched Zero Dragon Fruit Cherry Sorbet in Q1 2026.
OUTLOOK: ENTERING FISCAL 2026 WITH MOMENTUM
GURU enters fiscal 2026 with a strong foundation: a proven distribution model, robust structural margins, sustained commercial momentum and a solid cash position. Key priorities include :
· Expanding distribution across Canada and the U.S.
· Scaling e-commerce and digital acquisition
· Advancing Zero Sugar innovation
· Reinforcing brand presence in health-oriented retail channels
With $28.5 million in cash and positive operating cash flow, GURU remains well positioned to support disciplined, high-return investments and drive long-term profitable growth.
Results of Operations
Fourth Quarter 2025
Net revenue totaled $10.1 million, the highest Q4 in the Company’s history and up 41.5% from $7.2 million in Q4 2024. Growth was broad-based, with Canada up 45% and the U.S. up 29%, demonstrating the effectiveness of GURU's omnichannel strategy across wholesale clubs, e-commerce and retail.
Gross margin expanded to 65.1%, compared to 57.1% in Q4 2024, reflecting benefits from the transition to the Canadian business model, improved pricing, and operational efficiencies. SG&A expenses were consistent with Q4 2024 at $6.7 million and decreased as a percentage of net revenue to 65.9% from 94.4%. Sales and marketing expenses decreased 5.2%, while supporting record performance.
Net income totaled $0.04 million, compared to a net loss of $2.7 million in Q4 2024— representing the Company’s second consecutive profitable quarter.
Fiscal Year 2025
Net revenue totaled $34.7 million, up 14.9% year-over-year. Gross margin expanded 940 basis points to 64.7% from 55.3%, driven by the Canadian business model transition, improved pricing strategies, disciplined promotional activity and a one-time adjustment as disclosed in Q3 2025.
SG&A expenses declined to $24.6 million from $27.3 million, with SG&A as a percentage of net revenue improving to 70.7% from 90.3% as the Company optimized its marketing mix toward higher-efficiency channels.
Net loss improved 85.4% to $1.4 million, or $(0.05) per share, compared to $9.4 million or $(0.31) per share in fiscal 2024. Adjusted EBITDA loss improved 97.2% to $0.3 million, approaching break-even.
The Company ended the year with $28.5 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 fourth quarter and fiscal year 2025 results today, January 22, 2026, at 10:00 a.m. ET. Participants can access the call as follows:
· Via webcast: https://edge.media-server.com/mmc/p/w2qnajso
· 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 February 28, 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 |
strat.eko Francois Kalos |
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 October 31 |
Fiscal year ended October 31 |
||
|
2025 |
2024 |
2025 |
2024 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Net income (loss) |
38 |
(2,650) |
(1,377) |
(9,410) |
|
Restructuring expenses |
- |
160 |
- |
160 |
|
Net financial income |
(197) |
(253) |
(856) |
(1,417) |
|
Depreciation and amortization |
219 |
260 |
912 |
950 |
|
Income taxes |
77 |
45 |
141 |
67 |
|
Stock-based compensation expense |
322 |
177 |
925 |
518 |
|
Adjusted EBITDA |
459 |
(2,261) |
(255) |
(9,132) |