GURU Organic Energy Delivers Record Q3 2025 Results With Return to Profitability

Executive Summary

• GURU Organic Energy Corp. reported its first profitable quarter since going public in 2020, posting a net income of $1.3 million for Q3 2025 compared to a $2.2 million loss in Q3 2024.
• The company achieved record net revenue of $10.4 million in Q3, a 31.4% increase year-over-year, driven by a successful transition to a direct distribution model in Canada and strong U.S. online momentum.
• Gross margin expanded significantly 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%.

Key Details

• Financial Performance (Q3 2025 vs Q3 2024):
  • Net Revenue: $10.4 million (up 31.4% from $7.9 million).
  • Gross Profit: $7.4 million (vs $3.5 million).
  • Net Income: $1.3 million (vs net loss of $2.2 million).
  • Basic and Diluted EPS: $0.04 (vs $(0.07)).
  • Adjusted EBITDA: $1.6 million (vs loss of $2.2 million).
• Year-to-Date Performance (Nine Months Ended July 31, 2025):
  • Net Revenue: $24.6 million (up 6.7% from $23.1 million).
  • Net Loss: $1.4 million (decreased 79% from $6.8 million loss).
  • Adjusted EBITDA Loss: $0.7 million (improved 90% from $6.9 million loss).
• Operational Metrics & Margins:
  • Gross Margin: 71.3% in Q3 2025. Excluding a one-time change in estimate related to the termination of the Canadian exclusive distribution agreement, gross margin was 65.9% (up from 55.4% in Q3 2024).
  • SG&A Expenses: Declined 9.4% year-over-year to $6.3 million.
  • Cash Position: $24.2 million in cash, cash equivalents, and short-term investments; no debt; $10 million of unused credit facilities as of July 31, 2025.
• Regional Sales Performance:
  • Canada: Sales grew 35.0% to $8.7 million, driven by the transition to a direct distribution model supported by national and regional distributors.
  • United States: Sales grew 16.4% to $1.8 million. Amazon sales reached a record high in July, with Prime Day sales up 40% in Canada and 96% in the U.S. compared to 2024.
• Supply Chain:
  • Maintained a 99.5% fill rate while scaling operations to support the Canadian distribution transition.
• Product & Marketing:
  • Launched new flavors including GURU Zero Wild Ruby Red, Wild Ice Pop, and Wild Strawberry Watermelon.
  • Zero Wild Berry showed strong early traction at Whole Foods.
  • Launched GURU Island Breeze Punch and an 18-pack Zero variety rotation in Canadian wholesale clubs in Q4 2025.

Notable Quotes

• “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.” — Carl Goyette, President and CEO