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Synergy CHC Corp.
11/13/2025
Good morning, everyone, and thank you for participating in today's conference call to discuss Synergy CHC Corporation's financial results for the third quarter ended September 30th, 2025. Joining us today are Synergy's CEO, Jack Roth, CFO, Jamie Fickett, and Greg Robles with Investor Relations. Following their remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Robles as he reads the company's safe harbor statement. Greg, please go ahead.
Thanks, Carmen. Good morning, and thanks for joining our conference call to discuss our third quarter 2025 financial results. I'd like to remind everyone that this call is available for replay and via a live webcast that will be posted on our investor relations website at investors.synergychc.com. The information on this call contains forward-looking statements. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will, and other similar expressions. Forward-looking statements are not guarantees of future performance and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied herein include, but are not limited to, those factors disclosed in the company's SEC filings under the caption risk factors. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein. Now, I would like to turn the call over to the CEO of Synergy, Jack Ross. Jack?
Thank you, Greg. Good morning, everyone. Thank you for joining us today to discuss Synergy's performance for the third quarter of 2025. We are pleased to report our 11th consecutive quarter of profitability, reflecting our continued operational discipline and focused execution. Revenue, gross profit, and income from operations increased year over year, underscoring the strength of our platform as we scale across new categories and geographies. Before we get into the financial results, let me touch on a few key developments across our business. During the third quarter, we made important leadership additions to support our expanding operations. First, we welcome Theresa Thompson to our Board of Directors. Theresa spent nearly four decades at Costco Wholesale, including 29 years as a pharmacy OTC buyer, where she oversaw the vitamins and supplement categories across all U.S. warehouses. Her insights and category experience will be invaluable as we scale Focus Factor brand globally and strengthen our supplement strategy. We also added Bob Anderson as our new director of direct store distribution, otherwise known as DSD. Bob has over 20 years' experience in the beverage industry, and he will be responsible for building and optimizing our nationwide direct-to-store distribution for our beverage division. extensive experience we expect to be signing new distribution partners continually and rapidly moving to our functional beverage momentum this business continues to accelerate for us and is supported by a by a growing national and international retail footprint during the third quarter we secured several major distribution wins that significantly expands our retail availability to our functional beverages and shops. Looking at our domestic expansion, EG of America, the sixth largest convenience store chain in the U.S., will launch our focus in energy beverages to over 1,600 high-traffic locations nationwide in Q4 of this year. The rollout meaningfully increases our visibility and convenience channel and strengthens our position in the fast-growing functional beverage category. Additionally, Wake Fern Food Group, the largest retailer-owned cooperative in the U.S., will carry five focus and energy SKUs across 365 retail locations. On a regional front, We announced new partnerships with Alibab, one of the premier beverage distributors in the southeast U.S., who will distribute our beverages and brain health shots to over 5,000 grocery convenience and specialty retailers across Alabama. We also signed an agreement with Atlantic Importing Company, a leading New England-based distributor, to expand our beverage footprint across Massachusetts, Connecticut, and Rhode Island. These partnerships reflect strong validation from top-tier retailers and distributors who see the opportunity for the focus factor beverage to lead the clean energy and brain health beverage segment. As we continue to expand our beverage business, our focus remains on disciplined execution, brand awareness, and ensuring the availability of products in key markets that drive both volume and profitability. Turning to the supplement business, we continue to strengthen our momentum in this category as well. Focus Factor has recently been named the number one pharmacist-recommended OTC memory supplement for 2025-26 by the Pharmacy Times. This underscores the confidence pharmacists place in our brand and our mission to deliver meaningful cognitive support to our consumers. In the U.S., our supplement business expands with Kroger, one of America's largest supermarkets operating in 35 states, which will launch three SKUs for the Focus Factor supplement across 1,600 of its 2,800 locations beginning in April of 2026. In Canada, Unipre, one of Quebec's largest pharmacy networks, will introduce the supplements across 300 stores beginning in February of 2026. Together, these launches expand our core brand presence across grocery, and pharmacy channels, reinforcing our dual strategy of growing our supplements and beverages under the trusted focus factor banner. We also continue our international expansion. We have now received our first round of purchase orders from Costco Mexico for the focus factor supplements, which will ship in December in the Q4. Also, our management team, some of our management team is going to Dubai next week to meet with our licensing partner and attend the Middle East Organic Natural Products Expo, which will provide key contacts as we continue to develop our international footprint. Before passing the call over to Jamie to cover the financial results, I'd like to briefly touch on the public offering we closed in August. We raised $4.4 million of equity capital, which provides us with additional working capital to support our retail rollouts, inventory buildup and production, and marketing initiatives. This capital enhances our flexibility to meet rising demand and invest in our continued growth. Overall, the results reflect another strong quarter of execution, meaningful progress across both the beverage and supplement business with new retail authorizations, expanded distribution partnerships, experienced leadership people being added to our team, Synergy is well-positioned to accelerate growth through the remainder of 2025 and into 2026. With that, I'll turn the call over to our Chief Financial Officer, Jamie Fickett. Jamie?
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