GURU Organic Energy Corp.

Welcome to the Guru Organic Energy third quarter 2025 results conference call and webcast being recorded today September 11, 2025 at 10 a.m. Eastern Time. At this time, all participants are in listen-only mode. Following management's presentation, there will be a question and answer session with financial analysts. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, Please press star followed by zero for operator assistance at any time. Guru's press release, MD&A, and financial statements are available in the Investor section of its website and on CDAR+. During the call, the company may refer to certain non-GAAP measures. Reconciliations are available in its MD&A. Also, note that all financial figures are expressed in Canadian dollars unless otherwise indicated. I would also like to remind you that today's presentation may contain forward-looking statements about Guru's current and future plans, expectations, and intentions, results, level of activity, performance, goals or achievements, or other future events or developments. Please take a moment to read the disclaimer on forward-looking statements on slide two of the presentation. I will now turn the call over to Carl Goyette, Guru's Chief Executive Officer. Please go ahead.

Thank you, operator. Bonjour à tous. Good morning, everyone, and welcome to GURU's fiscal 2025 third quarter results conference call. Joining me this morning is our CFO, NG Ceras. Let's turn to slide five. Q3 2025 was a record-breaking quarter for GURU, from top line to bottom line. We are very proud of GURU's team accomplishments in 2025. Through their hard work and dedication, we achieved these results much earlier than expected. Since taking full control of our Canadian distribution activities last quarter, we generated record net revenues of $10.4 million, a 32% increase versus last year. Gross margin was 71.3%, reflecting the benefits of our new business model and a one-time change in estimate related to determination of our Canadian distribution agreement. Excluding this adjustment, gross margin was 65.9%, up from 55.4% last year. And for the first time since going public in 2020, we achieved profitability, with a quarterly net income of $1.3 million, the highest in our history. Turning to slide six, these results demonstrate that our model can deliver sustainable profitability while we continue to invest in growth. Our key drivers this quarter included strong execution of our Canadian distribution transition, positive momentum in the U.S., successful launches of our zero sugar innovations, and operational discipline across SG&E and the supply chain. Turning to slide seven. In Canada, Q3 marked the successful execution of our transition back to a direct distribution model. By July, we had partnered with 27 distributors nationwide. Strong in-store activations and displays contributed to record sales in July. Innovation launches, including Zero Ruby Red, Ice Pop, and the Strawberry Watermelon, supported increased consumer demand. This transition provides Guru with a closer relationship with retailers, stronger execution, and greater agility moving forward. Turning to slide eight, the U.S. remains a very solid growth engine. Q3 sales increased 16.4% year-over-year to $1.8 million. Amazon had its best month ever in July, with Prime Day sales up 96% in the U.S. compared to 2024 and up 40% in Canada. Consumer metrics were also positive, with record total customer count and a significant bump in new-to-brand consumers. Innovation is gaining traction. Zero wild berry at Whole Foods is showing strong early velocity and is on track to become our number one skew at that banner. These results validate the US strategy of focusing on innovation, velocity, loyalty, and online strength. We also refreshed our brand identity, and it's resonating with consumers. This brand direction reinforces Guru's positioning and generates significant awareness and engagement. The Strawberry Watermelon campaign achieved engagement rates more than three times above industry benchmarks. These activations translated into record Amazon sales, subscriber growth, and gains in new-to-brand customers. Turning to slide nine, behind the scenes, our supply chain team performed flawlessly. We scaled our operations to support the transition of our Canadian distribution while maintaining a 99.5% fill rate. And we launched Strawberry Watermelon on time and in full, demonstrating the resilience, agility, and scalability of our operations during a major transition. Turning to slide 10. Looking ahead, in Q4, we successfully launched Island Breeze Punch in Quebec and online across North America. We also rolled out the 18 pack zero variety pack in Costco. Early sell-through has exceeded expectations with replenishment orders already placed. These successes combined with the US expansion, direct distribution Canada, and continued brand activation position us for sustained growth momentum. Importantly, Q3 results demonstrate Guru's ability to deliver profitability through discipline execution while investing in innovation and capturing the significant white space opportunity in the better-for-you energy drink category. Profitability is now within reach every quarter, unless we choose to invest to accelerate growth through targeted sales and marketing investments. That flexibility is our strength, considering our strong financial position with over $24 million in cash and no debt. I will now turn over the call to Ingi, our CFO, to discuss our financial results in more detail. NG, over to you.

Thank you, Carl, and good morning, everyone. Turning to slide 12. Here are the highlights of our financial performance in Q3. Let's start with our record revenue. Net revenue was $10.4 million, the highest in our history, and up 32% year over year. This growth was driven by strong performance in Canada, innovative product launches, and the replenishment of retailer pipelines following the end of our former exclusive distribution agreement. These results also include a one-time change in estimates related to the termination of this agreement. For the nine-month period, net revenue was $24.6 million, up 6.7%, or 13.5% when excluding last year's U.S. club rotation. Next, our record margin. Gross profit reached $7.4 million, with a gross margin of 71.3%. Excluding the one-time adjustment, the underlying margin was 65.9%, compared to 55.4% last year. Regarding expenses, SDMA was $6.3 million, down 9% from last year. Sales and marketing investments decreased by 16%, as we continue to optimize our spend. Turning to profitability, net income was $1.3 million, or 4 cents per share, a significant improvement over the $2.2 million loss reported last year, representing a net margin of 12.4%. Additionally, adjusted EBITDA reached $1.6 million in Q3, compared to a $1.5 million loss last year. Reflecting revenue growth, margin expansion, including the change in estimates, and cost discipline. On a year-to-year basis, net loss improved 79% to $1.4 million, and adjusted EBITDA loss improved 90% to $0.7 million in the last nine months. Finally, cash on liquidity remains strong. We ended the quarter with $24.2 million in cash and short-term investments, no debt, and $10 million in unused credit facilities, providing the flexibility to balance profitability with growth investments. With that, I'll now turn the call back over to Carl for closing remarks.