GURU Organic Energy Corp.

Welcome to the Guru Organic Energy fourth quarter and fiscal year 2025 results conference call and webcast being recorded today, January 22nd, 2026 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 GRRRRs 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, SCRWR's Chief Executive Officer.

Thank you, operator. Good morning, everyone, and welcome to GURU's fiscal 2025 fourth quarter and annual results conference call. Joining me this morning is our CFO, Angie Seraf. Let's turn to slide five. Fiscal 2025 marks a defining turning point for GURU. It reflects successful execution, and strengthens fundamentals across profitability, margin, and cash flow. We delivered record net revenue of $34.7 million, reduced net loss by 85% from $9.4 million to $1.4 million, and drastically improved adjusted EBITDA loss to near a break even. We also generated $3.3 million in operating cash flow a major turnaround for the $9.3 million outflow in fiscal 2024. We ended the year with $28.5 million in cash, cash equivalents, and short-term investments, as well as $10 million in unused credit facilities. Taken together, these outcomes demonstrate the strength of our repositioned commercial model and our ability to deliver disciplined, profitable growth. Turning to slide six, The second half of the year marked a clear inflection point for Guru. We delivered two consecutive profitable quarters for the first time as a public company, finishing the year near breakeven. Over the past few years, we made a clear commitment to return to profitability and executed with discipline, protecting margins, managing costs, and continuing to grow. Alongside operational discipline, we applied a thoughtful approach to capital allocation, Repurchasing approximately 2.4 million shares since 2022 under our NCID at an average cost of $2.20 per share. This reduces our outstanding share count and enhances our per share financial metrics as we continue our path to profitable growth. Moving to slide seven. In Q3, we delivered a record $10.4 million in revenue. and our first profitable quarter since going public, with $1.3 million in net income and a 12.4 net margin. We kept that momentum going into Q4, delivering another record performance with $10.1 million in net revenue, up 41.5%, and securing our second consecutive profitable quarter. Q4 also delivered several key commercial milestones. Record Amazon performance in Canada and in the U.S., driven by a solid momentum during October's Prime Day and even stronger results during Black Friday. We expanded our nationwide presence at a leading wholesale club with two new 18-count variety packs, further strengthening our retail footprint in Canada and solid results from the launch of our innovations. Both quarters delivered industry-leading gross margins above 65%. Retail performance also strengthened across key accounts in Canada, reflecting improved control over pricing, promotions, and inventory. What gives us confidence is that this momentum is supported by strengthening underlying fundamentals across channels. Let me walk you through the key drivers. Turning to slide 8. Our fiscal 2025 transformation was driven by four key elements. First, our successful transition back to a direct distribution in Canada, improving improved execution focus and deepened reseller relationships. Second, we delivered sustained revenue growth with net revenue increasing 14.9%. Third, We expanded structural margins, with gross margins improving by 940 basis points to 64.7%. And fourth, this improved cost management, reduced SG&E expenses, as we continued to significantly improve our marketing efficiency. Together, these drivers brought us to near break-even and positioned us well for fiscal 2026. We are encouraged by the progress and remain focused on maintaining the same discipline and execution going forward. Let me walk you through performance by geography, starting with Canada. Turning to slide 9. Our Canadian distribution performed exceptionally well. Full-year sales grew 16.9% with Q4 up 45.1%. We launched two new 18-count variety packs in Costco. Innovation remained a key differentiator. Guru ranked as Quebec's number one innovation performer for the fourth consecutive year, led by Zero Wild Ice Pop. Direct distribution fundamentally changed our business. We now control our destiny at retail through deeper partnerships, stronger activations, better inventory management, and a direct line of sight to our consumers. Turning to slide 10. The U.S. delivered consistent growth throughout fiscal 2025. Full-year sales increased 8.6%, with momentum building into Q4 as sales rose 29.3%. In the natural retail channel and Whole Foods combined, consumer scan dollar sales grew 22%, reflecting strong momentum across our U.S. retail footprint. On Amazon, we delivered record results during Black Friday. Over the year, Prime Day also contributed significantly to momentum, including Guru reaching the number two brand position in Canada during the October event. Turning to slide 11. Innovation continues to be a major growth engine for Guru. Our zero sugar line, wild berry, ruby red, ice pop, and strawberry watermelon expanded across both countries. meeting fast-growing demands for better-for-you zero sugar options. Island Breeze Punch, launched in Q4, is showing strong early sell-through. And early in fiscal 2026, we introduced Dragon Fruit Cherry Sorbet, with an additional zero sugar innovations planned throughout the year. With that, I'll now turn the call over to NG for a deeper look at our financial performance. NG, over to you.

Thank you, Carl, and good morning, everyone. Turning to slide 13. Let me walk you through the key financial highlights. Fiscal 2025 net revenue was $34.7 million, up 14.9%, or 20.4%, excluding last year's U.S. Wholesale Club rotation. Q4 set a new record at $10.1 million, up 41.5%. Gross margin for the year expanded 940 basis points to 64.7%, with Q4 at 65.1%. This reflects benefits of our direct distribution transition, improves pricing, disciplined promotions, efficiencies, and the one-time adjustment is closed in Q3. Our 65% gross margin gives us real runway. We can invest selectively in high-return growth initiatives without compromising our progress towards sustained profitability. It's no longer an either-or. We now have the flexibility to do both. SGMA expenses decreased 10% to $24.6 million in fiscal 2025, down from $27.3 million last year, reflecting continued improvement in marketing efficiency and operating disciplines. In Q4 2025, total SG&E as a percentage of net revenue decreased to 65.9% from 94.4% a year ago. We expect to maintain disciplined SG&E allocation, prioritizing the highest return opportunities across markets. In fiscal 2025, we reduce our net loss by $8 million. to $1.4 million and improved adjusted EBITDA loss by 97.2% to near break-even. Q4 marked our second consecutive profitable quarter. Finally, we generated positive operating cash flow of $3.3 million versus $9.3 million outflow last year. strengthening our financial position to $28.5 million in cash and short-term investments, no debt, and $10 million in unused credit facilities. Our strong financial position provides us with the flexibility to invest in high return growth initiatives while maintaining disciplined financial management. Overall, we're really pleased with the progress we've made and confident in the levers we have in place to drive further efficiency and growth. With that, I'll turn the call back over to you, Carl, for closing remarks.