GURU Organic Energy Corp.

Welcome to the Guru Organic Energy First Quarter 2026 Results Conference Call and Webcast, being recorded today, March 12, 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. Gura's press release MD&A and financial statements are available in the investor sections 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 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 would now like to turn the call over to Carl Goyette, GURU's Chief Executive Officer.

Thank you, Operator. Bonjour à tous. Good morning, everyone, and welcome to GURU's Fiscal 2026 First Quarter Results Conference Call. Joining me this morning is our CFO, Indy Saraf. Let's turn to slide five. Q1 2026. marked the third consecutive quarter of positive adjusted EBITDA and the strongest first quarter in Guru's history. We delivered record first quarter net revenue of $8.8 million, up 14.7% year over year. Gross margin expansion to 63%, up 345 basis points. And our first EBITDA positive Q1 since going public achieved during our seasonally softer quarter. Over the last several quarters, we have clearly demonstrated our ability to execute and deliver profitable growth. Our trailing 12-month net revenue rose 17% alongside positive adjusted EBITDA of $0.8 million. A defining achievement that underscores the strength of our business model and marks our first sustained period of growth with profitability as a public company. Let's turn to slide six for more details. In Canada, revenue increased 27.9% to $7.2 million. This was driven by rigorous retail execution under the direct distribution model, continued zero sugar innovation momentum, Improved promotional discipline and pricing execution. The transition back to direct distribution is now fully embedded operationally, and we are seeing the benefits flow through both revenue growth and gross margin expansion. We now operate with greater agility, deeper retail engagement, and improved visibility across key banners. Turning to slide seven. In the U.S., Q1 performance was impacted by elevated distributor inventory, levels entering the quarter, as well as strong prior year comparison driven by wholesale club timing. Despite these dynamics, underlying consumer demand remains strong. Consumers can, across our listed U.S. natural retail accounts, including Whole Foods, increased approximately 15% over the last 12 weeks. In addition, early Q2 shipments have shown encouraging signs of recovery, with February shipments up over 50% versus the prior year as distributor inventory levels normalized. Consumer scan data continues to support underlying demand strength. Beyond the near-term recovery, we're also actively in discussions with targeted distributors, partners, and retailers to expand our presence in the U.S. market. Over the past year, we have proven our ability to compete across our listed U.S. retail partners, reaching top-performing brand at Whole Foods, ranking among the top three natural brands in a natural channel, and delivering rapid growth on Amazon. These achievements underscore our confidence in GRU's significant long-term growth potential in the U.S. Turning to slide eight, we are very pleased with the evolution of Zero Sugar Lineup. Since launching our Zero Line in the spring of 2024, we have rapidly expanded to six Zero Sugar offerings, including two new Sorbet-inspired innovations launched in Q1 and in Q2. Our zero line is uniquely positioned as 100% organic, zero sugar, no sucralose, no aspartame. Within two years, we have built one of the most differentiated, clean label, zero sugar portfolio in the category. Our new sorbet-inspired series reflects our ability to innovate quickly while staying aligned with consumer demand for clean ingredients and modern flavor profiles. And it has already outperformed previous previous innovation launches. Innovation complements our core portfolio and remains a primary growth driver in Canada and a key velocity builder in the U.S. Given current momentum, we plan to launch more new products before year-end. I will now turn the call over to NG for a deeper look at our financial performance.

Thank you, Carl, and good morning, everyone. Let's turn to slide 10. Let me walk you through the key financial and balance sheet highlights for Q1 2026. Net revenue increased 14.7% to $8.8 million, the highest Q1 in Guru's history, driven by strong Canadian performance, up 27.9%. Gross profit reached $5.6 million, with gross margin expanding 345 basis points to 63.0%, from 59.5% in Q1 2025. This improvement reflects the structural benefits of our direct distribution model in Canada, pricing discipline, trade optimization, and continued operational efficiencies. SG&E expenses were flat year over year at $6.1 million, but improved significantly as a percentage of revenue, declining to 68.7% from 78.8%. Sales and marketing expenses decreased 7.6% to $3.0 million, reflecting improved marketing efficiency and disciplined investment allocation. Net loss improved to $0.3 million, compared to $1.3 million in Q1 2025. a 77.4% improvement driven by revenue growth, margin expansion, and disciplined expense management. Adjusted EBITDA reached $0.01 million compared to a loss of $1.1 million in Q1 2025. This marks our third consecutive EBITDA-positive quarter and our first EBITDA-positive Q1 since going public, achieved during our historically softer seasonal quarter. which further demonstrates structural operational leverage. Turning to the balance sheet, we ended the quarter with $28.2 million in cash, cash equivalent, and short-term investments, no debt, and $10 million in unused credit facilities. Our strong liquidity position gives us the flexibility to continue investing in high return innovation, support distribution expansion, and maintain financial discipline. With that, I'll turn the call back to you, Carl, for closing remarks.