GURU Organic Energy Corp.

Welcome to the Guru Organic Energy Second Quarter 2026 Results Conference Call and Webcast being recorded today, June 11, 2026, at 11 a.m. Eastern Time. At this time, all participants are in listen-only mode. Following management's presentation, there will be an opportunity to ask questions 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. Uber's press release and DNA financial statements are available in the investor section of its website and on Cedar Plus. During the call, the company may refer to certain non-GAAP measures. Reconciliations are available in its MDNA. Also note that all financial figures are expressed in Canadian dollars unless otherwise indicated. I would like to remind you that today's presentation may contain forward-looking statements about Guru's current and future plans, expectations, intentions, results, level of activity, performance, goals, achievements, or other future events or developments. Please take a moment to read the disclaimer or forward-looking statements on slide two of the presentation. I will now turn the call over to Carl Goyette Guru's chief financial officer.

Thank you, operator. Bonjour à tous. Good morning, everyone, and welcome to Guru's fiscal 2026 second quarter results conference call. Joining me this morning is our CFO, NG Tharaf. Let's turn to slide five. Since establishing our direct distribution model in Canada, we have invested in how we show up at shelf, how we price, and how we build the brand. That took time. Q2 is where that time is paid off. Net revenue grew 31.6%. Canada sales grew 46.8%. Gross margin expanded by nearly four percentage points. And on a trailing 12-month basis, we achieved approximately 30% revenue growth with positive adjusted EBITDA of $1.2 million. This is the second consecutive trailing 12-month period since CLU went public where we achieved positive adjusted EBITDA. This is what structural improvement looks like. What you are seeing is real and repeatable. Better pricing control, better trade investment, better retail execution, and a product lineup that consistently converts consumer demand for good energy into market share. Turning to slide six, Canada is the purest example of the benefit of controlling your own distribution in this business. Our revenue grew because we improved both our shelf presence and our margin at the same time. We did not have to trade one for the other. The home market is healthy, and the zero-sugar platform is the engine driving its growth. Subsequent to quarter-end, May Canadian retail shipments more than tripled year over year. The survey lineup specifically is outperforming our expectations across every channel. Guru Zero Dragon Fruit Cherry Survey, launched in January and activated in the market during Q2, is now a top five SKU on guruenergydrink.com. The strength of our digital execution also showed up on Amazon. During the Amazon Spring Sale, Guru is the number one bestseller in the energy drink category on Amazon Canada, and we continue to hold the number three energy drink brand in the category. In late May, we also activated a first-of-its-kind 18-pack sorbet variety format with a leading Canadian wholesale club partner. It's the first time that Guru has had this kind of large format, limited-time offer at a club retailer, and the early sales read is strong. Turning to slide seven, U.S. revenue was essentially flat in Q2 as distributor inventory levels continue to normalize. However, consumers are telling us a different story. Scan sales in the natural channel were up approximately 15% over the last 12 weeks, and we are growing roughly 1.7 times faster than the category. The brand is performing well at the consumer level. Subsequent to quarter end, May U.S. retail shipments were four times the level recorded in May of last year. Hulu set a new all-time revenue record on Amazon USA in May 2026, and June U.S. retail is already tracking two times higher than last year. In Q3, we are expanding U.S. distribution through a partnership with Sprouts Farmers Market. Sprouts operates more than 480 stores across 25 states. and Guru will be available nationwide beginning June 22nd. Sprout is exactly the retail partner that fits our strategy, a highly engaged, health-conscious shopper base that is already looking for what Guru offers. Once we earn our space there, we have a clear path to the premium conventional grocery channel in priority urban markets. Turning to slide eight, the Zero Sugar platform is the asset that keeps showing up in everything we report. Six cues in just over two years, all organic, zero sugar, no sucralose, no aspartame. There's nothing else in the category that combines these four attributes at scale. Guru Zero Orange Raspberry Survey launched in Q2 is performing ahead of internal expectations. In July, we will launch another Guru Zero Survey in Quebec and online across North America. Innovation will keep driving growth in Canada and building momentum in the U.S. I also want to address Quebec's proposed legislation to restrict energy drink sales to those 16 and older. We support it. That position isn't new. I testified publicly on this issue in 2019 and again in December 2025 and signed the coalition petition well before the current legislative momentum. Guru has never marketed to minors. Our brand, our formula, and our entire commercial strategy are built for adults. In fact, our entire zero sugar line already carries 18 plus adults only labeling on every can. This is who we sell to. Energy drinks should not be marketed to kids and should not be mixed with other powerful stimulants like ADHD drugs or alcohol. We do not expect this legislation to have meaningful impact on our business. And frankly, we're proud of our responsible marketing, our consistent public stance, and our mission to clean up the energy drink industry. 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. I want to walk you through the four things that explain Q2. Not just what the numbers are, but also how they came together. First, the revenue story. Net revenue grew 31.6% to $8.5 million, our highest second quarter ever. Canada was the engine, up 46.8%. Growth was driven by continued momentum in the zero sugar innovation line, strength in retail execution under the direct distribution model, and seasonal demand acceleration entering spring. In the U.S., reported revenue was down 3% in Canadian dollars. But in U.S. dollar terms, we were essentially flat at plus 0.6%. The reported decline was entirely a function of the stronger Canadian dollar, not the underlying business performance. Second, the gross margin story. Margin expanded 390 basis points to 63.6%. This was achieved despite meaningful pressures, including tariffs and broader geopolitical factors. Despite these headwinds, we expanded our margin by nearly 400 basis points. That is a direct distribution model working. Better pricing control, more efficient trade investment, and improved promotional discipline. We believe that our gross margin is in a better place now that it is under the old distribution model, and we expect that to hold. Third, The SG&E story. Although SG&E grew 20.3% in absolute dollars, it improved as a percentage of revenue from 84.8% to 77.6%. In other words, revenue grew faster than the cost base needed to support it. This is what we mean by operating leverage. The absolute increase reflects three specific investment decisions taken during the quarter. five marketing behind the Guru Zero Orange Raspberry survey launch. Second, consumer research and strategic planning investments to support our US expansion priorities. And third, unusual professional fees related to the matters described under recent developments in our MD&E. We expect those fees to normalize once these matters are resolved. On the Pepsi matter, the litigation is progressing as expected. The details are fully disclosed in our MD&E and notes 15 and 16 of the financial statements. We do not view it as material to our long-term strategy, and we will not comment further on an active legal matter. Fourth, the trailing 12-month picture. This is the one I want you to focus on. The quarter itself showed an adjusted EBITDA loss of $0.8 million. The trailing 12-month picture tells the structural story. Over the last 12 months, we have achieved approximately 30% revenue growth and generated $1.2 million of positive adjusted EBITDA. This is now the second consecutive 12-month period since Guru Mind Public, where we have combined these two things. Quarterly results will continue to reflect seasonal patterns and the timing of marketing investment. What the trailing 12-month period shows is that the underlying engine is working. Turning to the balance sheet, We ended the quarter with $24.3 million in cash and short-term investments, no long-term debt, and a $10 million undrawn credit facility. Total available liquidity is $34.3 million. That gives us the flexibility to continue investing in growth. Back to you, Carl.