Q3 2026 Guru Organic Energy Corp Earnings Call Transcript
Key Points
- GURU Organic Energy Corp (GUROF) reported record quarterly net revenue of $11.5 million, up 10.3% year-over-year, or approximately 27% on a comparable basis excluding a one-time benefit.
- The US business grew 59.8% to $2.8 million, driven by expansion in the natural food channel, including a nationwide launch in 490 Sprouts stores and sustained online growth.
- GURU Organic Energy Corp (GUROF) achieved positive net income of $0.5 million and positive adjusted EBITDA of $0.9 million in the quarter, with trailing 12-month adjusted EBITDA positive for the third consecutive period.
- The company maintains a strong balance sheet with $25.6 million in cash and short-term investments, no debt, and an unused $10 million credit facility, providing flexibility for growth investments.
- The Zero Sugar platform continues to perform well, with new product launches like Orange Raspberry Sorbet and Tropical ahead of plan, and the company secured additional shelf space across major Canadian grocery and convenience banners.
- Gross margin declined to 61.9% from 71.3% a year ago, and on a comparable basis, it decreased by about 400 basis points due to heavier trade and promotional spend and client mix.
- Canadian net revenue was essentially flat year-over-year at $8.7 million, and excluding a one-time benefit, it grew about 19%, but reported growth was muted.
- SG&A expenses were $6.7 million, and although they improved as a percentage of revenue, they still represent a significant 58.5% of revenue, impacting profitability.
- The company announced a CEO transition, with Carl Goyette concluding his tenure, which may create uncertainty during the leadership search and transition period.
- Competitive pressures in the energy drink category, including the success of brands like Alani and potential new entrants like Costco's Kirkland Signature, could impact GURU Organic Energy Corp (GUROF)'s market share and require increased promotional activity.
Welcome to the Guru Organic Energy third-quarter 2026 results conference call and webcast, being recorded today, September 10, 2026, at 10:00 AM Eastern Time.
(Operator Instructions)
Guru's press release, MD&A, and financial statements are available in the Investor section of its website and on SEDAR+. 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, intentions, results, level of activity, performance, goals, achievements, or other future events or developments. Please take a moment to read the disclaimer on forward-looking statements on slide 2 of the presentation.
I will now turn the call over to Carl Goyette, Guru's Chief Executive Officer. Please go ahead.
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