GURU Organic Energy Corp.

Fiscal 2025 net revenue was $34.7 million, up 14.9% year over year, or 20.4% excluding last year's U.S. wholesale club rotation. Q4 net revenue was a record $10.1 million, up 41.5% year over year. Gross margin for fiscal 2025 expanded 940 basis points to 64.7%, and Q4 gross margin was 65.1%. Net loss improved to $1.4 million from $9.4 million in fiscal 2024, and adjusted EBITDA loss improved by 97.2% to near breakeven. SG&A fell 10% to $24.6 million from $27.3 million. Operating cash flow was positive at $3.3 million versus a $9.3 million outflow last year. The company ended the year with $28.5 million in cash, cash equivalents and short-term investments, no debt, and $10 million in unused credit facilities. For outlook, management did not provide formal numeric guidance, but said it expects to outgrow the industry, protect gross margins, and see 2026 working capital be more neutral after a favorable 2025 timing benefit. Carl Goyette clarified that the long-term profitability target is EBITDA-positive, not necessarily net income positive every quarter.

Carl Goyette framed fiscal 2025 as a turning point, emphasizing a successful transition back to direct distribution in Canada, stronger retailer relationships, and a more disciplined commercial model. His tone was confident and forward-looking: he said the company now has the financial strength and structural margin profile to invest in growth while staying near profitability. He also stressed that GURU intends to outgrow the industry over time, supported by a cleaner-ingredient, zero-sugar platform and a pipeline of innovations.

Ingy Sarraf highlighted the financial mechanics behind the turnaround: fiscal 2025 gross margin rose to 64.7%, Q4 gross margin was 65.1%, SG&A declined to $24.6 million, and total SG&A as a percentage of Q4 revenue fell to 65.9% from 94.4% a year ago. She said the quarter was not driven by unusual benefits and described the new business model as producing regular, sustainable gross profit and expense performance. On cash, she pointed to $3.3 million of operating cash flow, $28.5 million in cash and short-term investments, no debt, and $10 million of available credit, while noting 2026 working capital should be much more neutral. She also flagged aluminum as the main input-cost pressure, with other inputs broadly stable aside from normal CPI-like increases.

Analysts pressed for apples-to-apples growth, Q1 retail momentum, 2026 growth cadence, working capital needs, and input-cost pressure. Management said Q4 consumer off-take was around 20% in both the U.S. and Canada, Q1 is still incomplete so they would not give a formal number, but they expect to outgrow an industry they said is growing around 10% in Canada and the U.S. They said they do not expect big gross-margin swings, though aluminum is pressuring co-packing costs, and they expect working capital to be much more neutral in 2026. When asked about profitability, Carl said the intent is to be EBITDA-positive over time, while acknowledging some quarters could still be investment-heavy and temporarily unprofitable.