Guru Organic Energy Corp Q4 2025 Guru Organic Energy Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Guru Organic Energy Corp Earnings Call
Speaker #1: Welcome to the Guru Organic Energy fourth quarter and fiscal year 2025 results conference call and webcast. This event is being recorded today, January 22, 2026, at 10:00 a.m. Eastern Time.
Speaker #1: 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.
Speaker #1: 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 SEDAR Plus.
Speaker #1: 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.
Speaker #1: 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 of activity, performance, goals, or achievements, or other future events or developments.
Operator: 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 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 Goyet, Guru's Chief Executive Officer.
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 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 Goyet, Guru's Chief Executive Officer.
Speaker #1: 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, GURU's Chief.
Speaker #1: Executive Officer. Thank
Speaker #2: You, operator. Bonjour à tous, good morning everyone, and welcome to Guru's fiscal 2025 fourth quarter and annual results conference call. Joining me this morning is our CFO, Ing.
Carl Goyet: Thank you, Operator. Bonjour à tous. Good morning, everyone, and welcome to Guru's Fiscal 2025 Q4 and annual results conference call. Joining me this morning is our CFO, Ing. Saraf. 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 nearly breakeven. We also generated $3.3 million in operating cash flow, a major turnaround from 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.
Carl Goyette: Thank you, Operator. Bonjour à tous. Good morning, everyone, and welcome to Guru's Fiscal 2025 Q4 and annual results conference call. Joining me this morning is our CFO, Ing. Saraf. 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 nearly breakeven. We also generated $3.3 million in operating cash flow, a major turnaround from 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.
Speaker #2: Saraf, 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.
Speaker #2: We delivered record net revenue of 34.7 million dollars. Reduced net loss by 85% from 9.4 million dollars to 1.4 million dollars. And drastically improved adjusted EBITDA loss to nearly break even.
Speaker #2: We also generated 3.3 million in operating cash flow. A major turnaround from the 9.3 million outflow in fiscal 2024. We ended the year with 28.5 million in cash.
Speaker #2: 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.
Speaker #2: 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.
Carl Goyet: 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 NCIB 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. Turning to slide seven, in Q3, we delivered a record $10.4 million in net revenue in our first profitable quarter since going public, with $1.3 million in net income and a 12.4% net margin.
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 NCIB 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. Turning to slide seven, in Q3, we delivered a record $10.4 million in net revenue in our first profitable quarter since going public, with $1.3 million in net income and a 12.4% net margin.
Speaker #2: Finishing the year near break-even. 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.
Speaker #2: Alongside operational discipline, we applied a thoughtful approach to capital allocation. Repurchasing approximately 2.4 million shares since 2022 under our MCIB at an average cost of $2.20 per share.
Speaker #2: This reduces our outstanding share count and enhances our per-share financial metrics as we continue our path to profitable growth. Turning to slide seven, in Q3, we delivered a record 10.4 million dollars in net revenue.
Speaker #2: And our first profitable quarter since going public, with 1.3 million dollars in net income and a 12.4 net margin. We kept that momentum going into Q4, delivering another record performance with 10.1 million dollars in net revenue, up 41.5% and securing our second consecutive profitable quarter.
Carl Goyet: 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 US, driven by 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 innovators. 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.
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 US, driven by 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 innovators. 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.
Speaker #2: Q4 also delivered several key commercial milestones: record Amazon performance in Canada and in the US, driven by solid momentum during October's Prime Day and even stronger results during Black Friday.
Speaker #2: We expanded our national, our nationwide presence at a leading wholesale club with two new 18-count variety packs, further strengthening our retail footprint in Canada.
Speaker #2: And solid results from the launch of our innovators. 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.
Speaker #2: 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 eight, our fiscal 2025 transformation was driven by four key elements.
Carl Goyet: Turning to slide eight, our Fiscal 2025 transformation was driven by four key elements. First, our successful transition back to a direct distribution in Canada, improved execution focus, and deepened retailer 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%. Fourth, disciplined cost management reduced SG&A expenses as we continued to significantly improve our marketing efficiency. Together, these drivers brought us to near breakeven and positioned us well for Fiscal 2026. We are encouraged by that 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 nine, 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.
Turning to slide eight, our Fiscal 2025 transformation was driven by four key elements. First, our successful transition back to a direct distribution in Canada, improved execution focus, and deepened retailer 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%. Fourth, disciplined cost management reduced SG&A expenses as we continued to significantly improve our marketing efficiency. Together, these drivers brought us to near breakeven and positioned us well for Fiscal 2026. We are encouraged by that 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 nine, 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.
Speaker #2: First, our successful transition back to a direct distribution in Canada improved execution focus and deepened reseller relationships. Second, we delivered sustained revenue growth, with net revenue increasing 14.9%.
Speaker #2: Third, we expanded structural margins, with gross margins improving by 940 basis points to 64.7%. And fourth, disciplined cost management reduced SG&A expenses, as we continued to significantly improve our marketing efficiency.
Speaker #2: 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.
Speaker #2: Let me walk you through performance by geography, starting with Canada. Turning to slide nine, our Canadian distribution performed exceptionally well. Full-year sales grew 16.9%, with Q4 up 45.1%.
Speaker #2: 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 Xero Wild Ice Pop.
Carl Goyet: 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 consumer. Turning to slide ten, the US 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 scanned dollar sales grew 22%, reflecting strong momentum across our US retail footprint. On Amazon, we delivered record results during Black Friday. Earlier in 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 eleven, innovation continues to be a major growth engine for Guru.
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 consumer. Turning to slide ten, the US 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 scanned dollar sales grew 22%, reflecting strong momentum across our US retail footprint. On Amazon, we delivered record results during Black Friday. Earlier in 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 eleven, innovation continues to be a major growth engine for Guru.
Speaker #2: 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 consumer.
Speaker #2: Turning to slide 10, the US delivered consistent growth throughout fiscal 2025. Full-year sales increased 8.6%, with momentum building into Q4 as sales rose 29.3%.
Speaker #2: In the natural retail channel and Whole Foods combined, consumers' scanned dollar sales grew 22%, reflecting strong momentum across our U.S. retail footprint. On Amazon, we delivered record results during Black Friday, and earlier in the year, Prime Day also contributed significantly to momentum, including Guru reaching the number two brand position in Canada during the October event.
Speaker #2: Turning to slide 11, innovation continues to be a major growth engine for GURU. Our Xero Sugar line—Wild Berry, Ruby Red Ice Pop, and Strawberry Watermelon—expanded across both countries, meeting fast-growing demand for better-for-you Xero Sugar options.
Carl Goyet: 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. Early in Fiscal 2026, we introduced dragon fruit cherry sorbet, with additional zero sugar innovations planned throughout the year. With that, I'll now turn the call over to Ing for a deeper look at our financial performance. Ing, over to you.
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. Early in Fiscal 2026, we introduced dragon fruit cherry sorbet, with additional zero sugar innovations planned throughout the year. With that, I'll now turn the call over to Ing for a deeper look at our financial performance. Ing, over to you.
Speaker #2: Island Breeze Punch, launched in Q4, is showing strong early sell-through. Early in fiscal 2026, we introduced Dragon Fruit Cherry Sorbet, with additional Xero Sugar innovations planned throughout the year.
Speaker #2: With that, I'll now turn the call over to Inji for a deeper look at our financial performance. Inji, over to you. Thank you, Karl.
Ing Saraf: Thank you, Carl, and good morning, everyone. Turning to slide thirteen, 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 US 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, improved pricing, disciplined promotions, efficiencies, and the one-time adjustment disclosed 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. SG&A 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 discipline.
Ingy Sarraf: Thank you, Carl, and good morning, everyone. Turning to slide thirteen, 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 US 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, improved pricing, disciplined promotions, efficiencies, and the one-time adjustment disclosed 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. SG&A 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 discipline.
Speaker #2: 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 US wholesale club rotation.
Speaker #2: 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%.
Speaker #2: This reflects benefits of our direct distribution transition, improved pricing, disciplined promotions, efficiencies, and the one-time adjustment disclosed in Q3. Our 65% gross margin gives us real runway.
Speaker #2: 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.
Speaker #2: SG&A 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 discipline.
Speaker #2: In Q4 2025, total SG&A as a percentage of net revenue decreased to 65.9% from 94.4% a year ago. We expect to maintain disciplined SG&A allocation, prioritizing the highest return opportunities across markets.
Ing Saraf: In Q4 2025, total SG&A as a percentage of net revenue decreased to 65.9% from 94.4% a year ago. We expect to maintain disciplined SG&A allocation, prioritizing the highest return opportunities across markets. In Fiscal 2025, we reduced our net loss by $8 million to $1.4 million and improved adjusted EBITDA loss by 97.2% to near breakeven. 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.
In Q4 2025, total SG&A as a percentage of net revenue decreased to 65.9% from 94.4% a year ago. We expect to maintain disciplined SG&A allocation, prioritizing the highest return opportunities across markets. In Fiscal 2025, we reduced our net loss by $8 million to $1.4 million and improved adjusted EBITDA loss by 97.2% to near breakeven. 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.
Speaker #2: In fiscal 2025, we reduced our net loss by $8 million to $1.4 million, and improved adjusted EBITDA loss by 97.2%, to near break-even.
Speaker #2: Q4 marked our second consecutive profitable quarter. Finally, we generated positive operating cash flow of $3.3 million versus a $9.3 million outflow last year, strengthening our financial position to $28.5 million in cash and short-term investments.
Speaker #2: 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.
Speaker #2: 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, Karl, for closing remarks.
Ing Saraf: With that, I'll turn the call back over to you, Carl, for closing remarks.
With that, I'll turn the call back over to you, Carl, for closing remarks.
Speaker #3: Thanks, Inji. Let's turn to slide 15. As we enter fiscal 2026, Guru has real momentum, strong capabilities, and a solid foundation to build on.
Carl Goyet: Thanks, Ing. Let's turn to slide fifteen. As we enter Fiscal 2026, Guru has real momentum, strong capabilities, and a solid foundation to build on. We achieved profitability. We now operate with a structural margin profile built for sustained profitable growth. We have the financial strength to invest in growth, and we're seeing clear momentum across retail, wholesale club, and e-commerce. Our priorities are clear: expand distribution across Canada and in the US, scale e-commerce and digital acquisition, advance our zero sugar innovation pipeline, and reinforce brand presence in health-oriented retail channels. The better-for-you energy drink category keeps growing, and Guru is uniquely positioned to capture share through our organic plant-based energy platform and robust innovation pipeline. I want to thank our team for their exceptional execution throughout 2025 and our retail partners and customers whose commitment and energy made these results possible. This transformation is truly a team effort.
Carl Goyette: Thanks, Ing. Let's turn to slide fifteen. As we enter Fiscal 2026, Guru has real momentum, strong capabilities, and a solid foundation to build on. We achieved profitability. We now operate with a structural margin profile built for sustained profitable growth. We have the financial strength to invest in growth, and we're seeing clear momentum across retail, wholesale club, and e-commerce. Our priorities are clear: expand distribution across Canada and in the US, scale e-commerce and digital acquisition, advance our zero sugar innovation pipeline, and reinforce brand presence in health-oriented retail channels. The better-for-you energy drink category keeps growing, and Guru is uniquely positioned to capture share through our organic plant-based energy platform and robust innovation pipeline. I want to thank our team for their exceptional execution throughout 2025 and our retail partners and customers whose commitment and energy made these results possible. This transformation is truly a team effort.
Speaker #3: We achieved profitability, we now operate with a structural margin profile built for sustained profitable growth, we have the financial strength to invest in growth, and we're seeing pure momentum across retail, wholesale club, and e-commerce.
Speaker #3: Our priorities are clear: expand distribution across Canada and in the US, scale e-commerce and digital acquisition, advance our Xero Sugar innovation pipeline, and reinforce brand presence in health-oriented retail channels.
Speaker #3: The Better-for-You Energy Drink category keeps growing, and Guru is uniquely positioned to capture share through our organic, plant-based energy platform and pipeline.
Speaker #3: I want to thank robust and innovation our team for their exceptional execution throughout 2025, and our retail partners and customers whose commitment and energy made these results possible.
Speaker #3: This transformation is truly a team effort. Merci, thank you. We are proud of the progress made, energized by the momentum we are carrying into fiscal 2026, and committed to executing with the same discipline and focus in the year ahead.
Carl Goyet: Merci, thank you. We are proud of the progress made, energized by the momentum we are carrying into Fiscal 2026 and committed to executing with the same discipline and focus in the year ahead. Operator, we'll now open the call to questions.
Merci, thank you. We are proud of the progress made, energized by the momentum we are carrying into Fiscal 2026 and committed to executing with the same discipline and focus in the year ahead. Operator, we'll now open the call to questions.
Speaker #3: Operator, we’ll now open the call to
Speaker #3: Questions. Next, we will now begin the...
Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. Our first question comes from Martin Laundry with Stifel. Please go ahead.
Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. Our first question comes from Martin Laundry with Stifel. Please go ahead.
Speaker #4: Question and answer session. To ask a question, you may press star, then one, on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
Speaker #4: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Our first question comes from Martin Laundry with Stifel.
Speaker #4: Please go
Speaker #4: Ahead. Hi, good morning, Karl and
Martin Laundry: Hi. Good morning, Carl and Ing.
Martin Landry: Hi. Good morning, Carl and Ing.
Speaker #3: Bonjour, Inji.
Carl Goyet: Bonjour, Martin.
Carl Goyette: Bonjour, Martin.
Speaker #2: Good morning,
Ing Saraf: Good morning, Martin.
Ingy Sarraf: Good morning, Martin.
Speaker #2: Martin. Good morning.
Martin Laundry: Good morning. Congratulations on your great results. I would like to just dig into the revenue growth on a year-over-year basis for Q4, just trying to compare apples to apples. So, Carl, I was wondering if maybe you can discuss your performance at retail in Canada. You gave in your MD&A the scanned dollar sales for the last 52 weeks. I think they're up 22% year-over-year. I'm wondering if you could break down the performance for Q4. That would be greatly helpful.
Martin Landry: Good morning. Congratulations on your great results. I would like to just dig into the revenue growth on a year-over-year basis for Q4, just trying to compare apples to apples. So, Carl, I was wondering if maybe you can discuss your performance at retail in Canada. You gave in your MD&A the scanned dollar sales for the last 52 weeks. I think they're up 22% year-over-year. I'm wondering if you could break down the performance for Q4. That would be greatly helpful.
Speaker #3: Congrats on your great results. I would like to just dig in to the revenue growth on a year-over-year basis for Q4, just trying to compare apples to apples.
Speaker #3: So, Karl, I was wondering if maybe you can discuss your performance at retail in Canada—if you gave in your MD&A the scan dollar sales for the last 52 weeks.
Speaker #3: I think they're up 22% year-over-year. But wondering if you could break the performance for Q4, that would be greatly helpful. Yes, absolutely, Martin. I'll start with the US because the US is, I guess, the US is easier because most of our business is tracked in the US, right?
Carl Goyet: Yes, absolutely, Martin. I'll start with the US because the US is, I guess, the US is easier because most of our business is tracked in the US, right? I gave in my remarks, I also spoke about it. In the US, when you look at spins, which is really tracked, and we add Whole Foods to this, we get to plus 22%, right? When I combine spins, Whole Foods, and other untracked, you're really in the range of 20% in the US. That's kind of the growth we're seeing. The real growth we're seeing in the US in Q4 would be around 20%. For Canada, it's a little bit more complex because, as we discussed, right, there's a lot of growth that's happening in untracked channels. We're seeing online Costco, some of the discount independence growing faster than some of the tracked, right?
Carl Goyette: Yes, absolutely, Martin. I'll start with the US because the US is, I guess, the US is easier because most of our business is tracked in the US, right? I gave in my remarks, I also spoke about it. In the US, when you look at spins, which is really tracked, and we add Whole Foods to this, we get to plus 22%, right? When I combine spins, Whole Foods, and other untracked, you're really in the range of 20% in the US. That's kind of the growth we're seeing. The real growth we're seeing in the US in Q4 would be around 20%. For Canada, it's a little bit more complex because, as we discussed, right, there's a lot of growth that's happening in untracked channels. We're seeing online Costco, some of the discount independence growing faster than some of the tracked, right?
Speaker #3: So I gave in my remarks, I also spoke about it in the US. When you look at SPINS, which is really tracked, and we add Whole Foods to this,
Speaker #3: So when I combine Spins, Whole Foods, and other untracked, you're really in the range of 20% in the US. So that's kind of the growth we're seeing—the real growth we're seeing in the US in Q4 would be around 20%.
Speaker #3: And for Canada, it's a little bit more complex because, as we discussed, there's a lot of growth that's happening in untracked channels. We're seeing online Costco and some of the discount independents growing faster than some of the tracked, right?
Speaker #3: So we need to do a little bit more of a calculation to get to give you a good number on this, right? So we look so what we do is we look at tracked channels and then we add back the shipments for whatever is untracked.
Carl Goyet: We need to do a little bit more of a calculation to get to give you a good number on this, right? What we do is we look at tracked channels, and then we add back the shipments for whatever is untracked. And the number is exactly the same, right? In Q4, we're seeing also plus 20% in consumer offtake when combining tracked and untracked for Canada. Overall, growing at 20% in US and Canada is the short answer.
Carl Goyette: We need to do a little bit more of a calculation to get to give you a good number on this, right? What we do is we look at tracked channels, and then we add back the shipments for whatever is untracked. And the number is exactly the same, right? In Q4, we're seeing also plus 20% in consumer offtake when combining tracked and untracked for Canada. Overall, growing at 20% in US and Canada is the short answer.
Speaker #3: And the number is exactly the same, right? So, in Q4, we're also seeing a plus 20% in consumer off-take when combining tracked and untracked for Canada.
Speaker #3: So overall, growing at 20% in the US and Canada is the short.
Speaker #3: answer. Super.
Martin Laundry: Super. It's clear, and it's easy to understand, and that's apples to apples. So that's helpful. Okay. And then you do say in your opening remarks that you have momentum and you're entering Fiscal 26 with momentum. Looking at Q1, it's almost done now. So any color you can give us on your performance at retail for Q1?
Martin Landry: Super. It's clear, and it's easy to understand, and that's apples to apples. So that's helpful. Okay. And then you do say in your opening remarks that you have momentum and you're entering Fiscal 26 with momentum. Looking at Q1, it's almost done now. So any color you can give us on your performance at retail for Q1?
Speaker #4: It's clear, and it's easy to understand. And that's apples to apples, so that's helpful. Okay. And then you do say in your opening remarks that you have momentum, and you're entering fiscal 2026 with momentum.
Speaker #4: Looking at Q1, it's almost done now. So, any color you can give us on your performance at retail for Q1?
Speaker #3: Yeah. As you know, Martin, we don't give formal guidance. I know it's almost done, but it's not done. I can tell you the sales team is pushing as hard as they can, because there's always a little bit of timing of which large orders are going to be delivered when, and all this.
Carl Goyet: Yeah. As you know, Martin, we don't give formal guidance. I know it's almost done, but it's not done. I can tell you the sales team is pushing as hard as they can. So there's always a little bit of timing of which large orders are going to be delivered when and all this. So I can't give you an exact number, but I can tell you the few things I'll give you to help you answer this question. The first is that the industry is doing really, really well, right? The industry is growing healthy, both in Canada and in the US, at around 10%. There are strong tailwinds for anything that's better for you, zero sugar and innovations.
Carl Goyette: Yeah. As you know, Martin, we don't give formal guidance. I know it's almost done, but it's not done. I can tell you the sales team is pushing as hard as they can. So there's always a little bit of timing of which large orders are going to be delivered when and all this. So I can't give you an exact number, but I can tell you the few things I'll give you to help you answer this question. The first is that the industry is doing really, really well, right? The industry is growing healthy, both in Canada and in the US, at around 10%. There are strong tailwinds for anything that's better for you, zero sugar and innovations.
Speaker #3: So I can't give you an exact number, but I can tell you the few things I'll give you to help you answer this question.
Speaker #3: The first is that the industry is doing really, really well, right? The industry is growing healthy both in Canada and in the US at around 10%.
Speaker #3: And there's strong tailwinds for anything that's better for you, Xero Sugar and innovations. So obviously, we want to the discussion that we almost want to have with you is to look at, let's say, a longer-term horizon, let's say Q1 and Q2.
Carl Goyet: Obviously, we want to, the discussion that we almost want to have with you is to look at, let's say, a longer-term horizon, let's say Q1 and Q2, to say we expect to outgrow the industry significantly, right? If the industry is growing at 10%, expect us to outgrow this and keep growing market share. That's one thing that I think is fair for us to tell you in terms of outlook without giving you an exact number. From a margin point of view, we also are very proud of our margins. Our margins are industry-leading. They've always been part of our recipe. These margins are key for us to be profitable. We will protect and defend this. And there's obviously pressure in margins like everybody else, but this is something that we're proud of and we will defend, right?
Obviously, we want to, the discussion that we almost want to have with you is to look at, let's say, a longer-term horizon, let's say Q1 and Q2, to say we expect to outgrow the industry significantly, right? If the industry is growing at 10%, expect us to outgrow this and keep growing market share. That's one thing that I think is fair for us to tell you in terms of outlook without giving you an exact number. From a margin point of view, we also are very proud of our margins. Our margins are industry-leading. They've always been part of our recipe. These margins are key for us to be profitable. We will protect and defend this. And there's obviously pressure in margins like everybody else, but this is something that we're proud of and we will defend, right?
Speaker #3: To say, we expect to outgrow the industry significantly, right? So if the industry is growing at 10%, expect us to outgrow this and keep growing market share.
Speaker #3: That's one thing that I think is fair for us to tell you, in terms of outlook, without giving you an exact number. From a margin point of view, we also are very proud of our margins.
Speaker #3: Our margins are industry-leading. They've always been part of our recipe. These margins are key for us to be profitable. So we will protect and defend this.
Speaker #3: And there's obviously pressure in is something that we're proud of and we will margins like everybody else, but this defend. So don't expect big movements from a gross margin point of view except from some pressures that are cost-related, right?
Carl Goyet: Don't expect big movements from a gross margin point of view except from some pressures that are cost-related, right? From a profitability point of view, which obviously everybody's interested in this, as we gain scale, we've said for a number of years that we were going to get back to profitability. Not everybody believed us. I think we've just proved that we can be profitable two quarters in a row. That's the intent, right? When we look at the future of this business, this business will be a profitable business. It doesn't mean we will be profitable every quarter, right? We want to be. I think we've been clear last quarter, and I want to be clear again that we are still very much focused on growth, right?
Don't expect big movements from a gross margin point of view except from some pressures that are cost-related, right? From a profitability point of view, which obviously everybody's interested in this, as we gain scale, we've said for a number of years that we were going to get back to profitability. Not everybody believed us. I think we've just proved that we can be profitable two quarters in a row. That's the intent, right? When we look at the future of this business, this business will be a profitable business. It doesn't mean we will be profitable every quarter, right? We want to be. I think we've been clear last quarter, and I want to be clear again that we are still very much focused on growth, right?
Speaker #3: And then, from a profitability point of view—which obviously everybody's interested in—as we gain scale, we've said for a number of years that we were going to get back to profitability.
Speaker #3: Not everybody believed us. I think we've just proved that we can be profitable two quarters in a row. That's the intent, right? So, when we look at the future of this business, this business will be a profitable business.
Speaker #3: It doesn't mean we will be profitable every quarter, right? We want to be—I think we've been clear last quarter, and I want to be clear again—that we are still very much focused on growth, right?
Speaker #3: And we will attack some opportunities and we will make investments if we think there's going to be a great return for our future. So some quarters we may not be profitable, some quarters we may be more profitable.
Carl Goyet: We will attack some opportunities, and we will make investments if we think there's going to be a great return for our future. Some quarters we may not be profitable. Some quarters we may be more profitable. I think the one thing that I would want to commit with you as well, like we said last quarter, is that whenever there's a loss, if there is a loss in the future, we'll point to exactly the investments we're making, obviously as much as we can without disclosing our strategy. We'll be able to tell you, "Hey, here's an example of investments we're making this quarter. Here's why maybe we're seeing a small loss, but this is going to pay back in the future," right?
We will attack some opportunities, and we will make investments if we think there's going to be a great return for our future. Some quarters we may not be profitable. Some quarters we may be more profitable. I think the one thing that I would want to commit with you as well, like we said last quarter, is that whenever there's a loss, if there is a loss in the future, we'll point to exactly the investments we're making, obviously as much as we can without disclosing our strategy. We'll be able to tell you, "Hey, here's an example of investments we're making this quarter. Here's why maybe we're seeing a small loss, but this is going to pay back in the future," right?
Speaker #3: I think the one thing that I would want to commit with you, with Inji as well, like we said last quarter, is that whenever there's a loss—if there is a loss in the future—we'll point to exactly the investments we're making, obviously as much as we can without disclosing our strategy.
Speaker #3: But we'll be able to tell you, 'Hey, here are the examples of investments we're making this quarter. Here's why maybe we're seeing a small loss, but this is going to pay back in the future,' right?
Speaker #3: And the duty is, we have $28 million in cash in the bank account, and we have money to invest, and we still really very much believe in the potential of this brand.
Carl Goyet: The beauty is we have $28 million in cash in the bank account, and we have money to invest, and we still really much believe in the potential of this brand. We will want to continue investing in this brand in the future.
The beauty is we have $28 million in cash in the bank account, and we have money to invest, and we still really much believe in the potential of this brand. We will want to continue investing in this brand in the future.
Speaker #3: And we will want to continue investing in this brand in the
Speaker #3: future. Okay.
Martin Laundry: Okay. That's helpful. Just a point of clarification. When you say you intend to be profitable, are you talking at the EBITDA line or at the net income line?
Martin Landry: Okay. That's helpful. Just a point of clarification. When you say you intend to be profitable, are you talking at the EBITDA line or at the net income line?
Speaker #4: That's helpful. Just a point of clarification: when you say you intend to be profitable, are you talking at the EBITDA line or at the net income?
Speaker #4: That's helpful. Just a point of clarification. When you say you intend to be profitable, are you talking at the EBITDA line or at the net income line?
Speaker #3: At the EBITDA
Carl Goyet: At the EBITDA line. Yeah.
Carl Goyette: At the EBITDA line. Yeah.
Speaker #3: line. Yeah. Okay.
Martin Laundry: Okay. Positive EBITDA. Okay. Okay. I mean, it does answer most of my questions. I just wanted to maybe have a little bit of a long-term picture, and I think you've answered it a little bit. I'm trying to grasp it a little bit. What's your growth algorithm from a revenue standpoint, a longer term? You talk about growing faster than the industry. Is that a little bit how we should think about your long-term growth algorithm?
Martin Landry: Okay. Positive EBITDA. Okay. Okay. I mean, it does answer most of my questions. I just wanted to maybe have a little bit of a long-term picture, and I think you've answered it a little bit. I'm trying to grasp it a little bit. What's your growth algorithm from a revenue standpoint, a longer term? You talk about growing faster than the industry. Is that a little bit how we should think about your long-term growth algorithm?
Speaker #4: Positive EBITDA. Okay, okay. I mean, it does answer most of my questions. I just wanted to maybe have a little bit of a long-term picture.
Speaker #4: And I think you've answered it a little bit. I'm trying to grasp it a little bit. What's your growth algorithm from a revenue standpoint, longer-term?
Speaker #4: You talk about growing faster than the industry. Is that a little bit how we should think about your long-term growth algorithm?
Speaker #3: Yeah. I would give you a similar answer to that one, that's because the mindset is the same, right? Obviously, longer-term, we obviously think that this brand and our organization can outgrow the industry.
Carl Goyet: Yeah. I would give you a similar answer to the one that's because the mindset is the same, right? Obviously, longer term, we obviously think that this brand and our organization can outgrow the industry. In fact, our mission is to transform and clean up this industry. We think that there is a place in this very large industry for a product that is much healthier, that has a much cleaner list of ingredients, but provides the same benefits. Obviously, we think that the product and a brand like Guru can outgrow the industry significantly, right? The protection of our margin still stands, right? There's no reason why we would compromise on this. I think the big thing that changes over a longer term is with scale, profitability becomes much easier. We're still a fairly small company.
Carl Goyette: Yeah. I would give you a similar answer to the one that's because the mindset is the same, right? Obviously, longer term, we obviously think that this brand and our organization can outgrow the industry. In fact, our mission is to transform and clean up this industry. We think that there is a place in this very large industry for a product that is much healthier, that has a much cleaner list of ingredients, but provides the same benefits. Obviously, we think that the product and a brand like Guru can outgrow the industry significantly, right? The protection of our margin still stands, right? There's no reason why we would compromise on this. I think the big thing that changes over a longer term is with scale, profitability becomes much easier. We're still a fairly small company.
Speaker #3: In fact, our mission is to transform and clean up this industry. We think that there is a place in this very large industry for a product that is much healthier, that has a much cleaner list of ingredients, but provides the same benefits.
Speaker #3: So obviously, we think that the product and a brand like Google can outgrow the industry significantly, right? The protection of our margins still stands, right?
Speaker #3: There's no reason why we would compromise on this. I think the big thing that changes over a longer term is with scale—profitability becomes much easier.
Speaker #3: We're still a fairly small company. If you look at our cost base, the cost of being public—there are some costs in there that are fixed costs, that are part of our structure in SG&A—that, over time, with scale, are not as significant, right?
Carl Goyet: If you look at our cost base, the cost of being public, there's some costs in there that are fixed costs that are part of our structure in SG&A that over time with scale are not as significant, right? So in the future, you should start seeing much better EBITDA margins on a more consistent basis.
If you look at our cost base, the cost of being public, there's some costs in there that are fixed costs that are part of our structure in SG&A that over time with scale are not as significant, right? So in the future, you should start seeing much better EBITDA margins on a more consistent basis.
Speaker #3: So you in the future, you should start seeing much better EBITDA margins on a more consistent
Speaker #3: basis. Super.
Martin Laundry: Super. Thank you for all the color and best of luck.
Martin Landry: Super. Thank you for all the color and best of luck.
Speaker #4: Thank you for all the color and
Speaker #4: best of luck. Thank you,
Carl Goyet: Thank you, Martin.
Carl Goyette: Thank you, Martin.
Speaker #3: Martin. Thank you,
Ing Saraf: Thank you, Martin.
Ingy Sarraf: Thank you, Martin.
Speaker #1: And the next question comes from Martin. Sean McGowan with Roth Capital Partners. Please go ahead.
Operator: And the next question comes from Sean McGowan with Roth Capital Partners. Please go ahead.
Operator: And the next question comes from Sean McGowan with Roth Capital Partners. Please go ahead.
Speaker #5: Thank you. Good morning.
Sean McGowan: Thank you. Good morning.
Sean McGowan: Thank you. Good morning.
Speaker #3: Good morning, Sean.
Martin Laundry: Good morning, Sean.
Martin Landry: Good morning, Sean.
Sean McGowan: Hi, Sean.
Ingy Sarraf: Hi, Sean.
Speaker #5: Hi, Hi, Sean. Inji. A couple of questions specifically about the quarter, maybe these might be more for Inji and then some bigger picture questions.
Martin Laundry: Hi, Ing. A couple of questions specifically about the quarter. Maybe these might be more for Ing. and then some bigger picture questions. At both the gross margin level and the operating expense level, the performance was kind of better than I had modeled. Was there anything in those numbers that was like an unusual benefit that would make us maybe not expect this kind of performance in the future? Kind of any unusual offsets to expenses?
Sean McGowan: Hi, Ing. A couple of questions specifically about the quarter. Maybe these might be more for Ing. and then some bigger picture questions. At both the gross margin level and the operating expense level, the performance was kind of better than I had modeled. Was there anything in those numbers that was like an unusual benefit that would make us maybe not expect this kind of performance in the future? Kind of any unusual offsets to expenses?
Speaker #5: At both the gross margin level and the operating expense level, the performance was kind of better than I had modeled. Was there anything in those numbers—excuse me—that was like an unusual benefit that would make us maybe not expect this kind of performance in the future?
Speaker #5: Kind of any unusual offsets to
Speaker #5: expenses? No, it was a
Ing Saraf: No, it was a very regular quarter. Of course, we're in the new structure, right, in the new business model. So no, it was very regular in terms of SG&A and even in terms of gross profit. Nothing that we wanted.
Ingy Sarraf: No, it was a very regular quarter. Of course, we're in the new structure, right, in the new business model. So no, it was very regular in terms of SG&A and even in terms of gross profit. Nothing that we wanted.
Speaker #2: Very regular quarter. Of course, we're in the new structure, right? In the new business model. So, no, it was very regular in terms of SG&A and even in terms of gross profit.
Speaker #2: Nothing that was.
Speaker #5: I would
Speaker #5: It looks like you're generating more gross margin than you had even before, going back five years or so. So you're coming in at a higher margin level than you had even before Pepsi.
Martin Laundry: It looks like you're generating more gross margin than you had even before going back five years or so. So you're coming in at a higher margin level than you had even before Pepsi, right?
Sean McGowan: It looks like you're generating more gross margin than you had even before going back five years or so. So you're coming in at a higher margin level than you had even before Pepsi, right?
Speaker #5: right? Yes, we had a very good
Ing Saraf: Yes. We had a very good gross margin from a pricing standpoint. We had, of course, the benefit of the transition back to the new model. We also have some continued impact from our pricing discipline and a tighter control over our promotional activities.
Ingy Sarraf: Yes. We had a very good gross margin from a pricing standpoint. We had, of course, the benefit of the transition back to the new model. We also have some continued impact from our pricing discipline and a tighter control over our promotional activities.
Speaker #2: Gross margin from a pricing standpoint—we had, of course, the benefit of the transition back to the new model, and we also have some continued impact from our pricing discipline and tighter control over our promotional activities.
Speaker #5: Okay, that's helpful. And then, I hear that you're not going to get into the guidance business, at least not yet. But given the kind of unusual—some unusual things that happened over the course of the last fiscal year—can you give us some help on what we should expect in the cadence of growth in 2026, given the comparisons up against some unusual quarters last year?
Sean McGowan: Okay. That's helpful. And then looking at, I hear that you're not going to get into the guidance business, at least not yet. But given some unusual things that happened over the course of the last fiscal year, can you give us some help on what we should expect in the cadence of growth in 2026, given the comparisons up against some unusual quarters last year?
Sean McGowan: Okay. That's helpful. And then looking at, I hear that you're not going to get into the guidance business, at least not yet. But given some unusual things that happened over the course of the last fiscal year, can you give us some help on what we should expect in the cadence of growth in 2026, given the comparisons up against some unusual quarters last year?
Speaker #3: Yeah. Well, obviously, the aspiration remains the same. The aspiration—as I said, this is a growth company, and we will do everything we can to be a high-growth company.
Carl Goyet: Well, obviously, the aspiration remains the same. The aspiration, as I said, this is a growth company, and we will do everything we can to be a high-growth company. Outpace the industry. Q1 and Q2, we have more visibility on, obviously. So we have the benefit of the new model in Q1 and Q2. I think Q3 and Q4 will be comparing direct distribution quarters with direct distribution quarters. So we will not have that benefit. So most of the growth will come from the volume. Right now, we're benefiting from volume growth and from margin improvements, right? So as you model this down the road, then we will be focused on generating pure volume growth to generate revenue, right? Because we don't think there's not much pricing that we're going to take this year, right? So it's more of a volume growth Q3 and Q4.
Carl Goyette: Well, obviously, the aspiration remains the same. The aspiration, as I said, this is a growth company, and we will do everything we can to be a high-growth company. Outpace the industry. Q1 and Q2, we have more visibility on, obviously. So we have the benefit of the new model in Q1 and Q2. I think Q3 and Q4 will be comparing direct distribution quarters with direct distribution quarters. So we will not have that benefit. So most of the growth will come from the volume. Right now, we're benefiting from volume growth and from margin improvements, right? So as you model this down the road, then we will be focused on generating pure volume growth to generate revenue, right? Because we don't think there's not much pricing that we're going to take this year, right? So it's more of a volume growth Q3 and Q4.
Speaker #3: I'll pace the industry Q1 and Q2. We have more visibility on, obviously, we also—so we have the benefit of the new model in Q1 and Q2.
Speaker #3: I think Q3 and Q4 will be comparing direct distribution quarters with direct distribution quarters, so we will not have that benefit. So, most of the growth will come from the volume.
Speaker #3: Right now, we're benefiting from volume growth and from margin improvements, right? So, as you model this down the road, then we will be focused on generating pure volume growth to generate revenue, right?
Speaker #3: Because we don't think there's much pricing that we're going to take this year, right? So it's more of a volume growth in Q3 and Q4. But we have a very aggressive year in front of us, with great innovations that are coming, momentum from a distribution point of view, and momentum with a lot of retailers and e-commerce.
Carl Goyet: We have a very aggressive year in front of us with great innovations that are coming, momentum from a distribution point of view, momentum with a lot of retailers and e-commerce. We're very confident for this year, obviously, in remaining a growth company. Not sure if it answers your question, but I think I gave a lot of color on Q1 and Q2. Beyond that is a little bit still far, but I think there's no reason why momentum would stop, right? Unless something really that we don't control happens, right?
We have a very aggressive year in front of us with great innovations that are coming, momentum from a distribution point of view, momentum with a lot of retailers and e-commerce. We're very confident for this year, obviously, in remaining a growth company. Not sure if it answers your question, but I think I gave a lot of color on Q1 and Q2. Beyond that is a little bit still far, but I think there's no reason why momentum would stop, right? Unless something really that we don't control happens, right?
Speaker #3: So we're very confident for this year, obviously, in remaining a growth company. Not sure if it answers your question, but I think I gave a lot of color on Q1 and Q2.
Speaker #3: Beyond that, it is a little bit still far, but I think the momentum—there’s no reason why momentum would stop, right? Unless something really that we don’t control happens, right?
Speaker #5: Right. Okay. The working capital figures were also, I think, a positive surprise in terms of it actually being a source of cash in the fourth quarter.
Sean McGowan: Right. Okay. The working capital figures were also, I think, a positive surprise in terms of it actually being a source of cash in the fourth quarter. Not something you typically see with this kind of revenue growth. So given your aspirations for growth, should we expect that the company will need to invest in working capital in 2026? Should we expect it to kind of revert to being a use of cash?
Sean McGowan: Right. Okay. The working capital figures were also, I think, a positive surprise in terms of it actually being a source of cash in the fourth quarter. Not something you typically see with this kind of revenue growth. So given your aspirations for growth, should we expect that the company will need to invest in working capital in 2026? Should we expect it to kind of revert to being a use of cash?
Speaker #5: Not something you typically see with this kind of revenue growth. So given your aspirations for growth, should we expect that the company will need to invest in working capital in 2026?
Speaker #5: Or should we expect it to kind of revert to being a use of cash?
Speaker #2: Yes, I think it will be much more neutral in 2026 versus—you saw the shift in receivables. The timing of receivables and payables in 2025.
Ing Saraf: Yes. I think it will be much more neutral in 2026 versus you saw the shift in receivables, the timing of receivables and payables in 2025. I think it will be much more neutral like we saw in previous years, the working capital, because we're at the right levels of inventory, the right levels of investments there.
Ingy Sarraf: Yes. I think it will be much more neutral in 2026 versus you saw the shift in receivables, the timing of receivables and payables in 2025. I think it will be much more neutral like we saw in previous years, the working capital, because we're at the right levels of inventory, the right levels of investments there.
Speaker #2: So, I think it will be much more neutral, like we saw in previous years, with the working capital. Because we're at the right levels of inventory and the right levels of investments there.
Speaker #5: Okay. That's helpful. Then some bigger picture questions. You mentioned cost as potential headwind. Is there anything specific that you can point to on that?
Sean McGowan: Okay. That's helpful. Then some bigger picture questions. You mentioned cost as potential headwind. Is there anything specific that you can point to on that? The reason I ask is there's been some chatter in some of the other company conference calls about aluminum costs. Are you seeing anything in input costs that give you any concern or that might offset some of your pricing?
Sean McGowan: Okay. That's helpful. Then some bigger picture questions. You mentioned cost as potential headwind. Is there anything specific that you can point to on that? The reason I ask is there's been some chatter in some of the other company conference calls about aluminum costs. Are you seeing anything in input costs that give you any concern or that might offset some of your pricing?
Speaker #5: And the reason I ask is there's been some chatter on some of the other company conference calls about aluminum costs. Are you seeing anything in input costs that gives you any concern or that might offset some of your pricing?
Speaker #2: Yes, of course. Like the rest of the industry, we're feeling the pressure. Really, aluminum-related. And we see it, of course, through our co-packing costs, of course.
Ing Saraf: Yes, of course. Like the rest of the industry, we're feeling the pressure, really aluminum-related. We see it through our co-packing costs. For the rest, the other inputs, whether freight, whether raw materials, it's broadly stable within the normal CPI index increases. So it's really aluminum that's putting the pressure.
Ingy Sarraf: Yes, of course. Like the rest of the industry, we're feeling the pressure, really aluminum-related. We see it through our co-packing costs. For the rest, the other inputs, whether freight, whether raw materials, it's broadly stable within the normal CPI index increases. So it's really aluminum that's putting the pressure.
Speaker #2: For the rest, the other inputs, whether freight or raw materials, they're broadly stable within the normal CPI index increases. So it's really aluminum that's putting the pressure, of course.
Speaker #5: Okay. Thank you. Maybe for call, are you seeing any new entrants into the category that you think are worthy to keep your eye on?
Sean McGowan: Okay. Thank you. Maybe for Carl, are you seeing any new entrants into the category that you think are worthy to keep your eye on? I mean, some of the big guys are doing pretty well, but some new entrants also are not doing so badly. Are there any companies that you would look at?
Sean McGowan: Okay. Thank you. Maybe for Carl, are you seeing any new entrants into the category that you think are worthy to keep your eye on? I mean, some of the big guys are doing pretty well, but some new entrants also are not doing so badly. Are there any companies that you would look at?
Speaker #5: I mean, some of the big guys are doing pretty well, but some new entrants are also not doing so badly. Are there any companies that you would look—
Speaker #5: at? Well, there's always
Carl Goyet: Well, there's always a lot of action in this industry, and there's always been. We've been around 25 years, and there's not a year where there's not a ton of new entrants. I guess the industry doing so well, the industry having so much momentum, consumers' appetite for innovations, better for you, zero sugar, obviously makes this space attractive for a lot of new entrants. So there's nothing specific I would point to in terms of, I think what we need to look at is, yes, this is an attractive industry. Yes, this is an extremely competitive industry, right? So we need to be very focused, very methodical about our strategy, knowing exactly where our brand can play and what type of consumers we're going after. If we're trying to please everybody, we're not going to please anybody.
Carl Goyette: Well, there's always a lot of action in this industry, and there's always been. We've been around 25 years, and there's not a year where there's not a ton of new entrants. I guess the industry doing so well, the industry having so much momentum, consumers' appetite for innovations, better for you, zero sugar, obviously makes this space attractive for a lot of new entrants. So there's nothing specific I would point to in terms of, I think what we need to look at is, yes, this is an attractive industry. Yes, this is an extremely competitive industry, right? So we need to be very focused, very methodical about our strategy, knowing exactly where our brand can play and what type of consumers we're going after. If we're trying to please everybody, we're not going to please anybody.
Speaker #3: a lot of action in this industry, and there's always been, right? We've been around 25 years, and there's not a year where there's not a ton of new entrants.
Speaker #3: And I guess the industry doing so well, the industry having so much momentum, consumers' appetite for innovations, better-for-you, zero sugar, obviously makes this space attractive for a lot of new entrants.
Speaker #3: So there's nothing specific I would point to in terms of—I think what we need to look at is, yes, this is an attractive industry.
Speaker #3: Yes, this is a extremely competitive industry, right? So we need to be very focused, very methodical about our strategy, knowing exactly where our brand can play and what type of consumers we're going after.
Speaker #3: If we're trying to please everybody, we're not going to please anybody. But we know that there is a real consumer base for products that are like Guru, and we're very focused on that.
Carl Goyet: But we know that there is a real consumer base for products that are like Guru, and we're very focused on that, not being distracted by all the other new entrants that come and go. The reality is a lot of people come, a lot of brands come and go. That's kind of that high level what I would give you. We don't see that many new entrants, to be honest, in this exact same space from an ingredients, a clean ingredients list point of view, with no sucralose, no aspartame, natural caffeine, and the benefits we offer from a boost and focus point of view. We don't see that many new entrants. In that sense, we're lucky, and we're very well established in that positioning.
But we know that there is a real consumer base for products that are like Guru, and we're very focused on that, not being distracted by all the other new entrants that come and go. The reality is a lot of people come, a lot of brands come and go. That's kind of that high level what I would give you. We don't see that many new entrants, to be honest, in this exact same space from an ingredients, a clean ingredients list point of view, with no sucralose, no aspartame, natural caffeine, and the benefits we offer from a boost and focus point of view. We don't see that many new entrants. In that sense, we're lucky, and we're very well established in that positioning.
Speaker #3: Not being distracted by all the other new entrants. That come and go. The reality is a lot of people come, a lot of brands come and go.
Speaker #3: That's kind of a high level what I would give you. We don't see that many new entrants. To be honest, in this exact same space from an ingredients, a clean ingredients list point of view, with no sucralose, no aspartame, natural caffeine in the benefits we offer from a boost and focus point of view, we don't see that many new entrants.
Speaker #3: So in that sense, we're lucky, and we're very well established in that positioning. So when we look at all these new entrants, as much as we wish them good luck, we know that having been around since 1999 and being so established in the natural channel, in e-com channels, on Amazon, having the relationships we have with retailers, is really a meaningful advantage over the new entrants that come in, right?
Carl Goyet: When we look at all these new entrants, as much as we wish them good luck, we know that being around since 1999 and being established in the natural channel, in e-commerce channels, on Amazon, having the relationships we have with retailers is really a meaningful advantage over the new entrants that come in, right? It doesn't mean that it's impossible for new entrants to be successful. We've seen some new entrants come in and be very successful. But we don't get distracted by this. We're very much focused on our own strategy, while obviously taking lessons from anybody who is successful in this industry is always something that we look at and say, "Hey, wow, these guys have done really well," especially if they're in the better-for-you space, right? Because we think, obviously, this is fundamental to our mission.
When we look at all these new entrants, as much as we wish them good luck, we know that being around since 1999 and being established in the natural channel, in e-commerce channels, on Amazon, having the relationships we have with retailers is really a meaningful advantage over the new entrants that come in, right? It doesn't mean that it's impossible for new entrants to be successful. We've seen some new entrants come in and be very successful. But we don't get distracted by this. We're very much focused on our own strategy, while obviously taking lessons from anybody who is successful in this industry is always something that we look at and say, "Hey, wow, these guys have done really well," especially if they're in the better-for-you space, right? Because we think, obviously, this is fundamental to our mission.
Speaker #3: It doesn't mean that it's impossible for new entrants to be successful. We've seen some new entrants come in and be very successful. But we're not we don't get distracted by this.
Speaker #3: We're very much focused on our own strategy, while obviously taking lessons from anybody who is successful in this industry is always something that we look at and say, "Hey, wow, these guys have done really well." Especially if they're in the better-for-you space, right?
Speaker #3: Because we think, obviously, this is fundamental to our mission. We think that this industry needs—I said this earlier—but this industry desperately needs a transformation for the better.
Carl Goyet: We think that this industry needs—I said this earlier—but this industry desperately needs a transformation for the better. It's really an industry that's full of chemicals, and we think that that should not be the case. It should be an industry that's providing consumers with healthy products, right?
We think that this industry needs—I said this earlier—but this industry desperately needs a transformation for the better. It's really an industry that's full of chemicals, and we think that that should not be the case. It should be an industry that's providing consumers with healthy products, right?
Speaker #3: It's really an industry that's full of chemicals, and we think that that should not be the case. It should be an industry that's providing consumers with healthy products, right?
Speaker #3: So thank you. And then another competitive question. So Monster and Coke have had a relationship for a long time. Celsius and Pepsi have a relationship for a long time.
Sean McGowan: Thank you. Another competitive question. Monster and Coke have had a relationship for a long time. Now, we also see Pepsi have a relationship for a long time. KDP is jumping on some of these new entrants aggressively. Does this make it harder, you think, for new entrants? Because the core businesses of some of these bigger consumer products companies are not that strong on carbonated soft drinks, not a growth category. Does it make it harder or easier for new companies to get in, establish some share, and then sell out? That seems to be the game plan for some of these guys.
Sean McGowan: Thank you. Another competitive question. Monster and Coke have had a relationship for a long time. Now, we also see Pepsi have a relationship for a long time. KDP is jumping on some of these new entrants aggressively. Does this make it harder, you think, for new entrants? Because the core businesses of some of these bigger consumer products companies are not that strong on carbonated soft drinks, not a growth category. Does it make it harder or easier for new companies to get in, establish some share, and then sell out? That seems to be the game plan for some of these guys.
Speaker #3: KDP is jumping on some of these new entrants. Aggressively. Does this make it harder, you think, for new entrants because the core businesses of some of these bigger consumer products companies are not that strong?
Speaker #3: And carbonated soft drinks, not a growth category. Does it make it harder, or easier, for new companies to kind of get in, establish some share, and then sell out?
Speaker #3: That seems to be the game plan for some of these guys.
Speaker #2: Yeah. I don't know. There's always, like you see, I think what's important is to be innovative and to find your own way. We spoke about channel shifts.
Carl Goyet: I don't know. As always, like you see, I think what's important is to be innovative and to find your own way. We spoke about channel shifts, the opportunities and on track. There's so many new channels. Consumers are not shopping in the same way. E-commerce levels the playing field very much on brand, right? So there's so many other ways to grow than only in the traditional channels. Obviously, traditional retail channels play a big role. This is where the bulk of the industry is being sold. But this is an over $26 billion industry growing so fast. The reality is there's so many other ways to win in this industry without necessarily going into the massive system of the large DSB players, right? When you get the billion dollars, I guess at some point, you have no choice.
Carl Goyette: I don't know. As always, like you see, I think what's important is to be innovative and to find your own way. We spoke about channel shifts, the opportunities and on track. There's so many new channels. Consumers are not shopping in the same way. E-commerce levels the playing field very much on brand, right? So there's so many other ways to grow than only in the traditional channels. Obviously, traditional retail channels play a big role. This is where the bulk of the industry is being sold. But this is an over $26 billion industry growing so fast. The reality is there's so many other ways to win in this industry without necessarily going into the massive system of the large DSB players, right? When you get the billion dollars, I guess at some point, you have no choice.
Speaker #2: The opportunities are untracked. There are so many new channels. Consumers are not shopping in the same way. E-commerce levels the playing field—very much on brand, right?
Speaker #2: So, there are so many other ways to grow than only in the traditional channels. Obviously, traditional retail channels play a big role. This is where the bulk of the industry is being sold.
Speaker #2: But this is a 26, over 26 billion dollar industry growing so fast. The reality is there's so many other ways to win in this industry without necessarily going into the massive systems, the large DSB players.
Speaker #2: When you get the billion dollars, at some point, you have no choice. But at the size we are, and we look at the opportunities, or at the size of whenever a new entrant's coming in, new entries, new entrants have plenty of opportunities to grow outside of these big distribution giants, right?
Carl Goyet: But at the size we are and we look at the opportunities or at the size of whenever a new entrant's coming in, new entrants have plenty of opportunities to grow outside of these big distribution giants, right?
But at the size we are and we look at the opportunities or at the size of whenever a new entrant's coming in, new entrants have plenty of opportunities to grow outside of these big distribution giants, right?
Speaker #5: Okay. Thank you very much. Appreciate
Sean McGowan: Okay. Thank you very much. Appreciate it.
Sean McGowan: Okay. Thank you very much. Appreciate it.
Speaker #2: Thank you, Sean. Thank you, Sean.
Carl Goyet: Thank you, Sean.
Carl Goyette: Thank you, Sean.
Speaker #3: Thank you.
Ing Saraf: Thank you. Thank you, Sean.
Ingy Sarraf: Thank you. Thank you, Sean.
Speaker #1: This concludes our question and answer session. I would like to turn the conference back over to Carl Goyette for any closing
Operator: This concludes our question and answer session. I would like to turn the conference back over to Carl Goyette for any closing remarks.
Operator: This concludes our question and answer session. I would like to turn the conference back over to Carl Goyette for any closing remarks.
Speaker #1: remarks. I simply want to thank
Carl Goyet: I simply want to thank everybody for joining, and thanks for choosing Good Energy. Have a great day.
Carl Goyette: I simply want to thank everybody for joining, and thanks for choosing Good Energy. Have a great day.
Speaker #4: Everybody, thank you for joining, and thanks for choosing Good Energy. Have a great day.
Speaker #4: day. The conference is now concluded.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
