Q3 2026 Guru Organic Energy Corp Earnings Call

September 10, 2026

Speaker #1: Welcome to the Guru Organic Energy third quarter 2026 results conference call and webcast. Being recorded today. September 10th, 2026 at 10:00 AM Eastern Time.

Operator: Welcome to the GURU Organic Energy Q3 2026 results conference call and webcast being recorded today, 10 September 2026, at 10:00 AM Eastern Time. At this time, all participants are in a listen-only mode. Following management's presentation, there will be a question-and-answer session with financial analysts. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. GURU's press release, MD&A, and financial statements are available in the Investors 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.

Operator: Welcome to the GURU Organic Energy Q3 2026 Results Conference Call and Webcast being recorded today, 10 September 2026, at 10:00AM Eastern Time. At this time, all participants are in a listen-only mode. Following management's presentation, there will be a question-and-answer session with financial analysts. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. GURU's press release, MD&A, and financial statements are available in the Investors 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.

Speaker #1: At this time, all participants are in a 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 are on SEDAR+.

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, intentions, results, level of activity, performance, goals, 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, 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.

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, 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 two of the presentation. I will now turn the call over to Carl Goyette, GURU's Chief Executive Officer. Please go ahead.

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 Executive Officer.

Speaker #1: Please go ahead.

Speaker #2: Thank you, operator. Bonjour à tous. Good morning, everyone, and welcome to Guru's fiscal 2026 third quarter results conference call. Before we get into the results, I would like to briefly address the leadership transition we announced yesterday.

Carl Goyette: Thank you, operator. Bonjour a tous. Good morning, everyone, and welcome to GURU's fiscal 2026 Q3 results conference call. Before we get into the results, I would like to briefly address the leadership transition we announced yesterday. After 12 years with GURU, including the last six as President and CEO, I am concluding my tenure as CEO. With our foundation in Canada strengthened, record momentum in the business, and significant potential ahead, GURU is now entering its next chapter of growth. As a result, the board has initiated a search for a new CEO. I will remain a director of the company and a shareholder. I am also committed to supporting the team through this transition and as GURU pursues its long-term growth potential. Patrick Charbonneau has also been promoted to Chief Revenue Officer.

Carl Goyette: Thank you, operator. [Foreign language]. Good morning, everyone, and welcome to GURU's FY 2026 Q3 results conference call. Before we get into the results, I would like to briefly address the leadership transition we announced yesterday. After 12 years with GURU, including the last six as President and CEO, I am concluding my tenure as CEO. With our foundation in Canada strengthened, record momentum in the business, and significant potential ahead, GURU is now entering its next chapter of growth. As a result, the board has initiated a search for a new CEO. I will remain a director of the company and a shareholder. I am also committed to supporting the team through this transition and as GURU pursues its long-term growth potential. Patrick Charbonneau has also been promoted to Chief Revenue Officer.

Speaker #2: After 12 years with GURU, including the last six as President and CEO, I am concluding my tenure as CEO. But with our foundation in Canada strengthened, record momentum in the business, and significant potential ahead, GURU is now entering its next chapter of growth.

Speaker #2: As a result, the board has initiated a search for a new CEO. I will remain a director of the company and a shareholder. I am also committed to supporting the team through this transition.

Speaker #2: And as Guru pursues its long-term growth potential, Patrick Charbonneau has also been promoted to Chief Revenue Officer. Patrick, an NG Seraph, our CFO and CEO, will co-lead Guru's operations under the direction of our board chair, Tyler Ricks, who will serve as executive chair through the transition.

Carl Goyette: Patrick and Inderdeep Saraph, our CFO and COO, will co-lead GURU's operations under the direction of our board chair, Tyler Ricks, who will serve as Executive Chair through the transition. I am immensely proud of what this team has accomplished. We have been in the trenches together through many milestone moments in GURU's history. From our public listing to bringing Canadian distribution back in-house, we have celebrated important achievements and worked through challenges, always moving forward together. What makes me the proudest is the strength of the team and the brand we have built. A brand with deep roots in Quebec that has grown across Canada and made meaningful inroads in the US market. I hand over the leadership of GURU with confidence in the team, the business, and the opportunity ahead. Tyler is with us on today's call, and Inderdeep will join me for the Q&A.

Speaker #2: I am immensely proud of what this team has accomplished. We have been in the trenches together through many milestone moments in GURU's history. From our public listing to bringing Canadian distribution back in-house, we have celebrated important achievements and worked through challenges, always moving forward together.

Speaker #2: What makes me the proudest is the strength of the team and the brand we have built. A brand with deep roots in Quebec that has grown across Canada and made meaningful inroads in the U.S. market.

Speaker #2: I hand over the leadership of Guru with confidence in the team, the business, and the opportunity ahead. Tyler is with us on the on today's call, and NG will join me for the Q&A.

Speaker #2: Now, let's turn to the third quarter results. Starting on slide five, this was a record quarter for Guru. Net revenue reached 11.5 million dollars, up 10.3%, which is the highest quarterly net revenue in our history.

Carl Goyette: Now, let's turn to the Q3 results. Starting on slide 5, this was a record quarter for GURU. Net revenue reached CAD 11.5 million, up 10.3%, which is the highest quarterly net revenue in our history. Last year's Q3 carried a one-time benefit. Excluding it, revenue grew about 27% on a comparable basis. This is how fast this business is really growing. We grew profitably with net income of CAD 500,000 and positive EBITDA of CAD 0.9 million. Inderdeep Saraph will take you through the trend over time. On a trailing 12-month basis, net revenue is approximately CAD 39 million, up about 23%, with adjusted EBITDA of roughly CAD 500,000. This is the third consecutive trailing 12-month period with a positive adjusted EBITDA since GURU went public. More than a year ago, we took back control of our distribution in Canada.

Speaker #2: Last year's third quarter carried a one-time benefit, excluding it, revenue grew about 27% on a comparable basis. This is how fast this business is really growing.

Speaker #2: And we grew profitably, with net income of $0.5 million and positive EBITDA of $0.9 million. NG will take you through the trend over time.

Speaker #2: On a on a trailing 12 months basis, net revenue is about is approximately 39 million dollars, up about 23%, with adjusted EBITDA of roughly half a million dollars.

Speaker #2: This is the third consecutive trailing 12-month period with a positive adjusted EBITDA since GURU went public. More than a year ago, we took back control of our distribution in Canada.

Speaker #2: This quarter, four full quarters into it, it shows what that control produces. Turning to slide six, because of last year's one-time benefit, net revenue in Canada was essentially flat year over year at 8.7 million dollars.

Carl Goyette: This quarter, four full quarters into it shows what that control produces. Turning to slide 6, because of last year's one-time benefit, net revenue in Canada was essentially flat year-over-year at CAD 8.7 million. If you exclude the one-time item, Canada actually grew about 19% on a comparable basis. We invested in trade and promotion to win back shelf space, and it is showing up in stronger distribution and consumption. The Zero Sugar platform is doing the heavy lifting. Our Sorbet line keeps outperforming. We ran our first-ever large format Sorbet limited time offer with a leading club retailer this past quarter, and it sold through in weeks. We launched GURU Zero Tropical Sorbet in July and followed with a new four-pack in August. We added shelf space across Canada's major grocery and convenience banners, choosing the accounts where our shoppers already shop.

Speaker #2: But if you exclude the one-time the one-time item, Canada actually grew about 19% on a comparable basis. We invested in trade and promotion to win back shelf space, and it's showing up in stronger distribution and consumption.

Speaker #2: The zero sugar platform is doing the heavy lifting. Our sorbet line keeps outperforming. We ran our first ever large format sorbet limited time offer, with a leading club retailer this past quarter.

Speaker #2: And it sold through in weeks. We launched Guru Zero Tropical in July and followed with a new four-pack in August. And we added shelf space shelf space across Canada's major grocery and convenience banners.

Speaker #2: Choosing the accounts where our shoppers already shop. The consumer response is showing up where people actually shop. During Amazon Prime Day, Guru was the number one sports energy drink on Amazon Canada.

Carl Goyette: The consumer response is showing up where people actually shop. During Amazon Prime Day, GURU was the number 1 sports energy drink on Amazon Canada. Turning to slide 7, the US has turned a corner. US net revenue grew 59.8% to CAD 2.8 million. This is the growth we have been building toward and momentum we intend to build upon given the vast potential of the American energy drink market. As a reminder, in this market, our focus is on securing leadership position in the natural food stores, online growth and profitability, where we consistently stand out as the number 1 organic energy drink, and continuing to pursue our expansion efforts in wholesale clubs. Looking at the natural food channel, on 22 June, we launched nationwide across 490 Sprouts stores in both their in-line and forager sets, and have since expanded into their cold box.

Speaker #2: Turning to slide seven, the US has turned the corner. US net revenue grew 59.8% to 2.8 million dollars. This is the growth we have been building toward, and momentum we intend to build upon given the vast potential of the American energy drink market.

Speaker #2: As a reminder, in this market, our focus is our focus is on securing leadership position in the natural food stores, online growth and profitability where we consistently stand stand out as the number one organic energy drink, and continuing to pursue our expansion efforts in wholesale clubs.

Speaker #2: Looking at the natural food channel, on June 22, we launched nationwide across 490 Sprout stores, in both their inline and forager sets, and have since expanded into their cold box.

Speaker #2: This represents a major milestone for Guru and directly supports our US growth strategy. As one of the most trusted natural grocery destinations in the US, Sprouts provides us with direct access to the health-conscious consumers we want, who are already aligned with our values and mission and are looking for what Guru offers.

Carl Goyette: This represents a major milestone for GURU and directly supports our US growth strategy. As one of the most trusted natural grocery destinations in the US, Sprouts provides us with direct access to the health-conscious consumer we want, who is already aligned with our values and mission and looking for what GURU offers. As previously discussed, building our presence in this channel will also serve as a platform to then turn our focus on the premium conventional grocery channel in priority urban markets. Our velocities across the natural channel keep climbing, with strong repeat purchase in our listed accounts, including Whole Foods Market and Erewhon Market, and the pipeline is full. In addition, we have a growing set of confirmed listings with both leading natural food and wholesale club partners heading into next year. Each one builds our position in the US market we care most about.

Speaker #2: As previously discussed, building our presence in this channel will also serve as a platform to then turn our focus on the premium conventional grocery channel and priority urban markets.

Speaker #2: Our velocities across the natural channel keep climbing, with strong repeat purchase in our listed accounts, including Whole Foods and Erewhon. And the pipeline is full.

Speaker #2: In addition, we have we have a growing set of confirmed listings with both leading natural food and wholesale club partners heading into next year.

Speaker #2: Each one builds our position in the US market. We care most about. Our online online sales performance continue to be sustained, with our US Amazon Prime Day Guru dollar sales growing 14% year over year.

Carl Goyette: Our online sales performance continued to be sustained with our US Amazon Prime Day GURU dollar sales growing 14% year-over-year. Together, these gains reinforce the US as a key future growth engine for GURU and a priority market for future investments and expansion. Turning to slide 8. All of this comes back to our Zero Sugar platform. In just over two years, we have built seven products, all organic, Zero Sugar, no sucralose, no aspartame. Nothing else in the category combines those four things at scale. Zero Sugar is where our money works hardest, in Canada and increasingly in the US. Our newest launches, GURU Zero Orange Raspberry Sorbet and GURU Zero Tropical Sorbet, are both performing ahead of plan, and innovation will keep driving the business through the rest of the year. I will now turn the call over to Ingy for a deeper look at our financial performance.

Speaker #2: Together, these gains reinforce the US as a key future growth engine for Guru and a priority market for future investments and expansion. Turning to slide eight, all of this comes back to our zero sugar platform.

Speaker #2: In just over two years, we have built seven products, all organic, zero sugar, no sucralose, no aspartame. Nothing else in the category combines those four things at scale.

Speaker #2: Zero sugar is where our money works hardest, in Canada and increasingly in the US. Our newest launches, orange raspberry sorbet and tropical, are both performing ahead of plan.

Speaker #2: And innovation will keep driving the business through the rest of the year. I will now turn the call over to NG for a deeper look at our financial performance.

Speaker #1: Thank you, Carl, and good morning, everyone. Let's turn to slide ten. I want to walk you through the four things that explain the quarter and how they came together.

Ingy Sarraf: Thank you, Carl, and good morning, everyone. Let's turn to slide 10. I want to walk you through the four things that explain the quarter and how they came together. First, revenue. Net revenue grew 10.3% to CAD 11.5 million, our highest quarterly net revenue ever. Excluding last year's one-time benefit, that represents about 27% growth on a comparable basis. Canada was CAD 8.7 million, roughly flat as reported, or about 19% on a comparable basis. The United States grew 59.8% to CAD 2.8 million, led by our natural channel expansion. Second, gross margin. Margin was 61.9% compared to 71.3% a year ago. Most of that difference is not operational. Last year's Q3 included a one-time change in estimate tied to the termination of our previous Canadian distribution agreement. Excluding that item, prior year margin was 65.9%. So the comparable decline is about 400 basis points, and it is deliberate.

Speaker #1: First, revenue. Net revenue grew 10.3% to 11.5 million dollars. Our highest quarterly net revenue ever. Excluding last year's one-time benefit, that represents about 27% growth on a comparable basis.

Speaker #1: Canada was 8.7 million dollars, roughly flat as reported, or about 19% on a comparable basis. The United States grew 59.8% to 2.8 million dollars, led by our natural channel expansion.

Speaker #1: Second, gross margin. Margin was 61.9% compared to 71.3% a year ago. Most of that difference is not operational. Last year's third quarter included a one-time change in estimate tied to the termination of our previous Canadian distribution agreement.

Speaker #1: Excluding that item, prior year margin was 65.9%. So the comparable decline is about 400 basis points, and it is deliberate. It reflects heavier trade and promotional spend in the quarter, along with client mix, since new listings carry higher upfront trade costs.

Ingy Sarraf: It reflects heavier trade and promotional spend in the quarter along with client mix, since new listings carry higher upfront trade costs. We are now a full year into direct distribution, and this quarter, we ran a fuller promotional calendar than the prior year period, when several windows were missing during the transition. We view the trailing 12-month basis as the better read on margin, which is currently at 63.3%. Third, SG&A was CAD 6.7 million. As a percentage of revenue, it improved to 58.5% from 60.6% last year. This is operating leverage. Within that, sales and marketing rose to CAD 3.8 million, reflecting planned investment behind our US distribution expansion and our product innovation. The balance reflects professional fees tied to matters described in our MD&A, which we expect to normalize. Fourth, the trailing 12-month picture, which is the one I want you to focus on.

Speaker #1: We are now full year into direct distribution. And this quarter, we ran a fuller promotional calendar than the prior year period. When several windows were missing during the transition.

Speaker #1: We view the trailing 12-month basis as the better read on margin, which is currently at 63.3%. Third, SG&A was 6.7 million dollars. As a percentage of revenue, it improved to 58.5% from 60.6% last year.

Speaker #1: This is operational operating leverage. Within that, sales and marketing rose to 3.8 million dollars, reflecting planned investment behind our US distribution expansion and our product innovation.

Speaker #1: The balance reflects professional fees tied to matters described in our MDNA, which we expect to normalize. Fourth, the trailing 12-month picture. Which is the one I want you to focus on.

Speaker #1: Net income for the quarter was half a million dollars, or 2 cents per share, and adjusted EBITDA was positive, at 0.9 million dollars. Both compare against the prior year quarter that included a one-time item I mentioned.

Ingy Sarraf: Net income for the quarter was CAD 0.5 million, or CAD 0.02 per share, and adjusted EBITDA was positive at CAD 0.9 million. Both compare against the prior year quarter that included a one-time item I mentioned. Over the trailing 12 months, net revenue is approximately CAD 39 million, up about 23%, with positive adjusted EBITDA of roughly CAD 0.5 million. That is the third consecutive 12-month period of positive adjusted EBITDA since we went public. Quarterly results will move with seasonality and the timing of trade and marketing. The trailing 12-month trend is the one that tells you where the business is going, and it keeps improving. For the nine months, net revenue was CAD 28.9 million, up 17.3%, or about 24% excluding the one-time benefit. Net loss improved about 41% to CAD 0.8 million. Adjusted EBITDA turned positive at CAD 0.1 million compared with a loss a year ago.

Speaker #1: Over the trailing 12 months, net revenue is approximately 39 million dollars, up about 23%, with positive adjusted EBITDA of roughly half a million dollars.

Speaker #1: That is the third consecutive 12-month period of positive adjusted EBITDA since we went public. Quarterly results will move its seasonality, and the timing of trade and marketing.

Speaker #1: The trailing 12-month trend is the one that tells you where the business is going and it keeps improving. For the nine months, net revenue was 28.9 million dollars, up 17.3%, or about 24%, excluding the one-time benefit.

Speaker #1: Net loss improved about 41% to $0.8 million, and adjusted EBITDA turned positive at $0.1 million, compared with a loss a year ago.

Ingy Sarraf: Adjusted EBITDA turned positive at CAD 0.1 million compared with a loss a year ago. On the balance sheet, we ended the quarter with CAD 25.6 million in cash and short-term investments, no debt, an unused CAD 10 million credit facility, for total available liquidity of CAD 35.6 million. That gives us the flexibility to keep investing behind growth. Back to you, Martin.

Speaker #1: On the balance sheet, we ended the quarter with 25.6 million dollars in cash and short-term investments, no debt, and an unused 10 million dollar credit facility.

Ingy Sarraf: On the balance sheet, we ended the quarter with CAD 25.6 million in cash and short-term investments, no debt, an unused CAD 10 million credit facility, for total available liquidity of CAD 35.6 million. That gives us the flexibility to keep investing behind growth. Back to you, Martin.

Speaker #1: For total available liquidity of 35.6 million dollars. That gives us the flexibility to keep investing behind growth. Back to you, Carl.

Speaker #2: Thank you, NG. Let's turn to slide 12. Guru is entering its final quarter of the year. Fall 2026, with real momentum. The business is set record revenue and posted three consecutive trailing 12-month periods of positive adjusted EBITDA.

Carl Goyette: Thank you, Ingy. Let's turn to slide 12. GURU is entering its final quarter of the year, fall 2026, with real momentum. The business has set record revenue and posted three consecutive trailing 12-month periods of positive adjusted EBITDA. The benefits of taking back Canadian distribution are showing up in the numbers. Our US business has grown nearly 60%, and we have the most differentiated clean label, Zero Sugar portfolio in the category. As I said in the outset, I am proud of what we have built. Today's leadership announcement marks an important next step in GURU's evolution, but it does not change the business focus or priorities. The team remains fully committed to executing our strategy, finishing the year strong, and realizing the significant potential ahead of us.

Speaker #2: The benefits of taking back Canadian distribution are showing up in the numbers. Our US business has grown nearly 60%, and we have the most differentiated, clean label, zero sugar portfolio in the category.

Speaker #2: As I said in the outset, I am proud of what we have built. Today's leadership announcement marks an important next step in Guru's evolution, but it does not change the business focus or priorities.

Speaker #2: The team remains fully committed to executing our strategy: finishing the year strong and realizing the significant potential ahead of us. I will remain engaged through the transition, and as a director and shareholder, I look forward to continuing to support Guru's growth.

Carl Goyette: I will remain engaged through the transition, and as a director and shareholder, I look forward to continuing to support GURU's growth. We will continue to scale up Zero Sugar, expand distribution in channels that matter, and maintain discipline on pricing and trade so that margins return to their structural level. We will continue to grow our brand in Quebec and Canada, while building our momentum to methodically scale our presence in the US. That concludes our formal remarks. Operator, we will now open the call to questions.

Speaker #2: We will continue to scale scale up zero sugar, expand distribution and channels that matter, and maintain discipline on pricing and trade so that margins return to their structural level.

Speaker #2: We will continue to grow our brand in Quebec and Canada, while building our momentum to methodically scale our presence in the US. That concludes our formal remarks.

Speaker #2: Operator will now open the call to questions.

Speaker #3: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

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 then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Martin Landry with Stifel. Please go ahead.

Speaker #3: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster.

Speaker #3: The first question today comes from Martin Laundry with Stifel. Please go ahead.

Speaker #4: Hi, good morning, guys. I would like to touch, as I usually do, on your scan data at retail in Canada. I was wondering if you could provide us with the growth on a year-over-year basis.

Martin Landry: Hi. Good morning, guys.

Ingy Sarraf: Martin.

Martin Landry: I would like to touch, as I usually do, on your scan data at retail in Canada. Wondering if you could provide us with the growth on a year-over-year basis. Also, if you could comment on the industry growth in Canada, that would be super helpful.

Speaker #4: And also, if you could, comment on, the industry growth in Canada, that would be super helpful.

Speaker #2: NG, you want to take that since you made the calculations, and I'll I'll add if I if required?

Carl Goyette: Inge, you want to take that since you made the calculations, and I will add if required.

Speaker #1: Yes, sure. So for our scan growth, it's very similar to last, last, quarter that we mentioned. So overall, we tracked and untracked channels were up about, double-digit digits at, 10% from a scan growth.

Ingy Sarraf: Yes, sure. For our scan growth, it is very similar to last quarter that we mentioned. Overall, with tracked and untracked channels, we are up about double digits at 10% from a scan growth. Then the other point you had? Sorry, Martin.

Speaker #1: And then the other point you had, sorry, Martin.

Speaker #2: It's and it's driven by, it's driven mainly by untracked. That's the so that's similar to last quarter. The, the other the other part of the question was the, industry growth, NG.

Carl Goyette: It is driven mainly by untracked.

Ingy Sarraf: Yeah.

Carl Goyette: That is similar to last quarter. The other part of the question was the industry growth, Ingy.

Speaker #1: Yes. The industry growth is, in, the higher low lower one digit, so it's more around 7, 8 percent in Canada, a bit lower than in the US.

Ingy Sarraf: Yes, the industry growth is in the higher, lower one digits, so it is more around 7% to 8% in Canada, a bit lower than in the US. So we are above the industry growth.

Speaker #1: So we're above industry growth.

Speaker #4: Okay. That's helpful. so just to be clear, so so so there's there was that implies that there was a bit of, channel filling in the quarter because I think you said your your revenues on a comparable basis are, I think, up up up, did I get, 19% in Canada, and, your your scan is up double digits.

Martin Landry: Okay, that is helpful. Just to be clear, that implies that there was a bit of a channel filling in the quarter, because I think you said your revenues on a comparable basis are, I think up, did I get 19% in Canada? Your scan is up double digits. So a little bit of channel fill, would that be fair?

Speaker #4: So a little bit of channel fill, would that be fair?

Speaker #2: You could call it challenge fill only. Channel fill, we call it better execution, Martin, like maybe the last if you look at last summer, we were we this was our first quarter post our our ending our prior distribution partnership.

Carl Goyette: You could call it channel fill. Channel fill, we call it better execution, Martin. If you look at last summer, this was our first quarter post our ending our prior distribution partnership. This year, we were full into force, building our retail programs, running a full promotional calendar. The combination of that, if you want to call it channel filling, which is probably true, we like it better as just better execution, making sure the stores are really fully stocked, fully prepared for the summer.

Speaker #2: So this year, we were full into fours, building our building our retail programs, running all the full promotional calendar. So the combination of that, if you want to call it channel shelf, channel filling, which is probably true, we we we like it better as just better execution, making sure the the stores are really full fully stocked, fully prepared for the summer.

Speaker #4: Okay. No, that's fair. You mentioned in your opening remarks that you have a growing number of listings in the US heading into next year.

Martin Landry: Okay. No, that's fair. You mentioned in your opening remarks that you have a growing number of listings in the US heading into next year. I was wondering if you could give us a little bit of color on that. I do not know if you can give us maybe an order of magnitude in terms of number of doors or timing of that launch. Is this early in the year, later in the year? Also in SKUs if possible or which flavor are going to be listed.

Speaker #4: I was wondering if you could give us a little bit of color on that, you know, and I don't know if you can give us maybe an order of magnitude in terms of number of doors, or timing of that launch.

Speaker #4: Is this, early in the year, later in the year? And, also, on a SKUs, if if if possible, or or which which which flavor are are are, going to be listed?

Speaker #2: Yeah, as usual, I'll try to give you as much as I can, right? But this is the type of information that we don't want—I would love to give it to you, but not to our competitors.

Carl Goyette: Yeah. As usual, I will try to give you as much as I can. This is the type of information that I would love to give it to you, but not to our competitors. It is going to be their focus. On a few, that's easy, right? Most of the new listings are coming on the Zero Sugar side of things, right? Which is the line that has really driven the growth. Most of the listings are coming through California, which has been a real focus. There are some other opportunities as well in the natural channel that we are still looking at, right? I do not have the number of doors because some of that are in progress, in negotiations, in finalization. There is real progress, real momentum, both in the natural channel and some conventional and club stuff that is coming up, right, in the Zero Sugar.

Speaker #2: So, it's going to be focused on the SKUs, that's easy, right? most of the new listings are coming on the zero sugar side of things, right, which is the the line that has really driven the growth.

Speaker #2: most of the listings are coming through, California, which has been a really real focus. but there are some, there are some other opportunities as well in the natural channel that we're still there's that we're still looking at, right?

Speaker #2: So, I don't have the number of doors because some of that are in progress, in negotiations, in finalization, but there's real real progress, real momentum.

Speaker #2: both in the natural channel and some conventional in club stuff that's coming up, right, in in the zero sugar. I don't know if NG, you want to add if I'm missing anything or if you had anything in that.

Carl Goyette: I do not know if, Indrit, you want to add if I am missing anything or if you had anything than that.

Speaker #1: No, that's exactly.

Ingy Sarraf: No, that is exactly.

Carl Goyette: That is as much as we can give you now.

Speaker #2: That's just as much as we that's as much as we can give you, you know.

Speaker #1: Exactly.

Ingy Sarraf: Exactly.

Speaker #4: Any any details on timing, Cal? like, are we talking early, a year later in the year?

Martin Landry: Any details on timing, Carl? Are we talking earlier in the year,

Carl Goyette: Yeah

Martin Landry: or later in the year?

Speaker #2: Yeah. Most of that, like, it's similar to in the past. There's a few exceptions to this. There are some banners that do resets in the fall, right?

Carl Goyette: Most of that, it is similar to in the past. There are a few exceptions to this. There are some banners that do resets in the fall, right? So there could be some

Speaker #2: So there could be some some small changes, late fall, beginning of the year. But the typical, resets are all spring, spring resets.

Carl Goyette: small changes late fall, beginning of the year. But the typical resets are all spring resets.

Speaker #1: Mm-hmm.

Speaker #4: Okay, Carl or Martin, this is Tyler Ricks. I would just add that a big part of our ability to continue to expand in the U.S. will be, you know, the success we're seeing at Sprouts and Sprouts reporting in the natural channel in the U.S.

Martin Landry: Okay.

Tyler Ricks: Carl or Martin, this is Tyler Ricks. I would just add that a big part of our ability to continue to expand in the US will be the success we are seeing at Sprouts and Sprouts reporting in the natural channel in the US. So as we build that successful business, it will unlock other opportunities across natural and better-for-you grocery customers in the US.

Speaker #4: So, as we as we build that successful business, it will unlock other opportunities across natural and better-for-you grocery customers in the US.

Speaker #2: Absolutely.

Carl Goyette: Absolutely.

Martin Landry: Oh, okay. Okay, that is helpful. And Carl, and just best of luck in your future projects. It has been great working with you since the IPO.

Speaker #4: Oh, okay. Okay, that's helpful. And Cal, just, best of luck in your future projects. It's been great working with you since the the IPO.

Speaker #2: Thank you, Martin. You've been an awesome partner.

Carl Goyette: Thank you, Martin. You have been an awesome partner.

Speaker #4: Take care.

Martin Landry: Take care.

Speaker #1: Thanks, Martin.

Ingy Sarraf: Thanks, Martin.

Speaker #2: Bye-bye.

Speaker #1: Bye.

Carl Goyette: Bye.

Speaker #4: Thank you.

Ingy Sarraf: Bye.

Tyler Ricks: Thank you.

Speaker #3: The next question comes from Sean McGowan with Roth Capital Markets. Please go ahead.

Operator: The next question comes from Sean McGowan with Roth Capital Partners. Please go ahead.

Speaker #4: thank you. And, when it started, Carl, I suppose your, your afternoon there. a couple of questions. If we could, talk a little bit about the, efforts that the success, rather, that Alani New has had has attracted some, you know, additional competition from Monster and and Blue and others.

Sean McGowan: Thank you, and buenas tardes, Carl. I suppose you're in the afternoon there.

Carl Goyette: Thank you.

Sean McGowan: A couple questions. If we could talk a little bit about the success that Alani Nu has had, has attracted some additional competition from Monster and GURU and others. Have you seen any impact in that category, in that sub-segment, call it female age 25 to whatever. Has the competitive response to Alani's success had any impact so far on GURU's success, either in the US or Canada?

Speaker #4: Have you seen any impact you know, in that category, in that subsegment, you know, call it female, age 25 to whatever, has has the competitive response to Alani's success had any impact so far on on Guru's success?

Speaker #4: Either in the US or in.

Carl Goyette: No. Speaking specifically of the competition, Alani for sure. Alani for sure has seen impressive growth. So that is impacting, I think, everybody in the category. They have driven a lot of category growth. Our product is very differentiated from that. We target a very different consumer with a very different product. So we have not seen a measurable impact from the additional competition, right, if that is your question. For example, some other brands have reacted to this specific consumer, but so far their success has been limited.

Speaker #2: No. Spacing speaking specifically of, the competition? Like, Alani for sure, right? Alani for sure has seen, impressive growth. So that's impacting, I think, everybody in the category.

Speaker #2: They have driven a lot of category growth. Our product is very differentiated. From that, we target a very different consumer with a very different product.

Speaker #2: So we haven't seen a a measurable impact from the additional competition, right? If that's your if that's your your question, right? For example, some some other brands have reacted to this to this, to this specific consumer.

Speaker #2: but so far, they're they're success has been has been limited, right?

Speaker #4: Okay. that's helpful. Another qu question about competition. are you seeing any kind of step-up in promotional activity from competitors that is, you know, suggested you need to be more promotional, you know, over the next several months or quarters?

Sean McGowan: Okay. That is helpful. Another question about competition. Are you seeing any kind of step up in promotional activity from competitors that suggest that you need to be more promotional over the next several months or quarters? When you talked, Indrit, about this being deliberate increase in trade investment, was that in any way driven by what you are seeing the competition do?

Speaker #4: Like, when you when you talk, NG, about this being deliberate, you know, increasing trade investment, was was that.

Speaker #2: Mm-hmm.

Speaker #4: In any way driven by, you know, what you're seeing, the competition do?

Speaker #1: Well, most of it's driven by, of course, our mis you know, last year at the same period, because we were just coming off the distribution agreement and we had missed a lot of the op the windows for promotional activity.

Ingy Sarraf: Most of it is driven by, of course, our misses. Last year at the same period, because we were just coming off the distribution agreement and we had missed a lot of the windows for promotional activity. So we were kind of going full out like we usually do in the summer with displays, like Carl mentioned, making sure the stores have stock and being out there. Of course, we are also seeing the big players, right, going much more into multi-packs, offering variety packs and some other options available. But we are not focused on price. We are really focused on displays or innovations, making sure our consumers are really seeing our products in the right doors and in the right locations.

Speaker #1: So we were kind of, you know, going full out, like we usually do in the summer with displays, like Carl mentioned, making sure the stores have stock and being out there.

Speaker #1: Of course, we're also seeing the big players, right? going much more into multi-packs, offering variety packs. And, some, some other options available. But, we're not focused, on price.

Speaker #1: We're really focused on displays, our innovations, making sure our consumers are really seeing our products in the right doors and in the right locations.

Speaker #4: Good. That's helpful. just my last, competitive question. Is, is Costco doing their Kirkland Signature energy drink in Canada yet?

Sean McGowan: Good. No, that is helpful. Just my last competitive question. Is Costco doing their Kirkland Signature energy drink in Canada yet?

Speaker #2: No, we haven't seen it in Canada. Right? Like, yeah. So we have we have no idea on on their plans, but it's it's I think it's I I don't have visibility on how successful it's been in the US in the US.

Carl Goyette: No, we haven't seen it in Canada.

Ingy Sarraf: Mm-mm.

Carl Goyette: We have no idea on their plans. I don't have visibility on how successful it's been in the US. You know it was developed targeting a very specific brand and a very specific consumer. Again, it might launch in Canada at some point. But we feel our product is very differentiated from that. Our consumer is looking for something with real ingredients that are natural and with plant-based caffeine. It doesn't mean we're immune to competition. There has always been a lot of competition in this industry, and there will always be. But having a very different product, a very different consumer profile, I think really helps us.

Speaker #2: It's you know it was developed. Targeting a very specific brand in a very diff specific consumer. So again, again, it's it might launch in in Canada at some point, but we feel our product is very differentiated from that.

Carl Goyette: But we feel our product is very differentiated from that. Our consumer is looking for something with real ingredients that are natural and with plant-based caffeine. It doesn't mean we're immune to competition. There has always been a lot of competition in this industry, and there will always be. But having a very different product, a very different consumer profile, I think really helps us. I also want to build on your previous question on the brands that are growing, because one of the things that I think is important to mention, and it's the segue into what Tyler's point, is that a lot of the growth we've seen in the US has been driven lately by Sprouts and the natural channel where these brands are not.

Speaker #2: Our consumer is looking for something with real ingredients that are natural and with plant-based caffeine. It doesn't mean we're immune to competition, right? There's—there has always been a lot of competition in this industry, and there always will be.

Speaker #1: Right.

Speaker #2: But having a very different product, a very different, consumer profile, I think, really helps us. We I I also want to build on on your previous question on on the brands that are growing, because one of the things that I think is important to mention in it ta it it's, to segue into what Tyler's point, right, is that a lot of the, a lot of the growth we've seen in the US has been driven lately by Sprouts and not, right?

Carl Goyette: I also want to build on your previous question on the brands that are growing, because one of the things that I think is important to mention, and it's the segue into what Tyler's point, is that a lot of the growth we've seen in the US has been driven lately by Sprouts and the natural channel where these brands are not. I think the momentum in these banners shows that there is a consumer that's looking for something that's obviously different right now. They're shopping mainly in the natural channel for options like this. But that momentum, we are confident will build the success outside of the natural channel into conventional retailers who will also want to be part of that growing opportunity.

Speaker #2: So it's I think the the momentum in these banners shows that there is a consumer that's looking for something that's obviously different, right? Now, they're they're shopping mainly in the natural channel for for options like this, but that momentum, we are confident will build, the success outside of the natural channel into conventional retailers who will also want to be part of that of that growing opportunity.

Carl Goyette: I think the momentum in these banners shows that there is a consumer that's looking for something that's obviously different right now. They're shopping mainly in the natural channel for options like this. But that momentum, we are confident will build the success outside of the natural channel into conventional retailers who will also want to be part of that growing opportunity.

Speaker #4: great. I'm glad you brought that up, just because it segues into, my last question, which is, you know, I know you say in the in the, slide deck that it's not, kind of channel fill or, you know, loading the shelves.

Sean McGowan: Great. I am glad you brought that up because it segues into my last question, which is, I know you say in the slide deck that it is not channel fill or loading the shelves that is driving that increase in the natural channel, but still you go from not selling them to selling them a lot, there is got to be at least some of that. Can you help us understand how much of the growth that you saw in the US might be one time, just loading it up for the initial load in that channel?

Speaker #4: It's driving that increase in the natural channel. But, you know, still, you go from not selling them to selling them a lot. That there's got to be at least some of that.

Speaker #4: So can you help us understand how much of the growth that you saw in the US might be, you know, kind of one-time, just, you know, kind of loading it up for the initial load in in that channel?

Speaker #2: Yeah. NG, do you want to take that

Carl Goyette: Yeah. Inji, do you want to take that one?

Speaker #1: For the for what we're seeing in the in Sprouts, you mean?

Ingy Sarraf: For what we are seeing in Sprouts, you mean?

Speaker #4: Yes.

Sean McGowan: Yes.

Speaker #2: Yeah.

Carl Goyette: Yeah.

Speaker #1: Yeah. Well, no, most of the growth is coming from. All across the US, right? Like, we mentioned, Amazon and our other customers, whether Whole Foods or the other natural banners.

Ingy Sarraf: Well, no, most of the growth is coming from all across the US, right? Like we mentioned, Amazon and our other customers, whether Whole Foods or the other natural banners. Of course, there is a small impact that is coming from Sprouts, from setting up the stores. I would not say at all it is the majority, it is the minority of the growth. But of course, like setting up any new banner, there is some of that, right? Like making sure the stores are filled and the stores are ready for the launch.

Speaker #1: But of course, there is a small impact that's coming from Sprouts, from setting up the stores. So I wouldn't say at all it's the majority.

Speaker #1: It's the minority of the growth. But of course, like, setting up any new, banner, there is some of that, right? Like, making sure the stores are filled and the stores are ready for, the launch.

Speaker #4: Okay. Well, that's that's helpful. So it isn't like just a big one-time slug that comes from Sprouts and then, you know, have to lap that in a year.

Sean McGowan: Well, that's helpful.

Ingy Sarraf: Is that okay?

Sean McGowan: It isn't like just a big one-time flood that comes from Sprouts and then you have to lap that in a year.

Speaker #1: Mm-hmm.

Speaker #4: Okay. all right. Very helpful. Thank you. And, I'll echo.

Sean McGowan: Okay.

Carl Goyette: Yeah.

Sean McGowan: All right. Very helpful. Thank you. I'll echo Martin's comments. Carl, it's been a joy working with you, and hopefully our paths will cross many times. Maybe our bike paths will cross many times.

Speaker #1: Okay.

Speaker #4: My time's, comments. Carl, it's been a joy. You're working with you, and hopefully, well, our paths will cross many times. Maybe our bike paths will cross many times.

Speaker #2: Yes, I hope so. I'll miss our French conversations.

Carl Goyette: Yes. I hope. I will miss our French conversations, Sean. Keep working on that French.

Speaker #4: Keep working on that French.

Speaker #2: Merci beaucoup.

Ingy Sarraf: Thank you, Sean.

Speaker #3: Thank you, Sean.

Speaker #5: This concludes our question-and-answer session. I would like to turn the conference back over to NG Saraf for any closing remarks.

Tyler Ricks: Thank you, Sean.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Ingy Sarraf for any closing remarks.

Speaker #1: Thank you, operator. Merci à tous. This was a record quarter for Guru. And we look forward to continue to build on this momentum. Merci.

Ingy Sarraf: Thank you, operator. This was a record quarter for GURU, and we look forward to continue to build on this momentum. Thank you. Have a nice day. Bye.

Speaker #1: Euh, à tout le monde, pour choisir la bonne énergie et pour, euh, votre, euh, confiance continue dans Guru. Thank you. Have a nice day.

Speaker #1: Bye.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Welcome to the GURU Organic Energy Q3 2026 results conference call and webcast, being recorded today, 10 September 2026, at 10:00 AM Eastern Time. At this time, all participants are in a listen-only mode. Following management's presentation, there will be a question and answer session with financial analysts. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. GURU's press release, MD&A, and financial statements are available in the Investors section of its website and on SEDAR+.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker #5: disconnect.

Speaker #2: Welcome to the Guru Organic Energy third quarter 2026 results conference call and webcast. Being recorded today. September 10th, 2026 at 10:00 AM Eastern Time.

Speaker #2: At this time, all participants are in a 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 #2: 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 are and on Cedar Plus.