GURU Organic Energy Corp. reported third-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $0.02 on record net revenue of CAD 11.5 million ($11.51 million). The company beat consensus estimates of $0.015 per share by roughly a third and topped revenue projections of $11.24 million.
Quarterly net revenue rose 10.3% year over year. Comparable revenue growth—excluding a one-time benefit recognized in the prior-year quarter—ran approximately 27%. Trailing twelve-month net revenue reached about CAD 39 million, up roughly 23% year over year.
The company posted net income of CAD 500,000, or $0.02 per share. Adjusted EBITDA turned positive at CAD 0.9 million for the quarter. On a trailing twelve-month basis, adjusted EBITDA totaled roughly CAD 500,000, marking the third consecutive 12-month period of profitability since the company went public.
Gross margin came in at 61.9%, down from 71.3% a year earlier. Management noted the prior-year figure included a one-time accounting benefit tied to the termination of a Canadian distribution agreement; excluding that item, the prior-year margin was 65.9%.
Sales, general and administrative expenses totaled CAD 6.7 million, or 58.5% of revenue, compared with 60.6% a year earlier. Sales and marketing spend was CAD 3.8 million.
Revenue in the United States surged 59.8% to CAD 2.8 million, while Canadian revenue held flat at CAD 8.7 million as reported—a reflection of last year’s one-time benefit—but grew about 19% on a comparable basis. Canadian scan data showed growth of roughly 10% year over year, outpacing the broader Canadian energy drink market, which grew 7% to 8%.
For the first nine months, net revenue reached CAD 28.9 million, up 17.3% year over year, or approximately 24% excluding the one-time benefit. The net loss improved about 41% to CAD 0.8 million, and adjusted EBITDA turned positive at CAD 0.1 million.
On the balance sheet, GURU reported CAD 25.6 million in cash and short-term investments with zero debt and an unused CAD 10 million credit facility, giving total available liquidity of CAD 35.6 million. The company’s market capitalization stands at approximately $61 million.
Product highlights included the continued expansion of the Zero Sugar platform, which consists of seven products, and a sorbet line that outperformed expectations, including a large-format limited-time offer sold through a club retailer within weeks. The company launched nationwide distribution across 490 Sprouts Farmers Market stores on June 22, introduced GURU Zero Tropical in July, and added a new four-pack in August. On Amazon Canada, the brand ranked as the number one sports energy drink during Prime Day, while U.S. Amazon Prime Day dollar sales grew 14% year over year.
In leadership changes, CEO Carl Goyette stepped down after 12 years with the company, including six as chief executive, though he will remain a director and shareholder. Patrick Charbonneau was promoted to chief revenue officer and will co-lead operations with CFO and COO Ingy Sarraf. Tyler Ricks serves as board chair and executive chair through the transition.
Shares closed at $3.79, up about a cent from the previous close. The stock trades near the lower end of its 52-week range of $3.03 to $7.00, up roughly 11% year to date and about 17% over the past year.
Analysts participating in the conference call included Martin Landry of Stifel and Sean McGowan of ROTH Capital Partners.
