GURU Organic Energy (GURU) Q2 2025 earnings summary

Executive summary

• Q2 2025 marked a pivotal transformation with a return to direct distribution in Canada, securing all major retailers and deploying 25+ distributors and agencies to accelerate growth.

• Net loss improved by 46.5% to CAD 1.4 million in Q2 2025, the second lowest since Q2 2021, reflecting progress toward profitability.

• Gross margin reached a record 59.7% in Q2 2025, driven by pricing discipline and supply chain efficiencies.

• U.S. sales grew 38.9% year-over-year (excluding prior year wholesale club rotations), with Amazon U.S. up 50% year-to-date and Whole Foods achieving record months.

• Innovation in the Zero line, especially Wild Ice Pop, exceeded expectations and drove strong consumer demand.

Financial highlights

• Net revenue was CAD 6.5 million, reflecting the planned distributor transition and absence of last year's U.S. Costco rotations.

• Gross profit reached CAD 3.9 million with a margin of 59.7%, up from 55.8% in Q2 2024.

• SG&A expenses dropped 26.2% year-over-year, demonstrating cost discipline.

• Net loss improved 46.5% to CAD 1.4 million; adjusted EBITDA loss improved 55% to CAD 1.2 million.

• Cash position remained strong at CAD 25.3 million with no debt and CAD 10 million in unused credit facilities.

Outlook and guidance

• Focus remains on driving profitable U.S. growth, scaling the Zero line in wholesale clubs in Q4, and flawless Canadian execution.

• Direct distribution model in Canada expected to accelerate return to profitability in the second half of the year.

• Two variety pack rotations secured in wholesale clubs for Q4 2025 in Canada and the U.S.

• Management expects continued margin gains and profitable growth as distribution transition completes.