GURU Organic Energy Completes Strategic Canadian Distribution Shift with Recent Record Margins and a Clear Path to Profitability in Q2 2025

Key Highlights:

• Direct Canadian Distribution Launches — All major retailers are secured, and best-in-class distributors and marketing agencies are deployed to execute at shelf and accelerate growth.
• Net Loss Improved by 46.5% — Q2 net loss nearly halved to $1.4 million compared to the same quarter last year, showing acceleration towards return to profitability as Canadian distribution transition advances and innovation fuels brand momentum.
• Solid Financial Position Maintained — $25.3 million in cash ($25.2 million in Q1 2025 and $28.2 million in Q2 2024) and no debt.
• Gross Margin Expanded to 59.7% — Reflecting continued pricing discipline and supply chain efficiencies.
• Innovation Momentum Builds — New Zero flavours, including Wild Ice Pop, exceeded expectations and drove strong consumer demand, even during the Canadian transition.
• US Sales Grew 38.9% (excluding Q2 2024 wholesale club rotations) — Strong sales velocity and innovation success continued to drive US growth momentum in Q2 2025.
• Zero Variety Pack Rotations Secured in key Wholesale Clubs — Confirmed Q4 2025 listings in Canada and the US, signaling strong retail support and continued innovation momentum.

MONTRÉAL, June 12, 2025 (GLOBE NEWSWIRE) — GURU Organic Energy Corp. (TSX: GURU) (“GURU” or the “Company”), Canada’s leading organic energy drink brand¹, today announced its results for the second quarter and six-month period ended April 30, 2025. All amounts are in Canadian dollars unless otherwise indicated.

Quote from Carl Goyette, President and CEO
“In Q2, we demonstrated that our business fundamentals are strong and are improving, notably in our key US online and premium retail growth channels. We delivered meaningful margin expansion, cut our EBITDA loss in half, and observed sustained consumer enthusiasm for our Zero line in both Canada and the US.

“In fact, Wild Ice Pop not only outpaced GURU Original in its first weeks but also became the top-performing GURU product in Quebec’s leading convenience store chain—proof that our clean energy innovation is winning with consumers.

“While Q2 reflected temporary significant headwinds prior to exiting our exclusive Canadian distributor agreement, this transition has already begun to unlock greater brand control, improved execution quality and opportunities for long-term growth.

“We’ve secured distribution with every major Canadian retailer and are hitting the ground running with our new partners, expanding our reach into traditional food retailers but also sports, outdoors and natural food store channels.

“With a simplified model, energized partners, and a clear strategic focus, we’re entering the second half of the year with momentum — and full confidence in our ability to drive sustainable growth and fulfill our mission to clean up the energy drink industry.”

Resilient Performance in a Strategic Transition Quarter
GURU reported Q2 2025 net revenue of $6.5 million, compared to $8.0 million in Q2 2024. Year-over-year growth momentum was largely negated by: the $1.4 million in US wholesale club rotations last year that were not repeated this year, and temporary significant order and shipments shortfalls in Canada in Q2 leading up to the end date of GURU’s agreement with its former exclusive Canadian distributor. The shortfalls resulted in short-term disruption to product availability at certain retailers and are not expected to continue or recur in future quarters.

Excluding the wholesale club rotations, US sales grew 38.9% on a constant currency basis, supported by velocity gains, innovation, and growing traction across online and premium retail channels.

Canadian Innovation Leads to Direct Model Relaunch
Despite temporary significant shipments dip, consumer response in Canada remained strong. The Q2 debut of GURU Zero Wild Berry, Wild Ruby Red, and Wild Ice Pop was met with high demand— Wild Ice Pop, in particular, outpaced legacy products in the early launch weeks at a major C&G banner. In addition, Q3 2025 will see the launch of Zero Wild Strawberry Watermelon in Quebec retailers and online in Canada.

On May 22, GURU transitioned to a direct distribution model in Canada, regaining control over retail execution and strategic investments. New retail agreements are in place across all major banners, and field activation is already underway through best-in-class sales and marketing partners.

US Growth Momentum Across Channels
In Q2, GURU continued to build momentum in the US (+38.9% excluding prior year wholesale club rotations), the largest energy drink market in the world and a key growth driver for the Company.

On Amazon US, March marked an all-time monthly sales high, supported by a successful spring sales campaign. More importantly, the repeat purchase rate increased to record levels, reinforcing the brand’s consumer stickiness and growing loyalty in the competitive e-commerce space.

In retail, combined sales in the natural food channel and at Whole Foods grew at an average of 26% year-over-year³, with Whole Foods posting two record months. Innovation continued to gain traction, with GURU Zero Wild Berry outperforming last year’s Tropical Punch launch to become one of the brand’s most successful new product launches in the US to date.

This increased velocity, combined with improving repeat behavior and innovation strength, positions GURU for continued profitable expansion in the US.

Path to Profitability
GURU continued to execute on its financial discipline strategy in Q2 2025, achieving:

• Second lowest quarterly net loss since Q2 2021 – a 46.5% year-over-year reduction in net loss
• Adjusted EBITDA loss narrowed by 55.0%, the strongest quarterly improvement since Q2 2021
• Highest ever reported gross margin by the Company since the start of the exclusive distribution in Canada

These improvements reflect the positive impact of pricing discipline, streamlined marketing investments, and efficient execution during the Canadian distribution transition.

Fiscal 2025 Outlook
In the second half of the year, GURU will focus on driving profitable growth by:

• Scaling its Zero line across premium retail, natural, and online channels
• Seamlessly executing its new direct distribution model in Canada
• Maintaining pricing discipline and tight cost control to build on recent margin gains

As part of this momentum, the Company has secured two variety pack rotations in wholesale clubs for Q4 2025 in Canada and the US, reinforcing Zero’s growing commercial appeal.

Results of Operations
Q2 Summary
GURU delivered another quarter of margin expansion and disciplined expense management:

• Gross margin rose to 59.7% in Q2, compared to 55.8% in Q2 2024
• SG&A expenses declined 26.2% year-over-year, driven by lower marketing and promotional spend
• Net loss decreased to $1.4 million, from $2.7 million in Q2 2024
• Adjusted EBITDA loss improved by 55.0% to $1.2 million

Year-to-Date Summary
For the six-month period ended April 30, 2025:

• Net revenue totaled $14.2 million, compared to $15.1 million in 2024. Excluding the US wholesale club rotation impact, net revenue rose 3.2%
• Gross profit increased 2.6% to $8.5 million
• Gross margin expanded to 59.6% from 54.4%
• Net loss improved 40.1% to $2.7 million
• Adjusted EBITDA loss narrowed by 51.3% to $2.3 million

Conference call and webcast
GURU will hold a conference call to discuss its second quarter 2025 results today, June 12, 2025, at 10:00 a.m. ET. Participants can access the call as follows:

• Via webcast: https://edge.media-server.com/mmc/p/9xbgzdhc
• Via telephone: 1-833-630-1956 (toll free) or 1-412-317-1837 for international dial-in
• A webcast replay will be available on GURU’s website until June 30, 2025.

About GURU Products

GURU energy drinks are made from a short list of plant-based active ingredients, including natural caffeine, and no artificial sweeteners, zero sucralose and zero aspartame. These carefully sourced ingredients are crafted into unique blends that push your body to go further and your mind to be sharper.

About GURU Organic Energy
GURU Organic Energy Corp. (TSX: GURU) is a dynamic, fast-growing beverage company that launched the world’s first natural, plant-based energy drink in 1999. The Company markets organic energy drinks in Canada and the United States through an estimated distribution network of about 25,000 points of sale, and through www.guruenergy.com and Amazon. GURU has built an inspiring brand with a clean list of organic ingredients, including natural caffeine, and no artificial sweeteners, zero sucralose and zero aspartame, which offer consumers Good Energy that never comes at the expense of their health. The Company is committed to achieving its mission of cleaning the energy drink industry in Canada and the United States. For more information, go to www.guruenergy.com or follow us @guruenergydrink on Instagram, @guruenergy on Facebook and @guruenergydrink on TikTok.

For further information, please contact:

Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking information includes, but is not limited to, information with respect to the Company’s objectives and the strategies to achieve these objectives, as well as information with respect to management’s beliefs, plans, expectations, anticipations, estimates and intentions. This forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “believe” or “continue”, the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Forward-looking information is provided for the purposes of assisting the reader in understanding the Company and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments and therefore the reader is cautioned that such statements may not be appropriate for other purposes. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond management’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the following risk factors, which are discussed in greater detail under the “RISK FACTORS” section of the annual information form for the year ended October 31, 2024: management of growth; reliance on key personnel; reliance on key customers; changes in consumer preferences; significant changes in government regulation; criticism of energy drink products and/or the energy drink market; economic downturn and continued uncertainty in the financial markets and other adverse changes in general economic or political conditions, as well as geopolitical developments, global inflationary pressure or other major macroeconomic phenomena; global or regional catastrophic events; fluctuations in foreign currency exchange rates; inflation; revenues derived entirely from energy drinks; increased competition; relationships with co-packers and distributors and/or their ability to manufacture and/or distribute GURU’s products; seasonality; relationships with existing customers; changing retail landscape; increases in costs and/or shortages of raw materials and/or ingredients and/or fuel and/or costs of co-packing; failure to accurately estimate demand for its products; history of negative cash flow and no assurance of continued profitability or positive EBITDA; repurchase of common shares; intellectual property rights; maintenance of brand image or product quality; retention of the full-time services of senior management; climate change; litigation; information technology systems; fluctuation of quarterly operating results; changes in government policies and international trade regulations; termination of the PepsiCo distribution agreement and the return to a direct distribution model; accounting treatment of the PepsiCo warrants; conflicts of interest; consolidation of retailers, wholesalers and distributors and key players’ dominant position; compliance with data privacy and personal data protection laws; management of new product launches; use of third-party marketing, including celebrities and influencers; review of regulations on advertising claims, as well as those other risk factors identified in other public materials, including those filed with Canadian securities regulatory authorities from time to time and which are available on SEDAR+ at www.sedarplus.ca. Additional risks and uncertainties not currently known to management or that management currently deems to be immaterial could also cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Although the forward-looking information contained herein is based upon what management believes are reasonable assumptions as at the date they were made, investors are cautioned against placing undue reliance on these statements since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning availability of capital resources, business performance, market conditions, and customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that management anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on the business, financial condition, or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and management does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

Non-GAAP and Other Financial Measures
This press release includes certain non-GAAP and other supplementary financial measures to help assess GURU’s financial performance. Those measures do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). Management’s method of calculating these measures may differ from the methods used by other issuers and, accordingly, GURU’s definitions of these non-GAAP measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as an alternative to IFRS measures.

Adjusted EBITDA
Adjusted EBITDA is defined as net income or loss before income taxes, net financial (income) expenses, depreciation and amortization, and stock-based compensation expense. This measure is a non-GAAP financial measure and is not an earnings or cash flow measure or a measure of financial condition recognized by IFRS. As such, it should not be construed as an alternative to “net income”, as determined in accordance with IFRS, as an alternative to “cash flows from operating activities” as a measure of liquidity and cash flows or as an indicator of the Company’s performance or financial condition.

The exclusion of net finance expense eliminates the impact on earnings derived from non-operational activities, and the exclusion of depreciation, amortization, share-based compensation and restructuring expenses eliminates the non-cash impact of these items. Management believes that Adjusted EBITDA is a useful measure of financial performance without the variation caused by the impacts of the excluded items described above because it provides an indication of the Company’s ability to seize growth opportunities in a cost-effective manner and finance its ongoing operations. Excluding these items does not imply that they are necessarily non-recurring. Management believes this measure, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and future prospects in a manner similar to management. Although Adjusted EBITDA is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under IFRS.

Reconciliation of Net Loss to Adjusted EBITDA

¹ Nielsen, 52-week period ended April 19, 2025, All Channels, Canada vs. same period a year ago.
² Please refer to the “Non-GAAP and Other Financial Measures” section at the end of this release.
³ SPINS IRI data, 12-week period ended April 20 2025, Total Natural channel excluding Sprouts, vs. same period a year ago, and WHOLE FOODS MARKET data, 12-week period ended May 4, 2025 vs. same period a year ago.