Canadian energy drink brand GURU has reported its first profitable quarter since going public in 2020.
In its latest Q3 2025 earnings report this week, GURU president and CEO Carl Goyette credited the business’s transition to a new direct distribution model in Canada – following the end of its prior partnership with PepsiCo – as being a major force in driving the return to profitability.
The company reported that working with national and regional distributors led to 35% sales growth to CAD$8.7 million in Canada, with innovations like new GURU Zero Wild Ruby Red, Wild Ice Pop and Wild Strawberry Watermelon flavors adding to the lift.
“With the successful transition to our new Canadian distribution model, we are now firmly in control of our destiny, with greater flexibility to manage our business, deepen retailer relationships, and set the pace for our growth,” Goyette said in a statement. “We also returned to profitability with a 12.4% net margin, showing that when prioritized, GURU can deliver strong earnings, like in the past, while continuing to invest in our brand and innovation.”
Net income of CAD$1.3 million in Q3 was an improvement from a CAD$2.2 million loss in the same period last year. Year-to-date net losses decreased 79% in the quarter to CAD$1.4 million.
Overall net revenue was a company record, up 31.4% to CAD$10.4 million, while gross margin expanded to 71.3%.
In addition to distribution wins, GURU credited innovation – with the launch of its GURU Zero line in Canada – and strong ecommerce sales on Amazon in the U.S. and Canada which also fueled the quarter.
In the U.S., sales were up 16.4% to CAD$1.8 million, “supported by online momentum and retail distribution gains,” the company stated. The brand’s Zero Wild Berry flavor showed “strong early traction at Whole Foods” and is now on track to be a leading SKU for the brand.
Looking ahead, the company is continuing to focus on flavor innovation, most recently launching GURU Island Breeze Punch in Quebec stores and online for all of North America. Multipacks are also a bigger part of the strategy, with an 18-pack Zero variety pack entering Canadian wholesale clubs.
“Early sell-through of the 18-pack has exceeded expectations, already resulting in replenishment orders from wholesale partners,” the company said.
“These launches, combined with continuing U.S. expansion, direct distribution in Canada and consistent brand activation, position the Company for sustained growth and increased visibility and market share in the healthy and growing energy drink category.”