Financial Data and Key Metrics Changes - The company reported net revenue of $8.1 million for Q2 2025, a 1% increase from $8 million in the same quarter last year [12] - Gross margin improved to 76.7% from 69.5% year-over-year, primarily driven by license revenue [12] - Net income surged to $1.47 million, a 125% increase compared to $655,000 in the prior year [13] - Earnings per share rose to $0.17 per diluted share, an 86% increase from $0.09 per diluted share in the previous year [14] - EBITDA for the quarter was $3.8 million, up 136% from $1.61 million in Q2 2024 [14] Business Line Data and Key Metrics Changes - The company generated $1.4 million in license fee revenue during the quarter, contributing to overall revenue growth [12] - The functional beverage business is gaining momentum, with significant distribution wins, including national item authorization from Core Mark [8][9] - The RTD (Ready-to-Drink) business saw a notable increase in sales on Amazon, reaching $148,000 in the quarter, up from $41,000 in the previous quarter [20][24] Market Data and Key Metrics Changes - The company expanded its international presence with licensing agreements in Turkey and the UAE, expecting revenue generation from these markets by year-end [6] - A new wholly owned subsidiary in Mexico is set to ship products to Costco and Walmart Mexico by late Q3 or early Q4 2025 [7] Company Strategy and Development Direction - The company is focused on international expansion and strategic partnerships to enter high-potential markets without establishing a direct footprint [6] - A new leadership team has been assembled to drive the beverage strategy and growth, indicating a commitment to scaling operations effectively [8] - The company completed a $20 million debt refinancing, improving financial flexibility and aligning capital structure with long-term growth strategies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational discipline and execution, marking the tenth consecutive quarter of profitability [5] - The leadership team anticipates accelerating momentum in the second half of the year, driven by strong retail partnerships and product distribution [10] Other Important Information - The company reported a working capital surplus of $12.4 million as of June 30, 2025, compared to a deficit of $1.12 million at the end of 2024 [15] - Cash and cash equivalents increased to $1.5 million from $687,900 at the end of 2024, reflecting improved liquidity [14] Q&A Session Summary Question: Revenue from RTD products - Management indicated that most revenue from RTD products is still to come, but Amazon sales improved significantly to $148,000 this quarter [20][24] Question: Retailers carrying RTD products - Management confirmed multiple retailers in Canada are currently carrying the product, but a detailed list was not provided [22] Question: Licensing revenue structure - Licensing revenue is expected to grow slowly, with management discussing ongoing talks with other groups in different countries [26] Question: Unusual expenses in the quarter - Management noted higher professional fees and legal expenses due to public company costs, but these are expected to persist [28] Question: Revenue from Mexico operations - Revenue from the new subsidiary in Mexico will be recognized as revenue, as the company will have its own sales teams there [30] Question: Flat tummy revenue - Management reported that flat tummy revenue remains steady with no new updates [31]

Core Insights - Synergy CHC Corp. has announced significant retail and distribution gains in North America for its supplement and functional beverage portfolios, marking a major expansion in access to its products [1][2] Beverage Gains - Core-Mark has granted national item authorization for FOCUSfactor Focus + Energy beverages, allowing distribution across over 50,000 customer locations in all 50 U.S. states and Canada, with products expected on shelves in Q3 2025 [3][4] - Metro Ontario has launched FOCUSfactor Focus + Energy in over 125 grocery stores, while its convenience division will introduce the brand to over 600 locations starting July 2025 [4] - Energy North Group will add FOCUSfactor beverages to its offerings across its 70 convenience stores and gas stations in New England and Upstate New York, with availability beginning in Q3 2025 [5] - Downey Wholesale has included FOCUSfactor Focus + Energy in its national portfolio, targeting over 10,000 small wholesalers and independent retailers, with products expected to be available in Q3 2025 [6][7] Supplement Gains - Synergy has secured national placement for two FOCUSfactor SKUs within Walmart Canada's vitamin set, with rollout scheduled for Q4 2025, enhancing the brand's international growth strategy [8] - The expansion into Walmart Canada is seen as a significant milestone, building on an 18-year partnership with Walmart in the U.S. and reinforcing FOCUSfactor's leadership in the brain health category [8][9]