SRx Health Solutions (SRXH) Q1 2026 earnings summary

Executive summary

• Transitioned to a single Consumer Products segment focused on premium pet food and wellness after discontinuing Canadian healthcare operations and restructuring under CCAA proceedings.

• Completed balance sheet restructuring, resulting in improved liquidity and capital foundation.

• Entered a definitive agreement to acquire EMJ Crypto Technologies, advancing digital treasury strategy.

• Net sales for the quarter were $2.8 million, primarily from digital sales of premium pet food and wellness products.

• Significant corporate actions included a merger, PIPE financings, and a $1 billion ELOC agreement.

Financial highlights

• Net sales: $2.8 million for the three months ended December 31, 2025; gross profit: $1.1 million, gross margin of 38%.

• Net loss: $(8.6) million, including a $3.1 million loss on extinguishment of debt.

• Adjusted EBITDA loss: $(1.06) million for the quarter.

• Cash and cash equivalents: $13.1 million at quarter end, up from $1.3 million at September 30, 2025.

• Raised $16.1 million from common stock and $8.9 million from preferred stock issuances.

Outlook and guidance

• Focus on stabilizing operations, optimizing cost structure, and pursuing targeted growth in the pet wellness market.

• Management anticipates closing the EMJX acquisition in the first half of calendar 2026.

• Additional capital raised post-quarter is expected to support operational priorities and digital treasury strategy.

• Management aims to regain NYSE compliance and strengthen financial position during the extension period through July 2026.

• Business is positioned for stronger and more profitable performance in 2026.