Q2 FY26 Marks Operational Inflection Point with Sequential 23% Revenue Growth and 44% Adjusted EBITDA Loss(1) Improvement
Strengthened Liquidity and Working Capital Position with Cash of $20.5 million as of Quarter End
Active Cryptocurrency Strategy Outperformed Market by 6%, Reducing Losses by 23% Relative to Buy-and-Hold(2)
NORTH PALM BEACH, Fla., May 14, 2026 (GLOBE NEWSWIRE) -- SRx Health Solutions, Inc. (NYSE American: SRXH) (the "Company" or "SRX"), a pet health and wellness company, today announced its financial results for the fiscal second quarter 2026.
"With a materially strengthened balance sheet, improved liquidity profile, and significantly improved working capital position, we entered the quarter focused on restoring inventory availability, rebuilding momentum across the Halo$(R)$ platform, and positioning the Company for scalable long-term growth," stated Kent Cunningham, Chief Executive Officer of SRX. "The sequential improvement across key financial metrics, including revenue, gross profit, EPS, and adjusted EBITDA, reflects the meaningful contribution of those initiatives and the operating leverage embedded within the business as normalization continues. As we continue evolving the SRX platform, our strategy remains centered on disciplined capital allocation, operational execution, and long-term value creation. Alongside the continued growth of Halo(R) , we are advancing strategic initiatives focused on AI-enabled analytics, digital treasury management, and opportunistic investments across digital assets and other securities designed to diversify the Company's capital base and enhance long-term shareholder returns."
"Despite a challenging market environment in which Bitcoin and Ethereum declined 27% over the six-month trading period, our active cryptocurrency strategy limited losses to 21%, reducing loss exposure by 23% relative to a buy-and-hold approach. This performance reflects the strength of our disciplined, data-driven approach to capital allocation. We also look forward to the planned acquisition of EMJX, which we believe will further enhance our AI-driven capabilities and strengthen our digital asset treasury strategy," stated Mike Young, member of the Board of Directors.
On or about May 15, 2026, the Company intends to mail an information statement to shareholders in connection with its previously announced pending acquisition of EMJ Crypto Technologies Inc. ("EMJX"). The information statement is part of the Registration Statement on Form S-4 that was filed by the Company with the Securities and Exchange Commission and can be obtained free of charge on the SEC's website at www.sec.gov or the Company's website at srxhealth.com. The acquisition remains subject to certain closing conditions and the Company currently anticipates closing the transaction prior to the end of the fiscal third quarter.
FISCAL SECOND QUARTER 2026 HIGHLIGHTS
-- Net revenue growth of 23% quarter over quarter to $3.4 million
-- Gross margin remained stable at approximately 37%
-- Gross profit growth of 21% quarter over quarter to $1.3 million
-- Operating loss improved 52% quarter over quarter to $(1.8) million
-- Net loss improved 26% quarter over quarter to $(6.4) million
-- Earnings (loss) per share ("EPS") improved 92% quarter over quarter to
$0.02 per share
-- Adjusted EBITDA1 loss improved 44% quarter over quarter to $(0.6) million
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2026, the Company held cash and cash equivalents of $20.5 million, compared to $1.3 million at September 30, 2025. The major sources of cash during the year-to-date period were proceeds from the issuance of common stock of $55.1 million, proceeds from the issuance of convertible preferred stock of $13.2 million, partially offset by net purchases of highly liquid short-term investments of $3.0 million, purchases of cryptocurrency assets, primarily Bitcoin and Ethereum, of $16.5 million, redemption of Series A convertible preferred stock of $21.8 million, and other strategic investments reflecting the company's risk-managed treasury strategies of approximately $3.8 million.
SRx Health Solutions Inc.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except share and per share
amounts)
Three Months Ended Six Months Ended
March 31, March 31,
2026 2025 2026 2025
---------- ----------
Net sales $ 3,439 $ -- $ 6,246 $ --
Cost of goods sold 2,164 -- 3,917 --
Gross profit 1,275 -- 2,329 --
Operating expenses:
Selling,
general and
administrative 3,093 -- 7,937 --
Loss from
continuing
operations (1,818) -- (5,608) --
Other expense
(income):
Interest
expense, net 1,780 -- 3,068 --
Loss on
extinguishment
of debt -- -- 3,064 --
Change in fair
value of
digital
assets 2,895 -- 3,359 --
Change in fair
value of
equity
securities 493 -- 493 --
Change in fair
value of
derivative
liabilities (592) -- (592) --
Other income,
net (15) -- (11) --
Total other
expense, net 4,561 -- 9,381 --
----------- ---------- ----------- ----------
Net loss before
income taxes (6,379) -- (14,989) --
Income tax
expense 2 -- 6 --
Net loss from
continuing
operations (6,381) -- (14,995) --
Loss from
discontinued
operations -- (10,149) -- (14,132)
Net loss $ (6,381) $ (10,149) $ (14,995) $ (14,132)
Weighted average
number of shares
outstanding,
basic 299,067,382 25,801,254 164,601,605 24,685,849
Weighted average
number of shares
outstanding,
diluted 299,067,382 25,801,254 164,601,605 24,685,849
Loss per share,
basic $ (0.02) $ (0.39) $ (0.09) $ (0.57)
Loss per share,
diluted $ (0.02) $ (0.39) $ (0.09) $ (0.57)
SRx Health Solutions Inc.
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
March 31, 2026 September 30, 2025
---------------- ----------------------
Assets
Current Assets
Cash and cash equivalents $ 20,543 $ 1,309
Short-term investments 2,996 --
Accounts receivable, net 3,806 3,945
Inventories, net 2,086 2,078
Notes receivable 1,407 --
Digital assets 8,333 --
Investment in equity
securities 2,531 --
Prepaid expenses and other
current assets 1,447 794
Total Current Assets 43,149 8,126
Fixed assets, net 76 88
Right-of-use assets, operating
leases -- 20
Other assets 139 168
----------- --------------
Total Assets $ 43,364 $ 8,402
=========== ==============
Liabilities & Stockholders'
Equity
Current Liabilities
Accounts payable $ 952 $ 2,147
Accrued liabilities 1,510 1,375
Operating lease liability,
short-term -- 21
Convertible debt, short-term 22,616 --
----------- --------------
Total Current Liabilities 25,078 3,543
Convertible debt, long-term -- 4,452
Total Liabilities 25,078 7,995
----------- --------------
Stockholders' Equity
Common Stock, $0.001 par
value, 5,000,000,000 shares
authorized, 415,964,972 &
24,992,538 shares issued and
outstanding as of March 31,
2026, and September 30,
2025, respectively 419 31
Preferred Stock, $0.001 par
value, 4,000,000 shares
authorized, 5,660 & zero
shares issued and outstanding
as of March 31, 2026 and
September 30, 2025,
respectively -- --
Additional paid-in capital,
common 52,829 23,304
Additional paid-in capital,
preferred 2,961 --
Accumulated deficit (37,923) (22,928)
Total Stockholders' Equity 18,286 407
----------- --------------
Total Liabilities and
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