SRx Health Solutions Inc. reported a net loss of $0.26 per share for the three‑month period ended December 31 2025, with total revenue of $2.807 million and an adjusted EBITDA loss of $1.06 million. Cash and cash equivalents rose to $13.1 million at quarter‑end, up from $1.3 million at September 30 2025, largely due to a $16.1 million common‑stock issuance and an $8.9 million preferred‑stock offering.
Revenue fell 60.8% year‑over‑year, reflecting inventory constraints that limited sales of the Halo pet‑wellness brand. Despite the decline, gross margin improved to 38% from 33% in the prior year, driven by disciplined SKU rationalization and a stronger product mix, including the proactive exit of tariff‑impacted products.
"Q1 FY26 marked a pivotal reset for the Company. We exited prior balance sheet restructuring with materially improved liquidity and a stronger capital foundation. Funding constraints leading into the quarter temporarily reduced inventory levels and resulted in below‑normal fill rates, which constrained sales of our U.S. pet wellness brand, Halo®. Underlying consumer demand remained resilient, and at normalized inventory levels we would have delivered year‑over‑year growth. Despite limited marketing investment, we maintained our presence across core digital channels and expanded gross margin to 38% through disciplined SKU rationalization and a stronger product mix, including the proactive exit of tariff‑impacted products ahead of calendar 2026." – Kent Cunningham, CEO
"During the quarter, we improved our balance sheet and announced a definitive agreement to acquire EMJ Crypto Technologies, which will advance a broader strategic shift toward multi‑asset digital treasury management. To date, we have deployed $18 million into cryptocurrency, including Bitcoin and Ethereum. We look forward to closing on EMJX during the current calendar first quarter and unlocking long‑term value for shareholders." – Michael Young, Board Member
Investors reacted negatively to the earnings release, citing the company’s widening net loss of $8.6 million, the sharp revenue contraction, and the historical pattern of negative market response to earnings updates. The company’s pivot toward a crypto treasury strategy and the pending acquisition of EMJ Crypto Technologies are viewed as long‑term tailwinds, but short‑term headwinds from inventory constraints and continued losses temper investor sentiment.
The results underscore the challenges SRx faces as it transitions from a pet‑wellness retailer to a digital‑asset treasury firm. While the improved gross margin and strengthened balance sheet provide a foundation for future growth, the company must address inventory constraints and demonstrate profitability to restore confidence in its new strategic direction.
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