HealthWarehouse.com Reports Results for Third Quarter 2025

Reports 7% decline in sales due to slowing DTC sales and shifts in GLP-1 market

CINCINNATI--(BUSINESS WIRE)-- HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today that its net sales for the third quarter ended September 30, 2025, totaled $8.4 million, a 7% decrease from the quarter ended September 30, 2024. The Company reported a net loss of $72,000 and Adjusted EBITDA of $343,000 for the quarter. Year to date, the Company reported sales of $39.1 million, a 97% increase over the prior year, net income of $334,000 and Adjusted EBITDA of $1.4 million.

HealthWarehouse.com, a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (NABP). HealthWarehouse.com provides a platform focused on increasing access to and reducing costs of healthcare products for consumers and business partners nationwide.

Joseph Peters, President and CEO, commented, “As anticipated, our sales growth for the quarter slowed as our sales of compounded versions of certain GLP-1 prescription medications declined. The FDA had temporarily approved sales of compounded GLP-1s during market shortages of branded versions. Despite the slowing of growth, we generated positive cash flow and we built up our cash balances during the quarter, proving the economic scalability of our business model. Additionally, we are optimistic about new product launches that will allow us to continue to serve longstanding partners. These products diversify our catalog following the removal of certain medications from the shortage list.”

HealthWarehouse.com continues to invest in proprietary technology to remain at the forefront of new developments and offerings in the world of healthcare, focusing on patient experience, operational efficiency, and scalability.

“We remain optimistic about our future as our partners have diversified their offerings and we have a strong pipeline of new opportunities for our partner service business. In addition, we are well equipped to help manufacturers launch direct-to-patient programs and are eager to develop new opportunities in that market,” added Peters. “We have established ourselves as a reliable service provider for high volume partners and we have shown our expertise in processing orders that require cold-chain shipping services. I appreciate the effort put forth by our team of dedicated employees, as they continue to provide world class service to our customers.”

Overview of Results for Three and Nine Months Ended September 30, 2025

Net Sales: Total net sales for the three and nine months ended September 30, 2025, were $8.4 million and $39.1 million, respectively, a decrease of $612,000 (6.8%) for the three-month period and an increase of $19.2 million (96.6%) for the nine-month period versus the same periods in 2024.

Prescription sales were $7.7 million and $37.1 million for the three and nine months ended September 30, 2025, respectively, a decrease of $655,000 (7.9%) and an increase of $19.2 million (107.0%), respectively, compared with the same periods in 2024. The decrease in sales for the three-month period was due to a $531,000 decline in direct-to-consumer prescription business and a $28,000 decline in the partner services business. The increase in prescription sales for the nine-month period was due to growth in partner services revenue of $21.4 million, offset by a $2.2 million decline in the direct-to-consumer prescription business.

Sales of over-the-counter products were $689,000 and $1.8 million for the three and nine months ended September 30, 2025, respectively, an increase of $67,000 (10.8%) and $74,000 (4.2%), respectively, over the same periods in 2024, primarily due to increases in marketplace sales.

Gross Profit: Gross profit for the three and nine months ended September 30, 2025, was $3.6 million and $13.3 million, respectively, representing a decrease of $194,000 for the three-month period and an increase of $3.6 million for the nine-month period compared with the same periods in 2024. The decrease in the three-month period was the result of lower sales offset by improved gross margin. The increase in the nine-month period was the result of higher sales offset by lower margins on our partner services prescription business. Gross margin percentages were 42.8% and 34.0% for the three and nine months ended September 30, 2025, respectively, which were 0.8 percentage point higher and 14.9 percentage points lower, respectively, versus prior-year periods. The reduction was primarily due to lower margins in the Partner Services prescription businesses.

Operating Expenses: Selling, general and administrative expenses were $3.6 million and $12.8 million for the three and nine months ended September 30, 2025, respectively, which were increases of $5,000 (0.1%) and $2.8 million (27.6%), respectively, compared to the same periods in 2024. Expenses for the three-month period included increases in legal, rent, advertising, software and engineering, and salaries expenses, offset by decreases in shipping and shipping supplies, and credit card expenses. Expense increases for the nine-month period included increases in shipping and shipping supplies, salaries primarily related to higher direct pharmacy labor, legal, advertising and rent, which were offset by decreases in credit card fees and employee benefits expenses.

Net Income (Loss) and Adjusted EBITDA: The Company reported net loss of $72,000 and net income of $334,000 for the three and nine months ended September 30, 2025, respectively, compared with net income of $74,000 and net loss of $522,000, respectively, for the same periods in 2024.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted for stock-based compensation and certain non-recurring charges (“Adjusted EBITDA”), were $343,000 for the three months and $1.4 million for the nine months ended September 30, 2025. That compares with Adjusted EBITDA of $405,000 and $495,000, respectively, for the three and nine months ended September 30, 2024. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Definitions of these non-GAAP terms and a reconciliation to GAAP measures are provided below.

Use of Non-GAAP Financial Measures

HealthWarehouse.com, Inc. (the "Company") prepares its consolidated financial statements in accordance with the United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDA and Adjusted EBITDA, which are commonly used. In addition to adjusting net income or net loss to exclude interest, taxes, depreciation and amortization, including amortization of right of use lease asset, (“EBITDA”), Adjusted EBITDA also excludes stock-based compensation, and certain nonrecurring charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, Adjusted EBITDA is used internally in planning and evaluating the Company`s performance. Accordingly, management believes that disclosure of this metric offers lenders and other shareholders an additional view of the Company`s operations that, when coupled with GAAP results, provides a more complete understanding of the Company’s financial results.

Adjusted EBITDA should not be considered as an alternative to net income, net loss or to net cash provided by or used in operating activities as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the Company`s performance.

Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP)

				Three Months Ended							Nine Months Ended
				September 30,							September 30,
(Unaudited)					2025				2024			2025			2024
				In thousands
Net income (loss)				$	(72	)		$	74		$	334		$	(522	)
	Interest expense				20				64			51			214
	Depreciation and amortization				92				81			262			241
	Income tax expense				(9	)			-			136			-
EBITDA (non-GAAP)					31				219			783			(67	)
Adjustments to EBITDA:
	Stock-based compensation				161				186			498			562
	One time charges				151				-			151			-
Adjusted EBITDA				$	343			$	405		$	1,432		$	495

About HealthWarehouse.com

HealthWarehouse.com, Inc. (OTCQB: HEWA), a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (“NABP”). HealthWarehouse.com provides a platform focused on increasing access and reducing costs of healthcare products for consumers and business partners nationwide. Based in Florence, Kentucky, the Company operates America's Leading Online Pharmacy and is a pioneer in affordable healthcare. As one of the first National Association of Boards of Pharmacy Approved Digital Pharmacies, HealthWarehouse.com services the mission of providing affordable healthcare and incredible patient services to help Americans. Learn more at www.HealthWarehouse.com

Forward-Looking Statements

This announcement and the information incorporated by reference herein contain “forward-looking statements” as defined in federal securities laws, including but not limited to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, which statements are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those expressed in forward looking statements or in management's expectations. Important factors which could cause or contribute to actual results being materially and adversely different from those described or implied by forward looking statements include, among others, risks related to competition, management of growth, access to sufficient capital to fund our business and our growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, cyber-attacks, access to sufficient inventory, government regulation and taxation and fraud. More information about factors that potentially could affect HealthWarehouse.com's financial results is included in HealthWarehouse.com's audited Annual Reports and Quarterly Reports available at otcmarkets.com and prior filings with the Securities and Exchange Commission.

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Dan Seliga, Chief Financial Officer, (800) 748-7001

Source: HealthWarehouse.com, Inc.