Hydreight Delivers Record First Quarter 2026 Revenue of $24.9 Million with 449% Revenue Growth, $3.3 Million in Adjusted EBITDA² and $32.0 Million in Working Capital
Rhea-AI Summary
Hydreight (VSQTF) reported record Q1 2026 revenue of $24.9M, up 449% year-over-year, and non-GAAP Adjusted Revenue of $27.6M. Adjusted EBITDA reached about $3.3M with a 13.1% margin, and net income was $2.6M.
Hydreight ended the quarter with $24.2M in cash, $32.0M in working capital, and $36.4M in shareholders' equity. The platform now spans all 50 U.S. states with over 12,000 VSDHOne licenses sold and expanding pharmacy and strategic healthcare partnerships.
Positive
- Q1 2026 revenue $24.9M, up 449% year-over-year
- Adjusted Revenue $27.6M, up 323% year-over-year
- Adjusted EBITDA ~$3.3M, up over $3.0M year-over-year
- Adjusted EBITDA margin expanded to 13.1% from 3.6%
- Net income rose to $2.6M from $20.9K
- Quarter-end cash $24.2M and working capital $32.0M
- Operations in all 50 U.S. states and 12,000+ VSDHOne licenses sold
Negative
- None.
News Market Reaction – HYDTF
In the Jun 2 session, HYDTF gained 11.01%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 26 | Earnings call timing | Neutral | +0.8% | Announcement of Q1 2026 results release date and investor webcast details. |
| May 01 | Earnings results | Positive | -0.2% | Record Q4 2024 and full-year 2024 revenue with transition to positive Adjusted EBITDA. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related headlines have historically produced small price moves with mixed direction, despite positive fundamental trends.
Over the past year, Hydreight’s earnings-related updates highlighted a steady trajectory of growth and improving profitability. Q4 2024 audited results showed record revenue and a shift to positive Adjusted EBITDA, while a May 2026 notice set expectations for Q1 2026 results and an investor webcast. Today’s Q1 2026 release, with record revenue and stronger margins, extends this pattern of scaling its digital health infrastructure platform and improving financial performance.
Key Terms
adjusted revenue financial
adjusted ebitda financial
gaap revenue financial
gaap net income financial
non-gaap financial measures financial
telehealth infrastructure technical
working capital financial
adjusted gross margin financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenue increased
Revenue reached a record
The Company generated net income of
FIRST QUARTER 2026 HIGHLIGHTS
All comparisons below are to the three months ended March 31, 2025, unless otherwise noted.
- Revenue:
$24.93M $4.5M 449% YoY) - Adjusted Revenue1:
$27.6M $6.5M 323% YoY) - Adjusted EBITDA2:
$3.3M $0.2M 412% YoY) - Adjusted EBITDA2 Margin:
13.1% vs3.6% - Net Income:
$2.6M $20 K - Ending Q1 2026 Cash Position:
$24 - Ending Q1 2026 Working Capital:
$32
The Company believes the following Non-GAAP financial measures provide meaningful insight to its shareholders in understanding the Company's performance and may assist in the evaluation of the Company's business relative to that of its peers.
Notes:
(1) "Adjusted Revenue" is a non-GAAP financial measure and reflects gross economic activity processed through the Company's platform and should not be considered revenue recognized under IFRS.
(2) "Adjusted EBITDA" is a non-GAAP financial measure and reflects EBITDA plus additions for atypical and non-recurring charges. See "Non-GAAP Financial Measures" section below for definition.
The following table is included to provide a reconciliation of the Company's non-GAAP financial measures to the most directly comparable IFRS measures and to enhance the comparability and transparency of the Company's financial performance for investors.
Three months ended March 31, | % | ||
2026 | 2025 | change | |
Adjusted Revenue | $ 27,625,787 | $ 6,527,957 | 323 % |
Deduct - deferred business partner contract revenue | 146,555 | 454,140 | |
Deduct - business partner payouts on app service gross revenue | 2,548,581 | 1,533,695 | |
GAAP Revenue | $ 24,930,651 | $ 4,540,122 | 449 % |
Adjusted Gross Margin | $ 5,228,959 | $ 1,958,605 | 167 % |
Deduct - deferred business partner contract revenue | 146,555 | 454,140 | |
GAAP Gross Margin | $ 5,082,404 | $ 1,504,465 | 238 % |
Adjusted EBITDA | $ 3,260,838 | $ 215,619 | 1412 % |
Deduct - amortization and depreciation | 174,217 | 101,004 | |
Deduct - share-based payments | 4,882 | 41,505 | |
Deduct - interest and accretion | 467,563 | - | |
Deduct - sales tax provision, net cash paid | 27,434 | 52,207 | |
GAAP Net Income | $ 2,586,742 | $ 20,903 | 12275 % |
Shane Madden, Chief Executive Officer of Hydreight, commented:
"Q1 2026 was the strongest quarter in Hydreight's history. We delivered record revenue of nearly
More importantly, these results reflect the continued maturation of the healthcare infrastructure we have spent years building. From our national provider network and pharmacy relationships to VSDHOne and our strategic partnerships, we are seeing increasing utilization across the platform and meaningful operating leverage emerge.
We believe our strengthened balance sheet, growing profitability, and expanding healthcare ecosystem position us exceptionally well as we continue to scale across the
BUSINESS PERFORMANCE & DRIVERS
Hydreight's first quarter performance was driven by continued growth across its healthcare infrastructure platform, increased pharmacy transaction volumes, expansion of strategic healthcare partnerships, and growing utilization of its integrated network of healthcare providers, pharmacies, technology solutions, and compliance services.
As transaction volume increased, Hydreight continued to demonstrate the operating leverage inherent in its business model, generating record revenue, record gross profit, and strong profitability while maintaining one of the strongest balance sheets in the Company's history.
PLATFORM SCALE & NETWORK EFFECTS
Hydreight continues to expand the reach of its healthcare infrastructure platform:
- Over 12,000 VSDHOne licenses sold since launch
- Operations spanning all 50 U.S. states
- Network of healthcare providers, pharmacies, and strategic partners
- Expanding ecosystem supporting both traditional healthcare businesses and direct-to-consumer healthcare brands
The Company believes this scale reflects demand from businesses seeking compliant, turnkey solutions to enter and expand within the
STRATEGIC PHARMACY INFRASTRUCTURE
Hydreight continued to expand and strengthen its pharmacy infrastructure during the quarter, enhancing supply chain capabilities, pharmaceutical purchasing efficiencies, inventory access, fulfillment capabilities, and overall platform scalability.
The Company believes strategic pharmacy infrastructure is a critical component of its healthcare ecosystem and provides a significant competitive advantage as healthcare brands increasingly seek compliant and scalable solutions to serve patients across
By continuing to invest in pharmacy relationships, fulfillment capabilities, and operational infrastructure, Hydreight is of the view that it is positioning itself to support increasing transaction volumes across both traditional healthcare businesses and direct-to-consumer healthcare brands.
VSDHOne PLATFORM UPDATE
VSDHOne continues to serve as a key component of Hydreight's long-term growth strategy.
Developed in partnership with Victory Square Technologies, VSDHOne aims to provide businesses with access to Hydreight's technology stack, compliance framework, provider network, telehealth infrastructure, and pharmacy relationships, with hopes to significantly reducing barriers to entry for companies seeking to launch compliant healthcare offerings across
VSDHOne's goal is to enable businesses to launch compliant healthcare brands across a growing range of healthcare categories, including weight management, peptides, hormone optimization, wellness, longevity, sexual health, hair loss, and other direct-to-consumer healthcare offerings.
The Company continues to invest in VSDHOne 2.0 and patient-specific workflow technology designed to improve scalability, automation, and user experience while supporting future growth opportunities.
BALANCE SHEET & LIQUIDITY
Hydreight ended the quarter with one of the strongest balance sheets in the Company's history.
- Cash:
$24.2M - Working Capital:
$32.0M
Management believes its strong financial position provides significant flexibility to support continued organic growth, technology investments, strategic initiatives, strategic partnerships, and potential acquisition opportunities.
Combined with the Company's profitable operations and growing cash generation profile, Hydreight believes it is well positioned to execute on both organic growth initiatives and strategic opportunities as they arise.
OUTLOOK
Hydreight enters the remainder of 2026 with strong momentum, supported by profitability improvements in Adjusted EBITDA2, a non-GAAP measure, expanding healthcare infrastructure, continued platform utilization, and a strengthened balance sheet and we remain firmly on track to deliver against our full-year 2026 guidance.
As we look forward, management remains focused on:
- Expanding strategic healthcare partnerships
- Increasing utilization across the platform
- Investing in technology and infrastructure
- Scaling VSDHOne and related platform offerings
- Pursuing opportunities that further strengthen Hydreight's position as a leading healthcare infrastructure platform in
the United States
The Company believes the investments made over the past several years in compliance, provider networks, pharmacy infrastructure, and technology have created a competitive advantage and a scalable foundation for growth. Positioned at the intersection of digital health, pharmacy infrastructure, telehealth, and direct-to-consumer healthcare, Hydreight believes it is uniquely positioned to capitalize on multiple growth vectors across its expanding platform ecosystem.
"We look forward to discussing these results in more detail on our upcoming earnings call." – Shane Madden
QUARTERLY FILINGS
The Company's condensed interim financial statements and MD&A for the three months ended March 31, 2026, have been filed on SEDAR+ and are available on the Company's issuer profile. Readers are encouraged to review the complete financial statements and MD&A in conjunction with this press release.
UPCOMING EARNINGS CALL
Hydreight Technologies will host a live earnings call to discuss its Q1 2026 financial results, provide a business update, and outline the Company's strategic priorities for the remainder of 2026.
Date: Tuesday, June 2, 2026
Time: 6:00 a.m. PST / 9:00 a.m. EST
Webcast Registration: https://hydreight.zoom.us/webinar/register/WN_wc4MfQOrT-eXtBMuLc3gTA
A replay of the webcast will be made available following the event.
On behalf of the Board of Directors
Shane Madden
Director and Chief Executive Officer
Hydreight Technologies Inc.
About Hydreight Technologies Inc.
Hydreight Technologies Inc is building one of the largest mobile clinic networks in
About VSDHOne - Direct to Consumer Platform
Developed in partnership with Victory Square Technologies (CSE: VST) (OTC: VSQTF) (FWB: 6F6), Hydreight Technologies launched the VSDHOne platform. VSDHOne aims to simplify the entry challenges for companies and medi-spa businesses to enter the online healthcare space compliantly. This platform is expected to help businesses launch direct-to-consumer healthcare brand in a matter of days in all 50 states. Compliant offerings include: GLP-1s, peptides, personalized healthcare treatments, sermorelin, testosterone replacement therapy ("TRT"), hair loss, skincare, sexual health and more. Hydreight invested in technology, legal and infrastructure to launch this platform. The VSDHOne platform offers a complete, and modular end-to-end solution for businesses looking to launch direct-to-consumer healthcare brands. From compliance and telemedicine technology to nationwide doctor and pharmacy networks, VSDHOne provides all the tools needed for a seamless entry into the online healthcare space. The platform is designed to significantly reduce the time and costs associated with launching such services, making it possible for businesses to go live in days instead of months.
Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Use of Non-GAAP Financial Measures:
The Company uses certain non-GAAP financial measures to assess its operating performance, and this press release contains non-GAAP financial measures, including "Adjusted Revenue" and "Adjusted EBITDA". These measures are not recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS or GAAP.
The Company defines Adjusted Revenue as gross cash income before adjustment for the deferred portion of business partner contract revenue and gross receipts from Hydreight App service sales. The Company defines Adjusted Gross Margin as GAAP gross margin plus inventory impairment plus the deferred portion of business partner contract revenue. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring, and integration costs (ii) share-based payments expense, (iii) gains/losses that are not reflective of ongoing operating performance including inventory impairment and (iv) sales tax provision, net of actual cash payments to state tax authorities.
Adjusted Revenue reflects the gross economic activity processed through the Company's platform during the applicable period and may differ materially from revenue recognized under IFRS, which is based on revenue recognition and deferral requirements. Adjusted Revenue is not a measure of financial performance or profitability and should not be considered a substitute for revenue determined in accordance with IFRS. As used, Adjusted Revenue accelerates cash receipts relative to IFRS revenue recognition. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with IFRS.
The Company believes that these non‑GAAP measures provide information useful to investors in understanding historical operating trends and the scale of the Company's platform relative to its peers but does not intend for such measures to represent future performance. This data is furnished to provide additional information and does not have any standardized meaning prescribed by IFRS. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of other metrics presented in accordance with IFRS.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding expectations for the Company's 2026 strategic outlook, growth, platform scaling initiatives, and anticipated expansion of VSDHOne and other platform offerings.
Forward‑looking information is based on management's expectations, estimates and assumptions as of the date hereof, including assumptions regarding: continued partner adoption, stable regulatory regimes applicable to telehealth and pharmacy operations in the United States, availability of capital, and general economic conditions.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the Company's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to obtain requisite regulatory and other approvals with respect to the business operated by the Company and/or the potential impact of the listing of the Company's shares on the TSXV on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time as a result of being a publicly listed entity. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
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