Healthy Extracts Reports Record Q2 2025 Net Revenue, Driving Positive EPS and EBITDA; Increases 2025 Net Revenue Guidance by 50%

Rhea-AI Summary

Healthy Extracts (OTCQB:HYEX) reported strong Q2 2025 results with record net revenue of $969,000, up 7% year-over-year, and increased its 2025 revenue guidance by 50% to $6.3 million+. The company achieved a gross profit margin of 61.2% and net income of $67,000 ($0.02 per share).

The quarter featured significant operational developments, including the launch of new products STAT10 for heart health, 4Sleep for better rest, and the WHITNEY JOHNS Gut Health Straw. Most notably, HYEX completed a transformative merger with Gummy USA, adding a HACCP, GMP-certified manufacturing facility expected to contribute up to $2.1 million in revenue in H2 2025.

Direct-to-consumer metrics showed remarkable growth with product subscriptions up 88% and Amazon "Subscribe & Save" customers increasing 107%. The company maintains a top three category ranking on Amazon.com and expanded partnerships with Gelteq Limited and Lelantos Fibre.

Positive

• Record Q2 revenue of $969,000, up 7% YoY with 31% organic growth excluding bulk orders
• Gross profit margin improved to 61.2% from 53.5% YoY
• Direct-to-consumer subscriptions increased 88% and Amazon Subscribe & Save customers up 107%
• Strategic merger with Gummy USA expected to add $2.1M revenue in H2 2025
• Increased 2025 revenue guidance by 50% to $6.3M+
• Positive operating cash flow of $82,000, up from $61,000 YoY
• Maintains top three category ranking on Amazon.com

Negative

• Operating expenses increased 40% to $698,000 due to higher advertising costs
• Net income decreased to $67,000 ($0.02/share) from $113,500 ($0.04/share) YoY
• EBITDA declined to $97,000 from $161,000 YoY
• Adjusted EBITDA turned negative to -$25,000 from +$64,500 YoY

Net Revenue Outlook for 2025 Increased from $4.2 Million+ to $6.3 Million+, Representing Growth of 102%+, Based on Recent Transformative Merger with Gummy USA

LAS VEGAS, NV / ACCESS Newswire / August 13, 2025 / Healthy Extracts Inc. (OTCQB:HYEX), a leader in plant-based nutraceutical innovations, reported results for its second quarter and six months ended June 30, 2025. All comparisons are to the same year-ago period unless otherwise noted.

Q2 Financial Highlights

• Net revenue totaled a record $969,000, increasing 4% from the previous quarter and up 7% compared to the same year-ago quarter. On a first six-month basis, net revenue increased 19% to a record $1.9 million.

• Second quarter net revenue increased 31% when excluding an unusual large bulk wholesale order in the second quarter of 2024, highlighting strong growth in direct-to-consumer and retail sales.

• Gross profit increased 22% to $593,000 or 61.2% of net revenue, compared to $486,000 or 53.5% of net revenue in the same year-ago quarter. The increase in gross margin was due to product sales mix that included the large bulk wholesale order in the year-ago period that carried a lower margin.

• Net income totaled $67,000 or $0.02 per basic and diluted share, compared to net income of $113,500 or $0.04 per basic and diluted share in the year-ago quarter.

• EBITDA totaled $97,000 as compared to $161,000 in the year-ago quarter (see definition of EBITDA, a non-GAAP term, and its reconciliation to GAAP, below)

• Direct-to-consumer product subscriptions increased 88% and Amazon "Subscribe & Save" customers increased 107%. Subscription customer growth continued to expand the company's recurring revenue stream and increase customer lifetime value, while enhancing customer communications and retention.

Q2 Operational Highlights

• The quarter's record sales helped maintain Healthy Extracts' top three category ranking on Amazon.com, with the strong performance due to the company's highly optimized sales and marketing strategies.

• Healthy Extracts' heart health subsidiary, Bergamet NA, officially launched STAT10, a revolutionary heart health formulation containing CoQ10, Berberine and Citrus Bergamot SuperFruit™. The product dramatically expands Healthy Extracts' addressable market beyond general heart health to supporting the unmet nutritional needs of 40 million existing statin users in the U.S. Clinically formulated to support nutrients inhibited by statins, STAT10 addresses the common side effects of muscle and joint pain, weakness and tiredness often associated with statins. The ingredients in STAT10 have been shown in clinical research to support heart health and the nutrients inhibited by statins.

• Bergamet NA launched 4Sleep, a natural, science-based healthy sleep formulation specially designed to support deeper, more restorative rest.

• Introduced the WHITNEY JOHNS™ Gut Health Straw™, the world's first fiber pre- and probiotic delivery straw. The innovative product was developed in partnership with fitness influencer and health advocate, Whitney Johns. Designed for maximum convenience and effectiveness, the product enables consumers to reap the gut health benefits of a naturally flavored, sugar-free, prebiotic and probiotic blend by simply sipping a straw-no pills, powders or hassles. The product targets the fast-growing digestive health products market that is expected to more than double to $105 billion by 2033, according to Precedence Research.

• Encouraged by the successful launch of the WHITNEY JOHNS Gut Health Straw, Healthy Extracts entered an exclusive joint product development agreement with Lelantos Fibre, a pioneer in the formulation and manufacturing of fiber drinking straws. The deal expands Healthy Extracts' portfolio of exclusive nutritional supplement delivery systems and supports the development of additional nutrient-infused straw formulations. The just-in-time straw manufacturing technology enables Healthy Extracts to efficiently and cost effectively bring new products to market in less than eight weeks, as well as offer private label options-all at dramatically lower cost points compared to capsules or tablets.

• Expanded partnership with Gelteq Limited (NASDAQ: GELS), the clinical and science-based company focused on developing and commercializing white label gel-based delivery solutions for prescription drugs, nutraceuticals, pet care, and sports. Building upon the success of a co-developed product line of on-the-go gel-pack products, Healthy Extracts has become Gelteq's exclusive North American storage, shipping, and fulfillment partner. The deeper collaboration is expected to reduce fulfillment costs and unlock higher margin sales opportunities.

Subsequent Events

On July 29, the company announced its merger with Florida-based Gummy USA™, a leading developer and advanced manufacturer of precision-dosed nutraceutical gummies. The strategic merger further builds out Healthy Extracts' vertical integration of R&D, outsourced manufacturing, marketing and distribution with the addition of Gummy USA's HACCP, GMP-certified and FDA-registered manufacturing facility.

Combined with Healthy Extracts' two existing exclusive delivery systems (gel-packs and functional drinking straws), the Gummy USA development and production platform unlocks a third specialized product development and marketing channel comprised of ultra precision-dosed nutraceutical gummies.

Gummy USA founder, seasoned entrepreneur and manufacturing engineer, Don Swanson, was appointed president and chairman of the board of Healthy Extracts, further strengthening Healthy Extracts' management team.

Swanson is a recognized innovator in the fast-growing $13 billion global gummy supplement market, having invented and developed advanced, patent-pending white-label and private-label manufacturing solutions tailored for the health and wellness and clinical use markets.

The Gummy USA Florida manufacturing facility and in-house R&D is expected to further accelerate Healthy Extracts' overall product development and manufacturing process, enhance its already high margins, and substantially strengthen its IP portfolio. Gummy USA's white label and private label commercial customers include premium brands and distributors.

Based on existing customer commitments and anticipated growth in order flow, the new Gummy USA unit is currently projected to generate up to $2.1 million in revenue in the second half of 2025, with the facility having the potential to reach its $20 million annual revenue production capacity in 2026.

Management Commentary

"Our growth momentum continued into the second quarter, resulting in another quarter of record revenue with increased cash flow generation," commented Healthy Extracts president, Duke Pitts. "In fact, we have achieved record-setting revenue for now over three consecutive quarters, as our growth strategy continues to generate outsized results.

"These results demonstrate our strengthening performance across our direct-to-consumer and retail channels for both our traditional and new product offerings. Our customers report that our unique formulations and range of delivery systems to be exceptionally beneficial for their heart and brain health, and now also for their sleep and gut health. Strong branding and marketing efforts for our products helped maintain our top three category ranking on Amazon.

"During the quarter we launched three new product formulations representing new product categories, including sleep and gut health. We have begun marketing and cross promoting these products across our multiple sales channels, positioning us for substantial revenue growth and profitability over the coming quarters.

"We are launching two new products this month based on the exclusive gel-based oral delivery system IP provided by Gelteq. We recently expanded our partnership with Gelteq to include an exclusive logistics and distribution agreement for North America. We expect this move to reduce fulfillment costs and unlock higher margin revenue opportunities.

"Our record results for the quarter also showed how our product innovation and well-tuned systems for customer engagement and retention continue to differentiate us from the competition. Given the strong leverage we have created in our operational model, we believe that each of the new products we launched over the last several weeks have the potential to generate millions in additional annual revenues at our traditional high margins.

"Our transformative merger with Gummy USA that we completed at the end of July has further accelerated our growth trajectory and product line expansion. It has greatly strengthened our ability to bring clinically advanced products to market and better positions us for our planned uplist to a national exchange. We anticipate announcing major new Gummy USA customer wins over the coming months.

"While Gummy USA's R&D, manufacturing capability and customer base brings greater scale to Healthy Extracts, it also brings the industry-leading expertise that developed its cutting-edge, proprietary production technology.

"Gummy USA's founder and lead manufacturing engineer, and now our new president and chairman, Don Swanson, brings to us decades of experience and innovation in nutraceuticals and precision delivery systems. Don and his talented team represent an exceptional value-add to our whole organization.

"The merger also furthers our M&A strategy which has historically included the successful acquisition of BergametNA™ for heart health and Ultimate Brain Nutrients™ (UBN) for nootropic formulations-both which are supported by clinical research, patented formulations and proprietary manufacturing technologies.

"We expect the integration of Gummy USA's development and production capabilities to enable these two existing business units to more easily and cost-effectively develop and launch new products, such as our recently introduced Whitney Johns Gut Health Straw, and Hydrate EZ and MYNUS Sugar Blocker gel-packs."

According to Swanson: "The combination of our organizations heralds the future of nutraceutical development, production and oral delivery technology. Our collective strong brands, experienced management, distribution networks, and visionary product roadmaps creates a powerful platform for rapid growth across the organization. The deep resources Healthy Extract provides also advances Gummy USA's mission of setting new standards for quality and innovation in the functional gummy industry."

"We also see Healthy Extracts favorable capitalization structure enabling us to pursue additional opportunistic M&A opportunities," added Swanson, "particularly companies that would provide additional exclusive IP that differentiates us from our industry peers."

Continued Pitts: "Looking ahead, we believe our manufacturing, exclusive delivery systems, customer retention, product innovation, and strategic engagement will continue to differentiate our company and brands from the competition. Given the strong leverage we have created in our model, we see each of our new products also generating millions in additional revenues on their own.

"In light of these many positive factors, we believe we remain well on track for another year of record revenue growth, with this driving a significant leap in shareholder value that we hope the market will soon recognize."

Future Product Roadmap

The company is currently preparing to roll out additional new product formulations across new product categories, with strategic cross-promotion planned across all channels.

The company sees these innovative products helping it to further tap a global functional foods and beverage market that is expected to exceed $793 billion by 2032, according to Fortune Business Insights.

In the third quarter of 2025, the company plans to launch Hydration EZ and Mynus Sugar products in an on-the-go gel pack which will be based on Healthy Extracts' exclusive gel delivery system and proprietary formulations.

Also in the second half, the company plans to roll out a full range of functional fiber drinking straws that address high-demand segments of health and wellness, such as hydration, workout recovery, and metabolic health. This is expected to include a straw product scientifically infused with GLP-1 for regulating blood sugar levels and appetite.

The recent addition to the company's technology portfolio of unique oral delivery systems like the fiber straw and precision-dosed gummies enables the company to expand into new distribution channels, such as fitness and elderly care centers, as well as further into physical retail, healthcare provider networks and direct-to-consumer subscriptions.

Nutraceutical gummies and straws can be especially helpful for those suffering from 'pill fatigue' or have difficulty swallowing pills. These new formats have also become especially popular with younger generations who typically don't like swallowing pills.

Q2 2025 Financial Summary

Net revenue in the second quarter of 2025 increased 7% to $969,000 from $908,000 in the second quarter 2024, with the increase primarily due to product line and distribution channel expansion. On a first six-month basis, net revenue increased 19% to $1.9 million.

Excluding an unusual large bulk wholesale order in the second quarter of 2024, net revenue in the same period of 2025 increased 31%, highlighting strong direct-to-consumer and retail growth, including product subscriptions.

Gross profit in the second quarter of 2025 increased 22% to $593,000 or 61.2% of net revenue, compared to $486,000 or 53.5% of net revenue in the same year-ago quarter. The increase in gross margin was primarily due to product sales mix that included a bulk wholesale order in the same period last year.

Operating expenses increased 40% to $698,000, compared to $498,000 in the second quarter of 2024. The increase was due in part to an increase in advertising fees which supported the growth in revenue.

Net income totaled $67,000 or $0.02 per basic and diluted share, compared to net income of $113,500 or 0.04 per basic and diluted share in the year-ago quarter. The decrease in net income was primarily due to the increase in advertising expense.

EBITDA totaled $97,000 as compared to $161,000 in the year-ago quarter. Adjusted EBITDA, which adjusts for stock-based option and warrant expense, change in fair value of derivative, and offering costs, was a loss of $25,000 in the second quarter of 2025, as compared to a gain of $64,500 in the same year-ago quarter (see definition of EBITDA and adjusted EBITDA, both non-GAAP terms, and their reconciliation to GAAP, below)

The company continued to generate positive operating cash flow during the quarter, totaling $82,000 which increased from $61,000 in the same year-ago quarter.

2025 Financial Outlook

Given the strong revenue performance in the first half of 2025, combined with the expected additional contribution of Gummy USA in the second half of the year, the company has increased its outlook for total net revenue in 2025 by 50%, from more than $4.2 million to now more than $6.3 million. This would represent annual net revenue growth of more than 102%.

New product launches across new categories and formats that are scheduled for throughout the year are expected to drive this growth with greater profitability (excluding non-cash-based expenses). The launches are expected to benefit from the broad market channels the company has strategically developed and invested in over the last several years.

The company plans to drive future growth by reinvesting its profits into new product development, sales and marketing, greater manufacturing capacity, and further expanding its distribution and sales channels.

About Healthy Extracts

Healthy Extracts Inc. (OTCQB:HYEX) is an innovative platform company focused on science-based nutraceuticals for heart, brain, metabolic, and gut health. With clinically validated formulations and strategic partnerships, the company is redefining natural health through groundbreaking delivery systems and influencer-backed product lines.

For more information visit: healthyextractsinc.com, bergametna.com or tryubn.com.

Forward-Looking Statements and Safe Harbor Notice

All statements other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as "projected," "expect," "possibility" and "anticipate." The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company's Annual Report on Form 10-K filed with the SEC on April 1, 2025, and future periodic reports filed with the SEC. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.

Use of Non-GAAP Measures

This press release contains financial measures that are not recognized measures under accounting principles generally accepted in the United States of America ("GAAP"), which are EBITDA and adjusted EBITDA. EBITDA is defined for the purposes of this press release as net income before Income tax expense, Interest expense, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the gain or loss related to stock-based option/warrant expense, change in fair value of derivative, and offering costs.

Healthy Extracts' management believes that EBITDA and adjusted EBITDA are useful supplemental measures of our operating performance and provide our investors meaningful measures of overall corporate performance. EBITDA is also presented because management believes that it is frequently used by investment analysts, investors, and other interested parties as a measure of financial performance. Adjusted EBITDA is also presented because management believes that it provides our investors additional measures of our core business. However, non-GAAP measures do not have a standardized meaning prescribed by GAAP, and investors are cautioned that non-GAAP measures, such as EBITDA and adjusted EBITDA, should not be construed as an alternative to net income or loss or other income statement data (which are determined in accordance with GAAP) as an indicator of our performance or as a measure of liquidity and cash flows. Management's method of calculating EBITDA and adjusted EBITDA may differ materially from the method used by other companies and, accordingly, may not be comparable to similarly titled measures used by other companies.

A reconciliation of EBITDA and adjusted EBITDA to net income, the most comparable GAAP measure, is included in the table below. See the table, Consolidated Statement of Operations, provided further below for the weighted average number of common shares used for the determination of adjusted EBITDA basic and diluted earnings per common share

		For the Three Months								For the Six Months
		Ended June 30,								Ended June 30,
		2025				2024				2025				2024
Net Income		$	67,120			$	113,500			$	(331,739	)		$	(747,758	)
Income tax expense			-				-				-				-
Interest expense, net of interest income			29,259				48,748				63,816				91,305
Depreciation and amortization			491				(1,095	)			695				(547	)
EBITDA			96,870				161,153				(267,228	)			(657,000	)
Stock-based option/warrant expense			80,330				74,854				129,320				133,167
Change in fair value of derivative			(201,986	)			(174,156	)			53,468				582,472
Offering costs			-				2,657				-				2,657
EBITDA adjustments			(121,656	)			(96,645	)			182,788				718,298
Adjusted EBITDA		$	(24,786	)		$	64,508			$	(84,440	)		$	61,298
Adjusted EBITDA per common share - basic and diluted		$	(0.01	)		$	0.02			$	(0.03	)		$	0.02

Food & Drug Administration Disclosure

The product and formulation featured in this release is not for use by or sale to persons under the age of 12. This product should be used only as directed on the label. Consult with a physician before use if you have a serious medical condition or use prescription medications. A doctor's advice should be sought before using this and any supplemental dietary product. These statements have not been evaluated by the FDA. This product is not intended to diagnose, treat, cure or prevent any disease.

BergametNA™, Ultimate Brain Nutrients™, UBN™, Citrus Bergamot SuperFruit™ and F4T® are registered trademarks of Healthy Extracts Inc.™

Company Contact
Duke Pitts, President
Healthy Extracts Inc.
Tel (720) 463-1004
Email contact

Investor Contact
CMA Investor Relations
Tel (949) 432-7554
Email contact

HEALTHY EXTRACTS INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDING JUNE 30, 2025 AND 2024
(Unaudited)

		FOR THE THREE MONTHS ENDING								FOR THE SIX MONTHS ENDING
		JUNE 30,								JUNE 30,
		2025				2024				2025				2024
REVENUE
Revenue		$	968,656			$	908,389			$	1,899,935			$	1,597,175
Net revenue			968,656				908,389				1,899,935				1,597,175
COST OF REVENUE
Cost of goods sold			375,828				422,301				882,123				702,728
Total cost of revenue			375,828				422,301				882,123				702,728
GROSS PROFIT			592,827				486,088				1,017,812				894,446
OPERATING EXPENSES
General and administrative			698,434				497,996				1,232,267				968,427
Total operating expenses			698,434				497,996				1,232,267				968,427
OTHER INCOME (EXPENSE)
Interest expense, net of interest income			(29,259	)			(48,748	)			(63,817	)			(91,305	)
Change in fair value on derivative			201,986				174,156				(53,468	)			(582,472	)
Total other income (expense)			172,727				125,408				(117,285	)			(673,777	)
Net income/(loss) before income tax provision			67,120				113,500				(331,739	)			(747,758	)
NET INCOME/(LOSS)		$	67,120			$	113,500			$	(331,739	)		$	(747,758	)
Income/(Loss) per share - basic and diluted		$	0.02			$	0.04			$	(0.11	)		$	(0.25	)
Weighted average number of shares outstanding - basic and diluted			3,050,879				2,967,281				3,050,879				2,967,281

The accompanying notes in the Form 10Q as filed with the SEC are an integral part of these unaudited consolidated financial statements.

HEALTHY EXTRACTS INC.
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2025 AND DECEMBER 31, 2024

		(Unaudited)				(Audited)
		JUNE 30,				DECEMBER 31,
		2025				2024
ASSETS
CURRENT ASSETS
Cash		$	200,495				112,020
Accounts receivable			3,980				11,004
Deposit			-				16,890
Inventory, net			1,106,878				1,361,216
Note receivable			100,000				-
Offering costs			149,274				149,274
Right of use asset, net			-				8,984
Total current assets			1,560,627				1,659,388
Fixed assets			22,052				3,445
Patents/Trademarks			521,881				521,881
Deposit			16,890				-
Goodwill			193,260				193,260
Right of use asset, net - non-current			180,811				-
Total other assets			934,894				718,586
TOTAL ASSETS		$	2,495,521			$	2,377,973
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable		$	114,888				52,247
Accrued interest payable			4,842				67,770
Accrued interest payable - related party			39,823				31,652
Accrued liabilities			223,996				248,609
Lease liabilities - current			60,080				9,222
Notes payable - related party - current			177,500				399,388
Convertible debt, net of discount - current			240,673				530,860
Total current liabilities			861,802				409,500
Lease liabilities - long-term			121,761				-
Notes payable			155,264				2,427
Notes payable - related party - non-current			193,099				-
Convertible debt, net of discount - non-current			6,750				-
Derivative liabilities			678,888				625,420
Total non-current liabilities			1,155,762				1,558,096
Total current and total liabilities			2,017,564				1,967,596
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 75,000,000 shares authorized, none and none shares issued and outstanding, respectively			-				-
Common stock, $0.001 par value, 50,000,000 shares authorized, 3,141,490 shares issued and outstanding as of June 30, 2025, and 2,989,406 shares issued and outstanding as of December 31, 2024, and			354,684				354,532
Additional paid-in capital			19,700,757				19,301,589
Treasury stock, at cost, 4,166 shares, respectively			(5,400	)			(5,400	)
Accumulated deficit			(19,572,083	)			(19,240,344	)
Total stockholders' equity			477,958				410,377
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,495,521			$	2,377,973

The accompanying notes in the Form 10Q as filed with the SEC are an integral part of these unaudited consolidated financial statements.

SOURCE: Healthy Extracts Inc.

View the original press release on ACCESS Newswire

FAQ

What were Healthy Extracts (HYEX) Q2 2025 earnings results?

HYEX reported Q2 2025 revenue of $969,000 (up 7% YoY), net income of $67,000 ($0.02 per share), and gross margin of 61.2%.

How much revenue is Healthy Extracts (HYEX) projecting for 2025?

HYEX increased its 2025 revenue guidance by 50% to $6.3 million+, representing over 102% annual growth.

What impact will the Gummy USA merger have on Healthy Extracts (HYEX)?

The merger is expected to contribute up to $2.1 million in revenue in H2 2025, with potential to reach $20 million annual production capacity in 2026.

How did Healthy Extracts (HYEX) subscription business perform in Q2 2025?

Direct-to-consumer product subscriptions increased 88% and Amazon Subscribe & Save customers grew 107% YoY.

What new products did Healthy Extracts (HYEX) launch in Q2 2025?

HYEX launched STAT10 for heart health, 4Sleep for better rest, and the WHITNEY JOHNS Gut Health Straw.