SRx Health Solutions Announces Fiscal Second Quarter 2026 Results for Quarter Ended March 31, 2026
Rhea-AI Summary
SRx Health Solutions (NYSE American: SRXH) reported fiscal Q2 2026 results for the quarter ended March 31, 2026.
Net revenue rose 23% quarter over quarter to $3.4 million, gross margin held near 37%, and gross profit reached $1.3 million. Operating loss improved to $(1.8) million and net loss to $(6.4) million. Adjusted EBITDA loss improved 44% to $(0.6) million. Cash increased to $20.5 million, aided by equity and preferred issuances. SRx highlighted an active cryptocurrency strategy that reduced losses versus a buy-and-hold approach and a pending EMJX acquisition expected to close by fiscal Q3.
Positive
- Net revenue up 23% QoQ to $3.4 million
- Gross profit up 21% QoQ to $1.3 million at ~37% margin
- Operating loss improved 52% QoQ to $(1.8) million
- Net loss improved 26% QoQ to $(6.4) million
- Adjusted EBITDA loss improved 44% QoQ to $(0.6) million
- Cash grew to $20.5 million from $1.3 million at prior fiscal year-end
Negative
- Net loss remains $(6.4) million for the quarter
- Total other expense, mainly financing and fair-value items, was $4.6 million in Q2
- Convertible debt classified as current totals $22.6 million at March 31, 2026
- Significant share count increase to 416.0 million from 25.0 million outstanding
- Change in fair value of digital assets created a $2.9 million Q2 expense
News Market Reaction – SRXH
In the May 15 session, SRXH declined 9.42%, reflecting a notable negative market reaction. Argus tracked a peak move of +13.4% during that session. Argus tracked a trough of -21.0% from its starting point during tracking. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility. Trading volume was very high at 3.8x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 13 | Q1 2026 earnings | Positive | -9.7% | Reported $2.8M net sales, 38% margin and EMJX acquisition agreement details. |
| May 15 | Q1 2025 earnings | Positive | -16.7% | Showed EPS and Adjusted EBITDA improvements despite a 9% revenue decline. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Prior earnings releases saw negative price reactions despite operational improvements, so today’s positive move contrasts with that pattern.
Recent history shows SRXH using earnings releases to pair pet-health fundamentals with digital-asset and EMJX strategy updates. Q1 FY2026 results on Feb 13, 2026 featured $2.8M net sales, 38% gross margin, and a $8.6M net loss alongside the EMJX acquisition agreement and $18.0M deployed into Bitcoin and Ethereum. Q1 2025 results on May 15, 2025 emphasized EPS and Adjusted EBITDA improvement despite lower revenue. Today’s Q2 FY2026 report continues the focus on margin stability, loss reduction, and digital-asset strategy integration.
Key Terms
adjusted ebitda financial
ebitda financial
non-gaap financial
form s-4 regulatory
registration statement regulatory
derivative liabilities financial
discontinued operations financial
reverse merger financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Q2 FY26 Marks Operational Inflection Point with Sequential
Strengthened Liquidity and Working Capital Position with Cash of
Active Cryptocurrency Strategy Outperformed Market by
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® 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®, 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
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
| SRx Health Solutions Inc. Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands, except share and per share amounts) | |||||||||||||||
| Three Months Ended March 31, | Six Months Ended 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, | 419 | 31 | |||||
| Preferred Stock, | — | — | |||||
| 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 Stockholders’ Equity | $ | 43,364 | $ | 8,402 | |||
| SRx Health Solutions Inc. Non-GAAP Measures |
Adjusted EBITDA
We define Adjusted EBITDA to supplement the financial measures prepared in accordance with GAAP. Adjusted EBITDA adjusts EBITDA to eliminate the impact of certain items that we do not consider indicative of our core operations. Adjusted EBITDA is determined by adding the following items to net loss: interest expense, depreciation and amortization, tax expense, share-based compensation, loss on extinguishment of debt, change in fair value of digital assets, change in fair value of equity securities, change in fair value of derivative liabilities, transaction-related expenses, and other non-recurring expenses.
We present Adjusted EBITDA as it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We believe that the disclosure of Adjusted EBITDA is useful to investors as this non-GAAP measure forms the basis of how our management team reviews and considers our operating results. By disclosing this non-GAAP measure, we believe that we create for investors a greater understanding of and an enhanced level of transparency into the means by which our management team operates our company. We also believe this measure can assist investors in comparing our performance to that of other companies on a consistent basis without regard to certain items that do not directly affect our ongoing operating performance or cash flows.
Adjusted EBITDA does not represent cash flows from operations as defined by GAAP. Adjusted EBITDA has limitations as a financial measure and you should not consider it in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net loss, gross margin, and our other GAAP results.
The following table presents a reconciliation of net loss, the closest GAAP financial measure, to EBITDA and Adjusted EBITDA for each of the years indicated (in thousands):
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||
| 2026 | 2025* | 2026 | 2025* | ||||||||||
| Net loss | $ | (6,381 | ) | $ | — | $ | (14,995 | ) | $ | — | |||
| Interest expense, net | 1,780 | — | 3,068 | — | |||||||||
| Depreciation and amortization | (76 | ) | — | (61 | ) | — | |||||||
| Income tax expense | 2 | — | 6 | — | |||||||||
| EBITDA | (4,675 | ) | — | (11,982 | ) | — | |||||||
| Non-cash share-based compensation (a) | — | — | 961 | — | |||||||||
| 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 | ) | — | |||||||
| Transaction related (b) | 1,164 | — | 2,767 | — | |||||||||
| Non-recurring and other expenses (c) | 121 | — | 279 | — | |||||||||
| Adjusted EBITDA | $ | (594 | ) | $ | — | $ | (1,651 | ) | $ | — | |||
| (a) Non-cash expenses related to equity compensation awards for certain directors, officers and employees for services in their capacity as such. | |||||||||||||
| (b) Represents transaction, financing, treasury, litigation, and other non-recurring corporate costs, including legal, audit, valuation, professional, SEC filing, due diligence, transfer agent, and capital markets-related fees associated with the Company’s financing, treasury, and trading activities, which are not considered part of normal recurring operations. | |||||||||||||
| (c) Other single-occurrence expenses, which consist of infrequent and non-recurring costs that are not indicative of the Company’s ongoing operating performance. | |||||||||||||
| *Prior-year comparative figures are not presented because its wholly owned subsidiary, Halo, Purely for Pets, Inc., constituting the Company’s continuing operations, only became the reporting entity following a reverse merger on April 24, 2025. The prior-year results of its former Canadian operations were discontinued in fiscal year September 30, 2025 subsequent to the merger as a result of a formal insolvency restructuring and thus are classified as discontinued operations in fiscal year 2025. Accordingly, prior-year amounts for continuing operations are not meaningful and are presented as zero on the consolidated statement of operations. | |||||||||||||
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “expect,” “intend,” “aim,” “plan,” “may,” “could,” “target,” and similar expressions are intended to identify forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks include, but are not limited to, the ability to complete the proposed transaction, shareholder approvals, market conditions, regulatory considerations, and other risks described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update them, except as required by law.
Company Contact:
SRx Health Solutions Inc.
Kent Cunningham, Chief Executive Officer
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
Media Contact
KCSA Strategic Communications
Kristin Cwalinski, Senior Vice President
EMJX@KCSA.com
______________________
1 Adjusted EBITDA is a non-GAAP measure. Reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
2 Outperformance and loss reduction are approximate metrics calculated relative to the average performance of Bitcoin and Ethereum from December 5, 2025 to March 31, 2026, as a proxy for market returns, based on total capital deployed into the Company’s digital asset strategy, during the six months ended March 31, 2026.
