SRX Health Solutions Inc. Announces Fiscal First Quarter 2026 Results for Quarter Ended December 31, 2025
Rhea-AI Summary
SRx Health Solutions (NYSE: SRXH) reported Q1 FY2026 results for the quarter ended December 31, 2025, and announced a definitive agreement to acquire EMJ Crypto Technologies (EMJX).
Key metrics: net sales $2.8M, gross margin 38%, net loss $8.6M, cash of $13.1M, and $18.0M deployed into Bitcoin and Ethereum. The EMJX deal is expected to close in H1 2026.
Positive
- Cash balance increased to $13.1M at December 31, 2025
- Gross margin expanded to 38% through SKU rationalization
- Entered definitive agreement to acquire EMJX for digital-asset treasury capability
- Deployed $18.0M into Bitcoin and Ethereum as digital treasury allocation
Negative
- Net loss of $8.6M for Q1 FY26
- Weighted shares outstanding rose to 98.76M, indicating significant dilution
- Inventories declined to $1.318M, constraining Halo brand fill rates and sales
- Adjusted EBITDA loss of $1.06M for the quarter
Market Reaction
Following this news, SRXH has declined 15.82%, reflecting a significant negative market reaction. Our momentum scanner has triggered 26 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $0.13. This price movement has removed approximately $2M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
SRXH is up 14.91% with elevated volume while key peers show mixed moves: AMS and MODV down, CCM slightly up, NIVF down despite appearing in momentum scanners. This points to a stock-specific reaction tied to its earnings and digital-asset strategy.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 15 | Quarterly earnings | Positive | -16.7% | Reported Q1 2025 with higher margins and improved EPS despite lower revenue. |
Prior earnings event with improving margins and EBITDA still saw a -16.67% price reaction, suggesting a history of negative responses to results.
This announcement reports Q1 FY26 results with $2.8 million in net sales, a 38% gross margin, and a net loss of $8.6 million, alongside a definitive agreement to acquire EMJ Crypto Technologies and a growing digital-asset treasury. Previously, on May 15, 2025, Q1 2025 earnings showed improved EPS and Adjusted EBITDA despite lower revenue and a 33% gross margin, yet the stock fell 16.67%. Together, the history shows operational improvement but historically weak price responses to earnings updates.
Historical Comparison
Past earnings (Q1 2025) with margin and EPS improvement led to a -16.67% move. Today’s positive reaction to Q1 FY26 results and the EMJX acquisition plan contrasts with that prior pattern.
Earnings updates progressed from focusing on improving profitability and margins in the Halo pet business in Q1 2025 to combining pet wellness operations with a multi-asset digital treasury strategy and a planned EMJ Crypto Technologies acquisition in Q1 FY26.
Market Pulse Summary
The stock is dropping -15.8% following this news. A negative reaction despite the Q1 FY26 update would fit prior patterns, as the last tagged earnings event on May 15, 2025 saw a -16.67% move even with margin and EPS improvement. The latest quarter still reports a net loss of $8.6 million and an Adjusted EBITDA loss of $1.06 million, alongside substantial deployment of $18.0 million into Bitcoin and Ethereum, which adds volatility. Financing-driven cash of $13.1 million and ongoing restructuring could also temper sentiment.
Key Terms
cryptocurrency financial
adjusted ebitda financial
continuing operations financial
discontinued operations financial
reverse merger financial
stockholders’ equity financial
operating leases financial
AI-generated analysis. Not financial advice.
Executed Definitive Agreement to Acquire EMJ Crypto Technologies ("EMJX"), a “Gen 2” Digital-Asset Treasury Platform, Anticipated to Close in first half of Calendar 2026
Strengthened Balance Sheet, with
During and Subsequent to Quarter, Deployed
NORTH PALM BEACH, Fla., Feb. 13, 2026 (GLOBE NEWSWIRE) -- SRx Health Solutions, Inc. (NYSE American: SRXH) (the “Company” or "SRXH"), a pet health and wellness company, today announced its financial results for the fiscal first quarter 2026 for the three-month period ended December 31, 2025.
“Q1 FY26 marked a pivotal reset for the Company,” stated Kent Cunningham, CEO of SRXH. “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
“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
FIRST QUARTER 2026 HIGHLIGHTS
- EMJX Definitive Agreement: Entered into a definitive agreement to acquire EMJX, a digital-asset treasury platform integrating quantitative models, artificial intelligence, and systematic risk controls for multi-asset digital treasury management, led by Eric M. Jackson.
- Digital Treasury Deployment: Deployed an initial
$8.5 million of capital into several digital assets during the quarter; subsequent purchases increased total allocation to$18.0 million across Bitcoin and Ethereum. - Operating Results: Net sales of
$2.8 million , driven primarily by digital sales of premium pet food and wellness products under the Halo® brand; Gross margin improved to38% , with gross profit of$1.1 million ; Net loss of$8.6 million includes$3.1 million non-cash loss on debt extinguishment; Adjusted EBITDA loss of$1.06 million 1; Diluted loss per share of$(0.26) .
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2025, the Company held cash and cash equivalents of
The major sources of cash in the three months ended December 31, 2025 were primarily proceeds from the issuance of common stock of
| SRx Health Solutions Inc. Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands) | |||||||
| Three Months Ended December 31, | |||||||
| 2025 | 20241 | ||||||
| Net sales | $ | 2,807 | $ | — | |||
| Cost of goods sold | 1,753 | — | |||||
| Gross profit | 1,054 | — | |||||
| Operating expenses: | |||||||
| Selling, general and administrative | 4,844 | — | |||||
| Total operating expenses | 4,844 | — | |||||
| Loss from continuing operations | (3,790 | ) | — | ||||
| Other expense: | |||||||
| Interest expense, net | 1,288 | — | |||||
| Loss on extinguishment of debt | 3,064 | — | |||||
| Change in fair value of digital assets | 464 | — | |||||
| Other expense | 4 | — | |||||
| Total other expense, net | 4,820 | — | |||||
| Net loss before income taxes | (8,610 | ) | — | ||||
| Income tax expense | 4 | — | |||||
| Net loss from continuing operations | (8,614 | ) | — | ||||
| Loss from discontinued operations | — | (3,983 | ) | ||||
| Net loss | $ | (8,614 | ) | $ | (3,983 | ) | |
| Weighted average number of shares outstanding, basic | 33,737,015 | 23,582,701 | |||||
| Weighted average number of shares outstanding, diluted | 33,737,015 | 23,582,701 | |||||
| Loss per share, basic | $ | (0.26 | ) | $ | (0.17 | ) | |
| Loss per share, diluted | $ | (0.26 | ) | $ | (0.17 | ) | |
| SRx Health Solutions Inc. Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts) | |||||||
| December 31, 2025 | September 30, 2025 | ||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 13,060 | $ | 1,309 | |||
| Accounts receivable, net | 3,056 | 3,945 | |||||
| Inventories, net | 1,318 | 2,078 | |||||
| Prepaid expenses and other current assets | 1,403 | 794 | |||||
| Total Current Assets | 18,837 | 8,126 | |||||
| Non-current Assets | |||||||
| Fixed assets, net | 73 | 88 | |||||
| Right-of-use assets, operating leases | — | 20 | |||||
| Digital assets | 7,996 | — | |||||
| Other assets | 147 | 168 | |||||
| Total Assets | $ | 27,053 | $ | 8,402 | |||
| Liabilities & Stockholders’ Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 1,247 | $ | 2,147 | |||
| Accrued liabilities | 1,254 | 1,375 | |||||
| Operating lease liability, short-term | — | 21 | |||||
| Convertible debt, short-term | 21,028 | — | |||||
| Total Current Liabilities | 23,529 | 3,543 | |||||
| Non-current Liabilities | |||||||
| Convertible debt, long-term | — | 4,452 | |||||
| Total Non-current Liabilities | — | 4,452 | |||||
| Total Liabilities | 23,529 | 7,995 | |||||
| Stockholders’ Deficit | |||||||
| Common Stock, | 102 | 31 | |||||
| Preferred Stock, | — | — | |||||
| Additional paid-in capital, common | 21,001 | 23,304 | |||||
| Additional paid-in capital, preferred | 13,963 | — | |||||
| Accumulated deficit | (31,542 | ) | (22,928 | ) | |||
| Total Stockholders’ Equity | 3,524 | 407 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 27,053 | $ | 8,402 | |||
SRx Health Solutions Inc.
Non-GAAP Measures
Adjusted EBITDA
We define Adjusted EBITDA as EBITDA further adjusted 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, tax expense, depreciation and amortization, share-based compensation, change in fair value of digital assets, loss on extinguishment of debt, financing expenses, transaction-related costs, 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) income, 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 periods indicated (in thousands):
| Three Months Ended December 31, | ||||||
| 2025 | 2024* | |||||
| Net loss | $ | (8,614 | ) | $ | — | |
| Interest expense, net | 1,288 | — | ||||
| Depreciation and amortization | 15 | — | ||||
| Income tax expense | 4 | — | ||||
| EBITDA | (7,307 | ) | — | |||
| Non-cash share-based compensation (a) | 961 | — | ||||
| Loss on extinguishment of debt | 3,064 | — | ||||
| Change in fair value of digital assets | 464 | — | ||||
| Transaction related (b) | 1,603 | — | ||||
| Non-recurring and other expenses (c) | 158 | — | ||||
| Adjusted EBITDA | $ | (1,057 | ) | $ | — | |
| (a) | Non-cash expenses related to equity compensation awards for certain directors, officers and employees for services in their capacity as such. |
| (b) | Transaction-related legal fees, professional fees, and SEC filing fees related to single occurrence business matters, i.e. registration statements, financing, and due diligence related. |
| (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 and Adjusted EBITDA margin are non-GAAP measures. Reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
FAQ
What did SRXH announce about acquiring EMJ Crypto Technologies (EMJX)?
How much capital has SRXH deployed into cryptocurrency as part of its digital treasury strategy?
What is SRXH's reported cash position and liquidity at December 31, 2025?
How did SRXH perform operationally in Q1 FY26 including sales and margins?
What were SRXH's reported losses and non-cash items in Q1 FY26?
How will the EMJX acquisition timing affect SRXH's 2026 plans and closing timeline?
