Syra Health Achieves 23% Revenue Growth, Improves Gross Margin to 44.5% in Second Consecutive Profitable Quarter

Rhea-AI Summary

Syra Health (OTCQB: SYRA) reported its second consecutive profitable quarter in Q2 2026, with net income of $250,242 versus a net loss of $(63,596) a year earlier. Revenue rose 23% year-over-year to $2.39 million, driven by 8% growth in population health solutions to $1.72 million and an 87% increase in healthcare workforce revenue to $678,113. Gross margin improved to 44.5% from 38.7%, and EPS reached $0.02 compared with a loss of $(0.01).

EBITDA turned positive at $253,200 compared with a loss of $(53,760). For the first half of 2026, net income was $491,221 and operating cash flow was $643,183. Syra Health renewed key contracts, extended its Indiana FSSA engagement through October 2028, formed a Business Advisory Council, and reported $2.1 million in cash with no long-term debt, while reiterating its focus on full-year 2026 profitability and noting expected CMS ACCESS Model approval with partner HealthSync as a potential long-term revenue source.

Positive

• Q2 2026 revenue $2.39M, up 23% year-over-year
• Q2 2026 net income $250K vs $(64)K loss in Q2 2025
• Gross margin improved to 44.5% from 38.7% year-over-year
• Healthcare workforce revenue up 87% YoY to $678K
• Operating cash flow $643K for first half 2026 vs $86K prior-year period
• Cash $2.1M and no long-term debt at June 30, 2026

Negative

• Cash decreased to $2.1M from $2.9M at March 31, 2026
• Salaries and benefits rose 20% YoY to $392K in Q2 2026
• Research and development expenses increased 59% YoY to $47K in Q2 2026
• Current liabilities increased to $1.20M from $0.67M at December 31, 2025
• Weighted average diluted shares increased to 13.55M from 11.94M year-over-year

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• Syra Health sustained profitability in Q2 2026, following the Company's first profitable quarter in Q1 2026, delivering net income of $250,242 compared with a net loss of $(63,596) in the prior-year period.
• Q2 2026 revenue grew 23% year-over-year to $2.4 million.
• Earnings per share (EPS) improved to $0.02 in Q2 2026 from a loss of $(0.01) in Q2 2025.
• Gross margin increased to 44.5% in Q2 2026, up from 38.7% in Q2 2025.

CARMEL, Ind., Aug. 11, 2026 /PRNewswire/ -- Syra Health Corp. (OTCQB: SYRA) ("Syra Health" or the "Company"), an integrated healthcare solutions company powering better health outcomes through prevention-focused, accessible, and affordable solutions, announced today its financial results for the second quarter ended June 30, 2026.

Q2 2026 Financial Highlights

Syra Health continued to be profitable in Q2 2026, with net income of $250,242 compared to a net loss of $(63,596) in the prior-year period, an improvement of approximately $314,000 or 493% year-over-year.

Total revenue of $2.4 million for the quarter ended June 30, 2026, was up 23% when compared to $1.9 million in the prior-year period.

Revenue growth outpaced cost growth in Q2 2026, resulting in gross margin expansion of approximately 584 basis points to 44.5%, up from 38.7% in the prior-year period, the highest quarterly gross margin in the Company's history.

EPS improved to $0.02 from a loss of $(0.01) in the prior-year period, reflecting a $0.03 per share year-over-year improvement.

EBITDA increased by $307,000 year-over-year, improving from a loss of $(53,760) in Q2 2025 to positive EBITDA of $253,200 in Q2 2026.

For the six months ended June 30, 2026, net income was $491,221 compared to a net loss of $(535,861) in the prior-year period, and net cash provided by operating activities was $643,183 compared to $85,754 in the prior-year period.

2026 Financial Outlook

Following two consecutive profitable quarters, Syra Health remains focused on achieving its previously stated target of full-year profitability for 2026. Certain revenue recognition, timing, and contract milestones are expected to continue to contribute to quarterly variability.

Recent Operational Highlights

Syra Health received contract extensions from several existing customers, including a one-year renewal of its public health contract with Wake County Public Health in North Carolina. The Company also secured a one-year extension of its healthcare workforce contract with the Indiana Veterans' Home. The Company has been awarded an amendment to its existing Indiana FSSA (Family & Social Services Administration) contract with DDRS (Division of Disability and Rehabilitative Services), to extend a learning management platform to the state's Bureau of Disability Services, through October 2028.

Syra Health has established a Business Advisory Council to support strategic market expansion and identify growth opportunities.

The Company anticipates approval for the CMS ACCESS Model in partnership with HealthSync in the near term, which is expected to serve as a durable source of revenue for Syra Health over the next 10 years.  

Management Commentary

Greg Alexander, CEO of Syra Health, said, "Q2 2026 represents another important milestone in Syra Health's evolution as we continue to execute against our growth strategy to build a leading, sustainable healthcare solutions company. Following our first ever profitable quarter in Q1, we achieved continued profitability in Q2, grew revenue by 23% year-over-year, and expanded our gross margin to 44.5%, demonstrating the strength of our business model and the impact of our focus on operational efficiency, disciplined growth, and higher-value solutions.

We are encouraged by the continued momentum across our business, including growth in our population health solutions, contract extensions with existing customers, progress toward CMS ACCESS Model approval, and continued demand for our healthcare workforce solutions. These achievements reflect the confidence our customers place in Syra Health and our ability to address some of healthcare's most pressing challenges around access, affordability, and outcomes.

As we look ahead, we remain focused on sustaining full-year profitability, while continuing to grow our customer base and deliver innovative solutions that improve health outcomes. We believe our diversified portfolio, technology-enabled solutions, and strong market partnerships position Syra Health for continued long-term growth and value creation for our shareholders."

Q2 2026 Financial Results

Revenue for the second quarter of 2026 grew to $2.4 million, an increase of 23% when compared to $1.9 million in the second quarter of 2025. Growth was led by the Company's high-margin population health solutions, which grew 8% year-over-year to $1,716,310 million from $1,583,752 million in Q2 2025.

Healthcare workforce revenue increased 87% year-over-year, from $362,447 to $678,113 as demand for our healthcare workforce solutions grew to address critical workforce shortages and the Company continued to focus on better margin contracts. 

Gross profit margin expanded 580 basis points to 44.5% in the second quarter of 2026, compared with 38.7% in the prior year period, reflecting revenue mix and continued operating leverage.

Operating expenses reflected continued cost management, while allowing for strategic spending to support growth. Salaries and benefits increased 20% to $392,136 in Q2 2026 from $326,354 in the prior-year period, reflecting investments in talent to support business expansion. Professional services decreased 16% to $138,019 in Q2 2026 from $164,939 in Q2 2025, while selling, general and administrative expenses also declined 18% to $236,485 compared with $289,070 in the prior-year period. Research and development expenses increased 59% to $47,351 in Q2 2026 from $29,712 in Q2 2025, reflecting allocations in our technology-enabled solutions. Depreciation expense decreased 88% to $741 from $5,978 in the year-ago period.

Net cash provided by operating activities for the six months ended June 30, 2026, was $643,183, compared to $85,754 in the prior-year period. Cash and cash equivalents were $2.1 million as of June 30, 2026, compared to $2.9 million as of March 31, 2026, and $1.6 million as of December 31, 2025, reflecting a $552,000 increase in accounts receivable and the recognition of deferred revenue that had been billed in advance during the first quarter.

Cash on hand was $2.1 million and no long-term debt as of June 30, 2026.

SYRA HEALTH CORP.
BALANCE SHEETS
		June 30,				December 31,
		2026				2025
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	2,123,747			$	1,614,733
Accounts receivable, net			1,470,023				918,374
Other current assets			153,384				205,423
Total current assets			3,747,154				2,738,530
Property and equipment, net			5,192				6,986
Right-of-use asset			77,644				27,401
Total assets		$	3,829,990			$	2,772,917
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	195,595			$	247,520
Accounts payable, related party			125,000				72,000
Accrued expenses			220,333				194,821
Deferred revenue			505,886				16,611
Current portion of operating lease liability, related party			77,644				27,401
Notes payable			71,694				116,386
Total current liabilities			1,196,152				674,739
Non-current portion of operating lease liability, related party			-				-
Total liabilities			1,196,152				674,739
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares designated, issued and outstanding			-				-
Class A common stock, $0.001 par value, 100,000,000 shares authorized, 13,839,169 and 11,339,169 shares issued and outstanding, respectively			13,839				11,339
Convertible class B common stock, $0.001 par value, 5,000,000 shares authorized, 350,000 and 600,000 shares issued and  outstanding, respectively			350				600
Additional paid-in capital			11,848,954				11,806,765
Accumulated deficit			(9,229,305)				(9,720,526)
Total stockholders' equity			2,633,838				2,098,178
Total liabilities and stockholders' equity		$	3,829,990			$	2,772,917

 

SYRA HEALTH CORP.
STATEMENTS OF OPERATIONS
(Unaudited)
		For the Three Months Ended								For the Six Months Ended
		2026				2025				2026				2025
Net revenues		$	2,394,423			$	1,946,199			$	4,667,943			$	3,803,973
Cost of services			1,328,120				1,193,304				2,630,385				2,461,922
Gross profit			1,066,303				752,895				2,037,558				1,342,051
Operating expenses:
Salaries and benefits			392,136				326,354				764,245				833,561
Professional services			138,019				164,939				325,160				388,965
Research and development expenses			47,351				29,712				54,272				66,885
Selling, general and administrative expenses			236,485				289,070				449,532				576,357
Depreciation			741				5,978				1,795				12,775
Total operating expenses			814,732				816,053				1,595,004				1,878,543
Operating income (loss)			251,571				(63,158)				442,554				(536,492)
Other income (expense):
Interest income			888				3,420				53,346				7,718
Interest expense			(2,217)				(3,858)				(4,679)				(7,087)
Total other income (expense)			(1,329)				(438)				48,667				631
Net income (loss)		$	250,242			$	(63,596)			$	491,221			$	(535,861)
Weighted average common shares outstanding - basic			13,175,433				11,939,169				12,560,716				11,764,086
Weighted average common shares outstanding - diluted			13,551,931				11,939,169				12,937,216				11,764,086
Net income (loss) per common share - basic and diluted		$	0.02			$	(0.01)			$	0.04			$	(0.05)

 

SYRA HEALTH CORP.
STATEMENTS OF CASH FLOWS
(Unaudited)
		For the Six Months Ended
		June 30,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$	491,221			$	(535,861)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation			1,795				12,775
Common stock issued for services			-				2,586
Stock-based compensation			44,439				54,067
Changes in operating assets and liabilities:
Accounts receivable			(551,649)				(205,534)
Other current assets			141,516				157,985
Right-of-use asset			29,877				277,029
Accounts payable			(51,926)				455,366
Accounts payable, related party			53,000				-
Deferred revenue			489,275				250,000
Accrued expenses			25,512				(105,630)
Operating lease liability			(29,877)				(277,029)
Net cash provided by operating activities			643,183				85,754
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment			-				-
Net cash used in investing activities			-				-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock and exercise of warrants			-				14,800
Repayments on notes payable			(134,169)				(190,035)
Net cash used in financing activities			(134,169)				(175,235)
NET CHANGE IN CASH AND CASH EQUIVALENTS			509,014				(89,481)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			1,614,733				2,395,405
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	2,123,747			$	2,305,924
SUPPLEMENTAL INFORMATION:
Interest paid		$	4,679			$	7,087
Income taxes paid		$	-			$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of Class B common stock to Class A common stock		$	2,500			$	2,333
Recognition of right-of-use asset and lease liability		$	80,120			$	-
Prepaid asset financed with note payable		$	89,477			$	123,866

Non-GAAP Financial Measures

In addition to financial results reported in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we have provided the following non-GAAP financial measure in this release and the accompanying tables: adjusted EBITDA. We use this non-GAAP financial measures internally to facilitate period-to-period comparisons and analysis of our operating performance and liquidity and believe it is useful to investors as a supplement to GAAP measures in analyzing, trending, and benchmarking the performance and value of our business. However, this measure is not intended to be a substitute for those reported in accordance with GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. For reconciliations of historical non-GAAP financial measures to the most comparable financial measures under GAAP, see the table below.

	Six Months Ended
	June 30, 2026		June 30, 2025
Net Income (Loss)	$                  491,221		$ (535,861)
Interest expense	4,679		7,087
Depreciation expense	1,795		12,775
Taxes	-		-
Earnings before Interest, Taxes Depreciation and Amortization	$                  497,695		$ (515,999)
	Three Months Ended
	June 30, 2026		June 30, 2025
Net Income (Loss)	$                  250,242		$ (63,596)
Interest expense	2,217		3,858
Depreciation expense	741		5,978
Taxes	-		-
Earnings before Interest, Taxes Depreciation and Amortization	$                  253,200		$ (53,760)

About Syra Health

Syra Health is an integrated healthcare solutions company serving government and commercial healthcare organizations with innovative solutions designed to improve health outcomes. We specialize in healthcare prevention, expanding access, and delivering affordable solutions. Our healthcare analytics capabilities provide proactive, actionable insights and data-driven intelligence, and our HIPAA-compliant and fully accessible digital health solutions enable measurable health outcomes in highly regulated healthcare environments. Through training and education, we help healthcare organizations reduce costs and deliver consistent, high-quality care.

Discover our healthcare solutions at www.syrahealth.com and follow the Company on LinkedIn. 

Forward-Looking Statements

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include but are not limited to, statements relating to the expected use of proceeds, the Company's operations and business strategy, and the Company's expected financial results. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty, and changes in circumstances. Investors should read the risk factors set forth in our Form 10-K for the year ended December 31, 2025, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and, except as required by federal securities laws, the Company specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact
Christine Drury
IR/PR Director
Syra Health
christined@syrahealth.com
463-345-5180

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SOURCE Syra Health

FAQ

How did Syra Health (SYRA) perform financially in Q2 2026?

Syra Health reported Q2 2026 net income of $250,242 on revenue of $2.39 million. According to Syra Health, this compares with a $(63,596) net loss on $1.95 million revenue in Q2 2025, reflecting 23% revenue growth and sustained profitability.

What was Syra Health's gross margin in Q2 2026 and how did it change year-over-year?

Syra Health’s Q2 2026 gross margin was 44.5%, up from 38.7% in Q2 2025. According to Syra Health, this improvement reflects revenue mix benefits and operating leverage, and represents the highest quarterly gross margin in the company’s history.

How profitable was Syra Health (SYRA) in the first half of 2026?

Syra Health generated first-half 2026 net income of $491,221 and operating cash flow of $643,183. According to Syra Health, this compares with a $(535,861) net loss and $85,754 operating cash flow in the prior-year period, marking a significant profitability turnaround.

Which revenue segments drove Syra Health’s Q2 2026 growth?

Q2 2026 growth was led by population health and healthcare workforce solutions. According to Syra Health, population health revenue rose 8% year-over-year to $1.72 million, while healthcare workforce revenue increased 87% to $678,113, benefiting from demand and focus on better-margin contracts.

What contracts and extensions did Syra Health (SYRA) secure in 2026?

Syra Health renewed several key contracts in 2026, including one-year extensions with Wake County Public Health and Indiana Veterans’ Home. According to Syra Health, it also amended its Indiana FSSA contract to extend a learning platform through October 2028 for the Bureau of Disability Services.

What is Syra Health’s outlook for full-year 2026 profitability and the CMS ACCESS Model?

Syra Health remains focused on achieving full-year 2026 profitability after two profitable quarters. According to Syra Health, it anticipates near-term approval of the CMS ACCESS Model with HealthSync, which it expects could provide a durable revenue source over the next 10 years.