Syra Health Announces Second Quarter Financial Results, Advancing Toward Profitability on Margin Gains and Cost Reductions

Rhea-AI Summary

Syra Health (OTCQB: SYRA) reported Q2 2025 financial results showing progress toward profitability. Revenue remained steady at $1.9 million, with Population Health segment growing 197% to $1.6 million. The company achieved significant margin improvement, with gross margin expanding 2,090 basis points to 38.7% compared to Q2 2024.

Operating expenses decreased 53% to $816,000, while net loss improved dramatically to ($64,000) from ($1.4 million) in Q2 2024. EPS improved to ($0.01) from ($0.21). The company maintains a strong balance sheet with $2.3 million in cash and no long-term debt.

Notable developments include contract negotiations for a $5.8 million mental health program in Indiana and a new $2.1 million contract with a major health insurer, marking expansion into the private sector.

Positive

• Population Health revenue grew 197% year-over-year to $1.6 million
• Gross margin expanded significantly by 2,090 basis points to 38.7%
• Operating expenses reduced by 53% to $816,000
• Net loss improved 95% to ($64,000) from ($1.4 million)
• Strong balance sheet with $2.3 million cash and no long-term debt
• Secured new $2.1 million contract with major health insurer
• In negotiations for $5.8 million mental health program contract

Negative

• Revenue remained flat at $1.9 million year-over-year
• Still operating at a net loss despite improvements
• Potential negative impact from federal government spending program pauses
• Experiencing delays in new contract awards and RFP cancellations
• Research and Development spending decreased 89%, potentially affecting future innovation

-       Revenue of $1.9 Million consistent with the year-ago period
-       Revenue led by Population Health's growth up 197% compared to Q2 2024
-       Gross Margin increases to 38.7%, up 2,090 basis points compared to Q2 2024
-       Earnings per share for the second quarter of 2025 were ($0.01), compared to ($0.21) in the year-ago period

CARMEL, Ind., Aug. 12, 2025 /PRNewswire/ -- Syra Health Corp. (OTCQB: SYRA) ("Syra Health" or the "Company"), a healthcare technology company dedicated to powering better health through innovative technology products and services, announced today its financial results for the second quarter ended June 30, 2025.

Q2 2025 Financial Highlights

• Population Health experienced growth in the quarter, up 197% to $1.6 million from $533,000 in Q2 2024. This increase was primarily driven by revenue from the implementation of our $5.8 million contract to train health workers providing home and community-based services (HCBS) to Medicaid beneficiaries under the purview of the Indiana Family and Social Services Administration (FSSA). Growth was also supported by the continued expansion of services we provide to other state agencies and government customers.
• Gross margin grew 2,090 basis points to 38.7% compared to 17.8% in the prior year period. Gross margin increased this quarter due to our strategic focus on higher-margin business units and the completion of key project milestones. While this resulted in a strong Q2 performance, gross margins typically fluctuate across quarters and tend to stabilize over the full year. Therefore, the EPS for this quarter should be viewed in the context of overall annual performance, not as a projection for the remaining quarters.
• Earnings per share for the second quarter of 2025 were ($0.01), a significant improvement from ($0.21) in the same period last year.
• Cash of $2.3 million and no long-term debt as of June 30, 2025.

2025 Financial Outlook

• We depend heavily on state, local, and county government budgets for our revenue. In 2025, the United States federal government began pausing or terminating numerous spending programs that potentially fund those programs and institutions that are our customers. As such, we have begun to see delays in new contract awards, or cancellations of previous requests for proposals. These factors, and the possibility of further spending reviews and cancellations, may negatively affect the quantity and time of our revenue, results of operations, and cash flows in the near term.

Recent Operational Highlights

• Currently engaged in contract negotiations for a $5.8 million agreement to serve as Indiana's Statewide Access Site for the Child Mental Health Wraparound (CMHW) program, under the FSSA's Division of Mental Health and Addiction. Once finalized, the Syra team will assist families with completing the application for the CMHW program, connecting them to needed mental health services across 92 counties in Indiana.
• Awarded a contract worth up to $2.1 million to provide medical management nurses for a major health insurer. This reflects our expanding role supporting insurance providers through clinical staffing, data and analytics to optimize member plans, data visualizations, and HEDIS call center support. It also marks a significant step into the private sector, complementing our ongoing work with public sector customers.
• Won several contracts across the U.S. with revenue of $100,000 or less, including:
  • Providing behavioral health sessions for Wake County, North Carolina, public health staff, focused on secondary trauma support
  • Conducting a Health and Human Services needs assessment in St. John's County, Florida
  • Staffing licensed mental health clinicians in Parkway School District, Missouri
• Achieved ISO 27001:2022 certification, demonstrating the Company's commitment to data protection and information security for its many technology-based products.

Management Commentary

Priya Prasad, Interim CEO of Syra Health, said, "We are inching closer to profitability, fueled by growth of our Population Health business unit, which continues to exceed expectations. This team delivers high-impact services, from health education and training to data collection, analytics, and large-scale program implementations. Our results this quarter reflect both the increasing demand for these capabilities and the disciplined execution across the organization. We are also expanding into the private sector, complementing our strong foundation with public sector customers. As we fine-tune our corporate strategy, we remain focused on scaling what works and maximizing long-term value for our shareholders."

Q2 2025 Financial Results

Revenue for the second quarter of 2025 was $1,946,199, consistent with revenue of $1,969,681 in Q2 2024. Revenue in the second quarter of 2025 was driven by the high-margin Population Health business unit, which expanded 197% year-over-year.   

Gross profit margin was 38.7% in the second quarter of 2025, a 2,090 basis point expansion compared to 17.8% in the prior year period. Total operating expenses for the second quarter of 2025 were $816,000 compared to $1.7 million in the year-ago period, a decline of 53% over the prior year period. The reduction in operating expenses was driven by continued disciplined cost management and continues to improve the Company's profitability trajectory.

Adjusted EBITDA for the second quarter of 2025 was ($54,000), a significant improvement compared to ($1.4) million in Q2 of the prior year.

Net loss for the second quarter of 2025 dropped 95% to ($64,000) when compared to ($1.4) million in the second quarter of 2024. This improvement reflects the benefits we continue to receive from our operational restructuring efforts conducted last year.

Salaries and benefits were down 61% to $326,000 when compared to Q2 2024. Salaries and benefits decreased because of lower headcount in 2025 and a strategic focus on streamlining operations through workforce optimization and reduced redundancies. Professional services were up 17% to $165,000 due to fine-tuning our corporate strategy.

Research and Development expenses were down 89% to $30,000 compared to the prior year period, as the result of a decrease in expenses to develop our technology-based solutions.

Selling and administrative expenses decreased 37% from Q2 2024 to $289,000, primarily resulting from our efforts to reduce overhead in 2025.

Cash on hand as of June 30, 2025, was $2.3 million with no long-term debt.

SYRA HEALTH CORP.
CONDENSED BALANCE SHEETS
		June 30,				December 31,
		2025				2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	2,305,924			$	2,395,405
Accounts receivable, net			886,361				680,827
Other current assets			242,444				276,563
Total current assets			3,434,729				3,352,795
Property and equipment, net			14,572				27,347
Right-of-use asset			22,161				299,190
Total assets		$	3,471,462			$	3,679,332
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable		$	557,056			$	101,690
Accrued expenses			124,753				230,383
Deferred revenue			266,611				16,611
Current portion of operating lease liability, related party			22,161				111,978
Notes payable			86,718				152,887
Total current liabilities			1,057,299				613,549
Non-current portion of operating lease liability, related party			-				187,212
Total liabilities			1,057,299				800,761
Commitments and contingencies
Stockholders' equity (deficit):
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, 11,339,169 and 8,979,204 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			11,339				8,979
Convertible class B common stock, $0.001 par value, 5,000,000 shares authorized, 600,000 and 833,334 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			600				833
Additional paid-in capital			11,762,278				11,692,952
Accumulated deficit			(9,360,054)				(8,824,193)
Total stockholders' equity (deficit)			2,414,163				2,878,571
Total liabilities and stockholders' equity (deficit)		$	3,471,462			$	3,679,332

 

SYRA HEALTH CORP.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
		For the Three Months Ended								For the Six Months Ended
		2025				2024				2025				2024
Net revenues		$	1,946,199			$	1,969,681			$	3,803,973			$	3,722,021
Cost of services			1,193,304				1,619,674				2,461,922				3,192,727
Gross profit			752,895				350,007				1,342,051				529,294
Operating expenses:
Salaries and benefits			326,354				847,064				833,561				1,583,367
Professional services			164,939				141,456				388,965				336,036
Research and development expenses			29,712				277,894				66,885				555,442
Selling, general and administrative expenses			289,069				456,572				576,356				858,837
Depreciation			5,979				17,374				12,776				29,919
Total operating expenses			816,053				1,740,360				1,878,543				3,363,601
Operating loss			(63,158)				(1,390,353)				(536,492)				(2,834,307)
Other income (expense):
Interest income			3,420				3,826				7,718				4,807
Interest expense			(3,858)				(3,729)				(7,806)				(7,806)
Total other income (expense)			(438)				97				631				(2,999)
Net loss		$	(63,596)			$	(1,390,256)			$	(535,861)			$	(2,837,306)
Weighted average common shares outstanding - basic and diluted			11,939,169				6,602,421				11,764,086				6,548,817
Net loss per common share - basic and diluted		$	(0.01)			$	(0.21)			$	(0.05)			$	(0.43)

 

SYRA HEALTH CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
		For the Six Months Ended
		June 30,
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(535,861)			$	(2,837,306)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			12,775				29,919
Common stock issued for services			2,586				37,750
Non-cash lease expense			-				63,199
Stock-based compensation, stock options			54,067				28,486
Changes in operating assets and liabilities:
Accounts receivable			(205,534)				270,539
Accounts receivable, related party			-				(797)
Other current assets			34,119				148,927
Right-of-use asset			277,029				-
Accounts payable			455,366				37,123
Deferred revenue			250,000				6,108
Accrued expenses			(105,630)				(24,761)
Operating lease liability			(277,029)				(63,199)
Net cash provided by/(used in) operating activities			(38,112)				(2,304,012)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment			-				(11,111)
Net cash used in investing activities			-				(11,111)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds received on exercise of warrants			14,800				850,129
Repayments on notes payable			(66,169)				(220,729)
Net cash provided by/(used in) financing activities			(51,369)				629,400
NET CHANGE IN CASH AND CASH EQUIVALENTS			(89,481)				(1,685,723)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			2,395,405				3,280,075
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	2,305,924			$	1,594,352
SUPPLEMENTAL INFORMATION:
Interest paid		$	7,087			$	7,806
Income taxes paid		$	-			$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of Class B common stock to Class A common stock		$	2,333			$	-
Initial recognition of right-of-use asset and lease liability		$	-			$	351,193
Prepaid asset financed with note payable		$	-			$	150,159

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.

SYRA HEALTH CORP.
RECONCILIATION OF ADJUSTED EBIDTA TO NET LOSS
(UNAUDITED)
	Three Months Ended
	June 30, 2025		June 30, 2024
Net Loss	$(63,596)		$(1,390,256)
Interest Expense	3,858		3,729
Depreciation Expense	5,978		17,374
Taxes	-		-
Earnings before Interest, Taxes Depreciation and Amortization	$ (53,760)		$ (1,369,153)

About Syra Health

Syra Health is a healthcare technology company that powers better health in critical areas such as mental health, population health, and the healthcare workforce. The company's leading-edge technology products and innovative services focus on prevention, access, and affordability. With a commitment to improving health, Syra Health is advancing healthcare solutions nationwide and around the world. For more information, please visit www.syrahealth.com.

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, 2024, 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.

For Investor or Media Inquiries:
Christine Drury
IR/PR
Syra Health
463-345-5180
christined@syrahealth.com

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SOURCE Syra Health

FAQ

What were Syra Health's (SYRA) key financial results for Q2 2025?

Syra Health reported revenue of $1.9 million, gross margin of 38.7%, and EPS of ($0.01). The company reduced its net loss by 95% to ($64,000) compared to Q2 2024.

How much did Syra Health's Population Health segment grow in Q2 2025?

Syra Health's Population Health segment grew 197% to $1.6 million from $533,000 in Q2 2024, primarily driven by the Indiana FSSA contract implementation.

What is Syra Health's (SYRA) cash position as of Q2 2025?

Syra Health maintained $2.3 million in cash with no long-term debt as of June 30, 2025.

What new contracts did Syra Health secure in Q2 2025?

Syra Health secured a $2.1 million contract with a major health insurer and is negotiating a $5.8 million contract for Indiana's Child Mental Health Wraparound program.

How did Syra Health's operating expenses change in Q2 2025?

Operating expenses decreased 53% to $816,000 compared to $1.7 million in Q2 2024, driven by disciplined cost management and operational restructuring.