STOCK TITAN

SRX Global (SRXH) okays dividend and buyback while still losing money

(Very High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

SRX Global Inc. (SRXH) reported fiscal third quarter 2026 results highlighted by stronger revenue growth, narrower losses and a highly liquid balance sheet. Net sales rose 27% year over year to $3.4 million, while operating loss improved 63% to $3.2 million and net loss from continuing operations improved 40% to $4.1 million. Adjusted EBITDA loss improved 35% year over year to $1.6 million.

As of June 30, 2026, SRX Global reported $65.2 million in current assets and $2.4 million in total liabilities, with no debt outstanding. Net asset value was approximately $62.9 million or $3.22 per common share, above preliminary estimates of $60.0 million and $3.07 per share; the company also held $36.7 million in cash, cash equivalents and restricted cash.

The company completed the acquisition of EMJX, an AI-enabled digital-asset treasury platform, and reported hypothetical model results showing a maximum drawdown of about 10.6% versus 28–58% for benchmark comparators since February 2026. SRX approved a 10 million share repurchase program and declared a $0.05 per-share one-time dividend (about $1.3 million), while continuing to post sizable losses, including a nine-month net loss from continuing operations of $19.1 million.

Positive

  • Net sales grew 27% year over year in Q3 2026 to $3.4 million, indicating meaningful top-line expansion.
  • Operating loss improved 63% year over year to $3.2 million, reflecting substantial operating leverage versus the prior-year period.
  • Adjusted EBITDA loss improved 35% year over year to $1.6 million, showing better underlying operating performance.
  • Net asset value reached $62.9 million or $3.22 per share, exceeding preliminary NAV estimates of $60.0 million and $3.07 per share.
  • Balance sheet is highly liquid with $65.2 million in current assets, $2.4 million in total liabilities, and no debt outstanding.
  • EMJX acquisition adds an AI-driven treasury platform, with its strategy model showing a 10.6% maximum drawdown versus 28–58% for benchmarks since inception.
  • Capital return actions are material, including a $0.05 per-share one-time dividend (~$1.3 million) and a 10 million share repurchase program.

Negative

  • Company remains significantly loss-making, with Q3 2026 net loss from continuing operations of $4.1 million and nine-month loss of $19.1 million.
  • Digital-asset volatility weighed on results, with a Q3 loss of $1.4 million and nine-month loss of $4.8 million from changes in fair value of digital assets.
  • Total other expense rose sharply to $10.3 million for the nine months ended June 30, 2026, versus $(1.8) million in the prior-year period, pressuring overall profitability.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Net sales Q3 2026 $3.4 million Three months ended June 30, 2026; 27% higher than $2.7 million in Q3 2025
Net loss from continuing operations Q3 2026 $4.1 million Three months ended June 30, 2026; improved from $6.9 million in prior-year period
Adjusted EBITDA loss Q3 2026 $1.6 million Three months ended June 30, 2026; 35% improvement from $2.4 million in Q3 2025
Net Asset Value $62.9 million As of June 30, 2026; NAV per common share $3.22
Current assets and liabilities $65.2 million current assets; $2.4 million total liabilities Balance sheet at June 30, 2026; no debt outstanding
Cash, cash equivalents and restricted cash $36.7 million Included within current assets as of June 30, 2026
Digital assets fair value loss Q3 2026 $1.4 million Change in fair value of digital assets for three months ended June 30, 2026
Nine-month net loss from continuing operations $19.1 million Nine months ended June 30, 2026
Net Asset Value financial
"Net Asset Value (“NAV”) of $62.9 million, or $3.22 per Common Share"
Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.
Adjusted EBITDA financial
"Adjusted EBITDA loss improved 35% year over year to $1.6 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
maximum drawdown financial
"the EMJX strategy model experienced a maximum drawdown of approximately 10.6%"
The maximum drawdown is the largest percentage drop in the value of an investment, portfolio, or index from a historical peak to its subsequent lowest point before a new peak is reached. It matters to investors because it measures the worst loss they would have experienced over a period, like the deepest dip on a roller coaster ride, and helps gauge downside risk and the potential pain during market downturns.
digital assets financial
"recognized a $1.4 million loss from changes in the fair value of digital assets"
Digital assets are electronic files or representations of value stored electronically, such as cryptocurrencies, digital tokens, or digital art. They matter to investors because they can be bought, sold, and used for transactions much like physical assets, but exist entirely in digital form, offering new opportunities for investment and financial innovation.
reverse stock split financial
"after giving effect to the Company’s one-for-sixty reverse stock split"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
cost-per-click financial
"search cost-per-click of $2.51, approximately 8% below the pet category benchmark"
Cost-per-click (CPC) is the amount an advertiser pays each time someone clicks on an online ad. For investors, CPC is a direct measure of how expensive it is for a company to attract potential customers—lower CPC usually means more efficient marketing, which can improve profit margins and make growth cheaper, while rising CPCs can signal increased competition or less effective advertising.
Offering Type IPO/secondary/shelf/ATM

FAQ

How did SRXH’s revenue perform in the fiscal third quarter of 2026?

SRX Global’s Q3 2026 net sales were $3.4 million, up 27% year over year from $2.7 million. This reflects growth primarily from its Halo operations under the continuing-operations basis used for prior-year comparisons.

What were SRXH’s earnings and losses for Q3 2026 and the year-to-date period?

For Q3 2026, SRX Global reported a net loss from continuing operations of $4.1 million. For the nine months ended June 30, 2026, net loss from continuing operations totaled $19.1 million, compared with $6.9 million in the prior-year period.

What is SRXH’s net asset value and NAV per share as of June 30, 2026?

As of June 30, 2026, SRX Global’s net asset value was approximately $62.9 million, or $3.22 per common share. This exceeded preliminary NAV estimates of $60.0 million and $3.07 per share announced in July 2026.

What does SRXH’s balance sheet look like, including cash and debt levels?

SRX Global reported $65.2 million in current assets and $2.4 million in total liabilities, with no debt outstanding as of June 30, 2026. Cash, cash equivalents and restricted cash totaled $36.7 million, supporting its capital allocation strategy.

Did SRXH announce any dividends or share repurchase plans?

SRX Global declared a one-time cash dividend of $0.05 per share, totaling about $1.3 million, fully funded with its paying agent. The board also approved a 10 million share repurchase program, with capacity available following the 10-Q blackout period.

How did SRXH’s Adjusted EBITDA change in Q3 2026?

Adjusted EBITDA loss in Q3 2026 improved to $1.6 million, a 35% year-over-year improvement from $2.4 million. This measure excludes items like fair value changes, transaction-related costs and other non-recurring expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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false 0001471727 0001471727 2026-08-13 2026-08-13 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

  

FORM 8-K

  

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 13, 2026

 

SRX Global, Inc.

(Exact name of Registrant as Specified in its Charter)

  

Delaware   001-40477   83-4284557

(State or other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

801 US Highway 1

North Palm Beach, Florida 33408

(Address of Principal Executive Offices) (Zip Code)

 

(Registrant’s Telephone Number, Including Area Code): (212) 896-1254

 

N/A

(Former name or former address, if changed since last report.)

  

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, $0.001 par value share   SRXH   NYSE American

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 
 

 

Item 2.02 Results of Operations and Financial Condition

 

On August 13, 2026, SRX Global Inc., a Delaware corporation (the “Company”), announced its financial results for the fiscal third quarter ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1

 

Cautionary Note Regarding Forward-Looking Statements.

 

This Current Report on Form 8-K contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Management’s projections and expectations are subject to a number of risks and uncertainties that could cause actual performance to differ materially from that predicted or implied. Forward-looking statements may be identified by the use of words such as “expect,” “anticipate,” “believe,” “estimate,” “potential,” “should” or similar words intended to identify information that is not historical in nature. Forward-looking statements contained herein include, among others, statements concerning management’s expectations about future events and the Company’s operating plans and performance, including levels of consumer, business and economic confidence generally, the regulatory environment, litigation, sales, and the expected benefits of acquisitions, and such statements are based on the current beliefs and expectations of the Company’s management, as applicable, and are subject to known and unknown risks and uncertainties. There are a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. These statements speak only as of the date they are made, and the Company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this Current Report on Form 8-K or to reflect the occurrence of any unanticipated events. For further information regarding the risks associated with the Company’s business, please refer to the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the most recent fiscal year end, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

 

 
 

 

Item 9.01Financial Statements and Exhibits

 

(d) Exhibits.

 

Exhibits   Description
99.1   Press Release dated August 13, 2026
104   Cover Page Interactive Data file (embedded within the Inline XBRL document)

 

 
 

  

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  SRX Global, Inc.
     
  By: /s/ Carolina Martinez
  Name: Carolina Martinez
  Title: Chief Financial Officer
     
August 19, 2026    

 

 

 

Exhibit 99.1

 

 

 

SRX GLOBAL INC. ANNOUNCES FISCAL THIRD QUARTER 2026 FINANCIAL RESULTS

 

Net Asset Value (“NAV”) of $62.9 million, or $3.22 per Common Share, Exceeding Preliminary Estimate of $3.07 per Share1

 

Ended the Quarter with $36.7 million of Cash, Cash Equivalents and Restricted Cash, $65.2 million in Current Assets, and $2.4 million in Total Liabilities, With No Debt Outstanding

 

Adjusted EBITDA Loss Improved 35% year over year to $1.6 million4

 

Strengthened Halo Operations, Exiting the Quarter with 98% Fill Rates and Record Prime Day Performance

 

NORTH PALM BEACH, FL – August 13, 2026 – SRX Global Inc. (NYSE American: SRXH) (the “Company” or SRX), an AI-enabled platform dedicated to generating long-term shareholder value through investments in high-conviction operating companies and strategic assets, today announced its financial results for the fiscal third quarter ended June 30, 2026.

 

THIRD QUARTER 2026 AND SUBSEQUENT HIGHLIGHTS3

 

Net sales increased 27% year over year to $3.4 million
   
Operating loss improved 63% year over year to $3.2 million
   
Net loss from continuing operations improved 40% year over year and 35% quarter over quarter to $4.1 million
   
Adjusted EBITDA loss improved 35% year over year to $1.6 million4
   
Ended the quarter with $36.7 million of cash, cash equivalents and restricted cash, $65.2 million in current assets and $2.4 million of total liabilities, with no debt outstanding.
   
Approved a 10 million share repurchase program; program capacity fully available following Black Out period related to 10-Q filing.
   
Declared a one-time cash dividend of $0.05 per share (~$1.3 million aggregate) to shareholders of record on July 22, 2026; the Company has fully funded the dividend distribution with its paying agent, which is completing distributions to eligible shareholders.
   
EMJX: Completed the acquisition of EMJX, an AI-enabled digital-asset treasury platform led by Eric M. Jackson, expanding the Company’s investment and capital allocation capabilities.
   
Halo: Improved fill rates to an average of 93% for the quarter and 98% in June. Halo delivered record Prime Day performance, including 13% year-over-year growth in New-to-Brand customers and search cost-per-click of $2.51, approximately 8% below the pet category benchmark.5

 

“The third quarter was transformational for SRX Global,” commented Kent Cunningham, Chief Executive Officer. “We completed the acquisition of EMJX, strengthened Halo’s underlying operations and ended the quarter with a highly liquid balance sheet and approximately $62.9 million in NAV. Together, these accomplishments reflect our focus on both sides of the SRX strategy: deploying capital across high-conviction opportunities and strategic assets while improving the performance of the operating businesses we own.”

 

EMJX AND INVESTMENT PERFORMANCE

 

The Company completed its acquisition of EMJX on June 16, 2026 and has begun integrating EMJX’s AI-driven insights into its investment decision-making framework. EMJX utilizes quantitative models, artificial intelligence and systematic risk controls to evaluate investment opportunities and manage risk across market cycles. Based on hypothetical, system-generated model performance from the model’s February 11, 2026 inception through June 30, 2026, the EMJX strategy model experienced a maximum drawdown of approximately 10.6%, compared with approximately 28% to 58% across its four primary benchmark comparators over the same period.²

 

 
 

 

During the 14-day period from June 16 through June 30, during which Bitcoin declined approximately 10.8%, the EMJX strategy model generated hypothetical performance of 4.3%, representing approximately 15.1 percentage points of outperformance relative to Bitcoin, and outperformed each of its four primary benchmark comparators.² Given the limited 14-day post-acquisition measurement period, the Company intends to focus on the strategy’s risk profile and downside management as it evaluates performance over a longer period.

 

SRX believes its current capital allocation priorities provide multiple avenues for long-term value creation:

 

Halo: Capital allocated to support revenue growth, margin expansion and continued optimization of the business.
   
EMJX: Capital allocated to the phased deployment of the Company’s internal Gen 2 digital-asset treasury strategy, alongside continued commercialization of the EMJX platform.
   
High-Conviction Investments: Capital deployed selectively into minority investments across areas including technology and fintech, biotechnology, consumer businesses, and critical infrastructure and materials, based on expected risk-adjusted returns.
   
Risk Management: The Company utilizes systematic hedging strategies as part of its broader investment and treasury framework to manage downside risk across applicable portfolio exposures.

 

Separately, during the fiscal third quarter, the Company recognized a $1.4 million loss from changes in the fair value of digital assets, partially offset by $0.6 million in aggregate gains from changes in the fair value of equity securities and derivative liabilities. These amounts reflect the Company’s GAAP accounting for its investment holdings and are separate from the EMJX hypothetical, system-generated model performance described above.

 

The Company is taking a disciplined, phased approach to deploying capital informed by the EMJX strategy and expects to provide additional performance information as a meaningful history of actual capital deployment develops.

 

BALANCE SHEET AND NET ASSET VALUE

 

As of June 30, 2026, the Company reported $65.2 million in current assets and $2.4 million in total liabilities, with no debt outstanding. Based on the Company’s previously disclosed NAV methodology, net asset value was approximately $62.9 million or $3.22 per common share, exceeding the preliminary estimates of $60.0 million NAV and $3.07 NAV per share announced on July 8, 2026. Current assets included $36.7 million in aggregate cash, cash equivalents, and restricted cash; $7.5 million in highly liquid short-term investments; $5.5 million in equity securities; $4.9 million in notes receivable; $2.1 million in digital assets; $6.2 million in aggregate accounts receivable and inventories; and $2.3 million in prepaid expenses and other current assets. The Company believes its liquidity and balance sheet provide significant flexibility to execute its capital allocation strategy.

 

1Net Asset Value (“NAV”) is calculated directly from the amounts reported in the Company’s unaudited condensed consolidated balance sheets as of June 30, 2026 as total current assets of $65.2 million less total liabilities of $2.4 million, resulting in NAV of approximately $62.9 million. NAV per common share is calculated by dividing NAV by 19,517,637 common shares outstanding after giving effect to the Company’s one-for-sixty reverse stock split effective July 6, 2026. NAV and NAV per common share are presented as supplemental financial measures used by management to provide investors with additional information regarding the Company’s current assets relative to its liabilities and should not be considered substitutes for measures presented in accordance with U.S. GAAP.

 

2EMJX strategy model performance metrics presented herein are hypothetical, system-generated model results and do not represent actual trading results or returns earned on capital invested by the Company. Maximum drawdown represents the largest peak-to-trough percentage decline generated by the EMJX strategy model during the applicable measurement period. The approximately 10.6% maximum drawdown is measured from the strategy’s February 11, 2026 inception through June 30, 2026. Comparative maximum drawdowns were measured over the same period using IBIT, ETHA, MSTR and BMNR as the strategy’s four primary benchmark comparators and ranged from approximately 28% to 58%. The 4.3% model performance represents the 14-day post-acquisition period from June 16 through June 30, 2026. Performance prior to the Company’s acquisition of EMJX on June 16, 2026 represents historical system-generated model performance prior to its acquisition by the Company. System-generated model performance is hypothetical, does not represent actual trading results or returns on Company capital, and may not be indicative of future results. Benchmark comparisons are provided for informational purposes and do not represent directly comparable investment products or strategies.

 

3 Prior-year comparisons reflect results of continuing operations from April 24, 2025 through June 30, 2025 following the completion of the Company’s reverse merger and therefore represent a shorter comparative operating period.

 

4Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA to net loss from continuing operations, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.

 

5Halo Prime Day performance metrics are based on data and analysis provided by the Company’s third-party agency partners. New-to-Brand (“NTB”) measures customers purchasing Halo products who had not purchased from the brand during the applicable prior measurement period and is used by management as an indicator of customer acquisition and brand reach. Cost-per-click (“CPC”) represents the average advertising cost incurred for each click generated through paid search and is used by management as an indicator of digital advertising efficiency. The pet category CPC benchmark represents comparative category data provided by the Company’s agency partners for the applicable Prime Day measurement period. Management monitors NTB and CPC, among other measures, to evaluate Halo’s ability to acquire new customers and generate demand efficiently.

 

 
 

 

SRX Global Inc. (formerly SRx Health Solutions, Inc.)

Unaudited Condensed Consolidated Statements of Operations

(Dollars in thousands, except share and per share amounts)

  

  

Three Months Ended

June 30,

  

Nine Months Ended

June 30,

 
   2026   2025   2026   2025 
Net sales  $3,392   $2,673   $9,638   $2,673 
Cost of goods sold   2,488    2,642    6,405    2,642 
Gross profit   904    31    3,233    31 
Operating expenses:                    
Selling, general and administrative   4,105    8,637    12,042    8,637 
Loss from continuing operations   (3,201)   (8,606)   (8,809)   (8,606)
Other expense (income):                    
Interest expense, net   569    (30)   3,637    (30)
Loss/(Gain) on extinguishment of debt   (469)       2,588     
Change in fair value of digital assets   1,410        4,768     
Change in fair value of equity securities   (12)       481     
Change in fair value of derivative liabilities   (578)       (1,170)    
Bargain purchase gain       (1,693)       (1,693)
Other income, net   19    (32)   16    (32)
Total other expense, net   939    (1,755)   10,320    (1,755)
Net loss before income taxes   (4,140)   (6,851)   (19,129)   (6,851)
Income tax expense           6     
Net loss from continuing operations   (4,140)   (6,851)   (19,135)   (6,851)
Loss from discontinued operations       (8,282)       (22,894)
Net loss  $(4,140)  $(15,133)  $(19,135)  $(29,745)
Weighted average number of shares outstanding, basic   11,420,008    340,019    5,629,712    322,245 
Weighted average number of shares outstanding, diluted   11,420,008    340,019    5,629,712    322,245 
Loss per share, basic  $(0.36)  $(44.51)  $(3.40)  $(92.31)
Loss per share, diluted  $(0.36)  $(44.51)  $(3.40)  $(92.31)

 

 
 

 

SRX Global Inc. (formerly SRx Health Solutions, Inc.)

Unaudited Condensed Consolidated Balance Sheets

(Dollars in thousands, except share amounts)

 

   June 30, 2026   September 30, 2025 
Assets          
Current Assets          
Cash and cash equivalents  $35,186   $1,309 
Restricted cash   1,500     
Short-term investments   7,502     
Accounts receivable, net   3,629    3,945 
Inventories, net   2,611    2,078 
Notes receivable   4,940     
Digital assets   2,120     
Investment in equity securities   5,500     
Prepaid expenses and other current assets   2,254    794 
Total Current Assets   65,242    8,126 
Fixed assets, net   9    88 
Intangible assets, net   79,981     
Right-of-use assets, operating leases       20 
Other assets   125    168 
Total Assets  $145,357   $8,402 
Liabilities & Stockholders’ Equity          
Current Liabilities          
Accounts payable  $1,277   $2,147 
Accrued liabilities   1,091    1,375 
Operating lease liability, short-term       21 
Total Current Liabilities   2,368    3,543 
Convertible debt, long-term       4,452 
Total Liabilities   2,368    7,995 
Stockholders’ Equity          
Common Stock, $0.001 par value, 5,000,000,000 shares authorized, 19,517,637 & 416,542 shares issued and outstanding as of June 30, 2026, and September 30, 2025, respectively   1,174    31 
Preferred Stock, $0.001 par value, 4,000,000 shares authorized, 5,660 & zero shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively        
Additional paid-in capital, common stock   180,717    23,304 
Additional paid-in capital, preferred stock   3,161     
Accumulated deficit   (42,063)   (22,928)
Total Stockholders’ Equity   142,989    407 
Total Liabilities and Stockholders’ Equity  $145,357   $8,402 

 

 

 

 

SRX Global 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
June 30,
   Nine Months Ended
June 30,
 
   2026   2025*   2026   2025* 
Net loss  $(4,140)  $(6,851)  $(19,135)  $(6,851)
Interest expense, net   569    (30)   3,637    (30)
Depreciation and amortization   15    16    (46)   16 
Income tax expense           6     
EBITDA   (3,556)   (6,865)   (15,538)   (6,865)
Non-cash share-based compensation (a)       2,032    961    2,032 
Loss/(Gain) on extinguishment of debt   (469)       2,588     
Change in fair value of digital assets   1,410        4,768     
Change in fair value of equity securities   (12)       481     
Change in fair value of derivative liabilities   (578)       (1,170)    
Bargain purchase gain       (1,693)       (1,693)
Transaction related (b)   1,451    4,017    4,218    4,017 
Non-recurring and other expenses (c)   184    85    463    85 
Adjusted EBITDA  $(1,570)  $(2,424)  $(3,229)  $(2,424)

 

(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 strategic rebranding, systems implementation and technology transformation, initiatives and other non-recurring costs.

 

*Prior-year results reflect only the results for the Halo business within the Better Choice Company, Inc. The operations of SRx Canada, the Company’s former specialty healthcare business, were deconsolidated during the fiscal year September 30, 2025 and are presented as discontinued operations. Accordingly, prior year amounts for SRx Canada are not presented.

 

 

 

 

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 proposed transactions, 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 Global Inc.

Kent Cunningham, Chief Executive Officer

 

Investor Contact:

 

KCSA Strategic Communications

Valter Pinto, Managing Director

212-896-1254

srx@kcsa.com

 

 

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