Exhibit 99.1
Syra
Health Achieves 23% Revenue Growth, Improves Gross Margin to 44.5% in Second Consecutive Profitable Quarter
| |
● |
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., August 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
