First profit and 22% revenue growth at Syra Health (OTCQB: SYRA)

Rhea-AI Filing Summary

Syra Health Corp. reported its first profitable quarter in Q1 2026. Net income was $240,979, compared with a net loss of $(472,265) a year earlier. Revenue grew 22% to $2.27 million, driven by population health solutions, which rose 46% to $1.8 million.

Gross margin expanded to 42.7% from 31.7% as the company shifted toward higher-margin offerings and improved operating leverage. Operating expenses declined across salaries, professional services, SG&A, and R&D, supporting adjusted EBITDA of $244,495 versus a loss in 2025. Cash and cash equivalents increased to $2.9 million with strong operating cash flow.

Positive

• First profitable quarter and margin expansion: Q1 2026 net income of $240,979 versus a $(472,265) loss a year earlier, with revenue up 22%, gross margin rising to 42.7% from 31.7%, and adjusted EBITDA improving to $244,495 from a $(462,239) loss.

Negative

• None.

Insights

Equity research analyst

First profitable quarter with stronger margins and cash generation.

Syra Health moved from a net loss of $(472,265) to net income of $240,979 in Q1 2026. Revenue grew 22% to $2.27 million, led by population health solutions up 46%, lifting overall gross margin to 42.7%.

Cost discipline was broad-based: salaries, professional services, SG&A, and R&D all fell year over year. That helped turn adjusted EBITDA to a positive $244,495 from a prior loss, signaling improved operating efficiency at a relatively early scale.

Cash from operations reached $1.36 million, raising cash and equivalents to $2.92 million as of March 31, 2026. Management highlighted contract renewals and expansions and expressed confidence in a continued profitability trajectory, while acknowledging quarterly variability tied to contract timing and milestones.

8-K Event Classification

2 items: 2.02, 9.01

2 items

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, and exhibit attachments filed with this report.

Key Figures

Q1 2026 Revenue: $2.27 million Q1 2026 Net Income: $240,979 Gross Margin: 42.7% +5 more

8 metrics

Q1 2026 Revenue $2.27 million Net revenues for the three months ended March 31, 2026; 22% higher than Q1 2025

Q1 2026 Net Income $240,979 Net income for the three months ended March 31, 2026 versus $(472,265) loss in 2025

Gross Margin 42.7% Q1 2026 gross profit margin compared with 31.7% in Q1 2025

Adjusted EBITDA $244,495 Quarter ended March 31, 2026 versus $(462,239) in prior-year quarter

Population Health Revenue $1.8 million Q1 2026 population health solutions revenue, up 46% from $1.2 million in Q1 2025

Cash and Cash Equivalents $2,922,318 Cash balance as of March 31, 2026, up from $1,614,733 at December 31, 2025

Net Cash from Operations $1,361,945 Net cash provided by operating activities for the three months ended March 31, 2026

Deferred Revenue $750,524 Deferred revenue as a current liability at March 31, 2026 versus $16,611 at year-end 2025

Key Terms

Adjusted EBITDA, non-GAAP financial measures, population health solutions, deferred revenue, +1 more

5 terms

Adjusted EBITDA financial

"In addition to financial results reported in accordance with GAAP, we have provided the following non-GAAP financial measure in this release and the accompanying tables: adjusted EBITDA."

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.

non-GAAP financial measures financial

"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."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

population health solutions financial

"Strong growth was driven by the Company’s high-margin population health solutions, which grew 46% year-over-year to $1.8 million from $1.2 million."

deferred revenue financial

"Deferred revenue | | | 750,524 | | | | 16,611 |"

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

forward-looking statements regulatory

"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.”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Earnings Snapshot

Revenue: $2,273,520 · Guidance included

Q1 2026

Revenue $2,273,520 +22% year-over-year

Net income (loss) $240,979 from $(472,265) in Q1 2025

Gross margin 42.7% from 31.7% in Q1 2025

Adjusted EBITDA $244,495 from $(462,239) in Q1 2025

Guidance

Management stated that Q1 2026 represents a major milestone as the first profitable quarter and expressed confidence in the company’s profitability trajectory by year-end.

Understanding 8-K Material Events →

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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): May 7, 2026

SYRA HEALTH CORP.

(Exact name of registrant as specified in its charter)

Delaware		001-41822		85-4027995
(State or other jurisdiction		(Commission		(I. R. S. Employer
of incorporation)		File Number)		Identification No.)

1119 Keystone Way N. #201

Carmel, IN 46032

(Address of principal executive offices, including zip code)

(463) 345-8950

(Registrant’s telephone number, including area code)

Not Applicable

(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
Class A Common Stock, $0.001 par value		SYRA		OTCQB

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 Conditions.

On May 7, 2026, Syra Health Corp. issued a press release announcing its financial results for the first quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

The information in this report, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. In addition, the exhibit furnished herewith contain statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in such exhibit.

Item 9.01 Financial Statements and Exhibit

(d) Exhibits.

The following exhibits are filed with this Current Report on Form 8-K:

Exhibit Number		Description
99.1		Press Release dated May 7, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

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.

	SYRA HEALTH CORP.
Date: May 7, 2026	By:	/s/ Priya Prasad
		Priya Prasad Chief Financial Officer

Exhibit 99.1

Syra Health Delivers its First Profitable Quarter in Q1 2026, Expands Margins and Strengthens Financial Position

● Syra Health delivered its first-ever profitable quarter in Q1 2026, with net income of approximately $241,000, representing a substantial 151% increase over the year-ago period

● Q1 2026 EPS grew to $0.02 per share versus ($0.04) in Q1 2025

● Gross Margin rose to 42.7%, up 11 percentage points year-over-year

● Total revenue increased to $2.3 million, up 22% when compared to the prior year period

Carmel, Ind., May 7, 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 first quarter ended March 31, 2026.

Q1 2026 Financial Highlights

Syra Health achieved profitability in Q1 2026, with net income of $240,979, compared to a net loss of $(472,265) in the prior year period, an improvement of approximately $713,000.

● Total revenue of $2.3 million for the quarter ended March 31, 2026 was up 22% compared to $1.9 million year-over-year.

○ Revenue was led by the Company’s continued expansion of its population health solutions to $1.8 million when compared to $1.2 million in Q1 2025 and $1.3 million in Q4 2025.

● Gross margin expanded 11 percentage points to 42.7%, up from 31.7% in Q1 2025.

● Cash on hand grew to $2.9 million and no long-term debt as of March 31, 2026.

2026 Financial Outlook

● Certain revenue recognition, timing, and contract milestones contributed to the quarter’s strong performance. Syra Health expects quarterly variability typical of milestone-based contracts, while remaining on track for full-year profitability.

Recent Operational Highlights

● The Shelby County Health Department contract has been renewed for a second consecutive term, reflecting continued confidence in Syra Health’s public health expertise. The second renewal reinforces the strength of Syra Health’s long-term partnership with Shelby County and highlights sustained demand for its advanced data analytics solutions.

● Syra Health launched a comprehensive site visit program for an existing national managed care organization (MCO) customer serving hundreds of thousands of members, hiring, training, and deploying site inspectors to help the MCO certify and recertify providers in compliance with Medicaid requirements as efficiently as possible.

● A Midwestern university renewed its contract with the Company to continue training behavioral health professionals, further strengthening its role in addressing the national behavioral health workforce shortage

● Syra Health has reimagined Syrenity, its mental and behavioral health solution for a broader market, including health plans, health systems, and large employers. The enhanced solution features risk stratification, personalized care plans, and better care coordination to improve health outcomes, with integrated dashboards to highlight results. These capabilities will be further strengthened through partnerships, positioning Syrenity as a fully integrated solution for behavioral health management across the health ecosystem.

● Syra Health was recognized with Innovation of the Year honors at TechPoint’s annual Mira Awards. TechPoint is the industry-led growth initiative for Indiana’s digital economy, and its Mira Awards celebrate excellence and innovation in technology. Syra Health was honored for SyraBot, its HIPAA and ADA-compliant, AI-backed chatbot designed specifically for healthcare, which TechPoint described as “potentially revolutionary,” citing the Company’s commitment to building compliant, accessible, and impactful digital health solutions. Syra Health’s Syrenity platform was also recognized with the BioCrossroads Life Sciences Innovation Award, honoring the Company’s HIPAA-compliant platforms and their potential to transform behavioral health care delivery. These recognitions validate Syra Health’s approach to innovation and position the Company as a leader in healthcare solutions.

Management Commentary

Greg Alexander, CEO of Syra Health, said, “Q1 2026 represents a major milestone for Syra Health as we achieved our first profitable quarter, reflecting the growing strength of our business. This performance was driven by year-over-year revenue growth, significant gross margin expansion, and positive net income and earnings per share. Our population health solutions continue to be a powerful growth engine for us, validating our prevention-focused mission. Ongoing contract renewals and expansions with existing customers further reinforce the value of our offerings, providing strong revenue visibility and signaling long-term customer confidence, an important indicator of stability and sustainable growth for investors. While quarterly results may vary due to contract timing and milestone recognition, we remain confident in our profitability trajectory by year-end, as the fundamentals driving our business— expanding partnerships, growing demand for accessible, affordable, and prevention-focused healthcare solutions, and disciplined execution— remain firmly intact.”

Q1 2026 Financial Results

Revenue for the first quarter of 2026 was $2.3 million, an increase of 22% compared to $1.9 million in the first quarter of 2025. Strong growth was driven by the Company’s high-margin population health solutions, which grew 46% year-over-year to $1.8 million from $1.2 million. Healthcare workforce solutions decreased, as expected, to approximately $513,000 from $655,000 in the prior period, as the Company strategically prioritizes higher-margin solutions. We expanded our gross profit margin by 11 percentage points to 42.7% compared with 31.7% in the prior year period, due to a revenue mix shift toward higher-margin solutions and improved operating leverage in Population Health.

Operating expenses declined across all major categories, reflecting disciplined cost management and improved operational efficiency. Salaries and benefits decreased 27% from $507,207 in Q1 2025 to $372,109 in Q1 2026. Professional services fell 16% to $187,141 in Q1 2026 from $224,026 in the prior year period. SG&A was reduced by 26% to $213,047 in Q1 2026 when compared to $287,287 in Q1 2025. Research and development expenses declined significantly by 81% to $6,921 for the first quarter of 2026 from $37,173 in the first quarter of 2025. Depreciation declined 85% to $1,054 from $6,797 in the year-ago period.

Adjusted EBITDA for the first quarter of 2026 was $244,495, a material improvement when compared to ($462,239) in the prior year.

SYRA HEALTH CORP.

BALANCE SHEETS

		March 31, 2026				December 31, 2025
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	2,922,318			$	1,614,733
Accounts receivable, net			869,132				918,374
Other current assets			136,077				205,423
Total current assets			3,927,527				2,738,530
Property and equipment, net			5,932				6,986
Right-of-use asset			11,060				27,401
Total assets		$	3,944,519			$	2,772,917
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	366,422			$	247,520
Accounts payable, related party			98,500				72,000
Accrued expenses			293,486				194,821
Deferred revenue			750,524				16,611
Current portion of operating lease liability, related party			11,060				27,401
Notes payable			62,026				116,386
Total current liabilities			1,582,018				674,739
Non-current portion of operating lease liability, related party			-				-
Total liabilities			1,582,018				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, 11,339,169 shares issued and outstanding			11,339				11,339
Convertible class B common stock, $0.001 par value, 5,000,000 shares authorized, 600,000 shares issued and outstanding			600				600
Additional paid-in capital			11,830,109				11,806,765
Accumulated deficit			(9,479,547	)			(9,720,526	)
Total stockholders’ equity			2,362,501				2,098,178
Total liabilities and stockholders’ equity		$	3,944,519			$	2,772,917

SYRA HEALTH CORP.

STATEMENTS OF OPERATIONS

(Unaudited)

		For the Three Months Ended
		March 31, 2026				March 31, 2025
Net revenues		$	2,273,520			$	1,857,774
Cost of services			1,302,265				1,268,618
Gross profit			971,255				589,156
Operating expenses:
Salaries and benefits			372,109				507,207
Professional services			187,141				224,026
Research and development expenses			6,921				37,173
Selling, general and administrative expenses			213,047				287,287
Depreciation			1,054				6,797
Total operating expenses			780,272				1,062,490
Operating income (loss)			190,983				(473,334	)
Other income (expense):
Interest income			52,458				4,298
Interest expense			(2,462	)			(3,229	)
Total other income (expense)			49,996				1,069
Net income (loss)		$	240,979			$	(472,265	)
Weighted average common shares outstanding - basic			11,939,169				11,587,058
Net income (loss) per common share - basic		$	0.02			$	(0.04	)
Weighted average common shares outstanding - diluted			12,781,487				11,587,058
Net income (loss) per common share - diluted		$	0.02			$	(0.04	)

SYRA HEALTH CORP.

STATEMENTS OF CASH FLOWS

(Unaudited)

		For the Three Months Ended March 31,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$	240,979			$	(472,265	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation			1,054				6,797
Common stock issued for services			-				2,586
Stock-based compensation			23,344				32,944
Changes in operating assets and liabilities:
Accounts receivable			49,242				(265,029	)
Other current assets			69,346				65,775
Right-of-use asset			16,341				244,419
Accounts payable			118,902				223,337
Accounts payable, related party			26,500				-
Deferred revenue			733,913				582,602
Accrued expenses			98,665				(18,516	)
Operating lease liability			(16,341	)			(244,419	)
Net cash provided by operating activities			1,361,945				158,231
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			(54,360	)			(77,851	)
Net cash used in financing activities			(54,360	)			(63,051	)
NET CHANGE IN CASH AND CASH EQUIVALENTS			1,307,585				95,180
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			1,614,733				2,395,405
CASH AND CASH EQUIVALENTS AT END OF PERIOD		$	2,922,318			$	2,490,585
SUPPLEMENTAL INFORMATION:
Interest paid		$	2,462			$	3,229
Income taxes paid		$	-			$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of Class B common stock to Class A common stock		$	-			$	2,333

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 EBITDA

		Quarter ended
		March 31, 2026				March 31, 2025
Net Income (Loss)		$	240,979			$	(472,265	)
Interest expense			2,462				3,229
Depreciation expense			1,054				6,797
Taxes			-				-
Earnings before Interest, Taxes, Depreciation and Amortization		$	244,495			$	(462,239	)

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

463-345-5180

FAQ

How did Syra Health (SYRA) perform financially in Q1 2026?

Syra Health achieved its first profitable quarter in Q1 2026 with net income of $240,979, compared to a net loss of $(472,265) a year earlier. Revenue rose 22% to $2.27 million, driven by higher-margin population health solutions and lower operating expenses.

What drove Syra Health’s revenue growth in Q1 2026?

Revenue reached $2.27 million in Q1 2026, up 22% from $1.86 million in Q1 2025. Growth was led by population health solutions, which increased 46% to $1.8 million, while healthcare workforce solutions declined as the company prioritized higher-margin offerings.

How did Syra Health’s margins change in Q1 2026?

Syra Health’s gross profit margin improved to 42.7% in Q1 2026 from 31.7% in the prior-year period. The expansion came from a revenue mix shift toward higher-margin population health solutions and better operating leverage, supported by reductions in salaries, SG&A, professional services, and R&D costs.

What was Syra Health’s cash position and cash flow in Q1 2026?

Cash and cash equivalents were $2.92 million as of March 31, 2026, up from $1.61 million at year-end 2025. Net cash provided by operating activities totaled $1.36 million for the quarter, reflecting profitable operations, rising deferred revenue, and working capital improvements across receivables and payables.

What is Syra Health’s adjusted EBITDA for Q1 2026?

Adjusted EBITDA was $244,495 in Q1 2026, compared with $(462,239) in Q1 2025. This non-GAAP measure excludes interest, taxes, depreciation, and amortization, and highlights a significant turnaround in operating performance as higher-margin revenue and lower expenses improved earnings quality.

How is Syra Health’s deferred revenue trending?

Deferred revenue increased to $750,524 at March 31, 2026, from $16,611 at December 31, 2025. This rise indicates more cash collected for services to be provided in future periods, contributing to strong operating cash flow and visibility into upcoming revenue recognition under existing contracts.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 95.4 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB