Syra Health Announces First Quarter Revenue of $1.9 Million, Up 6% YoY
Revenue increase led by
Gross Margin Improves Substantially to 31.7%, up 14.6 Percentage Points YoY
Continued Efficiency Gains Cut Q1 2025 Net Losses by Over Two Thirds Compared to Q1 2024
A conference call will be held today,
Q1 2025 Financial Highlights
- Total revenue of
$1.9 million , up 6% compared to$1.8 million in Q1 2024.- Revenues, excluding Healthcare Workforce, grew 261% YoY and expanded to 65% of total revenues, compared to 19% of total revenue in Q1 2024.
Population Health reached$1.2 million in revenues, more than tripling from$333,000 in Q1 2024, driven by new contracts and extensions, as well as increased contributions from milestone-based revenues.
- Gross margins expand YoY by 14.6 percentage points to 31.7% in 1Q 2025.
- Operating Expense decreased 39% YoY, continuing to improve the profitability trajectory.
- Net Loss reduction to (
$472,000 ) from($1.4) million in Q1 2024. - Cash of
$2.5 million and no long-term debt as ofMarch 31, 2025 .
2025 Financial Outlook
- Ongoing federal government-level budgetary revisions are impacting our key customers across state, local, and county government agencies. Given the current variability of the healthcare market, the Company believes it is prudent to withdraw its 2025 guidance at this time. An updated outlook will be provided once these changes are more quantifiable.
- The Company is continuing to prioritize the higher margin
Population Health andBehavioral and Mental Health business units and is also expanding into the private healthcare sector, alongside its public sector work.
Recent Operational Highlights
- Secured a
$2.5 million Population Health contract with a major insurance provider to enhance member health plans using advanced data analytics. The contract, which is set to renew for two additional years at the same value, will be supported by a dedicated team of Syra Health professionals. - Secured a one-year,
$1.5 million contract extension with Indiana FSSA NeuroDiagnostic Institute, a portion of which has already been received, with the remainder to be recognized over time based on service needs. - Awarded a
$660,000 Population Health contract extension with a national healthcare organization to improve quality, enhance outcomes, and reduce costs through expert data analysis and member outreach supporting its Healthcare Effectiveness Data and Information Set (HEDIS®). - Launched specialized content within Syrenity aimed at supporting individuals living with Post-Traumatic Stress Disorder (PTSD), including evidence-based coping strategies, guided exercises, and expert-led modules.
Management Commentary
Dr.
Q1 2025 Financial Results
Revenue for the first quarter of 2025 was
Gross profit margin was 31.7% in the first quarter of 2025, a 14.6 percentage point expansion compared to 17.1% in the prior year period. This improvement was related to the phase out of certain lower-margin Healthcare Workforce contracts and a shift towards higher-margin
Total operating expenses for the first quarter of 2025 were
Adjusted EBITDA for the first quarter of 2025 was (
Net loss for the first quarter of 2025 was (
Conference Call
Management will hold a conference call to discuss the full-year financial results at
Interested parties can listen to the live webcast and access the replay after the call through the same link available in the Investor Relations section of the Company's website at https://ir.syrahealth.com/presentations/Q1-2025-earnings-call.
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2025 |
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2024 |
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ASSETS |
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(Unaudited) |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,490,585 |
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$ |
2,395,405 |
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Accounts receivable, net |
|
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945,856 |
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|
680,827 |
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Other current assets |
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210,788 |
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276,563 |
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Total current assets |
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3,647,229 |
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3,352,795 |
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Property and equipment, net |
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20,550 |
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27,347 |
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Right-of-use asset |
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54,771 |
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299,190 |
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Total assets |
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$ |
3,722,550 |
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$ |
3,679,332 |
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
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Current liabilities: |
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Accounts payable |
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$ |
325,027 |
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$ |
101,690 |
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Accrued expenses |
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211,867 |
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230,383 |
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Deferred revenue |
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599,213 |
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|
16,611 |
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Current portion of operating lease liability, related party |
|
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54,771 |
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|
111,978 |
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Notes payable |
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75,036 |
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|
152,887 |
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Total current liabilities |
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1,265,914 |
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613,549 |
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Non-current portion of operating lease liability, related party |
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- |
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187,212 |
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Total liabilities |
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1,265,914 |
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|
800,761 |
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Commitments and contingencies |
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Stockholders' equity (deficit): |
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Preferred stock, |
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- |
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- |
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Class A common stock, |
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11,339 |
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8,979 |
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Convertible class B common stock, |
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600 |
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|
833 |
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Additional paid-in capital |
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11,741,155 |
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11,692,952 |
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Accumulated deficit |
|
|
(9,296,458) |
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|
|
(8,824,193) |
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Total stockholders' equity (deficit) |
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2,456,636 |
|
|
|
2,878,571 |
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Total liabilities and stockholders' equity (deficit) |
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$ |
3,722,550 |
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$ |
3,679,332 |
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For the Three Months Ended |
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2025 |
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2024 |
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Net revenues |
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$ |
1,857,774 |
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$ |
1,752,340 |
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Cost of services |
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1,268,618 |
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1,452,561 |
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Gross profit |
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589,156 |
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|
299,779 |
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Operating expenses: |
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Salaries and benefits |
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507,207 |
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736,303 |
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Professional services |
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224,026 |
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194,580 |
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Research and development expenses |
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37,173 |
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277,548 |
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Selling, general and administrative expenses |
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287,287 |
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522,757 |
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Depreciation |
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|
6,797 |
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|
12,545 |
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Total operating expenses |
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1,062,490 |
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|
1,743,733 |
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Operating loss |
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|
(473,334) |
|
|
|
(1,443,954) |
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Other income (expense): |
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Interest income |
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4,298 |
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|
|
981 |
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Interest expense |
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|
(3,229) |
|
|
|
(4,077) |
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Total other income (expense) |
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|
1,069 |
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|
(3,096) |
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Net loss |
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$ |
(472,265) |
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$ |
(1,447,050) |
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Weighted average common shares outstanding - basic and diluted |
|
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11,587,058 |
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|
6,495,213 |
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Net loss per common share - basic and diluted |
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$ |
(0.04) |
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$ |
(0.22) |
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For the Three Months Ended |
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2025 |
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2024 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net loss |
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$ |
(472,265) |
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$ |
(1,447,050) |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation |
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|
6,797 |
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|
12,545 |
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Common stock issued for services |
|
|
2,586 |
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|
18,875 |
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Non-cash lease expense |
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|
- |
|
|
|
31,373 |
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Stock-based compensation, stock options |
|
|
32,944 |
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|
14,140 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
|
|
(265,029) |
|
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|
314,951 |
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Accounts receivable, related party |
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|
- |
|
|
|
(31,510) |
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Other current assets |
|
|
65,775 |
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|
7,900 |
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Right-of-use asset |
|
|
244,419 |
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|
|
- |
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Accounts payable |
|
|
223,337 |
|
|
|
182,576 |
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Deferred revenue |
|
|
582,602 |
|
|
|
6,108 |
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Accrued expenses |
|
|
(18,516) |
|
|
|
120,720 |
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Operating lease liability |
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|
(244,419) |
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|
(31,373) |
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Net cash provided by/(used in) operating activities |
|
|
158,231 |
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|
(800,745) |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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|
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Purchase of property and equipment |
|
|
- |
|
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|
(5,619) |
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Net cash used in investing activities |
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- |
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|
(5,619) |
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Proceeds received on exercise of warrants |
|
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14,800 |
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|
850,129 |
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Repayments on notes payable |
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|
(77,851) |
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|
(85,883) |
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Net cash provided by/(used in) financing activities |
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|
(63,051) |
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|
764,246 |
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NET CHANGE IN CASH AND CASH EQUIVALENTS |
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|
95,180 |
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|
(42,118) |
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CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
2,395,405 |
|
|
|
3,280,075 |
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CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
2,490,585 |
|
|
$ |
3,237,957 |
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SUPPLEMENTAL INFORMATION: |
|
|
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|
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Interest paid |
|
$ |
3,229 |
|
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$ |
4,077 |
|
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Income taxes paid |
|
$ |
- |
|
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$ |
- |
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NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
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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
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Quarter Ended |
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Net Income |
|
( |
( |
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Interest expense |
|
4,077 |
3,229 |
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Depreciation expense |
|
12,545 |
6,797 |
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Taxes |
|
- |
- |
|
Adjusted EBITDA |
|
( |
( |
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About
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
Contacts
For Media Inquiries:
Director of Corporate Communications
463-345-5180
christined@syrahealth.com
For Investor Inquiries:
Managing Director, Global Advisory
Hayden IR
602-476-1821
corbin@haydenir.com
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