Reports 194% Growth in Sales and Net Income for the Quarter

CINCINNATI--(BUSINESS WIRE)--May 12, 2025-- HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today that its net sales for the first quarter ended March 31, 2025, totaled $15.0 million, a 194% increase from the quarter ended March 31, 2024, resulting from 616% growth in partner services revenues. The Company reported net income of $178,000 and Adjusted EBITDA of $521,000 for the quarter.

HealthWarehouse.com, a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (NABP). HealthWarehouse.com provides a platform focused on increasing access to and reducing costs of healthcare products for consumers and business partners nationwide.

Joseph Peters, President and CEO, commented, “We continued the momentum that started last year as we achieved record sales and prescriptions processed. We also had our second consecutive quarterly net profit, proving the economic scalability of our business model. We have established ourselves as a reliable service provider for high volume partners and we have shown our expertise in processing orders that require cold-chain shipping services.”

HealthWarehouse.com continues to invest in proprietary technology to remain at the forefront of new developments and offerings in the world of healthcare, focusing on patient experience, operational efficiency, and scalability.

“Our employees are equally proud of what we have accomplished, and I continue to be amazed at their capabilities and dedication. I am grateful for their efforts as they continue to provide world class service to our customers,” added Peters.

2025 First Quarter Overview:

Net Sales:

Net sales for the three months ended March 31, 2025, increased to $15.0 million from $5.1 million for the three months ended March 31, 2024, an increase of $9.9 million or 193.6%. Prescription sales were $14.4 million for the three months ended March 31, 2025, compared with $4.4 million for the three months ended March 31, 2024, an increase of $10.0 million, or 226.5%. These increases were primarily due to growth in our partner services (B2B) business related to fulfillment of brand and compounded GLP-1 medications. Sales for the direct-to-consumer (B2C) prescription business were down $722,000 or 25.7% from 2024. Our reduced advertising spending resulted in lower sales of branded and generic prescription products for the quarter. Net sales of over-the-counter products decreased by $78,000 or 12.4% from $630,000 in the three months ended March 31, 2024 to $552,000 in the three months ended March 31, 2025, primarily due to reductions in sales for both direct-to-consumer (B2C) and partner services business (B2B).

Gross Profit:

Gross profit for the three months ended March 31, 2025, increased $1.6 million or 53.5% to $4.5 million versus the same period in 2024, as a result of the growth in prescription sales. Gross margin percentage decreased from 57.8% for the three months ended March 31, 2024, to 30.2% for the three months ended March 31, 2025. Margins decreased in the B2B prescription business due to growth in brand and compounded GLP-1 medication sales, which have higher costs and lower gross margins due to market competition.

Operating Expenses:

Selling, general and administrative expenses increased $1.1 million, or 36.5%, to $4.3 million for the three months ended March 31, 2025, compared with $3.1 million for the three months ended March 31, 2024. For the three months ended March 31, 2025, expense increases included an $872,000 increase in shipping and shipping supplies expenses, and a $145,000 increase in salaries expense, primarily related to higher direct pharmacy labor, software engineering and business development salaries.

Net Income (Loss) and Adjusted EBITDA: Net income was $178,000 for the first quarter of 2025, compared with a net loss of $252,000 during the same period in 2024. Adjusted EBITDA was $521,000 in the first quarter of 2025, compared with $90,000 in the year-earlier quarter.

Use of Non-GAAP Financial Measures

HealthWarehouse.com, Inc. (the "Company") prepares its consolidated financial statements in accordance with the United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDA and Adjusted EBITDA, which are commonly used. In addition to adjusting net income or net loss to exclude interest, taxes, depreciation and amortization, including amortization of right of use lease asset, (“EBITDA”), Adjusted EBITDA also excludes stock-based compensation, and certain nonrecurring charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, Adjusted EBITDA is used internally in planning and evaluating the Company's performance. Accordingly, management believes that disclosure of this metric offers lenders and other shareholders an additional view of the Company operations that, when coupled with GAAP results, provides a more complete understanding of the Company’s financial results.

Adjusted EBITDA should not be considered as an alternative to net income, net loss or to net cash provided by or used in operating activities as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the Company performance.

Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP)

About HealthWarehouse.com

HealthWarehouse.com, Inc. (OTCQB: HEWA), a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (“NABP”). HealthWarehouse.com provides a platform focused on increasing access and reducing costs of healthcare products for consumers and business partners nationwide. Based in Florence, Kentucky, the Company operates America's Leading Online Pharmacy and is a pioneer in affordable healthcare. As one of the first National Association of Boards of Pharmacy Approved Digital Pharmacies, HealthWarehouse.com services the mission of providing affordable healthcare and incredible patient services to help Americans. Learn more at www.HealthWarehouse.com

Forward-Looking Statements

This announcement and the information incorporated by reference herein contain “forward-looking statements” as defined in federal securities laws, including but not limited to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, which statements are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those expressed in forward looking statements or in management's expectations. Important factors which could cause or contribute to actual results being materially and adversely different from those described or implied by forward looking statements include, among others, risks related to competition, management of growth, access to sufficient capital to fund our business and our growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, cyber-attacks, access to sufficient inventory, government regulation and taxation and fraud. More information about factors that potentially could affect HealthWarehouse.com's financial results is included in HealthWarehouse.com's audited Annual Reports and Quarterly Reports available at otcmarkets.com and prior filings with the Securities and Exchange Commission.

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Dan Seliga, Chief Financial Officer, (800) 748-7001

Source: HealthWarehouse.com, Inc.