UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 (Mark One) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to ___________ Commission File Number: 001-41822 SYRA HEALTH CORP. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction o ...

Syra Health Announces Second Quarter Financial Results, Advancing Toward Profitability on Margin Gains and Cost Reductions Carmel, Ind., August 12, 2025 / PRNewswire – Syra Health Corp. (OTCQB: SYRA) ("Syra Health" or the "Company"), a healthcare technology company dedicated to powering better health through innovative technology products and services, announced today its financial results for the second quarter ended June 30, 2025. Q2 2025 Financial Highlights 2025 Financial Outlook ● We depend heavily on ...

Financial Highlights - Revenue for Q2 2025 was $1.9 million, consistent with $1.97 million in Q2 2024 [6][10] - Population Health revenue grew 197% year-over-year to $1.6 million from $533,000 in Q2 2024 [7][10] - Gross margin increased to 38.7%, up 2,090 basis points from 17.8% in the prior year [6][11] - Earnings per share improved to ($0.01) from ($0.21) in the same period last year [6][12] Operational Highlights - The company is engaged in contract negotiations for a $5.8 million agreement to support Indiana's Child Mental Health Wraparound program [8] - Awarded a contract worth up to $2.1 million for medical management nurses for a major health insurer, marking an expansion into the private sector [8] - Achieved ISO 27001:2022 certification, demonstrating commitment to data protection and information security [8] Management Commentary - Interim CEO Priya Prasad stated that the company is nearing profitability, driven by the growth of the Population Health business unit [9] - The company is focused on scaling successful strategies and maximizing long-term shareholder value [9] Financial Outlook - The company relies heavily on government budgets for revenue, with potential delays and cancellations in contracts due to federal spending program changes [3] - The possibility of further spending reviews may negatively impact revenue and cash flows in the near term [3]

Group 1 - Syra Health Corp. will report its financial results for the three months ended June 30, 2025, on August 12, 2025, before the market opens [1] - The company focuses on healthcare technology, particularly in behavioral and mental health, population health, and the healthcare workforce [2] - Syra Health aims to improve health through innovative technology products and services that emphasize prevention, access, and affordability [2] Group 2 - The company is committed to advancing healthcare solutions both nationwide and globally [2] - For further information, Syra Health's website is available at www.syrahealth.com [2] - Investor and media inquiries can be directed to Christine Drury at Syra Health [3]

Core Insights - Syra Health has secured a one-year contract worth up to $2.1 million with a major insurance provider to staff registered nurses for specific health plans [2][3] - The contract aims to enhance healthcare outcomes by embedding medical management nurses into care teams, thereby addressing gaps in care and ensuring timely access to appropriate services [3] Company Overview - Syra Health is a healthcare technology company focused on improving health through innovative technology products and services, particularly in areas like mental health, population health, and the healthcare workforce [4] - The company emphasizes prevention, access, and affordability in its offerings, aiming to advance healthcare solutions both nationally and globally [4]

Core Viewpoint - Syra Health Corp. has been recommended for contract negotiations to implement Indiana's Child Mental Health Wraparound Access Site, valued at $5.8 million over three years, with a potential one-year extension [1][2]. Company Overview - Syra Health is a healthcare technology company focused on improving health through innovative technology products and services, particularly in mental health, population health, and healthcare workforce [4]. - The company emphasizes prevention, access, and affordability in its healthcare solutions, aiming to advance healthcare nationwide and globally [4]. Contract Details - The contract with the Indiana Department of Administration involves Syra Health serving as the statewide access point for families and providers in the Child Mental Health Wraparound program [3]. - Syra Health will subcontract 23.5% of the total contract value to other Indiana-based companies, indicating a commitment to local partnerships [1]. Strategic Importance - This initiative is part of Indiana's broader strategy to enhance care coordination and improve mental health outcomes for children across the state [3]. - Syra Health has a proven track record of executing complex health initiatives for state and local governments, showcasing its capability in delivering comprehensive health solutions [2].

Core Points - Syra Health Corp. is initiating a national search for a new CEO to succeed Dr. Deepika Vuppalanchi, who will serve as interim CEO during the transition [1][2] - This leadership change is part of a strategic succession plan aimed at positioning the company for future growth in the healthcare sector [2] - The Board expresses gratitude to Dr. Vuppalanchi for her contributions and plans for her continued involvement in the leadership team post-CEO appointment [3] Company Overview - Syra Health is a healthcare technology company focused on improving health in areas such as mental health, population health, and the healthcare workforce [4] - The company emphasizes prevention, access, and affordability through its innovative technology products and services [4] - Syra Health is committed to advancing healthcare solutions both nationally and globally [4]

[Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Syra Health reported 6% YoY revenue growth to **$1.9 million**, driven by Population Health, with gross margins improving to **31.7%** and net loss narrowing Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 ($) | Q1 2024 ($) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1.9 million | $1.8 million | +6% YoY | | Gross Margin | 31.7% | 17.1% | +14.6 p.p. | | Operating Expense | $1.1 million | $1.7 million | -39% YoY | | Net Loss | ($472,000) | ($1.4 million) | +67% Improvement | | EPS (diluted) | ($0.04) | ($0.22) | +81.8% Improvement | - The Population Health business unit was the primary growth driver, with revenues reaching **$1.2 million**, a **261% increase** from **$333,000** in Q1 2024[4](index=4&type=chunk)[6](index=6&type=chunk) - This segment now constitutes **65% of total revenues**, up from **19%** in the prior year[4](index=4&type=chunk)[6](index=6&type=chunk) - As of March 31, 2025, the company reported a cash balance of **$2.5 million** and no long-term debt[4](index=4&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO highlighted strong Q1 momentum, attributing revenue growth and margin expansion to a strategic pivot towards higher-margin business units - The CEO emphasized that the strong Q1 momentum, including revenue growth and margin expansion, was driven by a strategic focus on higher-margin business units[5](index=5&type=chunk) - The success of the Population Health unit is cited as proof of the effectiveness of the company's refined go-to-market strategy[5](index=5&type=chunk) - The company remains focused on operational efficiency, innovative digital health solutions, and long-term value creation[5](index=5&type=chunk) [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) Syra Health withdrew its 2025 financial guidance due to federal budgetary revisions impacting government customers and market variability - The company has withdrawn its **2025 financial guidance**[4](index=4&type=chunk) - The decision was prompted by ongoing federal budgetary revisions affecting government agency customers and the resulting variability in the healthcare market[4](index=4&type=chunk) [Recent Operational Highlights](index=1&type=section&id=Recent%20Operational%20Highlights) Syra Health is prioritizing higher-margin Population Health and Behavioral/Mental Health units, expanding into the private sector, and securing significant new contracts - The company is prioritizing higher-margin business units (Population Health, Behavioral and Mental Health) and expanding into the private sector[4](index=4&type=chunk) - Secured a **$2.5 million** Population Health contract with a major insurance provider, set to renew for two additional years at the same value[4](index=4&type=chunk) - Obtained a one-year, **$1.5 million** contract extension with Indiana FSSA NeuroDiagnostic Institute[4](index=4&type=chunk) - Awarded a **$660,000** Population Health contract extension to support a national healthcare organization's HEDIS® program[11](index=11&type=chunk) - Launched specialized content within the Syrenity platform to support individuals with Post-Traumatic Stress Disorder (PTSD)[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents Syra Health's unaudited consolidated financial statements for Q1 2025, including Balance Sheets, Statements of Operations, and Cash Flows [Balance Sheets](index=3&type=section&id=BALANCE%20SHEETS) As of March 31, 2025, Syra Health reported total assets of **$3.72 million**, total liabilities of **$1.27 million**, and cash of **$2.49 million** Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | $2,490,585 | $2,395,405 | | Total current assets | $3,647,229 | $3,352,795 | | Total assets | $3,722,550 | $3,679,332 | | Total current liabilities | $1,265,914 | $613,549 | | Total liabilities | $1,265,914 | $800,761 | | Total stockholders' equity | $2,456,636 | $2,878,571 | [Statements of Operations](index=4&type=section&id=STATEMENTS%20OF%20OPERATIONS) For Q1 2025, Syra Health generated net revenues of **$1.86 million**, with gross profit nearly doubling and a net loss of **($472,265)** Statement of Operations Summary (Unaudited) | Account | For the Three Months Ended March 31, 2025 ($) | For the Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net revenues | $1,857,774 | $1,752,340 | | Gross profit | $589,156 | $299,779 | | Total operating expenses | $1,062,490 | $1,743,733 | | Operating loss | ($473,334) | ($1,443,954) | | Net loss | ($472,265) | ($1,447,050) | | Net loss per common share | ($0.04) | ($0.22) | [Statements of Cash Flows](index=5&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, Syra Health generated positive cash flow from operating activities of **$158,231**, a significant turnaround, with cash increasing to **$2.49 million** Cash Flow Summary (Unaudited) | Account | For the Three Months Ended March 31, 2025 ($) | For the Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | $158,231 | ($800,745) | | Net cash used in investing activities | $0 | ($5,619) | | Net cash provided by/(used in) financing activities | ($63,051) | $764,246 | | Net change in cash and cash equivalents | $95,180 | ($42,118) | | Cash and cash equivalents at end of period | $2,490,585 | $3,237,957 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Syra Health provides Adjusted EBITDA, a non-GAAP measure, to supplement GAAP results, reporting **($462,239)** for Q1 2025, a significant improvement - The company uses the non-GAAP measure Adjusted EBITDA for internal analysis and believes it is useful for investors to benchmark performance[18](index=18&type=chunk) Reconciliation of Adjusted EBITDA to Net Loss (Unaudited) | Metric | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Net Loss | ($472,265) | ($1,447,050) | | Interest expense | $3,229 | $4,077 | | Depreciation expense | $6,797 | $12,545 | | Taxes | $0 | $0 | | **Adjusted EBITDA** | **($462,239)** | **($1,430,428)** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to ___________ Commission File Number: 001-41822 SYRA HEALTH CORP. (Exact Name of Registrant as Specified in its Charter) (Former name, former address ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $1,900,000, reflecting a 6% annual growth compared to Q1 2024 [6][20] - Gross margin expanded by 14.6 percentage points to 31.7%, driven by increased contributions from the Population Health business unit [7][22] - Net loss for Q1 2025 improved to $472,000, a reduction of over two-thirds compared to a net loss of $1,400,000 in Q1 2024 [13][23] Business Line Data and Key Metrics Changes - Population Health business unit revenue reached $1,200,000, showing significant year-over-year growth [20] - Healthcare Workforce revenue decreased to $655,000 from $1,400,000 in the previous year, indicating a strategic phase-out of less favorable contracts [20][21] - Behavioral and Mental Health business unit is experiencing growth due to increased user adoption of the Serenity app [21] Market Data and Key Metrics Changes - The company is facing delays and cancellations in contracts due to federal government budget cuts affecting state and local agencies [15][33] - The company is actively pursuing new contracts in both public and private sectors to mitigate revenue impacts from federal changes [17][34] Company Strategy and Development Direction - The company is focusing on high-margin, recurring revenue streams, particularly in Population Health and Behavioral and Mental Health [26] - A strategic decision was made to voluntarily delist from NASDAQ to reduce costs and improve focus on core fundamentals [12] - The company is consolidating its business units from five to three core units to streamline operations [19] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite current challenges, emphasizing a commitment to operational efficiency and innovation [26] - The company withdrew its previously issued guidance for revenue growth and profitability due to uncertainties in the healthcare industry [24] Other Important Information - Cash on hand as of March 31, 2025, was $2,500,000 [24] - The company is negotiating with healthcare workforce partners to ramp up high-value contracts while allowing less desirable contracts to expire [17] Q&A Session Summary Question: What should we expect from the company now that it's traded on the OTC markets? - The company will maintain transparency and continue to provide timely updates on contract wins and quarterly results [28] Question: Should investors be concerned about the lack of revenue from the Indiana FSSA Neurodiagnostic Institute? - A one-year contract extension valued at $1,500,000 was secured, reflecting continued confidence in the company's services [29] Question: What is the status of the two federal contracts announced in early 2024? - The company is partnered with Kaduchis on a federal contract vehicle, but no task orders have been issued yet [30][32] Question: Have federal level changes affected the business? - Yes, federal changes have led to project delays and potential revenue impacts, but the company remains focused on high-margin revenue growth [33][34]