Syra Health (SYRA) - 2025 Q1 - Quarterly Results

Q1 2025 Financial Highlights 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][6] - This segment now constitutes 65% of total revenues, up from 19% in the prior year[4][6] - As of March 31, 2025, the company reported a cash balance of $2.5 million and no long-term debt[4] Management Commentary 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] - The success of the Population Health unit is cited as proof of the effectiveness of the company's refined go-to-market strategy[5] - The company remains focused on operational efficiency, innovative digital health solutions, and long-term value creation[5] 2025 Financial Outlook 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guidance due to federal budgetary revisions impacting government customers and market variability - The company has withdrawn its 2025 financial guidance[4] - The decision was prompted by ongoing federal budgetary revisions affecting government agency customers and the resulting variability in the healthcare market[4] Recent Operational Highlights 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] - 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] - Obtained a one-year, $1.5 million contract extension with Indiana FSSA NeuroDiagnostic Institute[4] - Awarded a $660,000 Population Health contract extension to support a national healthcare organization's HEDIS® program[11] - Launched specialized content within the Syrenity platform to support individuals with Post-Traumatic Stress Disorder (PTSD)[11] Financial Statements This section presents Syra Health's unaudited consolidated financial statements for Q1 2025, including Balance Sheets, Statements of Operations, and Cash Flows Balance Sheets 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 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 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 Syra Health provides Adjusted EBITDA, a non-GAAP measure, to supplement GAAP results, reporting ($462,239) for Q1 2025, a significant improvement - The company uses the non-GAAP measure Adjusted EBITDA for internal analysis and believes it is useful for investors to benchmark performance[18] Reconciliation of Adjusted EBITDA to Net Loss (Unaudited) | Metric | Q1 2025 ($) | 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) |