RETRANSMISSION – Cosmos Health Reports Q1 2025 Results: Adjusted Profitability Achieved as Gross Profit Rises 54% to $2.05M; Operating Cash Burn Down 95%, or $3.2M, to $0.19M; Approaching Cash Flow Breakeven

Core Viewpoint - Cosmos Health Inc. reported a strong financial performance for Q1 2025, showcasing a significant turnaround with improved profitability metrics and disciplined cost management. Financial Highlights - Revenue for Q1 2025 was $13.71 million, a decrease of 5.98% from $14.58 million in Q1 2024, attributed to a strategic shift towards higher-margin areas [6] - Gross profit increased by 53.70% to $2.05 million from $1.33 million in the prior-year period, driven by an improved product mix [6] - Adjusted EBITDA rose by 157.8% to $0.37 million compared to a loss of $0.64 million in Q1 2024 [6] - Adjusted Net Income improved by 139.4% to $0.28 million, versus a loss of $0.71 million in the prior-year period [6] Profitability and Cost Management - The company achieved profitability on an adjusted basis for both EBITDA and Net Income, reflecting improved gross profitability and effective cost management [3][9] - Total operating expenses declined by 9.05% to $2.88 million, with significant reductions in salaries and wages (17.34%) and sales and marketing expenses (83.78%) [6] Balance Sheet and Cash Flow - Stockholders' equity increased by $1.42 million, with a liabilities-to-assets ratio of 54.6%, indicating financial discipline [5] - Total assets rose by 5.3% to $57.2 million, while total liabilities increased by 4.9% to $31.24 million [7] - Operating cash burn improved by 94.5% year-over-year, decreasing to negative $0.19 million from negative $3.41 million in Q1 2024 [8] Operational Developments - The wholesale logistics segment (CosmoFarm) and the nutraceutical and pharmaceutical products portfolio, including Sky Premium Life®, were key contributors to the strong performance [4] - The company is advancing its R&D pipeline, with projects like the CCX0722 weight management solution nearing launch [11] - Cosmos Health is expanding its high-margin contract manufacturing segment and growing its flagship nutraceutical brand, Sky Premium Life, in global markets [11]