Syra Health Announces First Quarter Revenue of $1.9 Million, Up 6% YoY
Revenue increase led by Population Health's 261% YoY Expansion
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, Thursday, May 8, at 9:00 am ET
CARMEL, Ind., May 8, 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 first quarter ended March 31, 2025.
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 of March 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 and Behavioral 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. Deepika Vuppalanchi, CEO of Syra Health, said, "We are pleased that we began 2025 with strong momentum, delivering solid revenue growth and significant gross margin expansion, driven by our strategic focus on higher-margin business units. The success of our Population Health business unit underscores the effectiveness of our refined go-to-market strategy and our commitment to addressing critical gaps in healthcare delivery. As we navigate a dynamic healthcare landscape, we remain focused on operational efficiency, innovative digital health solutions, and long-term value creation for our key stakeholders."
Q1 2025 Financial Results
Revenue for the first quarter of 2025 was $1.9 million, an increase of 6% compared to $1.8 million in the first quarter of 2024. Strong growth was driven by the high-margin Population Health segment, which expanded 261% year-over-year. Within Healthcare Workforce, our long-term contract with the Indiana FSSA NeuroDiagnostic Institute expired, partially offset by the aforementioned contract extension with the same customer.
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 Population Health contracts. The year-over-year margin expansion also reflects a $120,000 reclassification of expenses from cost of services to selling, general, and administrative expenses in the year-ago period.
Total operating expenses for the first quarter of 2025 were $1.1 million compared to $1.7 million in the first quarter of 2024, a decline of 39% compared to the year-ago period. The reduction was driven by operational efficiency gains and disciplined cost management, which was partially offset by the aforementioned reclassification of expenses.
Adjusted EBITDA for the first quarter of 2025 was ($462,000), a significant improvement compared to ($1.4) million in the prior year.
Net loss for the first quarter of 2025 was ($472,000) compared to ($1.4) million in the first quarter of 2024. This improvement of over 3x versus the year-ago period was driven by our operational restructuring efforts, a continuation of trends that began last year. Earnings per share for the first quarter of 2025 were ($0.04), compared to ($0.22) in the year-ago period.
Conference Call
Management will hold a conference call to discuss the full-year financial results at 9:00 am ET on May 8, 2025.
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.
SYRA HEALTH CORP. | ||||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
ASSETS | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,490,585 | $ | 2,395,405 | ||||
Accounts receivable, net | 945,856 | 680,827 | ||||||
Other current assets | 210,788 | 276,563 | ||||||
Total current assets | 3,647,229 | 3,352,795 | ||||||
Property and equipment, net | 20,550 | 27,347 | ||||||
Right-of-use asset | 54,771 | 299,190 | ||||||
Total assets | $ | 3,722,550 | $ | 3,679,332 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 325,027 | $ | 101,690 | ||||
Accrued expenses | 211,867 | 230,383 | ||||||
Deferred revenue | 599,213 | 16,611 | ||||||
Current portion of operating lease liability, related party | 54,771 | 111,978 | ||||||
Notes payable | 75,036 | 152,887 | ||||||
Total current liabilities | 1,265,914 | 613,549 | ||||||
Non-current portion of operating lease liability, related party | - | 187,212 | ||||||
Total liabilities | 1,265,914 | 800,761 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity (deficit): | ||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, | - | - | ||||||
Class A common stock, $0.001 par value, 100,000,000 shares | 11,339 | 8,979 | ||||||
Convertible class B common stock, $0.001 par value, 5,000,000 | 600 | 833 | ||||||
Additional paid-in capital | 11,741,155 | 11,692,952 | ||||||
Accumulated deficit | (9,296,458) | (8,824,193) | ||||||
Total stockholders' equity (deficit) | 2,456,636 | 2,878,571 | ||||||
Total liabilities and stockholders' equity (deficit) | $ | 3,722,550 | $ | 3,679,332 | ||||
SYRA HEALTH CORP. | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Net revenues | $ | 1,857,774 | $ | 1,752,340 | ||||
Cost of services | 1,268,618 | 1,452,561 | ||||||
Gross profit | 589,156 | 299,779 | ||||||
Operating expenses: | ||||||||
Salaries and benefits | 507,207 | 736,303 | ||||||
Professional services | 224,026 | 194,580 | ||||||
Research and development expenses | 37,173 | 277,548 | ||||||
Selling, general and administrative expenses | 287,287 | 522,757 | ||||||
Depreciation | 6,797 | 12,545 | ||||||
Total operating expenses | 1,062,490 | 1,743,733 | ||||||
Operating loss | (473,334) | (1,443,954) | ||||||
Other income (expense): | ||||||||
Interest income | 4,298 | 981 | ||||||
Interest expense | (3,229) | (4,077) | ||||||
Total other income (expense) | 1,069 | (3,096) | ||||||
Net loss | $ | (472,265) | $ | (1,447,050) | ||||
Weighted average common shares outstanding - basic and diluted | 11,587,058 | 6,495,213 | ||||||
Net loss per common share - basic and diluted | $ | (0.04) | $ | (0.22) | ||||
SYRA HEALTH CORP. | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (472,265) | $ | (1,447,050) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 6,797 | 12,545 | ||||||
Common stock issued for services | 2,586 | 18,875 | ||||||
Non-cash lease expense | - | 31,373 | ||||||
Stock-based compensation, stock options | 32,944 | 14,140 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (265,029) | 314,951 | ||||||
Accounts receivable, related party | - | (31,510) | ||||||
Other current assets | 65,775 | 7,900 | ||||||
Right-of-use asset | 244,419 | - | ||||||
Accounts payable | 223,337 | 182,576 | ||||||
Deferred revenue | 582,602 | 6,108 | ||||||
Accrued expenses | (18,516) | 120,720 | ||||||
Operating lease liability | (244,419) | (31,373) | ||||||
Net cash provided by/(used in) operating activities | 158,231 | (800,745) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property and equipment | - | (5,619) | ||||||
Net cash used in investing activities | - | (5,619) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds received on exercise of warrants | 14,800 | 850,129 | ||||||
Repayments on notes payable | (77,851) | (85,883) | ||||||
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 BEGINNING OF PERIOD | 2,395,405 | 3,280,075 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 2,490,585 | $ | 3,237,957 | ||||
SUPPLEMENTAL INFORMATION: | ||||||||
Interest paid | $ | 3,229 | $ | 4,077 | ||||
Income taxes paid | $ | - | $ | - | ||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
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 the United States of America ("GAAP"), we have provided the following non-GAAP financial measure in this release and the accompanying tables: adjusted EBITDA. We use this non-GAAP financial measures internally to facilitate period-to-period comparisons and analysis of our operating performance and liquidity, and believe it is useful to investors as a supplement to GAAP measures in analyzing, trending, and benchmarking the performance and value of our business. However, this measure is not intended to be a substitute for those reported in accordance with GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. For reconciliations of historical non-GAAP financial measures to the most comparable financial measures under GAAP, see the table below.
SYRA HEALTH CORP. | |||
Quarter Ended | |||
March 31, 2024 | March 31, 2025 | ||
Net Income | ($1,447,050) | ($472,265) | |
Interest expense | 4,077 | 3,229 | |
Depreciation expense | 12,545 | 6,797 | |
Taxes | - | - | |
Adjusted EBITDA | ($1,430,428) | ($462,239) | |
About Syra Health
Syra Health is a healthcare technology company that powers better health in critical areas such as mental health, population health, and the healthcare workforce. The company's leading-edge technology products and innovative services focus on prevention, access, and affordability. With a commitment to improving health, Syra Health is advancing healthcare solutions nationwide and around the world. For more information, please visit www.syrahealth.com.
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 December 31, 2024, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and, except as required by federal securities laws, the Company specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contacts
For Media Inquiries:
Christine Drury
Director of Corporate Communications
Syra Health
463-345-5180
[email protected]
For Investor Inquiries:
Corbin Woodhull
Managing Director, Global Advisory
Hayden IR
602-476-1821
[email protected]
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SOURCE Syra Health