Strengthened Balance Sheet, with $13.1 Million in Cash at Quarter End
During and Subsequent to Quarter, Deployed $18 Million Into Bitcoin and Ethereum as part of Digital Treasury Strategy
NORTH PALM BEACH, Fla., Feb. 13, 2026 (GLOBE NEWSWIRE) -- SRx Health Solutions, Inc. (NYSE:SRXH) (the "Company" or "SRXH"), a pet health and wellness company, today announced its financial results for the fiscal first quarter 2026 for the three-month period ended December 31, 2025.
"Q1 FY26 marked a pivotal reset for the Company," stated Kent Cunningham, CEO of SRXH. "We exited prior balance sheet restructuring with materially improved liquidity and a stronger capital foundation. Funding constraints leading into the quarter temporarily reduced inventory levels and resulted in below-normal fill rates, which constrained sales of our U.S. pet wellness brand, Halo®. Underlying consumer demand remained resilient, and at normalized inventory levels we would have delivered year-over-year growth. Despite limited marketing investment, we maintained our presence across core digital channels and expanded gross margin to 38% through disciplined SKU rationalization and a stronger product mix, including the proactive exit of tariff-impacted products ahead of calendar 2026. With additional capital raised subsequent to quarter-end and deployed strategically to support operational priorities and our digital treasury strategy, we are restoring momentum and positioning the business for a stronger and more profitable 2026."
"During the quarter, we improved our balance sheet and announced a definitive agreement to acquire EMJ Crypto Technologies, which will advance a broader strategic shift toward multi-asset digital treasury management. To date, we have deployed $18 million into cryptocurrency, including Bitcoin and Ethereum. We look forward to closing on EMJX during the current calendar first quarter and unlocking long-term value for shareholders," stated Michael Young, Board Member of SRx Health.
FIRST QUARTER 2026 HIGHLIGHTS
EMJX Definitive Agreement: Entered into a definitive agreement to acquire EMJX, a digital-asset treasury platform integrating quantitative models, artificial intelligence, and systematic risk controls for multi-asset digital treasury management, led by Eric M. Jackson.
Digital Treasury Deployment: Deployed an initial $8.5 million of capital into several digital assets during the quarter; subsequent purchases increased total allocation to $18.0 million across Bitcoin and Ethereum.
Operating Results: Net sales of $2.8 million, driven primarily by digital sales of premium pet food and wellness products under the Halo® brand; Gross margin improved to 38%, with gross profit of $1.1 million; Net loss of $8.6 million includes $3.1 million non-cash loss on debt extinguishment; Adjusted EBITDA loss of $1.06 million1; Diluted loss per share of $(0.26).
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2025, the Company held cash and cash equivalents of $13.1 million, compared to $1.3 million at September 30, 2025.
The major sources of cash in the three months ended December 31, 2025 were primarily proceeds from the issuance of common stock of $16.1 million and preferred stock of $8.9 million, partially offset by $8.5 million deployed into digital assets and $1.6 million used to repay and settle convertible debt.
SRx Health Solutions Inc.Unaudited Condensed Consolidated Statements of Operations(Dollars in thousands)
Three Months EndedDecember 31,
2025
20241
Net sales
$
2,807
$
—
Cost of goods sold
1,753
—
Gross profit
1,054
—
Operating expenses:
Selling, general and administrative
4,844
—
Total operating expenses
4,844
—
Loss from continuing operations
(3,790
)
—
Other expense:
Interest expense, net
1,288
—
Loss on extinguishment of debt
3,064
—
Change in fair value of digital assets
464
—
Other expense
4
—
Total other expense, net
4,820
—
Net loss before income taxes
(8,610
)
—
Income tax expense
4
—
Net loss from continuing operations
(8,614
