Q1 2026 EPS grew to $0.02 per share versus ($0.04) in Q1 2025
Gross Margin rose to 42.7%, up 11 percentage points year-over-year
Total revenue increased to $2.3 million, up 22% when compared to the prior year period
CARMEL, Ind., May 7, 2026 /PRNewswire/ -- Syra Health Corp. (OTCQB:SYRA) ("Syra Health" or the "Company"), an integrated healthcare solutions company powering better health outcomes through prevention-focused, accessible, and affordable solutions, announced today its financial results for the first quarter ended March 31, 2026.
Q1 2026 Financial Highlights
Syra Health achieved profitability in Q1 2026, with net income of $240,979, compared to a net loss of $(472,265) in the prior year period, an improvement of approximately $713,000.
Total revenue of $2.3 million for the quarter ended March 31, 2026 was up 22% compared to $1.9 million year-over-year.
Revenue was led by the Company's continued expansion of its population health solutions to $1.8 million when compared to $1.2 million in Q1 2025 and $1.3 million in Q4 2025.
Gross margin expanded 11 percentage points to 42.7%, up from 31.7% in Q1 2025.
Cash on hand grew to $2.9 million and no long-term debt as of March 31, 2026.
2026 Financial Outlook
Certain revenue recognition, timing, and contract milestones contributed to the quarter's strong performance. Syra Health expects quarterly variability typical of milestone-based contracts, while remaining on track for full-year profitability.
Recent Operational Highlights
The Shelby County Health Department contract has been renewed for a second consecutive term, reflecting continued confidence in Syra Health's public health expertise. The second renewal reinforces the strength of Syra Health's long-term partnership with Shelby County and highlights sustained demand for its advanced data analytics solutions.
Syra Health launched a comprehensive site visit program for an existing national managed care organization (MCO) customer serving hundreds of thousands of members, hiring, training, and deploying site inspectors to help the MCO certify and recertify providers in compliance with Medicaid requirements as efficiently as possible.
A Midwestern university renewed its contract with the Company to continue training behavioral health professionals, further strengthening its role in addressing the national behavioral health workforce shortage.
Syra Health has reimagined Syrenity, its mental and behavioral health solution for a broader market, including health plans, health systems, and large employers. The enhanced solution features risk stratification, personalized care plans, and better care coordination to improve health outcomes, with integrated dashboards to highlight results. These capabilities will be further strengthened through partnerships, positioning Syrenity as a fully integrated solution for behavioral health management across the health ecosystem.
Syra Health was recognized with Innovation of the Year honors at TechPoint's annual Mira Awards. TechPoint is the industry-led growth initiative for Indiana's digital economy, and its Mira Awards celebrate excellence and innovation in technology. Syra Health was honored for SyraBot, its HIPAA and ADA-compliant, AI-backed chatbot designed specifically for healthcare, which TechPoint described as "potentially revolutionary," citing the Company's commitment to building compliant, accessible, and impactful digital health solutions. Syra Health's Syrenity platform was also recognized with the BioCrossroads Life Sciences Innovation Award, honoring the Company's HIPAA-compliant platforms and their potential to transform behavioral health care delivery. These recognitions validate Syra Health's approach to innovation and position the Company as a leader in healthcare solutions.
Management Commentary
Greg Alexander, CEO of Syra Health, said, "Q1 2026 represents a major milestone for Syra Health as we achieved our first profitable quarter, reflecting the growing strength of our business. This performance was driven by year-over-year revenue growth, significant gross margin expansion, and positive net income and earnings per share. Our population health solutions continue to be a powerful growth engine for us, validating our prevention-focused mission. Ongoing contract renewals and expansions with existing customers further reinforce the value of our offerings, providing strong revenue visibility and signaling long-term customer confidence, an important indicator of stability and sustainable growth for investors. While quarterly results may vary due to contract timing and milestone recognition, we remain confident in our profitability trajectory by year-end, as the fundamentals driving our business— expanding partnerships, growing demand for accessible, affordable, and prevention-focused healthcare solutions, and disciplined execution— remain firmly intact."
Q1 2026 Financial Results
Revenue for the first quarter of 2026 was $2.3 million, an increase of 22% compared to $1.9 million in the first quarter of 2025. Strong growth was driven by the Company's high-margin population health solutions, which grew 46% year-over-year to $1.8 million from $1.2 million. Healthcare workforce solutions decreased, as expected, to approximately $513,000 from $655,000 in the prior period, as the Company strategically prioritizes higher-margin solutions. We expanded our gross profit margin by 11 percentage points to 42.7% compared with 31.7% in the prior year period, due to a revenue mix shift toward higher-margin solutions and improved operating leverage in Population Health.
Operating expenses declined across all major categories, reflecting disciplined cost management and improved operational efficiency. Salaries and benefits decreased 27% from $507,207 in Q1 2025 to $372,109 in Q1 2026. Professional services fell 16% to $187,141 in Q1 2026 from $224,026 in the prior year period. SG&A was reduced by 26% to $213,047 in Q1 2026 when compared to $287,287 in Q1 2025. Research and development expenses declined significantly by 81% to $6,921 for the first quarter of 2026 from $37,173 in the first quarter of 2025. Depreciation declined 85% to $1,054 from $6,797 in the year-ago period.
Adjusted EBITDA for the first quarter of 2026 was $244,495, a material improvement when compared to ($462,239) in the prior year.
SYRA HEALTH CORP.
BALANCE SHEETS
March 31,
December 31,
2026
2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
2,922,318
$
1,614,733
Accounts receivable, net
869,132
918,374
Other current assets
136,077
205,423
Total current assets
3,927,527
2,738,530
Property and equipment, net
5,932
6,986
Right-of-use asset
11,060
27,401
Total assets
$
3,944,519
$
2,772,917
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
366,422
$
247,520
Accounts payable, related party
98,500
72,000
Accrued expenses
293,486
194,821
Deferred revenue
750,524
16,611
Current portion of operating lease liability, related party
11,060
27,401
Notes payable
62,026
116,386
Total current liabilities
1,582,018
674,739
