SRx Health Solutions (NYSE: SRXH) reported Q1 FY2026 results for the quarter ended December 31, 2025, and announced a definitive agreement to acquire EMJ Crypto Technologies (EMJX).
Key metrics: net sales $2.8M, gross margin 38%, net loss $8.6M, cash of $13.1M, and $18.0M deployed into Bitcoin and Ethereum. The EMJX deal is expected to close in H1 2026.
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Positive
- Cash balance increased to $13.1M at December 31, 2025
- Gross margin expanded to 38% through SKU rationalization
- Entered definitive agreement to acquire EMJX for digital-asset treasury capability
- Deployed $18.0M into Bitcoin and Ethereum as digital treasury allocation
Negative
- Net loss of $8.6M for Q1 FY26
- Weighted shares outstanding rose to 98.76M, indicating significant dilution
- Inventories declined to $1.318M, constraining Halo brand fill rates and sales
- Adjusted EBITDA loss of $1.06M for the quarter
-3.63%
News Effect
+50.0%
Peak Tracked
-7.4%
Trough Tracked
-$404K
Valuation Impact
$11M
Market Cap
2.9x
Rel. Volume
On the day this news was published, SRXH declined 3.63%, reflecting a moderate negative market reaction.
Argus tracked a peak move of +50.0% during that session.
Argus tracked a trough of -7.4% from its starting point during tracking.
Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility.
This price movement removed approximately $404K from the company’s valuation, bringing the market cap to $11M at that time.
Trading volume was elevated at 2.9x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Cash & equivalents
$13.1 million
Balance sheet at December 31, 2025
Digital asset deployment
$18.0 million
Bitcoin and Ethereum under digital treasury strategy
Net sales
$2.8 million
Fiscal Q1 2026 net sales
Gross margin
38%
Fiscal Q1 2026 gross margin on Halo brand sales
Net loss
$8.6 million
Fiscal Q1 2026 net loss from continuing operations
Adjusted EBITDA loss
$1.06 million
Fiscal Q1 2026 Adjusted EBITDA
Diluted loss per share
$(0.26)
Fiscal Q1 2026 diluted EPS
Equity financing proceeds
$16.1 million
Common stock issuance in quarter ended December 31, 2025
$0.1485
Last Close
Volume
Volume 77,366,274 is 2.17x the 20-day average of 35,591,515, signaling elevated interest pre-news.
high
Technical
Shares at $0.1541 are trading below the 200-day MA of $0.41 and remain 92.37% under the 52-week high.
SRXH is up 14.91% with elevated volume while key peers show mixed moves: AMS and MODV down, CCM slightly up, NIVF down despite appearing in momentum scanners. This points to a stock-specific reaction tied to its earnings and digital-asset strategy.
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 15 |
Quarterly earnings |
Positive | -16.7% |
Reported Q1 2025 with higher margins and improved EPS despite lower revenue. |
Prior earnings event with improving margins and EBITDA still saw a -16.67% price reaction, suggesting a history of negative responses to results.
This announcement reports Q1 FY26 results with $2.8 million in net sales, a 38% gross margin, and a net loss of $8.6 million, alongside a definitive agreement to acquire EMJ Crypto Technologies and a growing digital-asset treasury. Previously, on May 15, 2025, Q1 2025 earnings showed improved EPS and Adjusted EBITDA despite lower revenue and a 33% gross margin, yet the stock fell 16.67%. Together, the history shows operational improvement but historically weak price responses to earnings updates.
-16.7%
Average Historical Move
earnings
Past earnings (Q1 2025) with margin and EPS improvement led to a -16.67% move. Today’s positive reaction to Q1 FY26 results and the EMJX acquisition plan contrasts with that prior pattern.
Earnings updates progressed from focusing on improving profitability and margins in the Halo pet business in Q1 2025 to combining pet wellness operations with a multi-asset digital treasury strategy and a planned EMJ Crypto Technologies acquisition in Q1 FY26.
This announcement details Q1 FY26 results for SRXH, highlighting net sales of $2.8 million, a strengthened cash balance of $13.1 million, and a net loss of $8.6 million with Adjusted EBITDA loss of $1.06 million. Management emphasizes an expanded 38% gross margin, significant equity financing, and deployment of $18.0 million into Bitcoin and Ethereum, plus a definitive agreement to acquire EMJ Crypto Technologies. Investors may track future quarters for operating leverage, digital-asset performance, and progress on the EMJX transaction.
digital-asset treasury platform
financial
“to Acquire EMJ Crypto Technologies (“EMJX”), a “Gen 2” Digital-Asset Treasury Platform”
A digital-asset treasury platform is a service companies use to hold, move and manage cryptocurrencies and other tokenized assets on their balance sheet, combining custody (secure storage), trading tools and reporting in one place. Like a corporate vault plus a smart bank account for digital money, it matters to investors because it affects a company’s liquidity, risk profile, potential yield and regulatory exposure, which can change cash flow and the value of shares.
cryptocurrency
financial
“we have deployed $18 million into cryptocurrency, including Bitcoin and Ethereum”
Cryptocurrency is a type of digital money that uses special computer codes to secure transactions and control the creation of new units. Unlike traditional cash, it exists only electronically and isn’t issued or regulated by any government or bank. For investors, it represents a new form of asset that can be used for transactions or held as an investment, often with the potential for high gains but also significant risks.
adjusted ebitda
financial
“Adjusted EBITDA loss of $1.06 million1; Diluted loss per share”
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
continuing operations
financial
“Net loss from continuing operations | | (8,614 | )”
Continuing operations are the parts of a company’s business that it expects to keep running into the future, excluding divisions or activities it has sold, closed, or classified as discontinued. Investors watch continuing operations because they show the company’s core ability to generate revenue and profit over time — like evaluating the healthy, ongoing crops on a farm rather than one-off harvests from fields you’ve already sold.
discontinued operations
financial
“Loss from discontinued operations | | — | | (3,983 | )”
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.
reverse merger
financial
“only became the reporting entity following a reverse merger on April 24, 2025”
A reverse merger is when a private company becomes publicly traded by combining with an already listed public shell company, allowing the private business to gain a stock market listing without going through a traditional IPO. Investors care because this shortcut can be faster and cheaper than an IPO but often comes with less regulatory vetting and market visibility, so it can mean higher uncertainty about valuation, financial transparency, and future liquidity.
stockholders’ equity
financial
“Total Stockholders’ Equity | | 3,524 | | 407”
Stockholders’ equity is the portion of a company’s value that belongs to its owners after subtracting what the company owes from what it owns — like the equity in a house after paying the mortgage. For investors it shows the company’s net worth and can indicate financial strength, a cushion against losses, and the amount potentially available to support dividends or reinvestment; tracking changes helps assess whether the business is building or eroding owner value.
operating leases
financial
“Right-of-use assets, operating leases | | — | | 20”
Operating leases are arrangements where a company rents assets — like buildings, vehicles or equipment — for a set period without taking ownership, similar to leasing a car or renting an apartment. They matter to investors because lease payments are ongoing commitments that affect a company’s cash flow and financial risk; depending on accounting rules they may be shown as off‑balance‑sheet obligations or as right‑of‑use assets and liabilities, which changes how you compare profitability and leverage across companies.
AI-generated analysis. Not financial advice.
Executed Definitive Agreement to Acquire EMJ Crypto Technologies (“EMJX”), a “Gen 2” Digital-Asset Treasury Platform, Anticipated to Close in first half of Calendar 2026
Strengthened Balance Sheet, with
During and Subsequent to Quarter, Deployed
NORTH PALM BEACH, Fla., Feb. 13, 2026 (GLOBE NEWSWIRE) — SRx Health Solutions, Inc. (NYSE American: 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
“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
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 to38% , 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$1.06 million 1; Diluted loss per share of$(0.26) .
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2025, the Company held cash and cash equivalents of
The major sources of cash in the three months ended December 31, 2025 were primarily proceeds from the issuance of common stock of
| SRx Health Solutions Inc. Unaudited Condensed Consolidated Statements of Operations (Dollars in thousands) |
|||||||
| Three Months Ended December 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 | ) | — | ||||
| Loss from discontinued operations | — | (3,983 | ) | ||||
| Net loss | $ | (8,614 | ) | $ | (3,983 | ) | |
| Weighted average number of shares outstanding, basic | 33,737,015 | 23,582,701 | |||||
| Weighted average number of shares outstanding, diluted | 33,737,015 | 23,582,701 | |||||
| Loss per share, basic | $ | (0.26 | ) | $ | (0.17 | ) | |
| Loss per share, diluted | $ | (0.26 | ) | $ | (0.17 | ) | |
| SRx Health Solutions Inc. Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts) |
|||||||
| December 31, 2025 |
September 30, 2025 |
||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 13,060 | $ | 1,309 | |||
| Accounts receivable, net | 3,056 | 3,945 | |||||
| Inventories, net | 1,318 | 2,078 | |||||
| Prepaid expenses and other current assets | 1,403 | 794 | |||||
| Total Current Assets | 18,837 | 8,126 | |||||
| Non-current Assets | |||||||
| Fixed assets, net | 73 | 88 | |||||
| Right-of-use assets, operating leases | — | 20 | |||||
| Digital assets | 7,996 | — | |||||
| Other assets | 147 | 168 | |||||
| Total Assets | $ | 27,053 | $ | 8,402 | |||
| Liabilities & Stockholders’ Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 1,247 | $ | 2,147 | |||
| Accrued liabilities | 1,254 | 1,375 | |||||
| Operating lease liability, short-term | — | 21 | |||||
| Convertible debt, short-term | 21,028 | — | |||||
| Total Current Liabilities | 23,529 | 3,543 | |||||
| Non-current Liabilities | |||||||
| Convertible debt, long-term | — | 4,452 | |||||
| Total Non-current Liabilities | — | 4,452 | |||||
| Total Liabilities | 23,529 | 7,995 | |||||
| Stockholders’ Deficit | |||||||
| Common Stock, |
102 | 31 | |||||
| Preferred Stock, |
— | — | |||||
| Additional paid-in capital, common | 21,001 | 23,304 | |||||
| Additional paid-in capital, preferred | 13,963 | — | |||||
| Accumulated deficit | (31,542 | ) | (22,928 | ) | |||
| Total Stockholders’ Equity | 3,524 | 407 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 27,053 | $ | 8,402 | |||
SRx Health Solutions Inc.
Non-GAAP Measures
Adjusted EBITDA
We define Adjusted EBITDA as EBITDA further adjusted to eliminate the impact of certain items that we do not consider indicative of our core operations. Adjusted EBITDA is determined by adding the following items to net loss: interest expense, tax expense, depreciation and amortization, share-based compensation, change in fair value of digital assets, loss on extinguishment of debt, financing expenses, transaction-related costs, and other non-recurring expenses.
We present Adjusted EBITDA as it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We believe that the disclosure of Adjusted EBITDA is useful to investors as this non-GAAP measure forms the basis of how our management team reviews and considers our operating results. By disclosing this non-GAAP measure, we believe that we create for investors a greater understanding of and an enhanced level of transparency into the means by which our management team operates our company. We also believe this measure can assist investors in comparing our performance to that of other companies on a consistent basis without regard to certain items that do not directly affect our ongoing operating performance or cash flows.
Adjusted EBITDA does not represent cash flows from operations as defined by GAAP. Adjusted EBITDA has limitations as a financial measure and you should not consider it in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net (loss) income, gross margin, and our other GAAP results.
The following table presents a reconciliation of net loss, the closest GAAP financial measure, to EBITDA and Adjusted EBITDA for each of the periods indicated (in thousands):
| Three Months Ended December 31, |
||||||
| 2025 | 2024* | |||||
| Net loss | $ | (8,614 | ) | $ | — | |
| Interest expense, net | 1,288 | — | ||||
| Depreciation and amortization | 15 | — | ||||
| Income tax expense | 4 | — | ||||
| EBITDA | (7,307 | ) | — | |||
| Non-cash share-based compensation (a) | 961 | — | ||||
| Loss on extinguishment of debt | 3,064 | — | ||||
| Change in fair value of digital assets | 464 | — | ||||
| Transaction related (b) | 1,603 | — | ||||
| Non-recurring and other expenses (c) | 158 | — | ||||
| Adjusted EBITDA | $ | (1,057 | ) | $ | — | |
| (a) | Non-cash expenses related to equity compensation awards for certain directors, officers and employees for services in their capacity as such. |
| (b) | Transaction-related legal fees, professional fees, and SEC filing fees related to single occurrence business matters, i.e. registration statements, financing, and due diligence related. |
| (c) | Other single-occurrence expenses, which consist of infrequent and non-recurring costs that are not indicative of the Company’s ongoing operating performance. |
*Prior-year comparative figures are not presented because its wholly owned subsidiary, Halo, Purely for Pets, Inc., constituting the Company’s continuing operations, only became the reporting entity following a reverse merger on April 24, 2025. The prior-year results of its former Canadian operations were discontinued in fiscal year September 30, 2025 subsequent to the merger as a result of a formal insolvency restructuring and thus are classified as discontinued operations in fiscal year 2025. Accordingly, prior-year amounts for continuing operations are not meaningful and are presented as zero on the consolidated statement of operations.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “expect,” “intend,” “aim,” “plan,” “may,” “could,” “target,” and similar expressions are intended to identify forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks include, but are not limited to, the ability to complete the proposed transaction, shareholder approvals, market conditions, regulatory considerations, and other risks described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update them, except as required by law.
Company Contact:
SRx Health Solutions Inc.
Kent Cunningham, Chief Executive Officer
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
[email protected]
Media Contact
KCSA Strategic Communications
Kristin Cwalinski, Senior Vice President
[email protected]
____________________
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is set forth in the reconciliation table accompanying this release.
FAQ
What did SRXH announce about acquiring EMJ Crypto Technologies (EMJX)?
SRXH entered a definitive agreement to acquire EMJX, a Gen 2 digital-asset treasury platform. According to the company, EMJX integrates quantitative models, AI, and systematic risk controls and the deal is anticipated to close in the first half of calendar 2026.
How much capital has SRXH deployed into cryptocurrency as part of its digital treasury strategy?
SRXH has deployed a total of $18.0 million into Bitcoin and Ethereum to date. According to the company, $8.5 million was invested during the quarter with subsequent purchases bringing the allocation to $18.0 million.
What is SRXH’s reported cash position and liquidity at December 31, 2025?
SRXH reported cash and cash equivalents of $13.1 million as of December 31, 2025. According to the company, proceeds included $16.1 million from common stock and $8.9 million from preferred stock issuances.
How did SRXH perform operationally in Q1 FY26 including sales and margins?
Net sales were $2.8 million with gross margin improving to 38%, producing $1.1 million gross profit. According to the company, inventory constraints limited sales but margin rose from SKU rationalization and product mix changes.
What were SRXH’s reported losses and non-cash items in Q1 FY26?
SRXH reported a net loss of $8.6 million, which included a $3.1 million non-cash loss on debt extinguishment. According to the company, Adjusted EBITDA loss was $1.06 million for the quarter.
How will the EMJX acquisition timing affect SRXH’s 2026 plans and closing timeline?
SRXH expects the EMJX acquisition to close in the first half of calendar 2026, supporting a strategic shift to multi-asset digital treasury management. According to the company, closing is anticipated during the current calendar first quarter.
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