Syra Health (SYRA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 6% year-over-year to $1.9 million, led by a 261% surge in Population Health, while Healthcare Workforce revenue declined.

• Gross margin improved to 31.7%–32%, up 14.6 percentage points year-over-year, reflecting a shift to higher-margin contracts and lower labor costs.

• Net loss narrowed to $472,000 from $1.4 million in Q1 2024, driven by operational efficiency and cost management.

• Operating expenses declined 39% year-over-year to $1.1 million, supporting improved profitability.

• Voluntarily delisted from NASDAQ in April 2025 to reduce costs and after non-compliance with minimum bid price, now trading on OTCQB.

Financial highlights

• Population Health revenue reached $1.2 million, a 261% year-over-year increase, now 65% of total revenue.

• Gross profit for Q1 was $589,000, up 97% from last year.

• Adjusted EBITDA improved to negative $462,000 from negative $1.4 million year-over-year.

• Cash and cash equivalents were $2.5 million as of March 31, 2025, with no long-term debt.

• Net cash provided by operating activities was $158,231 in Q1 2025, compared to net cash used of $800,745 in Q1 2024.

Outlook and guidance

• 2025 guidance was withdrawn due to federal funding uncertainty and budgetary revisions impacting key public sector customers.

• Updated outlook will be provided once the impact of government funding changes becomes clearer.

• Strategic focus remains on high-margin Population Health and Behavioral and Mental Health units, with expansion into private healthcare.