Cosmos Health — Q2 2026 Earnings Summary

Financial Performance

• Reported Q2 2026 revenue of $18.99 million, a 28.8% increase from $14.75 million in Q2 2025; first-half revenue reached $36.91 million, up 29.7% from $28.46 million.
• Adjusted revenue for Q2 2026 was $19.32 million (up 31.0% YoY), and $37.72 million for the first half (up 32.5% YoY), excluding sales discount reversals.
• GAAP gross profit was $1.51 million in Q2 2026 (up 29.9% YoY) and $2.89 million for the first half; adjusted gross profit was $1.84 million in Q2 2026 (up 58.4% YoY) and $3.70 million for the first half (up 15.0% YoY).
• Adjusted gross margin expanded 165 basis points to 9.54% in Q2 2026; first-half adjusted gross margin was 9.80%.
• Total operating expenses were $4.44 million in Q2 2026 (up 16.5% YoY) and $8.00 million for the first half (up 19.6% YoY), growing at roughly half the rate of revenue.
• Salaries and wages declined 0.7% year-over-year in Q2 2026 despite significant revenue growth.
• Net loss was $6.09 million in Q2 2026 compared to $2.83 million in Q2 2025, and $8.89 million for the first half compared to $3.65 million; losses were impacted by $2.65 million in non-cash fair value adjustments on financing arrangements.
• Adjusted EBITDA was ($1.13 million) in Q2 2026, an improvement from ($1.31 million) in Q2 2025, and ($1.72 million) for the first half compared to ($1.14 million).
• Adjusted net loss was ($1.69 million) in Q2 2026 compared to ($1.60 million) in Q2 2025, and ($2.65 million) for the first half compared to ($1.52 million).
• Total liabilities decreased 13.3% ($6.27 million) to $40.79 million as of June 30, 2026, from $47.05 million at year-end 2025.
• Stockholders' equity increased 12.2% to $20.67 million as of June 30, 2026, from $18.42 million at December 31, 2025.
• The liabilities-to-assets ratio improved by 550 basis points to 66.4% from 71.9%.
• Liquid assets totaled $4.15 million, comprising $2.45 million in cash and cash equivalents and $1.70 million in digital assets and marketable securities.
• Inventory decreased 21.8% during the first half despite nearly 30% revenue growth.

Guidance and Future Outlook

• Achieved an adjusted annualized revenue run-rate exceeding $75 million.
• Management expects second-half seasonality to be materially stronger in 2026, similar to the prior year.
• Anticipates the United States to become a principal growth engine supported by local manufacturing.
• Expects increased efficiencies from economies of scale and vertical integration to play an important role in progressing toward sustained profitability.
• Momentum is expected to carry into Q3 2026 across every core segment with the U.S. platform beginning to contribute.
• Plans to target $7.4 million in revenue and $5.3 million in gross profit from planned EU expansion of C-Scrub and C-Sept.

Business Segments and Product Lines

• CosmoFarm: Delivered record quarterly revenue of over $15 million, representing a $60+ million annualized run-rate; added over 75 new pharmacies to its distribution network.
• Decahedron: Nearly doubled revenue in the United Kingdom; administrative costs increased to support this expansion.
• Cana Laboratories: Built contract manufacturing orderbook to an all-time high of over 25 million units across nine therapeutic categories under agreements extending up to ten years.
• Proprietary Brands (Sky Premium Life, C-Sept, C-Scrub):
  • Sky Premium Life achieved pan-European distribution via Skroutz across all 27 EU Member States and secured a 31,000-unit initial order from International Medical Company (Qatar) and a third consecutive 60,000-unit order from Pharmalink (UAE).
  • C-Scrub Wash 4% completed EN 12791 testing for surgical hand disinfection, enabling entry into hospital and surgical channels.
  • C-Sept PRO gained traction across leading Greek public and private hospital groups.
  • Entered the global animal health industry with a veterinary formulation of C-Scrub Wash 4% following successful EN 1656 and EN 1657 testing.
  • Annualized sales for C-Scrub and C-Sept in the UK and Greece exceeded $1.5 million.
• U.S. Expansion: Introduced the "18 Series," a science-driven nutraceutical platform targeting liver health, joint support, cardiovascular health, men's wellness, and healthy aging; entered the $163 billion global skincare market with U.S. sales underway.
• R&D and Innovation: Consolidated full ownership of the CCX0722 weight-management hydrogel patent and advanced international applications to the U.S., Europe, Australia, and Canada; expanded AI integration across order management, warehouse, and supply chain operations with potential to reduce certain operating expenses by up to 30%.

Market and Competitive Landscape

• Expanded into the $69 billion global animal health industry.
• Secured distribution agreements with major regional players, including International Medical Company (Qatar) and Pharmex S.A. (dermatological products).
• Strengthened position in the UK and Greece with hospital group traction for C-Sept PRO and surgical channel entry for C-Scrub.

Risks and Challenges

• Net losses were significantly impacted by non-cash fair value adjustments on financing arrangements ($2.65 million in Q2 2026).
• First-half gross profit and margin declines were primarily due to $0.80 million in sales discount reversals with no corresponding reduction in cost of goods sold.
• Forward-looking statements note risks including the ability to raise sufficient financing, effectiveness of digital asset strategies, geopolitical conflicts (Ukraine, Middle East), ability to commercialize proprietary products, interest rate changes, foreign currency fluctuations, and regulatory changes.

Management Commentary and Tone

• CEO Greg Siokas described Q2 2026 as a record quarter, highlighting that growth was achieved across every core division.
• Management emphasized "operating leverage," noting that operating expenses grew at little more than half the rate of revenue while reducing receivables and inventory.
• The tone was confident regarding the company's diversified asset base, growth prospects, and the belief that shares trade below underlying value.
• Management highlighted the strategic shift from concept to execution in the U.S. market and the continued expansion of proprietary brands internationally.

Analyst Questions and Answers

• No analyst questions or answers section was included in the press release.

Other Key Points

• Authorized a share repurchase program of up to $5.0 million, expiring December 31, 2026; repurchased 2,650,000 shares for approximately $513,000 in Q2 2026, with total repurchases reaching 5,112,000 shares for approximately $1.11 million as of the report date.
• 4,874,126 Series B warrants expired unexercised, eliminating approximately 38% of total warrant overhang with no dilution.
• Entered into an advisory agreement with the European Investment Bank (EIB) for R&D financing, potentially up to €25 million.
• Identified approximately $20 million in non-core assets available for monetization.
• Signed a letter of intent to acquire Doc Pharma S.A., an affiliated European GMP pharmaceutical manufacturer.
• Inaugurated a new capsule production line at Cana Laboratories alongside a five-year agreement with Provident Pharmaceuticals.