Vancouver, British Columbia--(Newsfile Corp. - July 16, 2025) - Comprehensive Healthcare Systems Inc. (TSXV: CHS) ("CHS" or the "Company"), a leading Software-as-a-Service (SaaS) provider revolutionizing healthcare benefits administration, is pleased to announce key milestones achieved during the first half of 2025 and provide an update on its status and future growth strategy. Through its innovative Novus 360 platform, CHS continues to drive efficiency, transparency, and cost savings for Insurance Providers, Self-funded Employers, Hospitals, Third Party Administrators, Pension Funds and Taft-Hartley Multi-Employer Unions across North America.
Key 2025 Milestones and Achievements
•Major client wins & a robust business development pipeline: To support strong revenue growth for next 3 years. Active discussions at different stages with over 50 prospective clients.
•Financial Turnaround resulting in positive EBIDTA: Net loss improved to US$ 0.6M with positive cash from operations of US$ 0.37M for the full year 2024 against a net loss of US$ 3.6M during 2023. (Source: Audited Financial Statement for years 2023 and 2024)
• Shares Consolidation and shares for debt transactions to strengthen the balance sheet
• Addition of technology resources and enhancement of core Novus 360 Platform to scale growth
1. Major Client Wins Boost Revenue
In Q1 2025, CHS secured a multi-year contract with a prominent Midwest self-funded employer, adding 10,000 members to the Novus 360 platform. This was followed up in early Q2 2025 with the signing of an agreement with a Northeast Taft-Hartley union, collectively driving a 20% year-over-year revenue increase. These newly contracted partnerships, along with a strong pipeline for additional new clients underscore the platform's scalability and appeal in a fragmented benefits technology market.
2. Financial Turnaround Achieved
CHS reported positive adjusted EBITDA in Q4 2024, sustained into Q1 2025, marking a significant milestone in its "Pathway to Profitability" strategy. Monthly cash burn dropped to near-breakeven from USD 300,000 in Q3 2023, supported by a 30% reduction in vendor costs through internalized technology development and a June 2025 shares-for-debt transaction that strengthened the balance sheet.
3. Novus 360 Platform Enhancements
In Q2 2025, CHS is preparing to launch advanced AI-driven features for Novus 360, including an enhanced automated workflow engine to quickly allow clients to configure new workflows and rules; predictive analytics for cost containment and blockchain-based claims verification to combat fraud and AI Agent technology for its digital engagement solutions. These enhancements, coupled with HIPAA, SOC 2, and HITRUST certifications, position the platform as a leader in compliance and innovation, helping clients to automate up to 85% of the claims adjudication process.
4. Leadership Team Expansion
CHS plans to appoint a Chief Revenue Officer and Chief Technology Officer during the second half of 2025, enhancing its ability to drive sales and innovate. The strengthened leadership team will be focused on accelerating client acquisitions and advancing platform capabilities to meet 2025 regulatory and market demand.
Current Status
CHS is experiencing steady growth and has built a strong foundation to achieve accelerated growth during the second half of 2025 and beyond. Operating through subsidiaries such as Health Plan Systems, Inc. and Sterling Health Services Inc., the Company serves a diverse client base across the U.S. A robust pipeline of over 50 prospective clients and active discussions with institutional investors for growth capital signal strong momentum. CHS's focus on cost discipline, client success, and strategic investments has positioned it as a competitive player in the USD 3.1 billion Benefits and Pension Administration technology software and services market.
Future Outlook, Initiatives & Catalysts
CHS is poised for transformative growth in 2025 and beyond, leveraging industry tailwinds and its unique market position. Key initiatives include:
Organic Growth Acceleration: CHS plans to double its sales team by Q4 2025, targeting mid-sized employers, third party administrators, pension administrators and multi-employer unions to achieve 25% to 50% revenue growth in 2026. Enhanced client support, including 24/7 service and tailored onboarding, will drive retention and upsells.
Strategic Acquisitions: The Company is pursuing two to three strategic acquisitions by mid-2026, integrating clients onto Novus 360 to expand scale and cross-selling opportunities.
Technological Innovation: Q3 2025 will see further Novus 360 enhancements, including a mobile-first member portal with Agentic AI integration for stronger member engagement along with real-time price transparency, aligning with consumer demand for accessible care and compliance with the Transparency in Coverage Legislation.
Market Leadership: CHS's fully integrated platform differentiates it from legacy competitors, positioning it to capture greater market share.
Alignment with Global Trends: CHS is capitalizing on digital health trends, including interoperability, cost transparency, and cybersecurity, as highlighted by recent CMS and WHO reports, to deliver value in a dynamic healthcare landscape.
CEO Commentary
"CHS is on a transformative journey in this multi-billion dollar healthcare benefits and pension administration software and service solutions market, says Comprehensive Healthcare's CEO, Chris Cosgrove. Our Novus 360 platform drives efficiency and transparency which is fueling major client wins, positive EBITDA and AI-powered innovation in Q2 2025. With a robust prospect pipeline, strategic acquisitions and a strengthened leadership team, CHS is poised for exponential growth and market leadership, delivering exceptional value to both our clients and shareholders."
The Company also announces that it will conduct a shares for debt (SFD) settlement of up to $600,000 through the issue of up to one million shares at a deemed price of $0.60. The Debt Settlement remains subject to the receipt of all necessary regulatory and TSX Venture Exchange approvals, as the case may be. All securities issued in connection with the Debt Settlement will be subject to a statutory hold period expiring four months and one day after the date of issuance.
About Comprehensive Healthcare Systems Inc.
Comprehensive Healthcare Systems Inc. is a corporation incorporated under the laws of the Province of Alberta and is the parent company of Comprehensive Healthcare Systems Inc. (Delaware). The Company is a vertically integrated software as a services (SaaS) company focused on digitizing healthcare with Healthcare Benefits Administration solutions, providing reliable and high-volume transaction-capable systems. The Company's state-of-the-art Novus 360 Healthcare Welfare and Benefits Administration (HWBA) SaaS platform is used by clients for all aspects of healthcare benefits administration (including self-funded employers, providers, and labor unions), providing healthcare administrative software and technology-enabled services.
FORWARD-LOOKING INFORMATION:
The press release contains "forward-looking statements within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate", "intend", "plan", "budget", "believe", "project", "estimate", "expect", "scheduled", "forecast", "strategy", "future", "likely", "may", "to be", "could", "would", "should", "will" and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and conditional. These forward-looking statements are based on assumptions as of the date they are provided. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Additionally, there are known and unknown risk factors that could cause the Company's actual results and financial conditions to differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important risk factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements, include among others: general economic, market and business conditions in Canada and globally; market volatility; unforeseen delays in timelines for any of the transactions or events described in this press release; and the risk of regulatory changes that may impact the business of the Company. All forward-looking information is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking statement or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
COMPREHENSIVE HEALTHCARE SYSTEMS INC.
Chris Cosgrove, Chief Executive Officer
E-mail: chris.cosgrove@comphealthcare.com
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SOURCE: Comprehensive Healthcare Systems Inc.
