CHICAGO, Aug. 18, 2025 (GLOBE NEWSWIRE) -- Cosmos Health Inc. ("Cosmos Health" or the "Company') (NASDAQ:COSM), a diversified, vertically integrated global healthcare group, announced today its financial results for the second quarter and six-month period ended June 30, 2025.
Financial Highlights for the Three and Six Months Ended June 30, 2025
Income Statement
Cosmos Health continued its positive trajectory in Q2 2025, delivering double-digit revenue growth of 11.66% and a 51.60% increase in gross profit. The Company remains on track to meet its profitability targets, driven by strong performance across multiple business units. For the first half of 2025, gross profit rose 53.00% to $3.21 million, with gross margin expanding by 374 basis points. Adjusted profitability also improved, with net loss narrowing, supported by higher-margin revenue growth and reduced cash operating expenses.
- Revenue for Q2 2025 was $14.75 million, an increase of 11.66% from $13.21 million in Q2 2024, and for the first half of 2025 revenue was $28.46 million, up 2.4% from $27.79 million in the prior-year period.
- Gross profit rose 51.60% year-over-year in Q2 2025 to $1.16 million, up from $0.77 million in the prior-year period, and for the first half of 2025 gross profit increased 53.0% to $3.21 million, compared to $2.10 million in the prior-year period.
- Gross margin expanded by 208 basis points to 7.89% in Q2 2025, compared to 5.81% in Q2 2024, and for the first half of 2025 gross margin expanded by 374 basis points to 11.30%, compared to 7.56% in the prior-year period.
- Total operating expenses were $3.81 million in Q2 2025, an increase from $3.27 million in Q2 2024, and for the first half of 2025 total operating expenses were $6.69 million, compared to $6.44 million in the prior-year period.
- Adjusted for non-cash items, cash operating expenses declined in the first half of 2025.
- EBITDA remained stable at ($2.19 million) in Q2 2025, compared to ($2.04 million) in Q2 2024, and for the first half of 2025 EBITDA improved to ($2.59 million), compared to ($3.52 million) in the prior-year period.
- Adjusted EBITDA was essentially unchanged at ($1.31 million) in Q2 2025, compared to ($1.32 million) in Q2 2024, and for the first half of 2025 adjusted EBITDA improved to ($1.14 million), compared to ($1.96 million) in the prior-year period.
- Adjusted net income (loss) was ($1.60 million) in Q2 2025, compared to ($1.56 million) in the prior-year period, and for the first half of 2025 adjusted net loss narrowed to ($1.52 million), compared to ($2.26 million) in the prior-year period.
Balance Sheet
Total assets grew to $61.84 million, supporting an increase in stockholders' equity to $26.23 million and reinforcing the Company's strong capital base. The liabilities-to-assets ratio remained at a prudent 57.6%, underscoring continued financial discipline.
- Total assets increased by 13.9% to $61.84 million as of June 30, 2025, up from $54.31 million at year-end 2024, reflecting enhanced liquidity and a diversified asset base supported by a solid real estate and intellectual property portfolio.
- Total liabilities were $35.60 million as of June 30, 2025, compared to $29.78 million at year-end 2024, primarily reflecting the use of credit facilities and financing arrangements to support business growth.
- Total stockholders' equity increased to $26.23 million from $24.53 million at year-end 2024, reflecting a stronger capital base.
Management Commentary
Greg Siokas, CEO of Cosmos Health, stated: "We are pleased with our Q2 results and the steady progress achieved across multiple strategic areas. The quarter was marked by double-digit revenue growth, a substantial increase in gross profit, and continued gross margin expansion. Our asset base also expanded notably, accompanied by an increase in stockholders' equity.
Looking ahead, we remain laser-focused on driving efficiencies across the business, which we anticipate will yield tangible results and position us well to achieve cash flow positive status, a key turning point for Cosmos.
Lastly, we are particularly excited about the recently announced financing facility of up to $300 million, which enables us to build a leading portfolio of digital assets while also providing growth capital to accelerate our expansion plans. We have already completed our first purchases of Ethereum and look forward to fully leveraging this facility to position Cosmos as a significant player in the crypto space."
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| (in $) | |||||||||||
| GAAP - Figures | |||||||||||
| REVENUE | 14,745,702 | 13,206,717 | 28,458,230 | 27,791,190 | |||||||
| GROSS PROFIT | 1,163,814 | 767,248 | 3,213,613 | 2,100,874 | |||||||
| TOTAL OPERATING EXPENSES | (3,809,133 | ) | (3,269,274 | ) | (6,692,077 | ) | (6,439,008 | ) | |||
| GAIN (LOSS) FROM OPERATIONS | (2,645,319 | ) | (2,502,026 | ) | (3,478,464 | ) | (4,338,134 | ) | |||
| NET LOSS | (2,828,068 | ) | (2,590,711 | ) | (3,646,165 | ) | (4,457,401 | ) | |||
| NON-GAAP Figures* | |||||||||||
| ADJUSTED EBITDA | (1,312,280 | ) | (1,316,724 | ) | (1,139,948 | ) | (1,960,885 | ) | |||
| ADJUSTED NET INCOME (LOSS) | (1,595,307 | ) | (1,557,140 | ) | (1,518,756 | ) | (2,264,208 | ) | |||
(*) See "Definitions of Non-GAAP Measures" and "Reconciliation of Non-GAAP Measures" sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release.
Definitions of Non-GAAP Measures
We collect and analyze operating and financial data to evaluate the health of our business and assess our performance. In addition to Revenue, Income (Loss) from Operations and Net Income (Loss) under GAAP, we use: EBITDA, Adjusted EBITDA, and Adjusted Net Income (Loss). We have included these non-GAAP financial measures because they are key measures used by our management to evaluate our operating performance. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and Board of Directors. Our calculation of these non-GAAP financial measures may differ from similarly titled non-GAAP measures, if any, reported by our peer companies. These non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP.
Adjusted EBITDA
We define Adjusted EBITDA as Income (Loss) before Income Taxes, excluding (i) depreciation and amortization expense, (ii) interest income (expense), (iii) non-cash interest expense, (iv) stock-based compensation expense, (v) non-recurring and extraordinary items, (vi) other income (expense), net, (vii) gain (loss) on equity investments, net, (viii) gain on extinguishment of debt, (ix) change in fair value of derivative liability, (x) foreign currency transaction, net, and (xi) prior years bad debt allowances.
We have included Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans, and make strategic decisions. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and Board of Directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and non-recurring and extraordinary items.
Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP.
Adjusted Net Income (Loss)
We define Adjusted Net Income (Loss) as Adjusted EBITDA (see above) adding provision for income taxes and deducting interest expense.
Adjusted Net Income has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP.
Reconciliation of Non-GAAP Measures
Adjusted EBITDA & Adjusted Net Income (Loss)
The following table presents reconciliations of Adjusted EBITDA & Adjusted Net Income (Loss) to the most directly comparable GAAP financial measure for each of the periods indicated.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | ||||
| (in $) | |||||||
| INCOME (LOSS) BEFORE INCOME TAXES | (2,828,068) | (2,590,711) | (3,646,165) | (4,457,401) | |||
| Adjustments (add back): | |||||||
| Depreciation and amortization expense | 353,862 | 313,074 | 674,301 | 632,861 | |||
| Interest (income) / expense, net | 283,027 | 240,416 | 378,808 | 303,323 | |||
| EBITDA | (2,191,179) | (2,037,221) | (2,593,056) | (3,521,217) | |||
| Non-recurring and extraordinary items | 376,157 | 532,033 | 504,584 | 1,063,999 | |||
| Stock based compensation | 603,020 | 340,194 | 1,159,632 | 680,389 | |||
| Other income (expense), net | 42,190 | 29,305 | 110,327 | (162,519) | |||
| Gain (loss) on equity investments, net | (2,639) | (335) | (5,781) | (2,090) | |||
| Non-cash debt related expenses | 302,695 | - | 302,695 | - | |||
| Foreign currency transaction, net | (442,524) | (180,701) | (618,348) | (19,447) | |||
| ADJUSTED EBITDA | (1,312,280) | (1,316,724) | (1,139,948) | (1,960,885) | |||
| Interest income / (expense), net | (283,027) | (240,416) | (378,808) | (303,323) | |||
| ADJUSTED NET INCOME | (1,595,307) | (1,557,140) | (1,518,756) | (2,264,208) | |||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | |||
| (in $) | (Unaudited) | (Unaudited) | (Audited) | ||
| ASSETS | |||||
| Cash & cash equivalents | 655,503 | 742,881 | 315,105 | ||
| Inventory | 5,110,947 | 4,736,222 | 4,355,365 | ||
| Accounts receivable, prepaid expenses and other current assets | 23,364,563 | 20,930,780 | 19,618,932 | ||
| Property and equipment, net | 10,820,391 | 10,016,068 | 9,689,505 | ||
| Goodwill and intangible assets, net | 8,225,361 | 7,802,529 | 7,756,534 | ||
| Loans receivable | 7,687,049 | 7,238,494 | 6,946,749 | ||
| Other noncurrent assets | 5,971,746 | 5,724,970 | 5,629,702 | ||
| TOTAL ASSETS | 61,835,560 | 57,191,944 | 54,311,892 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Accounts payable and accrued expenses | 13,777,369 | 12,542,708 | 12,648,882 | ||
| Other current liabilities | 4,473,783 | 3,963,167 | 3,564,569 | ||
| Lines of credit | 8,161,845 | 7,305,377 | 6,985,052 | ||
| Notes payable | 6,807,421 | 4,863,275 | 4,119,471 | ||
| Other non-current and finance/lease liabilities | 2,383,509 | 2,565,705 | 2,460,990 | ||
| Stockholders' equity | 26,231,633 | 25,951,712 | 24,532,929 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 61,835,560 | 57,191,944 | 54,311,893 | ||
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life®, Mediterranation®, bio-bebe®, C-Sept® and C-Scrub®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.cana.gr, www.zipdoctor.co, www.cloudscreen.gr, as well as LinkedIn and X.
Forward-Looking Statements
With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could", are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Such forward-looking statements include, but are not limited to, the Company's expectation that accumulation of ETH will enhance long-term shareholder value through increasing ETH-per-share, the Company's plans to explore additional yield-generating strategies to optimize cash flow and utility from ETH holdings, that the Facility will provide access to growth capital to support a range of strategic initiatives, including accelerated product development, advanced R&D innovation, enhanced commercial initiatives, and the Company's planned entry into U.S. manufacturing and the anticipated use of proceeds. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, and the Company's ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact:
BDG Communications
cosm@bdgcommunications.com
