Clearwater, Florida--(Newsfile Corp. - November 5, 2026) - TelyRx Holdings Inc. (TSX: TELY) (OTCQX: TELYF) ("TelyRx" or the "Company"), a technology-enabled healthcare and digital pharmacy platform, today announced financial results for the third quarter ended September 30, 2026. All dollar amounts are expressed in U.S. dollars.
Highlights for the Third Quarter of 2026
Revenue increased to $23.1 million, compared to $12.3 million in Q3 2025
Net Loss from Operations of $2.7 million, compared to $0.9 million in Q3 2025
Adjusted EBITDA loss of $1.3 million, compared to $0.4 million in Q3 2025
Launched the new TelyRx brand and website, making it easier for patients to find the treatments they need and which has led to a 17% improvement in revenue per visitor
Increased formulary to more than 500 everyday medications, expanding access to prescriptions across a broad range of healthcare needs
Announced expansion of operations in Clearwater, Florida, which will more than triple capacity at the Clearwater location
"Our third quarter reflects the discipline we bring to growing this business. We held revenue steady while narrowing our Adjusted EBITDA loss by more than half from the prior quarter," said Vanessa Slowey, President and Chief Executive Officer of TelyRx. "Underneath that, the business keeps getting stronger. Revenue from recurring customers grew $17.4 million, up 12% from last quarter and now makes up three quarters of total revenue. More of our customers are coming to us for chronic medications they rely on month after month. We are still early in our evolution as a business, and we believe these steps position TelyRx well to continue scaling efficiently and capture a greater share of the rapidly growing cash-pay prescription market."
2026 Third Quarter Financial Results
Selected Financial Information
| (Thousands of U.S. dollars, except percentages) | For the three-month periods ended September 30, | |||||
| 2026 | 2025 | |||||
| Revenue | $ | 23,078 | $ | 12,337 | ||
| Gross Profit | 13,775 | 6,886 | ||||
| Gross Profit Margin | 60% | 56% | ||||
| Net Loss from Operations | (2,744 | ) | (947 | ) | ||
| Adjusted EBITDA1 | (1,277 | ) | (351 | ) | ||
| Cash & Cash Equivalents including Restricted Cash2 | 18,677 | 1,790 | ||||
(1) Non-IFRS measure. For further information, including a description of the composition of the measure and reconciliation of the measure to the comparable measures under IFRS, see the "Non-IFRS Financial Metrics" section of this press release.
(2) Includes $10,200 of restricted cash held as collateral for the Company's credit facility (current: $1,004; non-current: $9,196).
2026 Third Quarter Operational Results
Revenue was $23.1 million for the three months ended September 30, 2026, compared to $12.3 million for the three months ended September 30, 2025, an increase of $10.8 million, or 88%. Revenue consisted of revenue from recurring customers of $17.4 million in the quarter and revenue from new customers of $5.7 million.
Cost of revenue was $9.3 million for the three months ended September 30, 2026, compared to $5.5 million for the three months ended September 30, 2025.
Gross profit was $13.8 million, with a gross profit margin of 60% for Q3 2026, compared to $6.9 million and a gross profit margin of 56% for the same period in 2025, an increase of $6.9 million.
Loss from operations was $2.7 million, compared to a loss from operations of $0.9 million in Q3 2025, due primarily to $1.0 million of non-cash stock-based compensation, increased advertising and marketing investment to drive new unique customer growth, and higher general and operating expenses to expand the Company's infrastructure, personnel, and operational capabilities in support of continued growth.
Conference Call
The Company will host a conference call to discuss its third quarter of 2026 financial results on Friday, November 6, 2026, at 8:30 a.m. Eastern Time (ET). To dial direct and enter the call through an operator, dial 1-833-752-3490 or 1-647-260-0811. The live webcast can be accessed by copying and pasting this link into a browser: https://www.gowebcasting.com/15175. Please connect approximately 15 minutes prior to the beginning of the webcast or call to ensure participation. A replay of the call will be available on our website at https://investor.telyrx.com/events-presentations shortly after the completion of the call.
About TelyRx Holdings Inc.
TelyRx is an integrated digital healthcare platform that makes everyday prescription medications easier to access. Patients connect with independent, state-licensed healthcare providers who evaluate their needs and prescribe treatment when appropriate. Prescriptions are filled by TelyRx's licensed pharmacies and delivered directly to patients' doors. Serving patients across 49 U.S. states and all territories, TelyRx provides access to more than 500 common, FDA-approved medications for over 60 common health conditions through a seamless, convenient experience.
1)Non-IFRS Financial Metrics
In addition to the Company's financial results determined in accordance with IFRS, the Company presents non-IFRS measures such as Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") and Free Cash Flow or FCF, as defined below that do not have standardized meanings prescribed by IFRS. We believe that Adjusted EBITDA, when taken together with the corresponding IFRS financial measures, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. The Company considers Adjusted EBITDA and Free Cash Flow to be important measures because they help illustrate underlying trends in the business and the Company's historical operating performance on a more consistent basis. The Company believes that the use of Adjusted EBITDA and Free Cash Flow is helpful to our investors as it is used by management in assessing the health of the business, its operating performance, and its liquidity.
However, non-IFRS financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. In addition, other companies, including companies in our industry, may calculate similarly-titled non-IFRS financial measures or ratios differently or may use other financial measures or ratios to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA or Free Cash Flow as a tool for comparison. Reconciliations are provided below to the most directly comparable financial measures stated in accordance with IFRS. Investors are encouraged to review our IFRS financial measures and not to rely on any single financial measure to evaluate our business.
Adjusted EBITDA
The Company defines Adjusted EBITDA as net income / (loss) adjusted for interest expense, depreciation and amortization, stock compensation expense, transaction expenses and, income tax (benefit) / provision, as applicable. Management believes Adjusted EBITDA is a useful supplemental measure to determine our cash burn rate related to operations so readers can understand the cash that is available to operate the business.
The following table reconciles net loss to Adjusted EBITDA for the three months ended September 30, 2026 and 2025 (US dollars in thousands):
| Three Months Ended September 30, | ||||||
| 2026 | 2025 | |||||
| Net loss | (2,829 | ) | (1,058 | ) | ||
| Finance expense | 65 | 133 | ||||
| Income tax expense | 20 | - | ||||
| Depreciation and amortization | 360 | 205 | ||||
| Other income | - | (22 | ) | |||
| Stock compensation expense | 1,020 | - | ||||
| Go-public transaction readiness costs | 2 | 49 | ||||
| Severance | 78 | 196 | ||||
| Non-recurring expenses | 7 | 146 | ||||
| Adjusted EBITDA | $ | (1,277 | ) | $ | (351 | ) |
Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures. In evaluating Adjusted EBITDA, readers should be aware that in the future the Company will incur certain expenses similar to the adjustments set out above. The Company's presentation of Adjusted EBITDA should not be construed as an inference that its future results will be unaffected by these expenses or any unusual or non-recurring items. The Company compensates for these limitations by providing specific information regarding the IFRS items excluded from Adjusted EBITDA. When evaluating the business' performance, readers should consider Adjusted EBITDA in addition to, and not as a substitute for, other financial performance measures, including our net income (loss) and other IFRS results.
Free Cash Flow
Free Cash Flow is a key performance measure that our management uses to assess our liquidity. Because Free Cash Flow facilitates internal comparisons of our historical liquidity on a more consistent basis, we use this measure for business planning purposes. Free Cash Flow is defined as net cash provided by (used in) operating activities, less purchases of property, equipment, and intangible assets and investment in internal-use software in investing activities.
The following table reconciles net cash used in operating activities to Free Cash Flow for the nine months ended September 30, 2026 and 2025 (US dollars in thousands):
| Nine Months Ended September 30, | |||||||
| 2026 | 2025 | ||||||
| Net cash and cash equivalents used in operating activities | $ | (7,902 | ) | $ | (271 | ) | |
| Less: Purchase of property, equipment, and intangible assets in investing activities | (1,460 | ) | (1,178 | ) | |||
| Free Cash Flow | $ | (9,362 | ) | $ | (1,449 | ) | |
Some of the limitations of Free Cash Flow include (i) Free Cash Flow does not represent our residual cash flow for discretionary expenditures and our non-discretionary commitments, and (ii) Free Cash Flow includes capital expenditures, the benefits of which may be realized in periods subsequent to those in which the expenditures took place. In evaluating Free Cash Flow, you should be aware that in the future we will have cash outflows similar to the adjustments in this presentation. Our presentation of Free Cash Flow should not be construed as an inference that our future results will be unaffected by these cash outflows or any unusual or non-recurring items. When evaluating our performance, you should consider Free Cash Flow in addition to, and not as a substitute for, other financial performance measures, including our net cash used in operating activities and other IFRS results.
In addition to the non-IFRS measures described above, management monitors key business metrics to help it evaluate the business, identify trends affecting the business, formulate business plans, and make strategic decisions.
Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this press release other than statements of historical facts including, without limitation, those that address future events, developments, or transactions that we expect, are forward-looking statements. These forward-looking statements are made as of the date of the Management Discussion & Analysis ("MD&A") of the Company dated November 5, 2026, and filed on SEDAR+ at sedarplus.ca. Forward-looking statements are frequently, but not always, identified by words such as "expect", "anticipate", "estimate", "may", "could", "might", "will", "would", "should", "intend", "believe", "target", "budget", "plan", "strategy", "goals", "objectives", "predicts", "potential", "projects", "possible", "milestones", "projection" or the negative of any of these words and similar expressions, although these words may not be present in all forward-looking statements. Examples of forward-looking statements in this press release include, but are not limited to, statements regarding: the Company's positioning to continue scaling efficiently and capture a greater share of the cash-pay prescription market; the expected growth of the cash-pay prescription market; the continued growth of the Company's business, including revenue from recurring customers and demand for chronic medications; the planned expansion of the Company's operations in Clearwater, Florida, including the expected increase in the Company's overall capacity at the Clearwater location; the anticipated benefits of the new TelyRx brand and website and the expanded formulary; the Company's continued investment in advertising and marketing, infrastructure, personnel and operational capabilities to support growth; the expected finalization of the issuance of restricted share units to members of the Board and its anticipated accounting impact; the timing of the Company's conference call and the availability of the replay; the benefits of non-IFRS financial metrics and key business metrics; and the possibility of the Company incurring expenses and cash outflows similar to the adjustments set out above under "Non-IFRS Financial Metrics".
Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to, the factors discussed in the section entitled "Risk Factors" in the MD&A dated November 5, 2026, and filed on SEDAR+. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release and, other than as required by law, the Company disclaims any obligation to update any forward-looking statements, whether because of new information, future events, or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on several assumptions, which may prove to be incorrect, including but not limited to assumptions regarding: continued demand for cash-pay prescription medications; the Company's ability to retain recurring customers and attract new customers at acceptable acquisition costs; the Company's ability to complete the Clearwater expansion on the expected timeline and budget; the availability of independent, state-licensed healthcare providers and of medications on acceptable terms; a stable regulatory environment for telehealth and pharmacy operations; and the Company's ability to access capital as needed. Accordingly, readers should not place undue reliance on forward-looking statements.
For additional information, visit www.telyrx.com or contact:
Neil Weber
Investor Relations
(647) 222-0574
investors@telyrx.com
TelyRx Holdings Inc.
Unaudited Consolidated Interim Statements of Financial Position
(in thousands of U.S. dollars)
As of September 30, 2026 and December 31, 2025
Unaudited
| September 30, | December 31, | |||||
| 2026 | 2025 | |||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 8,477 | $ | 2,988 | ||
| Restricted cash | 1,004 | - | ||||
| Restricted certificates of deposit | 477 | 464 | ||||
| Inventory | 1,869 | 1,352 | ||||
| Accounts receivable | 563 | 456 | ||||
| Prepaid expenses & other current assets | 1,058 | 297 | ||||
| Total current assets | 13,448 | 5,557 | ||||
| Non-current assets | ||||||
| Restricted cash | 9,196 | - | ||||
| Property and equipment, net | 977 | 714 | ||||
| Right-of-use assets | 3,129 | 2,565 | ||||
| Software, net | 1,559 | 1,040 | ||||
| Total non-current assets | 14,861 | 4,319 | ||||
| Total assets | $ | 28,309 | $ | 9,876 | ||
| Current liabilities | ||||||
| Accounts payable | $ | 3,400 | $ | 2,655 | ||
| Accrued expenses | 2,291 | 2,988 | ||||
| Contract liability | 52 | 39 | ||||
| Current portion of borrowings | 1,004 | 9,173 | ||||
| Accrued interest | 13 | 801 | ||||
| Current portion of lease liabilities | 273 | 165 | ||||
| Total current liabilities | 7,033 | 15,821 | ||||
| Non-current liabilities | ||||||
| Borrowings | 9,150 | - | ||||
| Lease liabilities | 2,996 | 2,529 | ||||
| Total non-current liabilities | 12,146 | 2,529 | ||||
| Total liabilities | 19,179 | 18,350 | ||||
| Equity | ||||||
| Shareholders' equity | 45,490 | 15,912 | ||||
| Accumulated deficit | (36,360 | ) | (24,386 | ) | ||
| Total equity | 9,130 | (8,474 | ) | |||
| Total liabilities and equity | $ | 28,309 | $ | 9,876 | ||
TelyRx Holdings Inc.
Unaudited Consolidated Interim Statements of Loss and Other Comprehensive Loss
(in thousands of U.S. dollars)
For the three and nine months ended September 30, 2026 and 2025
Unaudited
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenues | $ | 23,078 | $ | 12,337 | $ | 65,142 | $ | 28,610 | ||||
| Cost of revenue | 9,303 | 5,451 | 27,644 | 13,144 | ||||||||
| Gross profit | 13,775 | 6,886 | 37,498 | 15,466 | ||||||||
| Operating expenses | ||||||||||||
| General and administrative | 16,159 | 7,628 | 47,662 | 16,919 | ||||||||
| Depreciation and amortization | 360 | 205 | 920 | 510 | ||||||||
| Total operating expenses | 16,519 | 7,833 | 48,582 | 17,429 | ||||||||
| Income (Loss) from operations | (2,744 | ) | (947 | ) | (11,084 | ) | (1,963 | ) | ||||
| Finance expense | 65 | 133 | 329 | 384 | ||||||||
| Listing expense | - | - | 2,309 | - | ||||||||
| Other income | - | (22 | ) | (1,768 | ) | (22 | ) | |||||
| Income (Loss) before tax | (2,809 | ) | (1,058 | ) | (11,954 | ) | (2,325 | ) | ||||
| Income tax expense | 20 | - | 20 | - | ||||||||
| Total net income (loss) and other comprehensive loss | $ | (2,829 | ) | $ | (1,058 | ) | $ | (11,974 | ) | $ | (2,325 | ) |
| Basic loss per share | (0.06 | ) | (0.10 | ) | (0.33 | ) | (0.22 | ) | ||||
| Diluted loss per share | (0.06 | ) | (0.10 | ) | (0.33 | ) | (0.22 | ) | ||||
TelyRx Holdings Inc.
Unaudited Consolidated Interim Statements of Cash Flows
(in thousands of U.S. dollars)
For the nine months ended September 30, 2026 and 2025
Unaudited
| Nine months ended September 30, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities | |||||||
| Net loss | $ | (11,974 | ) | $ | (2,325 | ) | |
| Adjustments to reconcile net loss to net cash and cash equivalents provided from operating activities | |||||||
| Amortization and depreciation | 920 | 510 | |||||
| Lease interest expense | 119 | 77 | |||||
| Non-cash interest expense | 8 | 455 | |||||
| Interest earned on restricted certificates of deposit | (13 | ) | (23 | ) | |||
| Gain on lease termination | (89 | ) | - | ||||
| Stock compensation expense | 3,009 | - | |||||
| Listing expense | 2,309 | - | |||||
| Total adjustments to reconcile net loss to net cash and cash equivalents provided from operating activities | 6,263 | 1,019 | |||||
| Changes in non-cash working capital items | |||||||
| Accounts receivable | (107 | ) | (173 | ) | |||
| Inventory | (517 | ) | (650 | ) | |||
| Prepaid expenses and other current assets | (761 | ) | (179 | ) | |||
| Accounts payable | 785 | 831 | |||||
| Accrued expenses and other current liabilities | (169 | ) | 1,283 | ||||
| Total changes in non-cash working capital items | (769 | ) | 1,112 | ||||
| Interest paid | (1,422 | ) | (77 | ) | |||
| Net cash and cash equivalents used in operating activities | (7,902 | ) | (271 | ) | |||
| Cash flows from investing activities | |||||||
| Property and equipment purchases | (396 | ) | (465 | ) | |||
| Software purchases | (1,064 | ) | (713 | ) | |||
| Cash deposited as collateral for borrowings | (10,200 | ) | - | ||||
| Cash acquired in reverse takeover transaction | 827 | - | |||||
| Net cash and cash equivalents used in investing activities | (10,833 | ) | (1,178 | ) | |||
| Cash flows from financing activities | |||||||
| Proceeds from borrowings | 10,146 | - | |||||
| Repayments of borrowings | (9,213 | ) | - | ||||
| Repayment of principal portion of lease liabilities | (142 | ) | (72 | ) | |||
| Repurchase of shares from shareholder | - | (3 | ) | ||||
| Proceeds from share issuance | 23,433 | - | |||||
| Net cash and cash equivalents provided by (used in) financing activities | 24,224 | (75 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 5,489 | (1,524 | ) | ||||
| Cash and cash equivalents, beginning of period | 2,988 | 3,314 | |||||
| Cash and cash equivalents, end of period | $ | 8,477 | $ | 1,790 | |||
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