0001493152-26-009909
SEC filingSyra Health Corp. reported net revenues of $7.2 million for FY 2025, a decrease of 9% from $8.0 million in FY 2024. The company generated a gross profit of $2.5 million (34% gross margin), an improvement from $1.7 million (21% gross margin) in the prior year. Operating loss was $904K, significantly reduced from $3.8 million in FY 2024. Net loss was $896K, compared to $3.8 million in FY 2024. The company ended the period with $1.6 million in cash and cash equivalents, $2.7 million in total current assets, and an accumulated deficit of $9.7 million. Management expects existing cash and cash from revenue to fund operations for at least 12 months from the filing date, but the independent auditor expressed substantial doubt about the company's ability to continue as a going concern.
Syra Health Corp. reported FY 2025 net revenues of $7.2 million, a decrease of $756,109 (9%) from FY 2024 revenue of $8.0 million. Despite the revenue decline, the company significantly improved its profitability metrics. Gross profit increased to $2.5 million (34% gross margin) from $1.7 million (21% gross margin) in FY 2024. Operating loss improved to $904K from $3.8 million in FY 2024, and net loss improved to $896K from $3.8 million in FY 2024. The company ended the period with $1.6 million in cash and cash equivalents, down from $2.4 million at the end of FY 2024. The accumulated deficit increased to $9.7 million from $8.8 million.
Revenue composition shifted significantly between FY 2025 and FY 2024. Healthcare workforce revenue decreased to $1.9 million (26% of total) from $5.9 million (74% of total) in FY 2024. Population health revenue increased to $5.3 million (74% of total) from $2.1 million (26% of total) in FY 2024. Behavioral and mental health revenue was $0 in FY 2025 compared to $16,845 in FY 2024. The company depends heavily on state, local, and county government budgets for revenue, with two major customers (FSSA and Humana) accounting for 72% of FY 2025 revenue. Management noted that federal government spending program pauses or terminations have begun to affect contract awards and could negatively impact future revenue.
Gross margin improved significantly to 34% in FY 2025 from 21% in FY 2024, primarily due to a change in service mix from healthcare workforce services to project-based population health services that carry better margins. Cost of services decreased by $1.6 million (25%) to $4.7 million, despite increased labor costs associated with contract volume. Operating expenses decreased by $2.0 million (37%) to $3.4 million, with reductions across salaries and benefits (down $1.2 million), research and development (down $517K), selling, general and administrative (down $380K), and depreciation (down $42K). Professional services increased by $132K due to increased recruiting consulting services and accounting/audit fees.
Net cash used in operating activities was $448K in FY 2025, significantly improved from $2.9 million used in FY 2024. The improvement resulted from reduced expenses and better working capital management. Net cash used in investing activities was minimal at $107 for property and equipment purchases. Net cash used in financing activities was $333K, consisting of $15K from stock/warrant exercises offset by $348K in note payable repayments. Total assets decreased to $2.8 million from $3.7 million, with current assets of $2.7 million. Total liabilities were $675K, with current liabilities of $675K. Stockholders' equity was $2.1 million, down from $2.9 million. Working capital was $2.1 million.
Management believes existing cash and cash from revenue will be sufficient to fund current operations through at least 12 months from the filing date (March 12, 2026). However, the operating plan may change due to unknown factors, and the company may need to seek additional funds sooner than planned. The independent registered public accounting firm included an explanatory paragraph in its opinion expressing substantial doubt about the company's ability to continue as a going concern without additional capital becoming available. The company's ability to continue as a going concern is dependent upon obtaining additional equity or debt financing, reducing expenditures, and generating significant revenue. Management noted that federal government spending program pauses or terminations could negatively affect the quantity and timing of revenue in the near term.