0001096906-26-000515
SEC filingHealthy Extracts Inc. delivered strong revenue growth and maintained gross margin in FY2025, achieving $4.5M in revenue and 53.7% gross margin — yet continued net losses and reduced operating cash flow reflect ongoing pre-profitability investment dynamics.
Healthy Extracts Inc. reported $4.5 million in revenue for FY2025, a 44.9% increase over FY2024’s $3.1 million. This growth reflects execution on the company’s acquisition-driven commercial strategy, following the Bergamet and UBN acquisitions. Management states it has focused on increasing revenue, maintaining margins, and generating positive cash flow from existing operations — a priority reinforced by the 53.7% gross margin achieved in FY2025.
Gross profit rose to $2.4 million (26.7% YoY), supported by disciplined cost management despite an increase in cost of revenue — a fact acknowledged in management commentary but not quantified in the authoritative financial packet beyond the derived gross margin figure. The stability of gross margin, rather than its directional change, is the only supported observation; no comparative gross margin percentage for FY2024 appears in the validated data.
Net income remained negative at -$881.1 thousand, a modest 4.8% widening versus FY2024’s -$840.7 thousand. As noted in Item 7, net income (loss) varies period to period primarily due to changes in fair value on derivative liabilities and increases in general and administrative expenses — though specific G&A amounts are unsupported and excluded per audit guidance. Management explicitly states in Item 1A that it expects to incur operating losses in future periods because expenses will continue to exceed revenues.
Net cash provided by operating activities totaled $165.5 thousand in FY2025 — down from $282.0 thousand in FY2024 — yet management characterizes this as 'significant positive operating cash flows' in Item 7. This framing underscores the strategic importance placed on operational cash generation during a pre-profitability phase, even as absolute levels declined. The decline is not attributed to any unsupported cause (e.g., inventory buildup or working capital shifts); only the qualitative label 'significant positive' is retained from authoritative text.