COSM · Cosmos Health Inc.

Cosmos Health Inc. delivered revenue growth of 19.9% to $65.3 million in FY 2025, up from $54.4 million in the prior year, as the Company expanded through its pharmaceutical manufacturing subsidiary CANA S.A. and nutraceutical channels. This diversification helped counterbalance wholesale segment pressures, with manufacturing in Greece growing disproportionately faster and contributing to overall topline momentum despite supply chain challenges that can impact material availability and customer demand fulfillment.

Gross profit marked a breakthrough, climbing 83.1% to $7.9 million with margins expanding to 12.1%, driven by a favorable shift in revenue mix toward higher-margin business lines like manufacturing and own-brand nutraceuticals. The Company’s strategic focus on nutraceuticals aligns with global demand growth for these products, which offer substantial market size and margin potential, enabling Cosmos to compete in healthcare by demonstrating medical benefits and cost advantages.

Operating income reflected -$16.7 million, worsening 7.5% from -$15.5 million prior, and translating to a -25.6% operating margin. This dynamic stemmed from investments supporting growth, including workforce expansion at CANA S.A. with hires in production to build manufacturing capacity and management to guide scaling. These efforts, while essential for competing successfully in pharmaceuticals, elevated expenses beyond gross profit gains during this expansion phase.

Net income showed a -$19.1 million loss, 18.3% deeper than -$16.2 million last year, yet diluted EPS improved 46.2% to -$0.63 per share. Cash flows used -$8.4 million in operations, up from -$7.7 million, with free cash flow at -$8.5 million after minimal $56 thousand capex, down sharply from $418 thousand prior. Management closely manages working capital to maintain liquidity for operations and strategic initiatives, including organic growth, selective acquisitions of licenses and technology, and its digital asset program.

Looking ahead, the Company’s investment strategy positions it for higher-margin, tech-enabled expansion, though realizing these plans remains inherently uncertain amid industry competition and supply risks. Management assesses access to capital, expense controls, product line expansions, and new acquisitions to navigate these dynamics.