COSM · Cosmos Health Inc.

Cosmos Health’s FY 2025 results reflect a structural inflection point: revenue hit an all-time high of $65.3M (+20% YoY), gross profit nearly doubled (+83%), and gross margin expanded sharply (+418 bps to 12.1%), driven by scaling higher-margin operations—particularly Cana Laboratories’ contract manufacturing (12M+ units secured), CosmoFarm’s expanded pharmacy network, Decahedron’s UK performance, and Sky Premium Life’s global SKU expansion (60 new SKUs, 300K+ units ordered across UAE, Albania, Kuwait, Oman). While GAAP net loss widened to ($19.1M) from ($16.2M), this reflects deliberate, non-cash investments—including $10.6M in provisions for doubtful accounts and mark-to-market losses on digital assets ($2.4M other expense vs. $0.6M prior year)—not operational deterioration. Adjusted metrics tell a stronger story: Adjusted EBITDA improved modestly to ($3.36M), and Adjusted Net Loss per Share improved 82% to ($0.12), underscoring underlying margin expansion and cost discipline beneath accounting noise. Management explicitly attributes improvement to product mix shift, vertical integration, and operational scale—not one-off events. The CEO’s 3.3M-share purchase and launch of a $300M digital asset facility signal deep confidence in execution. Though no formal 2026 guidance is issued, management states 'strong momentum continues into 2026 across all core segments' and highlights U.S. ramp-up (NOOR Collagen targeting $12M annualized revenue at ~75% gross margins) and late-stage pipeline advances (CCX0722, AI-driven oncology patents, anticancer drug licenses valued >$24.5M). These developments collectively indicate accelerating monetization of prior infrastructure investments and increasing visibility into margin sustainability beyond FY 2025.