Syra Health Announces Second Quarter Financial Results, Advancing Toward Profitability on Margin Gains and Cost Reductions
- Revenue of $1.9 Million consistent with the year-ago period- Revenue led by Population Health's growth up 197% compared to Q2 2024- Gross Margin increases to 38.7%, up 2,090 basis points compared to Q2 2024- Earnings per share for the second quarter of 2025 were ($0.01), compared to ($0.21) in the year-ago period
CARMEL, Ind., Aug. 12, 2025 /PRNewswire/ -- Syra Health Corp. (OTCQB:SYRA) ("Syra Health" or the "Company"), a healthcare technology company dedicated to powering better health through innovative technology products and services, announced today its financial results for the second quarter ended June 30, 2025.
Q2 2025 Financial Highlights
Population Health experienced growth in the quarter, up 197% to $1.6 million from $533,000 in Q2 2024. This increase was primarily driven by revenue from the implementation of our $5.8 million contract to train health workers providing home and community-based services (HCBS) to Medicaid beneficiaries under the purview of the Indiana Family and Social Services Administration (FSSA). Growth was also supported by the continued expansion of services we provide to other state agencies and government customers.
Gross margin grew 2,090 basis points to 38.7% compared to 17.8% in the prior year period. Gross margin increased this quarter due to our strategic focus on higher-margin business units and the completion of key project milestones. While this resulted in a strong Q2 performance, gross margins typically fluctuate across quarters and tend to stabilize over the full year. Therefore, the EPS for this quarter should be viewed in the context of overall annual performance, not as a projection for the remaining quarters.
Earnings per share for the second quarter of 2025 were ($0.01), a significant improvement from ($0.21) in the same period last year.
Cash of $2.3 million and no long-term debt as of June 30, 2025.
2025 Financial Outlook
We depend heavily on state, local, and county government budgets for our revenue. In 2025, the United States federal government began pausing or terminating numerous spending programs that potentially fund those programs and institutions that are our customers. As such, we have begun to see delays in new contract awards, or cancellations of previous requests for proposals. These factors, and the possibility of further spending reviews and cancellations, may negatively affect the quantity and time of our revenue, results of operations, and cash flows in the near term.
Recent Operational Highlights
Currently engaged in contract negotiations for a $5.8 million agreement to serve as Indiana's Statewide Access Site for the Child Mental Health Wraparound (CMHW) program, under the FSSA's Division of Mental Health and Addiction. Once finalized, the Syra team will assist families with completing the application for the CMHW program, connecting them to needed mental health services across 92 counties in Indiana.
Awarded a contract worth up to $2.1 million to provide medical management nurses for a major health insurer. This reflects our expanding role supporting insurance providers through clinical staffing, data and analytics to optimize member plans, data visualizations, and HEDIS call center support. It also marks a significant step into the private sector, complementing our ongoing work with public sector customers.
Won several contracts across the U.S. with revenue of $100,000 or less, including:
Providing behavioral health sessions for Wake County, North Carolina, public health staff, focused on secondary trauma support
Conducting a Health and Human Services needs assessment in St. John's County, Florida
Staffing licensed mental health clinicians in Parkway School District, Missouri
Achieved ISO 27001:2022 certification, demonstrating the Company's commitment to data protection and information security for its many technology-based products.
Management Commentary
Priya Prasad, Interim CEO of Syra Health, said, "We are inching closer to profitability, fueled by growth of our Population Health business unit, which continues to exceed expectations. This team delivers high-impact services, from health education and training to data collection, analytics, and large-scale program implementations. Our results this quarter reflect both the increasing demand for these capabilities and the disciplined execution across the organization. We are also expanding into the private sector, complementing our strong foundation with public sector customers. As we fine-tune our corporate strategy, we remain focused on scaling what works and maximizing long-term value for our shareholders."
Q2 2025 Financial Results
Revenue for the second quarter of 2025 was $1,946,199, consistent with revenue of $1,969,681 in Q2 2024. Revenue in the second quarter of 2025 was driven by the high-margin Population Health business unit, which expanded 197% year-over-year.
Gross profit margin was 38.7% in the second quarter of 2025, a 2,090 basis point expansion compared to 17.8% in the prior year period. Total operating expenses for the second quarter of 2025 were $816,000 compared to $1.7 million in the year-ago period, a decline of 53% over the prior year period. The reduction in operating expenses was driven by continued disciplined cost management and continues to improve the Company's profitability trajectory.
Adjusted EBITDA for the second quarter of 2025 was ($54,000), a significant improvement compared to ($1.4) million in Q2 of the prior year.
Net loss for the second quarter of 2025 dropped 95% to ($64,000) when compared to ($1.4) million in the second quarter of 2024. This improvement reflects the benefits we continue to receive from our operational restructuring efforts conducted last year.
Salaries and benefits were down 61% to $326,000 when compared to Q2 2024. Salaries and benefits decreased because of lower headcount in 2025 and a strategic focus on streamlining operations through workforce optimization and reduced redundancies. Professional services were up 17% to $165,000 due to fine-tuning our corporate strategy.
Research and Development expenses were down 89% to $30,000 compared to the prior year period, as the result of a decrease in expenses to develop our technology-based solutions.
Selling and administrative expenses decreased 37% from Q2 2024 to $289,000, primarily resulting from our efforts to reduce overhead in 2025.
Cash on hand as of June 30, 2025, was $2.3 million with no long-term debt.
SYRA HEALTH CORP.
CONDENSED BALANCE SHEETS
June 30,
December 31,
2025
2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
2,305,924
$
2,395,405
Accounts receivable, net
886,361
680,827
Other current assets
242,444
276,563
Total current assets
3,434,729
3,352,795
Property and equipment, net
14,572
27,347
Right-of-use asset
22,161
299,190
Total assets
$
3,471,462
$
3,679,332
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
557,056
$
101,690
Accrued expenses
124,753
230,383
Deferred revenue
266,611
16,611
Current portion of operating lease liability, related party
22,161
111,978
Notes payable
86,718
152,887
Total current liabilities
1,057,299
613,549
Non-current portion of operating lease liability, related party
-
187,212
Total liabilities
1,057,299
800,761
Commitments and contingencies
