Earnings release
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Hydreight Reports Record Q2 2026 Revenue of $28.0 Million, Net Income of $2.5 Million and Adjusted EBITDA of $3.2 Million Revenue increased 421% year-over-year as Hydreight delivered its strongest revenue quarter to date, with continued sequential growth in revenue and gross profit while maintaining strong profitability Q2 2026 Highlights Revenue of $28.0 million , an increase of 421% from $5.4 million in Q2 2025 and approximately 12.5% from Q1 2026 Gross profit of $5.4 million , an increase of 182% from $1.9 million in Q2 2025 and approximately 7% quarter over quarter Net income of $2.5 million , compared with $0.05 million in Q2 2025 Adjusted EBITDA¹ of $3.2 million , compared with $0.2 million in Q2 2025 Six-month revenue of $53.0 million , an increase of 434% year-over-year Six-month net income of $5.1 million Working capital of $35.0 million at June 30, 2026 Cash of $20.0 million at June 30, 2026 VANCOUVER, BC and LAS VEGAS , Aug. 31, 2026 /CNW/ -- Hydreight Technologies Inc. ("Hydreight" or the "Company") (TSXV: NURS) (OTCQB: HYDTF) (FSE: SO6), a U.S.-focused digital health infrastructure platform, is pleased to report its financial results for the three and six months ended June 30, 2026. All figures are in Canadian dollars unless otherwise stated. Hydreight generated record second-quarter revenue of $28.0 million , representing an increase of 421% compared with $5.4 million in the second quarter of 2025. Adjusted Revenue¹ was $30.2 million , compared with $7.3 million in the prior-year period. The Company generated gross profit of $5.4 million , net income of $2.5 million and Adjusted EBITDA¹ of $3.2 million during the quarter. The second quarter also represented continued sequential growth from Q1 2026, with revenue increasing approximately 12.5% quarter-over-quarter and gross profit increasing approximately 7.0% , while net income and Adjusted EBITDA remained relatively consistent with Q1 levels. For the six months ended June 30, 2026, Hydreight generated $53.0 million in revenue , an increase of 434% compared with $9.9 million during the same period in 2025, together with $5.1 million in net income and approximately $6.5 million in Adjusted EBITDA¹ . Three months ended June 30, % Six months ended June 30, % 2026 2025 change 2026 2025 change Adjusted Revenue $ 30,161,397 $ 7,348,796 310 % $ 57,787,184 $ 13,876,753 316 % Deduct - deferred business partner contract revenue -696,221 198,794 (549,666) 652,934 Deduct - business partner payouts on app service gross revenue 2,823,210 1,773,483 5,371,791 3,307,178 GAAP Revenue $ 28,034,408 $ 5,376,519 421 % $ 52,965,059 $ 9,916,641 434 % Adjusted Gross Margin $ 4,741,227 $ 2,128,996 123 % $ 9,970,186 $ 4,087,601 144 % Deduct - deferred business partner contract revenue -696,221 198,794 -549,666 652,934 GAAP Gross Margin $ 5,437,448 $ 1,930,202 182 % $ 10,519,852 $ 3,434,667 206 % Adjusted EBITDA $ 3,220,299 $ 181,971 $ 6,481,137 $ 345,383 Deduct - amortization and depreciation 175,987 107,129 350,204 208,133 Deduct - share-based payments (4,882) 24,975 - 66,480 Deduct - interest and accretion 483,767 - 951,330 - Deduct - sales tax provision, net cash paid 36,567 - 64,001 - GAAP Net Income $ 2,528,860 $ 49,867 $ 5,115,602 $ 70,770 SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS Hydreight's second-quarter revenue growth was primarily driven by continued scaling of the VSDHOne platform and related order flow, together with organic growth in new business partners, renewals from existing partners and additions to service offerings. Pharmacy product sales increased to approximately $26.2 million during Q2 2026 , compared with $4.5 million during Q2 2025. The Company's virtual healthcare/direct-to-consumer segment generated approximately $22.8 million of revenue during Q2 2026 , compared with approximately $0.7 million in Q2 2025. For the first six months of 2026, the segment generated approximately $42.7 million , compared with approximately $1.0 million during the corresponding period in 2025. The Company's Q2 gross-margin percentage remained below the prior-year period primarily due to the significant increase in pharmacy sales as a percentage of total revenue and pricing concessions associated with initial transactions under several new supporting partnerships with compounding pharmacies. Hydreight generally aims to earn approximately a 20% margin on pharmacy sales before discounts and incentives , although individual product margins vary by product type, manufacturer and the timing of promotions. Shane Madden, Chief Executive Officer of Hydreight, commented: "Q2 was another record revenue quarter for Hydreight, with revenue reaching approximately $28.0 million compared with $5.4 million in the same period last year. What I believe is equally important is what is happening underneath that growth. Compared with Q1, revenue increased approximately 12.5%, while gross profit increased approximately 7.0%, with net income and Adjusted EBITDA remaining relatively consistent with Q1 levels. We believe this combination of continued top-line growth and sustained profitability demonstrates the strength of the platform as we continue scaling the infrastructure we have spent years building. Through the first six months of 2026, Hydreight generated approximately $53.0 million in revenue and $5.1 million in net income. VSDHOne and our virtual healthcare infrastructure have become significant contributors to our business, while we continue investing in the technology, pharmacy relationships, provider infrastructure and compliance capabilities needed to support additional scale. We remain focused on execution. Our priorities for the remainder of 2026 are to continue increasing utilization across the platform, expand our partner and product ecosystem, invest in VSDHOne 2.0 and related technology, and continue building the infrastructure required to support the next stage of Hydreight's growth." PLATFORM SCALE AND VSDHONE Hydreight's growth continues to be supported by the expansion of its healthcare infrastructure across three principal verticals: mobile medical services, physical healthcare locations and virtual healthcare/direct-to-consumer services through VSDHOne.
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During the six months ended June 30, 2026, the Company's virtual healthcare/direct-to-consumer segment generated approximately $42.7 million in revenue , compared with approximately $1.0 million in the corresponding period in 2025. Hydreight continues to invest in VSDHOne 2.0, which is designed to enhance the Company's technology infrastructure to support scalability, security and long-term growth. During the first six months of 2026, the Company added approximately $0.8 million of development investment to VSDHOne 2.0. The Company's broader infrastructure spans all 50 U.S. states and includes a network of more than 3,000 nurses, more than 300 independent doctors and pharmacy relationships supporting its healthcare ecosystem. BALANCE SHEET AND GROWTH CAPITAL Hydreight ended Q2 2026 with approximately $20.0 million in cash and $35.0 million in working capital , compared with $15.6 million in cash and $15.7 million in working capital at December 31, 2025. During the first six months of 2026, Hydreight used approximately $8.7 million of cash in operating activities , primarily reflecting increased working capital deployed as the Company continued to scale its pharmacy operations and support new product and treatment lines. Hydreight and its subsidiaries work with and support compounding pharmacies, both directly and indirectly, by providing funding and/or medical, formulation and structural support to establish new product and treatment lines. This enables greater control over pricing while helping ensure the appropriate inventory, operational, regulatory and compliance structures are in place . This investment in working capital occurred alongside substantial growth in the Company's pharmacy operations. Pharmacy product sales increased to approximately $26.2 million in Q2 2026 , compared with approximately $4.5 million in Q2 2025. At June 30, 2026, Hydreight maintained approximately $20.0 million in cash and $35.0 million in working capital , providing the Company with financial resources to continue supporting its existing operations and strategic growth initiatives. 2026 OUTLOOK Hydreight is reaffirming its previously announced fiscal 2026 revenue guidance of approximately $150 million , based on management's current internal planning assumptions. The Company's previously issued guidance is based on expectations regarding partner activity, transaction volumes, service mix, capacity utilization across pharmacy operations and general market conditions. Actual results may differ materially, and the guidance remains subject to the assumptions and risks described under "Cautionary Note Regarding Forward-Looking Information." Management continues to focus on increasing platform utilization, expanding strategic healthcare partnerships, scaling VSDHOne and related offerings, investing in technology and healthcare infrastructure, and supporting continued expansion across Hydreight's U.S. healthcare ecosystem. Q2 2026 INVESTOR WEBCAST AND LIVE ANALYST Q&A Hydreight will host an investor webcast and conference call to discuss its Q2 2026 financial results and provide an update on business operations, platform growth and strategic initiatives. Following management's presentation, the webcast will include a live question-and-answer session with research analysts. Date: Tuesday, September 1, 2026 Time: 6:00 a.m. Pacific Time / 9:00 a.m. Eastern Time Webcast Registration: https://hydreight.zoom.us/webinar/register/WN_9Ibza4WgRQyvpe_Zg_wj2Q The webcast will be hosted by Shane Madden, Chief Executive Officer of Hydreight. A replay will be made available following the event. QUARTERLY FILINGS The Company's condensed interim consolidated financial statements and MD&A for the three and six months ended June 30, 2026 will be available under Hydreight's issuer profile on SEDAR+. Readers are encouraged to review the complete financial statements and MD&A in conjunction with this news release. On behalf of the Board of Directors Shane Madden Director and Chief Executive Officer Hydreight Technologies Inc. About Hydreight Technologies Inc. Hydreight Technologies Inc. is a U.S.-focused digital health infrastructure company providing technology, healthcare provider, pharmacy and compliance solutions across the United States. Its proprietary, fully integrated platform supports a network of more than 3,000 nurses, more than 300 independent doctors and pharmacy relationships across all 50 states. The platform includes a built-in suite of integrated tools for accounting, documentation, sales, inventory, booking and managing patient data, which enables licensed healthcare professionals to provide services directly to patients at home, office or hotel. Hydreight bridges the gap between provider compliance and patient convenience, supporting nurses, med spa technicians and other licensed healthcare professionals. The Hydreight platform allows healthcare professionals to deliver services independently or add mobile services to existing location-based operations. Hydreight has relationships with pharmacy providers servicing all 50 states and is closely affiliated with a U.S. certified e-script and telemedicine provider network. About VSDHOne – Direct-to-Consumer Platform Developed in partnership with Victory Square Technologies (CSE: VST) (OTC: VSQTF) (FWB: 6F6), Hydreight Technologies launched the VSDHOne platform. VSDHOne aims to simplify the challenges for companies and medi-spa businesses seeking to enter the online healthcare space compliantly. The platform is designed to help businesses launch direct-to-consumer healthcare brands across all 50 states. Offerings include GLP-1s, peptides, personalized healthcare treatments, sermorelin, testosterone replacement therapy ("TRT"), hair loss, skincare, sexual health and other healthcare categories.
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Hydreight has invested in technology, legal and infrastructure to launch the platform. VSDHOne provides a modular, end-to-end solution for businesses looking to launch direct-to-consumer healthcare brands, including compliance and telemedicine technology and access to nationwide doctor and pharmacy networks. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. Use of Non-GAAP Financial Measures The Company uses certain non-GAAP financial measures to assess its operating performance, and this press release contains non-GAAP financial measures, including "Adjusted Revenue" and "Adjusted EBITDA". These measures are not recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS or GAAP. The Company defines Adjusted Revenue as gross cash income before adjustment for the deferred portion of business partner contract revenue and gross receipts from Hydreight App service sales. The Company defines Adjusted Gross Margin as GAAP gross margin plus inventory impairment plus the deferred portion of business partner contract revenue. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring and integration costs, (ii) share-based payments expense, (iii) gains/losses that are not reflective of ongoing operating performance, including inventory impairment, and (iv) sales tax provision, net of actual cash payments to state tax authorities. Adjusted Revenue reflects the gross economic activity processed through the Company's platform during the applicable period and may differ materially from revenue recognized under IFRS, which is based on revenue recognition and deferral requirements. Adjusted Revenue is not a measure of financial performance or profitability and should not be considered a substitute for revenue determined in accordance with IFRS. As used, Adjusted Revenue accelerates cash receipts relative to IFRS revenue recognition. Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) prepared in accordance with IFRS. The Company believes that these non-GAAP measures provide information useful to investors in understanding historical operating trends and the scale of the Company's platform relative to its peers but does not intend for such measures to represent future performance. This data is furnished to provide additional information and does not have any standardized meaning prescribed by IFRS. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of other metrics presented in accordance with IFRS. Cautionary Note Regarding Forward-Looking Information This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward- looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding expectations for the Company's 2026 strategic outlook, growth, platform scaling initiatives, and anticipated expansion of VSDHOne and other platform offerings. Forward looking information is based on management's expectations, estimates and assumptions as of the date hereof, including assumptions regarding: continued partner adoption, stable regulatory regimes applicable to telehealth and pharmacy operations in the United States, availability of capital, and general economic conditions. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the Company's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to obtain requisite regulatory and other approvals with respect to the business operated by the Company and/or the potential impact of the listing of the Company's shares on the TSXV on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time as a result of being a publicly listed entity. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. Notes: 1 "Adjusted Revenue" is a non-GAAP financial measure, and the figures reflect gross economic activity processed through the Company's platform and should not be considered revenue recognized under IFRS. See "Non-GAAP Financial Measures" section below for definition. 2 "Adjusted EBITDA" is a non-GAAP financial measure and reflects EBITDA plus additions for atypical and non-recurring charges. See "Non-GAAP Financial Measures" section below for definition. View original content to download multimedia: https://www.prnewswire.com/news-releases/hydreight-reports-record-q2-2026-revenue-of-28-0-million-net-income-of-2-5-million-and-adjusted-ebitda-of-3-2-million-302865560.html SOURCE Hydreight Technologies Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2026/31/c2456.html %SEDAR: 00045720E For further information: Company Contact: Abbey Vogt, Telephone: 1 (702) 970-8112, Email: ir@hydreight.com CO: Hydreight Technologies Inc. CNW 22:25e 31-AUG-26