Syra Health Announces First Quarter Revenue of $1.9 Million, Up 6% YoY

PR Newswire

CARMEL, Ind., May 8, 2025

Revenue increase led by Population Health's 261% YoY Expansion

Gross Margin Improves Substantially to 31.7%, up 14.6 Percentage Points YoY

Continued Efficiency Gains Cut Q1 2025 Net Losses by Over Two Thirds Compared to Q1 2024

A conference call will be held today, Thursday, May 8, at 9:00 am ET

CARMEL, Ind., May 8, 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 first quarter ended March 31, 2025.

Q1 2025 Financial Highlights

   -- Total revenue of $1.9 million, up 6% compared to $1.8 million in Q1 2024. 
 
          -- Revenues, excluding Healthcare Workforce, grew 261% YoY and 
             expanded to 65% of total revenues, compared to 19% of total 
             revenue in Q1 2024. 
 
          -- Population Health reached $1.2 million in revenues, more than 
             tripling from $333,000 in Q1 2024, driven by new contracts and 
             extensions, as well as increased contributions from 
             milestone-based revenues. 
 
   -- Gross margins expand YoY by 14.6 percentage points to 31.7% in 1Q 2025. 
 
   -- Operating Expense decreased 39% YoY, continuing to improve the 
      profitability trajectory. 
 
   -- Net Loss reduction to ($472,000) from ($1.4) million in Q1 2024. 
 
   -- Cash of $2.5 million and no long-term debt as of March 31, 2025. 

2025 Financial Outlook

   -- Ongoing federal government-level budgetary revisions are impacting our 
      key customers across state, local, and county government agencies. Given 
      the current variability of the healthcare market, the Company believes it 
      is prudent to withdraw its 2025 guidance at this time. An updated outlook 
      will be provided once these changes are more quantifiable. 
 
   -- The Company is continuing to prioritize the higher margin Population 
      Health and Behavioral and Mental Health business units and is also 
      expanding into the private healthcare sector, alongside its public sector 
      work. 

Recent Operational Highlights

   -- Secured a $2.5 million Population Health contract with a major insurance 
      provider to enhance member health plans using advanced data analytics. 
      The contract, which is set to renew for two additional years at the same 
      value, will be supported by a dedicated team of Syra Health 
      professionals. 
 
   -- Secured a one-year, $1.5 million contract extension with Indiana FSSA 
      NeuroDiagnostic Institute, a portion of which has already been received, 
      with the remainder to be recognized over time based on service needs. 
 
   -- Awarded a $660,000 Population Health contract extension with a national 
      healthcare organization to improve quality, enhance outcomes, and reduce 
      costs through expert data analysis and member outreach supporting its 
      Healthcare Effectiveness Data and Information Set (HEDIS$(R)$). 
 
   -- Launched specialized content within Syrenity aimed at supporting 
      individuals living with Post-Traumatic Stress Disorder (PTSD), including 
      evidence-based coping strategies, guided exercises, and expert-led 
      modules. 

Management Commentary

Dr. Deepika Vuppalanchi, CEO of Syra Health, said, "We are pleased that we began 2025 with strong momentum, delivering solid revenue growth and significant gross margin expansion, driven by our strategic focus on higher-margin business units. The success of our Population Health business unit underscores the effectiveness of our refined go-to-market strategy and our commitment to addressing critical gaps in healthcare delivery. As we navigate a dynamic healthcare landscape, we remain focused on operational efficiency, innovative digital health solutions, and long-term value creation for our key stakeholders."

Q1 2025 Financial Results

Revenue for the first quarter of 2025 was $1.9 million, an increase of 6% compared to $1.8 million in the first quarter of 2024. Strong growth was driven by the high-margin Population Health segment, which expanded 261% year-over-year. Within Healthcare Workforce, our long-term contract with the Indiana FSSA NeuroDiagnostic Institute expired, partially offset by the aforementioned contract extension with the same customer.

Gross profit margin was 31.7% in the first quarter of 2025, a 14.6 percentage point expansion compared to 17.1% in the prior year period. This improvement was related to the phase out of certain lower-margin Healthcare Workforce contracts and a shift towards higher-margin Population Health contracts. The year-over-year margin expansion also reflects a $120,000 reclassification of expenses from cost of services to selling, general, and administrative expenses in the year-ago period.

Total operating expenses for the first quarter of 2025 were $1.1 million compared to $1.7 million in the first quarter of 2024, a decline of 39% compared to the year-ago period. The reduction was driven by operational efficiency gains and disciplined cost management, which was partially offset by the aforementioned reclassification of expenses.

Adjusted EBITDA for the first quarter of 2025 was ($462,000), a significant improvement compared to ($1.4) million in the prior year.

Net loss for the first quarter of 2025 was ($472,000) compared to ($1.4) million in the first quarter of 2024. This improvement of over 3x versus the year-ago period was driven by our operational restructuring efforts, a continuation of trends that began last year. Earnings per share for the first quarter of 2025 were ($0.04), compared to ($0.22) in the year-ago period.

Conference Call

Management will hold a conference call to discuss the full-year financial results at 9:00 am ET on May 8, 2025.

Interested parties can listen to the live webcast and access the replay after the call through the same link available in the Investor Relations section of the Company's website at https://ir.syrahealth.com/presentations/Q1-2025-earnings-call.

 
                         SYRA HEALTH CORP. 
                           BALANCE SHEETS 
                             (UNAUDITED) 
                                         March 31,    December 31, 
                                            2025          2024 
                                        ------------  ------------ 
               ASSETS                    (Unaudited) 
 
Current assets: 
Cash and cash equivalents               $  2,490,585  $  2,395,405 
Accounts receivable, net                     945,856       680,827 
 
Other current assets                         210,788       276,563 
                                         -----------   ----------- 
Total current assets                       3,647,229     3,352,795 
 
Property and equipment, net                   20,550        27,347 
Right-of-use asset                            54,771       299,190 
                                         -----------   ----------- 
 
Total assets                            $  3,722,550  $  3,679,332 
                                         ===========   =========== 
 
LIABILITIES AND STOCKHOLDERS' EQUITY 
              (DEFICIT) 
 
Current liabilities: 
Accounts payable                        $    325,027  $    101,690 
Accrued expenses                             211,867       230,383 
Deferred revenue                             599,213        16,611 
Current portion of operating lease 
 liability, related party                     54,771       111,978 
Notes payable                                 75,036       152,887 
                                         -----------   ----------- 
Total current liabilities                  1,265,914       613,549 
 
Non-current portion of operating lease 
 liability, related party                          -       187,212 
                                         -----------   ----------- 
 
Total liabilities                          1,265,914       800,761 
                                         -----------   ----------- 
 
Commitments and contingencies 
 
Stockholders' equity (deficit): 
Preferred stock, $0.001 par value, 
10,000,000 shares authorized, no 
shares designated, issued and 
outstanding                                        -             - 
Class A common stock, $0.001 par 
 value, 100,000,000 shares authorized, 
 11,339,169 and 8,979,204 shares 
 issued and outstanding at March 31, 
 2025 and December 31, 2024, 
 respectively                                 11,339         8,979 
Convertible class B common stock, 
 $0.001 par value, 5,000,000 shares 
 authorized, 6000,000 and 833,334 
 shares issued and outstanding at 
 March 31, 2025 and December 31, 2024, 
 respectively                                    600           833 
 
Additional paid-in capital                11,741,155    11,692,952 
Accumulated deficit                      (9,296,458)   (8,824,193) 
                                         -----------   ----------- 
Total stockholders' equity (deficit)       2,456,636     2,878,571 
                                         -----------   ----------- 
 
Total liabilities and stockholders' 
 equity (deficit)                       $  3,722,550  $  3,679,332 
                                         ===========   =========== 
 
 
                          SYRA HEALTH CORP. 
                       STATEMENTS OF OPERATIONS 
                              (UNAUDITED) 
 
                                        For the Three Months Ended 
                                                March 31, 
                                           2025            2024 
                                      ---------------  ------------- 
 
Net revenues                           $    1,857,774  $   1,752,340 
Cost of services                            1,268,618      1,452,561 

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