SRx Health Solutions Inc. announced its fiscal first quarter 2026 results, showing net sales of $2.8 million and a net loss of $8.6 million for the period ended December 31, 2025. The company deployed $18 million into Bitcoin and Ethereum as part of a digital treasury strategy and entered a definitive agreement to acquire EMJ Crypto Technologies. The acquisition is expected to close in the first half of 2026.
SRx Health Solutions Inc. (NYSE American: SRXH), a pet health and wellness company based in North Palm Beach, Florida, released its financial results for the fiscal first quarter of 2026, covering the three months ended December 31, 2025. The company reported net sales of $2.8 million, primarily from digital sales of premium pet food and wellness products under its Halo brand. Gross margin improved to 38%, resulting in gross profit of $1.1 million, achieved through SKU rationalization and a stronger product mix, including exiting tariff-impacted products.
Despite these operational gains, SRx Health recorded a net loss of $8.6 million, which includes a $3.1 million non-cash loss on debt extinguishment. Adjusted EBITDA showed a loss of $1.06 million. The diluted loss per share was $(0.26), with weighted average shares outstanding at 98.76 million.
On the liquidity front, cash and cash equivalents stood at $13.1 million as of December 31, 2025, up from $1.3 million at September 30, 2025. This increase came from proceeds of $16.1 million from common stock issuance and $8.9 million from preferred stock, offset by digital asset deployments and debt repayments.
A key strategic move was the deployment of $18 million into Bitcoin and Ethereum during and after the quarter, initiating a digital treasury strategy. Additionally, SRx Health entered a definitive agreement to acquire EMJ Crypto Technologies (EMJX), a digital-asset treasury platform using quantitative models, artificial intelligence, and risk controls, led by Eric M. Jackson. The deal is anticipated to close in the first half of calendar 2026.
Kent Cunningham, CEO of SRx Health, stated, “Q1 FY26 marked a pivotal reset for the Company. We exited prior balance sheet restructuring with materially improved liquidity and a stronger capital foundation.” He noted resilient consumer demand for Halo products despite inventory constraints from prior funding issues, and expressed confidence in year-over-year growth at normalized levels.
Michael Young, a board member, added, “During the quarter, we improved our balance sheet and announced a definitive agreement to acquire EMJ Crypto Technologies, which will advance a broader strategic shift toward multi-asset digital treasury management. To date, we have deployed $18 million into cryptocurrency, including Bitcoin and Ethereum. We look forward to closing on EMJX during the current calendar first quarter and unlocking long-term value for shareholders.”
Following the announcement on February 13, 2026, SRx Health's stock declined 14.48%, trading at $0.13, reducing the company's valuation by about $2 million. This reaction aligns with prior earnings responses, such as a 16.67% drop after Q1 2025 results despite margin improvements.
