RETRANSMISSION - Cosmos Health Reports Q1 2025 Results: Adjusted Profitability Achieved as Gross Profit Rises 54% to $2.05M; Operating Cash Burn Down 95%, or $3.2M, to $0.19M; Approaching Cash Flow Breakeven
MWN-AI** Summary
Cosmos Health Inc. (NASDAQ:COSM) has reported a strong financial performance for the first quarter of 2025, achieving significant improvements in gross profit and operational efficiency. The company's revenue for the quarter decreased slightly to $13.71 million, down 5.98% from $14.58 million in Q1 2024, reflecting a strategic shift towards higher-margin areas and reduced promotional activities. Notably, gross profit soared by 53.7% to $2.05 million, bolstered by an enhanced product mix and operational leverage, leading to a gross margin expansion to 14.95%.
Operating expenses fell by 9.05% to $2.88 million, driven by cuts in salaries, sales, and marketing costs. As a result, the net loss narrowed significantly by 56.17% to $0.82 million compared to $1.87 million in the previous year, primarily due to ongoing expenses related to the company's Nasdaq listing. On an adjusted basis, Cosmos Health reported positive figures for both Adjusted EBITDA and Adjusted Net Income, marking a return to profitability amidst disciplined cost management. Adjusted EBITDA reached $0.37 million, a stark recovery from a loss of $0.64 million year-over-year.
In terms of cash flow, Cosmos Health improved its operational cash burn by 94.5%, reducing it to a mere $0.19 million for the quarter, on the path to achieving cash flow breakeven. The balance sheet remains robust, with an increase in stockholders' equity and total assets reflecting strong liquidity and a diversified asset base. CEO Greg Siokas expressed confidence in the company’s strategic direction and the growth potential of their R&D initiatives and product lines, further underscored by his personal investment in the company.
MWN-AI** Analysis
Cosmos Health Inc. (NASDAQ:COSM) reported promising Q1 2025 results, marking a pivotal moment in its operational turnaround. The company's gross profit surged by 54% to $2.05 million, reflecting a strategic pivot towards higher-margin products. This positive momentum should be considered by investors looking for growth in the healthcare sector.
Despite a revenue dip of 5.98% year-over-year to $13.71 million, the focus on profitability has led to significant improvements. The gross margin expanded substantially, providing a clear indication that management's efficiency initiatives are paying off. Additionally, the remarkable 95% reduction in operating cash burn to just $0.19 million highlights strengthened cost management and better working capital control.
Investors may find interest in Cosmos Health's approaches to innovation, notably the advanced pipeline including CCX0722 for weight management. The ongoing expansion of Sky Premium Life and the C-Scrub product line into high-demand markets like the UK suggests the company is strategically positioning itself to capture emerging opportunities.
Financially, the company is nearing cash flow breakeven—a significant achievement given its history of net losses, which narrowed to $0.82 million, down 56% from the previous year. The balance sheet displays resilience with increased stockholders’ equity and a stable liabilities-to-assets ratio of 54.6%.
In terms of stock performance, the latest CEO share acquisition of over 2.7 million shares implies substantial insider confidence, potentially bolstering investor sentiment. As Cosmos Health approaches profitability while expanding its high-margin offerings, investors may consider an opportunistic entry point as the company solidifies its market position against the backdrop of healthcare’s evolving landscape.
In summary, while caution is warranted due to the prior revenue declines, the operational improvements and strategic focus on innovation present a compelling case for long-term investment in Cosmos Health.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CHICAGO, May 15, 2025 (GLOBE NEWSWIRE) -- Cosmos Health Inc. ("Cosmos Health" or the “Company”) (NASDAQ:COSM) , a diversified, vertically integrated global healthcare group engaged in innovative R&D, owner of proprietary pharmaceutical and nutraceutical brands, manufacturer and distributor of healthcare products, and operator of a telehealth platform, today reported financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights
Income Statement
Cosmos Health delivered solid results in Q1 2025, highlighted by a significant increase in gross profit and positive performance on both an Adjusted EBITDA and Adjusted Net Income basis, reflecting a meaningful turnaround in bottom-line performance.
- Revenue for Q1 2025 was $13.71 million, a decrease of 5.98% from $14.58 million in Q1 2024, primarily reflecting the Company’s strategic shift toward higher-margin focus areas and a disciplined reduction of promotional-dependent activities.
- Gross profit increased by 53.70% to $2.05 million, up from $1.33 million in the prior-year period, driven by an improved product mix and operational leverage. Segment contributions were as follows:
- Wholesale logistics distribution: $1.18 million
- Owned nutraceuticals/pharmaceuticals and manufacturing: $0.87 million
- Gross margin expanded by 581 basis points to 14.95%, compared to 9.14% in Q1 2024, reflecting a greater focus on higher-margin segments, including contract manufacturing and proprietary brands, as well as operational synergies realized at Cana Laboratories.
- Total operating expenses declined by 9.05% to $2.88 million, compared to $3.17 million in Q1 2024, reflecting:
- 17.34% reduction in salaries and wages, driven by efficiency initiatives
- 83.78% decline in sales and marketing expenses, due to a strategic reduction in promotional spend
- 14.46% decrease in general and administrative expenses, adjusted for non-cash items
- Net loss narrowed by 56.17% to $0.82 million, down from $1.87 million in the prior-year period. The loss was primarily attributable to costs related to the Company’s Nasdaq U.S. listing.
Return to Profitability
On an adjusted basis, Cosmos Health delivered profitable results in both EBITDA and Net Income, driven by improved gross profitability and disciplined cost management.
- Adjusted EBITDA increased by 157.8% to $0.37 million, compared to a loss of $0.64 million in Q1 2024.
- Adjusted Net Income improved by 139.4% to $0.28 million, versus a loss of $0.71 million in the prior-year period.
Key contributors to this performance were the Company’s wholesale logistics segment (CosmoFarm) and its owned nutraceutical and pharmaceutical products portfolio, including Sky Premium Life®, which delivered strong results.
Balance Sheet
Stockholders’ equity increased by $1.42 million, while the liabilities-to-assets ratio remained a modest 54.6%, reflecting continued financial discipline.
- Total assets increased by 5.3% to $57.2 million, up from $54.3 million as of December 31, 2024, reflecting a diversified asset base with enhanced liquidity, a strong inventory position, and a solid real estate and intellectual property portfolio.
- Total liabilities increased by 4.9% to $31.24 million as of March 31, 2025, up from $29.78 million at year-end 2024, primarily due to moderate increases in lines of credit and notes payable, while accounts payable and other current liabilities remained relatively stable.
- Total stockholders’ and mezzanine equity increased by 5.8% to $25.95 million as of March 31, 2025, up from $24.53 million as of December 31, 2024.
Cash Flow Statement
Operating cash burn improved by 94.5% year-over-year, decreasing by $3.22 million to negative $0.19 million in Q1 2025 from negative $3.41 million in Q1 2024, primarily driven by improved working capital management, stronger accounts receivable collections, and lower prepaid expense outflows.
Management Commentary
Greg Siokas, CEO of Cosmos Health, stated: “We are pleased with our strong first-quarter performance and the steady progress across multiple strategic areas. Gross profit and gross margins increased significantly, supported by an improved product mix and stronger operating leverage. Our continued focus on efficiency and disciplined cost management is yielding tangible results, as reflected in our return to profitability on both an Adjusted EBITDA and Adjusted Net Income basis.
Importantly, we are approaching a key milestone, having substantially reduced our operating cash burn and moving closer to operational cash flow breakeven. Moreover, we ended the quarter with higher stockholders’ equity and improved liquidity, including an increased cash balance. Our balance sheet remains prudent, underpinned by modest leverage and a diversified asset base.
Operationally, we continue to advance strategic initiatives across the group. Our R&D pipeline is evolving, with multiple projects underway, including our CCX0722 weight management solution which has entered its final development phase and is progressing toward launch. We are also scaling our high-margin contract manufacturing segment through new long-term agreements, while expanding the global footprint of Sky Premium Life, our flagship nutraceutical brand. In parallel, we are growing our C-Scrub antiseptics line, including continued progress in the lucrative UK market.
Finally, I want to reaffirm my personal commitment to Cosmos. Since December 20, 2024, I have increased my personal shareholding by over 2.7 million shares, representing an investment of more than $1.3 million, which reflects my strong confidence in the Company’s strategy and long-term growth potential.”
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||
| Three Months Ended March 31, | ||||
| 2025 | 2024 | |||
| (in $) | ||||
| GAAP - Figures | ||||
| REVENUE | 13,712,528 | 14,584,473 | ||
| GROSS PROFIT | 2,049,799 | 1,333,626 | ||
| TOTAL OPERATING EXPENSES | (2,882,944) | (3,169,734) | ||
| GAIN (LOSS) FROM OPERATIONS | (833,145 ) | (1,836,108 ) | ||
| TOTAL OTHER INCOME (EXPENSE), NET | 15,048 | (30,582 ) | ||
| NET GAIN (LOSS) | (818,097 ) | (1,866,690 ) | ||
| NON-GAAP Figures* | ||||
| ADJUSTED EBITDA | 373,119 | (644,048 ) | ||
| ADJUSTED NET INCOME (LOSS) | 277,338 | (706,955 ) |
(*) See "Definitions of Non-GAAP Measures" and "Reconciliation of Non-GAAP Measures" sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release.
Definitions of Non-GAAP Measures
We collect and analyze operating and financial data to evaluate the health of our business and assess our performance. In addition to Revenue, Income (Loss) from Operations and Net Income (Loss) under GAAP, we use: EBITDA, Adjusted EBITDA, and Adjusted Net Income (Loss). We have included these non-GAAP financial measures because they are key measures used by our management to evaluate our operating performance. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and Board of Directors. Our calculation of these non-GAAP financial measures may differ from similarly titled non-GAAP measures, if any, reported by our peer companies. These non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP.
Adjusted EBITDA
We define Adjusted EBITDA as Income (Loss) before Income Taxes, excluding (i) depreciation and amortization expense, (ii) interest income (expense), (iii) non-cash interest expense, (iv) stock-based compensation expense, (v) non-recurring and extraordinary items (vi) other income (expense), net, (vii) gain (loss) on equity investments, net, (viii) gain on extinguishment of debt, (ix) change in fair value of derivative liability (x) foreign currency transaction, net, and (xi) prior years bad debt allowances.
We have included Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans, and make strategic decisions. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and Board of Directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and non-recurring and extraordinary items.
Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP.
Adjusted Net Income (Loss)
We define Adjusted Net Income (Loss) as Adjusted EBITDA (see above) adding provision for income taxes and deducting interest expense.
Adjusted Net Income has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP.
Reconciliation of Non-GAAP Measures
Adjusted EBITDA & Adjusted Net Income (Loss)
The following table presents reconciliations of Adjusted EBITDA & Adjusted Net Income (Loss) to the most directly comparable GAAP financial measure for each of the periods indicated.
| Three Months Ended March 31, | ||||
| 2025 | 2024 | |||
| (in $) | ||||
| INCOME (LOSS) BEFORE INCOME TAXES | (818,097 ) | (1,866,690 ) | ||
| Adjustments (add back): | ||||
| Depreciation and amortization expense | 320,439 | 319,787 | ||
| Interest (income) / expense, net | 95,781 | 62,907 | ||
| EBITDA | (401,877 ) | (1,483,996 ) | ||
| Non-recurring and extraordinary items | 135,621 | 532,078 | ||
| Stock based compensation | 556,611 | 340,194 | ||
| Other income (expense), net | 261,730 | (191,824) | ||
| Gain (loss) on equity investments, net | (3,142) | (1,755) | ||
| Gain on extinguishment of debt | (175,824) | 161,254 | ||
| ADJUSTED EBITDA | 373,119 | (644,048 ) | ||
| Interest income / (expense), net | (95,781) | (62,907) | ||
| ADJUSTED NET INCOME | 277,338 | (706,955 ) |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||
| March 31, 2025 Unaudited | December 31, 2024 Audited | September 30, 2024 Unaudited | |
| (in $) | |||
| ASSETS | |||
| Cash & cash equivalents | 742,881 | 315,105 | 3,314,845 |
| Inventory | 4,736,222 | 4,355,365 | 4,885,015 |
| Accounts receivable, prepaid expenses and other current assets | 20,930,780 | 19,618,932 | 27,101,314 |
| Property and equipment, net | 10,016,068 | 9,689,505 | 10,575,928 |
| Goodwill and intangible assets, net | 7,802,529 | 7,756,534 | 7,746,761 |
| Loans receivable | 7,238,494 | 6,946,749 | 7,398,180 |
| Other noncurrent assets | 5,724,970 | 5,629,702 | 3,497,939 |
| TOTAL ASSETS | 57,191,944 | 54,311,892 | 64,519,982 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Accounts payable and accrued expenses | 12,542,708 | 12,648,882 | 12,818,143 |
| Other current liabilities | 3,963,167 | 3,564,569 | 4,769,933 |
| Lines of credit | 7,305,377 | 6,985,052 | 5,989,425 |
| Notes payable | 4,863,275 | 4,119,471 | 4,279,340 |
| Other non-current and finance/lease liabilities | 2,565,705 | 2,460,990 | 1,686,542 |
| Stockholders' and mezzanine equity | 25,951,712 | 24,532,929 | 34,976,599 |
| TOTAL LIABILITIES AND STOCKHOLDERS'/MEZZANINE EQUITY | 57,191,944 | 54,311,893 | 64,519,982 |
| CONDENSED CONSOLIDATED CASH FLOW DATA | ||||||
| Three Months Ended March 31, | ||||||
| (in $) | 2025 Unaudited | 2024 Audited | ||||
| NET CASH USED IN OPERATING ACTIVITIES | (186,316) | (3,412,103) | ||||
| NET CASH USED IN INVESTING ACTIVITIES | (7,069) | 126,454 | ||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 560,862 | 206,942 | ||||
| CASH AT BEGINNING OF YEAR | 315,105 | 3,833,195 | ||||
| CASH AT END OF YEAR | 742,881 | 865,099 | ||||
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life®, Mediterranation®, bio-bebe®, C-Sept® and C-Scrub®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com , www.skypremiumlife.com , www.cana.gr , www.zipdoctor.co , www.cloudscreen.gr , as well as LinkedIn and X .
Forward-Looking Statements
With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could", are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, the impact of the war in Ukraine, on the Company's business, operations and the economy in general, and the Company's ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website ( www.sec.gov ). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact:
BDG Communications
cosm@bdgcommunications.com
+44 207 0971 653
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FAQ**
How does the revenue decline of 5.98% to $13.71 million in Q1 2025 for Cosmos Holdings Inc. COSM align with the company's strategic shift to higher-margin areas, and what impact do you anticipate this will have on future growth?
Given the substantial 53.70% increase in gross profit for Cosmos Holdings Inc. COSM, what specific operational synergies drove this improvement, and how sustainable do you believe these synergies will be?
With an adjusted EBITDA increase of 157.8% for Cosmos Holdings Inc. COSM, how do you plan to maintain this momentum in profitability, especially as you scale operations in contract manufacturing and R&D projects?
What measures are being implemented by Cosmos Holdings Inc. COSM to further reduce cash burn beyond the impressive 94.5% improvement noted, and how do you foresee achieving operational cash flow breakeven in the near term?
**MWN-AI FAQ is based on asking OpenAI questions about Cosmos Health Inc. (NASDAQ: COSM).
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