QHSLab (OTCQB:USAQ) Reports Preliminary Unaudited 2025 Financial Results With Strong Revenue Growth, Expanding Margins, and Significant Debt Reduction
MWN-AI** Summary
QHSLab Inc. (OTCQB: USAQ), a digital health infrastructure company, announced its preliminary unaudited financial results for the year ending December 31, 2025, showcasing robust performance amid strategic enhancements to its business model. The company reported a 25% increase in revenue, soaring to $2,676,074 compared to $2,131,926 in 2024. This noteworthy growth in revenue led to a gross profit of $1,795,182, reflecting a 32% year-over-year improvement, with gross margins also expanding to approximately 67%, up from 64% in the prior year.
Significantly, QHSLab undertook a comprehensive debt restructuring effort, reducing outstanding convertible debt from approximately $2.0 million to around $20,000. This debt elimination not only bolsters the company’s balance sheet but is also expected to cut annual interest expenses by over $200,000, enhancing cash flow and enabling reinvestment into product development and platform growth.
Troy Grogan, President and CEO, remarked on the resilience of their business model, highlighting their commitment to addressing historical obligations while achieving strong revenue growth and improved profitability. The company also noted early success from its Q-Cog pilot program, which aims to facilitate cognitive and behavioral health screenings in compliance with CMS guidelines, adding it to their revenue-generating solutions for 2026.
Overall, QHSLab is positioned for continued expansion in the upcoming year due to its accelerating revenues, expanding margins, and newly introduced reimbursable solutions. These efforts reinforce their strategy to create scalable, reimbursable digital medicine platforms that cater to primary care practices. Final audited results will be released in the upcoming Annual Report on Form 10-K, to be filed by the end of March 2026.
MWN-AI** Analysis
QHSLab Inc. (OTCQB: USAQ) has reported promising preliminary results for 2025, showcasing significant revenue growth, expanding profit margins, and substantial debt reduction. The revenue of $2.68 million, a 25% increase from 2024, coupled with gross margins expanding to 67%, reflects the effectiveness of the Company’s strategy to bolster its position in the digital health sector. Notably, the elimination of most convertible debt, reducing it from $2 million to a mere $20,000, enhances the Company's financial stability and capacity for reinvestment.
QHSLab's enhanced profitability and operational efficiency are indicative of a strong underlying business model, which is set to benefit from continuing upward momentum in its Integrated Service Program (ISP) client base. The early stages of reimbursement activity from its innovative Q-Cog pilot program signal an attractive growth avenue in 2026, poised to address critical gaps in cognitive and behavioral health screening at the primary care level.
For investors, these developments present a compelling case for QHSLab as a viable growth opportunity within the digital health space, especially given the current emphasis on reimbursement for preventive care solutions. The de-risked balance sheet will enable greater flexibility to pursue strategic initiatives, thereby further solidifying its market position.
However, investors should remain cautious and keep an eye on the final audited financial results expected by the end of March 2026. Any adjustments may impact the current outlook. Considering the robust growth trajectory and the potential for the Q-Cog solution, QHSLab is positioned for promising prospects in 2026, making it an intriguing consideration for investors looking to capitalize on the evolving digital health landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Revenue increased 25% year over year, gross margins expanded to approximately 67%, and convertible debt was substantially eliminated
Improved profitability and early Q-Cog reimbursement activity position the Company for continued platform expansion in 2026
West Palm Beach, FL, Jan. 26, 2026 (GLOBE NEWSWIRE) -- QHSLab Inc. (the “Company”) (OTCQB: USAQ), a digital health infrastructure company supporting primary care practices, today reported preliminary unaudited financial results for the year ended December 31, 2025, reflecting continued execution against the Company’s strategy to build a scalable, reimbursable digital medicine platform while strengthening its capital structure.
Revenue for the year ended December 31, 2025 increased just over 25 percent to $2,676,074, compared to $2,131,926 in 2024. Gross profit for 2025 was $1,795,182, compared to $1,357,890 in the prior year, representing growth of more than 32 percent year over year. These results were achieved during a year in which the Company remained highly focused on resolving legacy obligations and strengthening its balance sheet, while operating with a lean cost structure. Despite these priorities, gross profit margin expanded meaningfully in 2025, increasing from approximately 64 percent in 2024 to approximately 67 percent in 2025, reflecting improved operating leverage and a favorable revenue mix.
During Q4 2025, the Company also completed a significant restructuring and extinguishment of debt, materially strengthening its balance sheet. Outstanding convertible debt and associated accrued interest was reduced from approximately $2.0 million to approximately $20,000, effectively eliminating nearly all convertible including obligations that were in default. The conversion of debt holders into stockholders reflects strong confidence in the Company’s long-term fundamentals and a shared belief that equity participation is more attractive than holding interest-bearing debt.
As a result of these actions, QHSLab expects annual interest expense to decline by more than $200,000 on a forward-looking basis, improving cash flow and providing additional flexibility to reinvest in product development, sales execution, and platform expansion.
“Our 2025 results reflect the resilience of our business model and the commitment of our team. Even while operating with limited resources and addressing historical obligations, we delivered strong revenue growth, improved profitability, and materially strengthened our financial position for the years ahead,” said Troy Grogan, President and CEO of QHSLab, Inc.
Operationally, the Company continues to see growing momentum across its Integrated Service Program (ISP) client base. In December 2025, QHSLab reported early results from its Q-Cog pilot program, which is beginning to generate reimbursement activity following the initial deployment phase. Early demand has been encouraging, and management expects Q-Cog to become a meaningful incremental revenue stream in 2026.
Q-Cog combines validated cognitive, behavioral, and functional screening within a single digital workflow, enabling physicians to meet CMS screening guidelines while supporting documentation and reimbursement under neurocognitive and behavioral health CPT codes. The solution aligns directly with Annual Wellness Visit requirements, supports cognitive and behavioral health screening mandates, and contributes to more accurate Risk Adjustment Factor scoring for value-based care providers. With few practical tools currently deployed at the primary-care level for early cognitive screening, Q-Cog addresses a significant unmet need while expanding QHSLab’s reimbursable digital medicine portfolio.
Management believes the combination of accelerating revenue growth, expanding margins, a substantially de-risked balance sheet, and the introduction of new reimbursable solutions position the Company well for continued progress in 2026.
The preliminary unaudited revenue and gross profit results for the year ended December 31, 2025 are based on information available to management as of the date of this press release and are subject to adjustment as the Company completes its year-end financial close process. Final audited financial results will be included in the Company’s Annual Report on Form 10-K to be filed with the Securities and Exchange Commission before the end of March 2026.
About QHSLab
QHSLab, Inc. (OTCQB: USAQ) is a digital health infrastructure company providing preventive screening, assessment, and workflow solutions for primary care practices. Its platform enables care that occurs outside the exam room, including screening, monitoring, education, and follow-up, to be delivered in a scalable, documented, and reimbursable manner across multiple underdiagnosed conditions.
Forward-Looking Statements
Certain matters discussed in this press release are ‘forward-looking statements’ intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company’s statements regarding trends in the marketplace, future revenues, future products, future interest expense and potential future results and acquisitions are examples of such forward-looking statements. Forward-looking statements are generally identified by words such as ‘may,’ ‘could,’ ‘believes,’ ‘estimates,’ ‘targets,’ ‘expects,’ or ‘intends,’ and other similar words that express risks and uncertainties. These statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of the introduction of new products, the availability of financing to fund growth, the inherent discrepancy in actual results from estimates, projections, and forecasts made by management, regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within the Company’s control. The factors discussed herein and expressed from time to time in the Company’s filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release. The Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Investor Relations Contact:
Olivia Giamanco
QHSLab, Inc.
(929) 379-6503
ir@usaqcorp.com
https://twitter.com/QHSLabInc
FAQ**
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