Cosmos Health Inc. Reports Q1 2025 Financial Results with Revenue of $13.7M and Improved Net Loss

Cosmos Health Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $13.7 million, a decrease of approximately 5.98% from $14.6 million in the same period of 2024. The company experienced a net loss of $818,097, significantly improved from a loss of $1.87 million in the prior year. This reduction in net loss is attributed to a notable increase in gross profit, which rose to $2.05 million, up 53.7% from $1.33 million in the previous year, driven by a shift towards higher-margin product lines, particularly in the nutraceutical segment.

The company's cost of goods sold (COGS) decreased by 11.99% to $11.66 million, reflecting the favorable revenue mix. Operating expenses also saw a decline, totaling $2.88 million compared to $3.17 million in the prior year, primarily due to reduced personnel and marketing expenditures. Salaries and wages decreased to $1.04 million from $1.26 million, while sales and marketing expenses dropped significantly by 83.78% to $28,155, as the company scaled back on brand promotion during the quarter.

In terms of operational metrics, Cosmos Health reported a positive working capital of $1.26 million as of March 31, 2025, a significant improvement from a negative working capital of $296,193 at the end of 2024. The company’s cash and cash equivalents increased to $742,881 from $315,105, largely due to financing activities, including new debt facilities. The company utilized $186,316 in operating activities during the quarter, a marked improvement from $3.41 million used in the same period last year.

Strategically, Cosmos Health has been active in expanding its product offerings and market presence. The company has signed an exclusive distribution agreement for its Sky Premium Life products in the UAE, with significant orders anticipated. Additionally, the company has made several acquisitions, including the purchase of Cloudscreen, an AI-powered platform for drug repurposing, and the acquisition of Cana Laboratories, which enhances its manufacturing capabilities. These strategic moves are expected to bolster the company’s operational cash flow and market position.

Looking ahead, Cosmos Health acknowledges substantial doubt regarding its ability to continue as a going concern, primarily due to its accumulated deficit of $114.84 million. Management plans to address this by expanding its product portfolio, exploring acquisition targets, and accessing capital markets for additional funding. The company aims to enhance its operational efficiencies and maintain a focus on high-margin segments to drive future growth.