Cosmos Health Inc. Reports 30.7% Revenue Growth but Wider Net Loss in Q1 2026

Cosmos Health Inc. reported its financial results for the first quarter of 2026, revealing a revenue of $17.93 million, a 30.7% increase from $13.71 million in the same period last year. However, the company also recorded a net loss of $2.81 million, significantly higher than the $818,097 loss reported in the first quarter of 2025. The increase in revenue was primarily driven by growth in sales from its subsidiaries, including SkyPharm S.A. and Cosmofarm S.A., which expanded their distribution networks and client bases. Despite the revenue growth, gross profit fell to $1.38 million, down 32.6% from $2.05 million, leading to a gross margin decline from 15.0% to 7.7%. This compression was attributed to a higher proportion of revenue from lower-margin wholesale distribution and a significant revenue reversal related to a customer, Medihelm S.A.

The company's operating expenses rose to $3.57 million, a 23.7% increase compared to the previous year, largely due to higher personnel costs associated with operational expansion. General and administrative expenses increased by 21.7% to $1.80 million, while salaries and wages surged by 34.4% to $1.40 million. The company also faced significant non-cash charges, including $390,350 in non-cash interest expense on convertible notes and a $442,439 loss on digital assets, contributing to the wider net loss.

In terms of operational developments, Cosmos Health has been actively expanding its product offerings and geographic reach. The company has secured exclusive distribution agreements for its Sky Premium Life products in the UAE, with significant purchase orders already received. Additionally, the company has been focusing on enhancing its manufacturing capabilities through its subsidiary, Cana S.A., which has shown improved revenue and gross profit. The company also reported an increase in its customer base, adding approximately 75 new pharmacies during the quarter.

As of March 31, 2026, Cosmos Health had total cash and restricted cash of $2.16 million, down from $3.46 million at the end of 2025. The restricted cash of $1.64 million is earmarked for specific investments in digital assets. The company continues to rely on external financing to support its operations, with plans to expand its At-the-Market (ATM) program and explore additional financing arrangements. However, the company acknowledged substantial doubt about its ability to continue as a going concern within the next 12 months, given its ongoing losses and reliance on external funding sources. Management is focused on expanding its product portfolio and distribution channels to improve financial stability and operational performance moving forward.