DataMeds AI Reports 77% Revenue Decline and $18.36 Million Net Loss in Latest Quarter

DataMeds AI, Inc. (formerly Wellgistics Health, Inc.) reported significant financial challenges in its latest quarterly filing for the period ending June 30, 2026. The company generated net revenues of $1.78 million for the three months ended June 30, 2026, a stark decline of approximately 77.2% compared to $7.79 million in the same period of the previous year. For the first half of 2026, revenues totaled $3.34 million, down 82.1% from $18.65 million in the first half of 2025. This decline was primarily attributed to liquidity constraints that hindered the company’s ability to procure and fulfill product orders, particularly affecting its distribution business.

The company's operating expenses also saw a notable increase, with general and administrative expenses rising to $7.06 million for the second quarter of 2026, compared to $4.86 million in the same quarter of 2025. This increase was largely due to a one-time compensation charge of $2.01 million related to retroactive salary increases and bonuses. Overall, DataMeds reported a net loss of $18.36 million for the second quarter of 2026, compared to a loss of $6.67 million in the same quarter of the previous year. For the six-month period, the net loss was $26.11 million, a decrease from $39.10 million in the prior year.

In terms of strategic developments, DataMeds has been active in restructuring its operations and pursuing new partnerships. The company entered into a collaboration agreement to form Healthstar Technologies, LLC, in which it holds a 51% interest. Additionally, on May 20, 2026, DataMeds executed a Letter of Intent with several partners, including EOS Technology Holdings and Scilex Holding Company, to acquire or license intellectual property assets and expand its existing operations. These initiatives are part of the company's broader strategy to enhance its market position and operational capabilities.

Operationally, DataMeds reported a significant increase in pharmacy retail sales, which rose to $1.59 million in the second quarter of 2026, compared to $77,756 in the same quarter of 2025. This growth reflects the company's efforts to expand its pharmacy operations, although it was not enough to offset the declines in distribution revenues. The company also reported a working capital deficit of $33.78 million as of June 30, 2026, raising concerns about its ability to continue as a going concern.

Looking ahead, DataMeds is actively seeking additional capital to support its operations and address its liquidity challenges. The company has indicated that it is pursuing various financing options, including equity financing and strategic partnerships. However, there is no assurance that such financing will be available on acceptable terms. The company’s management remains focused on executing its strategic initiatives while navigating the financial difficulties highlighted in its recent filings.