OSR Health Reports 72% Revenue Decline but Improved Operating Losses in Q2 2026

OSR Health, Inc. reported its financial results for the second quarter of 2026, revealing a significant decline in revenue alongside a notable reduction in operating losses compared to the same period in the previous year. For the three months ended June 30, 2026, the company generated net sales of $315,669, a decrease of 72% from $1,135,517 in the same quarter of 2025. The cost of sales also fell by 79% to $229,065, leading to a gross profit of $86,605, which represents a gross profit margin increase from approximately 3% to 27%. For the six-month period, net sales totaled $799,727, down 58% from $1,896,789, while gross profit increased by 23% to $246,886.

The company’s operating loss for the second quarter was $3,032,915, a 42% improvement from the $5,229,177 loss reported in the prior year. This reduction in losses was attributed to a strategic shift in the business model of its subsidiary, RMC, which transitioned to a consignment-based revenue model. This change, initiated in April 2025, began to positively impact profitability in the second quarter of 2026. Additionally, OSR Health recorded other income of $1,589,374 for the quarter, a substantial increase from the previous year, primarily due to a realized gain on financial liabilities.

In terms of operational developments, OSR Health has expanded its portfolio through the acquisition of Woori-IO, a medical device distribution company, which was consolidated in the first quarter of 2026. This acquisition is expected to enhance the company’s capabilities in digital health and wearable technologies. As of June 30, 2026, OSR Health had 35,118,692 shares of common stock outstanding, reflecting an increase from the previous year due to equity line of credit issuances and the acquisition of non-controlling shares.

The company’s financial position showed a slight decrease in total assets, which amounted to $166.6 million as of June 30, 2026, down from $171.2 million at the end of 2025. Current liabilities also decreased to $15.7 million from $17.2 million, contributing to a reduction in the debt ratio from 4.0% to 3.1%. OSR Health's cash and cash equivalents stood at $1.5 million, down from $1.7 million at the end of 2025, indicating a need for continued capital management as the company navigates its growth strategy.

Looking ahead, OSR Health plans to continue utilizing its equity line of credit while exploring additional financing options to support its operations and growth initiatives. The company aims to implement new equity financing facilities that are less dilutive than current arrangements. Management remains focused on enhancing operational efficiencies and addressing the identified material weaknesses in internal controls to improve financial reporting and compliance.