OSR Holdings Reports 36% Decline in Net Sales and Increased Operating Losses in Q1 2026

OSR Holdings, Inc. reported its financial results for the first quarter of 2026, revealing a significant decline in net sales and an increase in operating losses compared to the same period in 2025. The company generated net sales of $484,057, a decrease of 36% from $761,272 in the prior year. Despite the drop in sales, the cost of sales also fell by 45% to $323,776, leading to a smaller decline in gross profit, which was $160,281, down 5% from $168,686. The gross profit margin improved from 22% to 33%, attributed to a shift in RMC's business model to a consignment-based arrangement that recognizes only commission revenue.

Operating losses for the quarter increased to $3,667,184, a 26% rise from the previous year's loss of $2,917,826. This increase was primarily driven by a 24% rise in selling, general, and administrative (SG&A) expenses, which totaled $3,827,465. The higher SG&A costs were linked to increased personnel-related expenses and professional service fees following the company's business combination in February 2025. The company also reported a significant reduction in other expenses, with net other expenses of $252,305, down 97% from $8,474,988 in the prior year, largely due to one-time merger-related costs recognized in 2025.

In terms of strategic developments, OSR Holdings completed the acquisition of Woori-IO, a medical device distribution company, in January 2026. This acquisition is expected to enhance the company's capabilities in digital health and wearable technologies. The company also appointed Yeiseok Kim as Chief Operating Officer, effective April 16, 2026, to strengthen its operational leadership.

As of March 31, 2026, OSR Holdings had total assets of $172.2 million, with cash and cash equivalents of approximately $1.57 million. The company reported an accumulated deficit of $40.1 million. The total liabilities stood at $44.8 million, with current liabilities comprising $17.9 million. The company has been actively utilizing an equity line of credit to fund operations, having raised approximately $2.11 million through the issuance of shares under this agreement.

Looking ahead, OSR Holdings anticipates continued investment in research and development, particularly from its subsidiaries, with expected R&D expenses ranging from $2.5 million to $3.0 million per quarter starting in the second half of 2026. The company aims to manage its capital structure prudently while exploring less dilutive financing options to support its growth strategy.