Revenue increased 421% year-over-year as Hydreight delivered its strongest revenue quarter to date, with continued sequential growth in revenue and gross profit while maintaining strong profitability
Q2 2026 Highlights
-- Revenue of $28.0 million, an increase of 421% from $5.4 million in Q2
2025 and approximately 12.5% from Q1 2026
-- Gross profit of $5.4 million, an increase of 182% from $1.9 million in Q2
2025 and approximately 7% quarter over quarter
-- Net income of $2.5 million, compared with $0.05 million in Q2 2025
-- Adjusted EBITDA(1) of $3.2 million, compared with $0.2 million in Q2 2025
-- Six-month revenue of $53.0 million, an increase of 434% year-over-year
-- Six-month net income of $5.1 million
-- Working capital of $35.0 million at June 30, 2026
-- Cash of $20.0 million at June 30, 2026
VANCOUVER, BC and LAS VEGAS, Aug. 31, 2026 /PRNewswire/ -- Hydreight Technologies Inc. ("Hydreight" or the "Company") (TSXV: NURS) (OTCQB: HYDTF) (FSE: SO6), a U.S.-focused digital health infrastructure platform, is pleased to report its financial results for the three and six months ended June 30, 2026. All figures are in Canadian dollars unless otherwise stated.
Hydreight generated record second-quarter revenue of $28.0 million, representing an increase of 421% compared with $5.4 million in the second quarter of 2025. Adjusted Revenue(1) was $30.2 million, compared with $7.3 million in the prior-year period.
The Company generated gross profit of $5.4 million, net income of $2.5 million and Adjusted EBITDA(1) of $3.2 million during the quarter.
The second quarter also represented continued sequential growth from Q1 2026, with revenue increasing approximately 12.5% quarter-over-quarter and gross profit increasing approximately 7.0%, while net income and Adjusted EBITDA remained relatively consistent with Q1 levels.
For the six months ended June 30, 2026, Hydreight generated $53.0 million in revenue, an increase of 434% compared with $9.9 million during the same period in 2025, together with $5.1 million in net income and approximately $6.5 million in Adjusted EBITDA(1).
Three months ended June 30, % Six months ended June 30, %
2026 2025 change 2026 2025 change
-------------- ------------------- ---------------- ------ --------------- ----------------- ------
Adjusted
Revenue $ 30,161,397 $ 7,348,796 310 % $ 57,787,184 $ 13,876,753 316 %
Deduct -
deferred
business
partner
contract
revenue -696,221 198,794 (549,666) 652,934
Deduct -
business
partner
payouts on
app service
gross
revenue 2,823,210 1,773,483 5,371,791 3,307,178
------------------- ---------------- ------ --------------- -----------------
GAAP Revenue $ 28,034,408 $ 5,376,519 421 % $ 52,965,059 $ 9,916,641 434 %
-------------- ------------------- ---------------- ------ --------------- ----------------- ------
Adjusted Gross
Margin $ 4,741,227 $ 2,128,996 123 % $ 9,970,186 $ 4,087,601 144 %
Deduct -
deferred
business
partner
contract
revenue -696,221 198,794 -549,666 652,934
------------------- ---------------- ------ --------------- -----------------
GAAP Gross
Margin $ 5,437,448 $ 1,930,202 182 % $ 10,519,852 $ 3,434,667 206 %
-------------- ------------------- ---------------- ------ --------------- ----------------- ------
Adjusted
EBITDA $ 3,220,299 $ 181,971 $ 6,481,137 $ 345,383
Deduct -
amortization
and
depreciation 175,987 107,129 350,204 208,133
Deduct -
share-based
payments (4,882) 24,975 - 66,480
Deduct -
interest and
accretion 483,767 - 951,330 -
Deduct -
sales tax
provision,
net cash
paid 36,567 - 64,001 -
------------------- ---------------- ------ --------------- -----------------
GAAP Net
Income $ 2,528,860 $ 49,867 $ 5,115,602 $ 70,770
-------------- ------------------- ---------------- ------ --------------- ----------------- ------
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS
Hydreight's second-quarter revenue growth was primarily driven by continued scaling of the VSDHOne platform and related order flow, together with organic growth in new business partners, renewals from existing partners and additions to service offerings.
Pharmacy product sales increased to approximately $26.2 million during Q2 2026, compared with $4.5 million during Q2 2025.
The Company's virtual healthcare/direct-to-consumer segment generated approximately $22.8 million of revenue during Q2 2026, compared with approximately $0.7 million in Q2 2025. For the first six months of 2026, the segment generated approximately $42.7 million, compared with approximately $1.0 million during the corresponding period in 2025.
The Company's Q2 gross-margin percentage remained below the prior-year period primarily due to the significant increase in pharmacy sales as a percentage of total revenue and pricing concessions associated with initial transactions under several new supporting partnerships with compounding pharmacies. Hydreight generally aims to earn approximately a 20% margin on pharmacy sales before discounts and incentives, although individual product margins vary by product type, manufacturer and the timing of promotions.
Shane Madden, Chief Executive Officer of Hydreight, commented:
"Q2 was another record revenue quarter for Hydreight, with revenue reaching approximately $28.0 million compared with $5.4 million in the same period last year.
What I believe is equally important is what is happening underneath that growth. Compared with Q1, revenue increased approximately 12.5%, while gross profit increased approximately 7.0%, with net income and Adjusted EBITDA remaining relatively consistent with Q1 levels. We believe this combination of continued top-line growth and sustained profitability demonstrates the strength of the platform as we continue scaling the infrastructure we have spent years building.
Through the first six months of 2026, Hydreight generated approximately $53.0 million in revenue and $5.1 million in net income. VSDHOne and our virtual healthcare infrastructure have become significant contributors to our business, while we continue investing in the technology, pharmacy relationships, provider infrastructure and compliance capabilities needed to support additional scale.
We remain focused on execution. Our priorities for the remainder of 2026 are to continue increasing utilization across the platform, expand our partner and product ecosystem, invest in VSDHOne 2.0 and related technology, and continue building the infrastructure required to support the next stage of Hydreight's growth."
PLATFORM SCALE AND VSDHONE
Hydreight's growth continues to be supported by the expansion of its healthcare infrastructure across three principal verticals: mobile medical services, physical healthcare locations and virtual healthcare/direct-to-consumer services through VSDHOne.
During the six months ended June 30, 2026, the Company's virtual healthcare/direct-to-consumer segment generated approximately $42.7 million in revenue, compared with approximately $1.0 million in the corresponding period in 2025.
Hydreight continues to invest in VSDHOne 2.0, which is designed to enhance the Company's technology infrastructure to support scalability, security and long-term growth. During the first six months of 2026, the Company added approximately $0.8 million of development investment to VSDHOne 2.0.
The Company's broader infrastructure spans all 50 U.S. states and includes a network of more than 3,000 nurses, more than 300 independent doctors and pharmacy relationships supporting its healthcare ecosystem.
BALANCE SHEET AND GROWTH CAPITAL
Hydreight ended Q2 2026 with approximately $20.0 million in cash and $35.0 million in working capital, compared with $15.6 million in cash and $15.7 million in working capital at December 31, 2025.
During the first six months of 2026, Hydreight used approximately $8.7 million of cash in operating activities, primarily reflecting increased working capital deployed as the Company continued to scale its pharmacy operations and support new product and treatment lines.
Hydreight and its subsidiaries work with and support compounding pharmacies, both directly and indirectly, by providing funding and/or medical, formulation and structural support to establish new product and treatment lines. This enables greater control over pricing while helping ensure the appropriate inventory, operational, regulatory and compliance structures are in place.
This investment in working capital occurred alongside substantial growth in the Company's pharmacy operations. Pharmacy product sales increased to approximately $26.2 million in Q2 2026, compared with approximately $4.5 million in Q2 2025.
At June 30, 2026, Hydreight maintained approximately $20.0 million in cash and $35.0 million in working capital, providing the Company with financial resources to continue supporting its existing operations and strategic growth initiatives.
2026 OUTLOOK