DataMEDS AI Reports 50% Sequential Revenue Growth in Third Quarter 2026 From Second Quarter 2026, Delivers Net Profit Per Share of $2.72 and Provides…
DataMeds AI, Inc. (MEDS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE DataMEDS AI Reports 50% Sequential Revenue Growth in Third Quarter 2026 From Second Quarter 2026, Delivers Net Profit Per Share of $2.72 and Provides Business Update ■ Third quarter 2026 revenue of $2.7 million, up 50% from $1.8 million in the s
How this was made
The 30-second read
Why it matters
Earnings beat expectations with profit and compliance restoration, likely prompting short covering and buying interest.
Market read
First earnings disclosure for MEDS; positive surprise may drive short‑term price move.
What to watch
Execution risk on new revenue streams and regulatory scrutiny of compounded peptides.
DataMEDS AI reports Q3 2026 revenue of $2.7 million, up 50% from Q2 2026, and diluted EPS of $2.72 that is driven by non-operating gains, with an operating loss of $(3,373,956)
Revenue rose 50% sequentially per the company, and the operating loss narrowed to $(3,373,956) from $(31,548,329) in the printed prior-year quarter. Net income of $10,535,560 and diluted EPS of $2.72 come from a $19,064,881 gain on extinguishment of debt and other non-operating items, not from operations. Gross profit was $431,880 on revenue of $2,668,980, and revenue was below the printed prior-year quarter of $3,012,904. Interest expense rose to $(2,252,401) and the balance sheet still shows a total stockholders' equity of $171,695 with $15,275,679 of convertible notes.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, Q3 2026 (three months ended Sep 30, 2026)GAAP | $2,668,980 | 50% | – |
| Cost of net revenues, Q3 2026GAAP | $2,237,100 | – | – |
| Gross profit, Q3 2026GAAP | $431,880 | – | – |
| General and administrative expenses, Q3 2026GAAP | $3,343,627 | – | – |
| Sales and marketing expenses, Q3 2026GAAP | $105,788 | – | – |
| Depreciation and amortization, Q3 2026GAAP | $356,421 | – | – |
| Total operating expenses, Q3 2026GAAP | $3,805,836 | – | – |
| Loss from operations, Q3 2026GAAP | $(3,373,956) | – | – |
| Interest expense, net, Q3 2026GAAP | $(2,252,401) | – | – |
| Loss on extinguishment of vendor obligation, Q3 2026GAAP | $(3,605,978) | – | – |
| Gain (loss) on extinguishment of debt, Q3 2026GAAP | $19,064,881 | – | – |
| Other income, Q3 2026GAAP | $703,014 | – | – |
| Total other income (expense), net, Q3 2026GAAP | $13,909,516 | – | – |
| Net income (loss) before income taxes, Q3 2026GAAP | $10,535,560 | – | – |
| Net income (loss), Q3 2026GAAP | $10,535,560 | – | – |
| Net loss attributable to non-controlling interest, Q3 2026GAAP | $(54,204) | – | – |
| Net income (loss) attributable to DataMeds AI, Q3 2026GAAP | $10,589,764 | – | – |
| Net income per share, basic, Q3 2026GAAP | $3.29 | – | – |
| Net income per share, diluted, Q3 2026GAAP | $2.72 | – | – |
| Net revenues, nine months 2026 (nine months ended Sep 30, 2026)GAAP | $6,008,403 | – | – |
| Cost of net revenues, nine months 2026GAAP | $5,224,098 | – | – |
| Gross profit, nine months 2026GAAP | $784,305 | – | – |
| General and administrative expenses, nine months 2026GAAP | $15,269,233 | – | – |
| Sales and marketing expenses, nine months 2026GAAP | $1,179,778 | – | – |
| Depreciation and amortization, nine months 2026GAAP | $1,069,842 | – | – |
| Total operating expenses, nine months 2026GAAP | $17,518,853 | – | – |
| Loss from operations, nine months 2026GAAP | $(16,734,548) | – | – |
| Interest expense, net, nine months 2026GAAP | $(5,886,320) | – | – |
| Loss on extinguishment of vendor obligation, nine months 2026GAAP | $(3,666,098) | – | – |
| Gain (loss) on extinguishment of debt, nine months 2026GAAP | $10,183,187 | – | – |
| Loss on contract termination fee, nine months 2026GAAP | $(766,394) | – | – |
| Settlement fees, nine months 2026GAAP | $(13,000) | – | – |
| Other income, nine months 2026GAAP | $1,312,911 | – | – |
| Total other income (expense), net, nine months 2026GAAP | $1,164,286 | – | – |
| Net income (loss) before income taxes, nine months 2026GAAP | $(15,570,262) | – | – |
| Net income (loss), nine months 2026GAAP | $(15,570,262) | – | – |
| Net income (loss) attributable to DataMeds AI, nine months 2026GAAP | $(15,516,058) | – | – |
| Net loss per share, basic, nine months 2026GAAP | $(5.89) | – | – |
| Net loss per share, diluted, nine months 2026GAAP | $(5.89) | – | – |
Capital returns
- No dividend, share repurchase or other capital return figures are printed in the filing.
- Shares outstanding were 2,836,484 at September 30, 2026 and 2,026,150 at December 31, 2025, and the release attributes part of the period result to the extinguishment of debt and outstanding liabilities.
What drove it
- The company states that revenue was primarily driven by growth in Corexa Pharmacy drug dispensing.
- The company states that the Q3 2026 net profit compared with the Q3 2025 net loss was largely due to the extinguishment of debt and outstanding liabilities related to litigation associated with prior management, a reduction in expenses associated with management compensation, and a reduction in general and administrative expenses.
- The company describes the Health Lives Here app, partnered with NFL Alumni Health, as a customer acquisition channel for Corexa Pharmacy.
- The company states that Helomics adds diagnostic testing revenue streams, and that Humana's South Carolina Medicaid coverage for the ChemoFx Assay, effective July 22, 2026, adds an incremental proprietary revenue stream.
- The company states that the compounded peptides launch under FDA's Enforcement Discretion Policy adds an incremental revenue opportunity.
- The company states that the non-binding MOU with a Florida-based HMO for the Health Lives Here app covers 25,000+ members, with definitive agreements expected in Q4 2026.
Concerns
- The Q3 2026 operating loss was $(3,373,956) and the nine-month operating loss was $(16,734,548). The reported net income of $10,535,560 is above the operating line because of non-operating items, including the $19,064,881 gain on extinguishment of debt.
- The release labels $10.535 million as a 'net operating profit'. That figure is printed on the Net income (loss) before income taxes and Net income (loss) lines, while the operating line shows $(3,373,956).
- Net revenues of $2,668,980 are below the printed Q3 2025 figure of $3,012,904, and the cost of net revenues of $2,237,100 leaves gross profit of $431,880.
- Interest expense, net, was $(2,252,401) in Q3 2026 versus $(1,425,307) in Q3 2025 as printed.
- Loss on extinguishment of vendor obligation of $(3,605,978) was recorded in the quarter.
- Total stockholders' equity of $171,695 includes a non-controlling interest of $1,867,365. Total DataMeds AI, Inc. stockholders' equity (deficit) is $(1,695,670).
- Convertible notes payable of $15,275,679 appear as a current liability at September 30, 2026.
- The release says the HMO memorandum of understanding is non-binding. The release also notes that compounded drugs are not FDA-approved and have not been evaluated by FDA for safety or efficacy.
- The release is dated Monday, November 16, 2026, while the filing header shows a filing timestamp of 2026-11-13T16:15:45-05:00.
What to watch
- Whether the Q4 2026 revenue growth the company expects in its CEO quote is reported, since the release gives no numeric outlook.
- Gross margin and cost of net revenues, given gross profit of $431,880 on revenue of $2,668,980.
- Whether definitive agreements with the HMO are signed in Q4 2026, as the release expects.
- Interest expense, net, and the convertible notes of $15,275,679 at September 30, 2026.
- Whether operating expenses stay near the Q3 2026 total of $3,805,836 relative to the prior-year quarter of $31,779,341.
- The related party receivable of $1,162,125 and the arrangements with Tollo Health, LLC described in the forward-looking statements.
- The status of the FDA Enforcement Discretion Policy for compounded peptides, which the release says may be changed or withdrawn.
- Whether the Helomics ChemoFx Assay reimbursement grows as the release describes.
Balance sheet and cash flow
- Cash and cash equivalents were $476,598 at September 30, 2026 versus $42,571 at December 31, 2025.
- Total assets were $38,733,868 at September 30, 2026 versus $30,459,449 at December 31, 2025.
- Convertible notes payable, net of debt discount, were $15,275,679 at September 30, 2026, against none printed at December 31, 2025.
- Current portion of debt obligations, net of debt discount, was $2,788,058 versus $10,887,520 at December 31, 2025. Note payable, net of discount, was $100,000 versus $12,600,000.
- Total liabilities were $38,562,173 versus $42,907,250 at December 31, 2025.
- Total DataMeds AI, Inc. stockholders' equity (deficit) was $(1,695,670) versus $(12,447,801). Non-controlling interest was $1,867,365. Total stockholders' equity (deficit) was $171,695 versus $(12,447,801).
- Accumulated deficit was $(126,547,748) versus $(111,031,690) at December 31, 2025.
- Due from related parties was $1,162,125 at September 30, 2026, against a dash at December 31, 2025.
- Goodwill was $15,787,176 and other intangible assets, net, were $13,249,358 at September 30, 2026.
- No cash flow statement figures are printed in the filing.
Analysis
DataMEDS AI reports Q3 2026 net revenues of $2,668,980 and states that this is up 50% from the second quarter of 2026, which the release gives as $1.8 million. The company attributes the increase primarily to growth in Corexa Pharmacy drug dispensing. Gross profit was $431,880, against a cost of net revenues of $2,237,100. The filing does not print a gross margin percentage. Revenue for Q3 2026 is below the printed Q3 2025 figure of $3,012,904, and the nine-month 2026 revenue of $6,008,403 is below the nine-month 2025 figure of $21,667,212.
Operating costs fell sharply from the prior year. G&A was $3,343,627 against $30,172,800, sales and marketing was $105,788 against $803,747, and total operating expenses were $3,805,836 against $31,779,341. The loss from operations narrowed to $(3,373,956) from $(31,548,329). The company attributes the reduction in G&A and in management compensation expense to its cost actions, and attributes part of the period result to extinguishment of debt and outstanding liabilities related to litigation associated with prior management.
Below the operating line, the quarter's profit depends on items outside operations. A $19,064,881 gain on extinguishment of debt, offset by a $(3,605,978) loss on extinguishment of vendor obligation, lifted pre-tax income to $10,535,560. Interest expense, net, was $(2,252,401), up from $(1,425,307) in the prior-year quarter. The release labels $10.535 million a 'net operating profit', but the operating line in the statements is a loss. Net income attributable to DataMeds AI was $10,589,764 after a $(54,204) loss attributable to non-controlling interest, and diluted EPS was $2.72 on the printed diluted share count, against basic EPS of $3.29. The nine-month figures remain a loss of $(15,570,262) and diluted EPS of $(5.89).
The balance sheet shows cash rising to $476,598 from $42,571 at December 31, 2025, and convertible notes payable of $15,275,679 at September 30, 2026. Total stockholders' equity moved to $171,695 from $(12,447,801), and includes a non-controlling interest of $1,867,365. The release gives no guidance or outlook figures. Its business update covers the Health Lives Here app, a REBOOT GLP-1 license, compounded peptides, a non-binding HMO memorandum of understanding, the Helomics acquisition and regained Nasdaq compliance on October 19, 2026. The numeric attention points are the operating loss, the interest expense, the convertible notes and the non-operating gains.
Management, verbatim
Corexa Pharmacy drove a 50% sequential increase in revenue this quarter with continued growth expected for the fourth quarter based upon the steps we have taken to add additional revenue streams of medical foods and diagnostic lab tests related to patients to whom we dispense prescriptions,
Gerald Commissiong, Interim Co-CEO of DataMEDS
we believe DataMEDS is well positioned for continued growth going forward.
Gerald Commissiong, Interim Co-CEO of DataMEDS
Not in the filing
stated, not guessed- Gross margin percentage for Q3 2026 and prior periods.
- Year-over-year percentage change for Q3 2026 net revenues, and the Q2 2026 gross profit, operating expense and operating loss figures.
- Q2 2026 net income, EPS and operating figures, other than the Q2 2026 revenue of $1.8 million printed in the text.
- Segment revenue figures. The release describes Corexa Pharmacy and Helomics but prints no segment table.
- Company guidance or outlook figures for Q4 2026 or FY 2026.
- Cash flow statement figures, including operating and free cash flow.
- Prior-year Q3 2025 cash, debt, total assets and equity, which are printed only at December 31, 2025.
- Non-GAAP reconciliation and non-GAAP metrics. None are printed in the filing.
- Provision for income taxes amounts. The line is blank in the statement of operations.
- Basis of the 'net operating profit' label and any reconciliation to the operating line.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
DataMEDS AI, Inc. (NASDAQ: MEDS) announced Q3 2026 results and business updates.
Ticker impact
Q3 2026 earnings released with 50% revenue growth, $2.72 EPS and restored Nasdaq compliance.
upward pressure as market prices in profit and compliance restoration
First report of earnings with profit and compliance news; small cap but material for traders.
Market effects
Highlights growth potential in AI‑enabled pharmacy and diagnostics sector.
May boost interest in US healthcare AI stocks.
Limited to niche healthcare AI segment.
Counterpoint
Profit may be one‑off from debt extinguishment; revenue base remains modest.
Key entities
- CompanyDataMEDS AI, Inc.
NASDAQ‑listed healthcare AI firm reporting Q3 results.
