Q2 2026 and six months ended June 30, 2026
Filed Aug 20, 2026Cosmos Health Reports Q2 2026 Results: Record Q2 and H1 Revenue of $19.0M and $36.9M, Up 29% and 30%; Q2 Adjusted Gross Profit Up 58%; Total Liabilities Reduced 13%; Stockholders' Equity Up 12%; $5M Share Repurchase Program Underway
Revenue, adjusted gross profit and adjusted EBITDA improved in Q2, while operating expenses grew more slowly than revenue and liabilities declined. However, GAAP net loss widened substantially, first-half gross profit and adjusted EBITDA deteriorated, and the quarter included $2.65 million of non-cash charges principally related to fair value adjustments on financing arrangements.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q2 2026GAAP | $18,986,376 | – | 28.8% |
| Revenue, six months ended June 30, 2026GAAP | $36,914,268 | – | 29.7% |
| Adjusted revenue, Q2 2026non-GAAP | $19,318,302 | – | 31.0% |
| Adjusted revenue, six months ended June 30, 2026non-GAAP | $37,716,796 | – | 32.5% |
| Gross profit, Q2 2026GAAP | $1,511,662 | – | 29.9% |
| Gross profit, six months ended June 30, 2026GAAP | $2,892,833 | – | – |
| Adjusted gross profit, Q2 2026non-GAAP | $1,843,588 | – | 58.4% |
| Adjusted gross profit, six months ended June 30, 2026non-GAAP | $3,695,361 | – | 15.0% |
| Gross margin, Q2 2026GAAP | 7.96% | – | – |
| Gross margin, six months ended June 30, 2026GAAP | 7.84% | – | – |
| Adjusted gross margin, Q2 2026non-GAAP | 9.54% | – | expanded 165 basis points |
| Adjusted gross margin, six months ended June 30, 2026non-GAAP | 9.80% | – | – |
| Total operating expenses, Q2 2026GAAP | $4,437,269 | – | 16.5% |
| Total operating expenses, six months ended June 30, 2026GAAP | $8,002,619 | – | 19.6% |
| Loss from operations, Q2 2026GAAP | ($2,925,607) | – | – |
| Loss from operations, six months ended June 30, 2026GAAP | ($5,109,786) | – | – |
| Total other expense, net, Q2 2026GAAP | ($3,160,915) | – | – |
| Total other expense, net, six months ended June 30, 2026GAAP | ($3,782,159) | – | – |
| Net loss, Q2 2026GAAP | ($6,086,522) | – | – |
| Net loss, six months ended June 30, 2026GAAP | ($8,891,945) | – | – |
| EBITDA, Q2 2026non-GAAP | ($5,180,717) | – | – |
| EBITDA, six months ended June 30, 2026non-GAAP | ($7,261,405) | – | – |
| Adjusted EBITDA, Q2 2026non-GAAP | ($1,130,888) | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | ($1,719,040) | – | – |
| Adjusted net loss, Q2 2026non-GAAP | ($1,687,511) | – | – |
| Adjusted net loss, six months ended June 30, 2026non-GAAP | ($2,652,219) | – | – |
| Sales discount reversal, Q2 2026other | $331,926 | – | – |
| Sales discount reversal, six months ended June 30, 2026other | $802,528 | – | – |
| Non-cash interest expense / Change in fair value of convertible notes, Q2 2026other | $2,785,787 | – | – |
| Change in fair value of derivative liability, Q2 2026other | ($577,347) | – | – |
| Gain/(Loss) on digital assets, Q2 2026other | $404,145 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CosmoFarmDelivered record quarterly revenue, a $60+ million annualized run-rate, and added over 75 new pharmacies. | over $15 million | – | – |
Capital returns
- On June 26, 2026, the Board of Directors authorized a share repurchase program of up to $5.0 million, expiring December 31, 2026 and renewable at the Company's sole discretion.
- The Company repurchased 2,650,000 shares for approximately $513,000 during the second quarter.
- Open market purchases continued into Q3 2026, bringing total repurchases as of this date to 5,112,000 shares for approximately $1.11 million.
- 4,874,126 Series B warrants expired unexercised, eliminating approximately 38% of total warrant overhang with no dilution.
What drove it
- Higher sales volumes across all core segments drove Q2 and first-half revenue growth.
- Decahedron nearly doubled its revenue in the United Kingdom.
- Cana Laboratories built its contract manufacturing orderbook to an all-time high of over 25 million units.
- CosmoFarm added more than 75 new pharmacies to its distribution network.
- Higher administrative costs supporting Decahedron's United Kingdom expansion and higher advertising and promotional spend behind proprietary nutraceutical brands increased operating expenses.
- Salaries and wages declined 0.7% year-over-year in Q2 2026 despite significant revenue growth.
- Sales discount reversals of $0.33 million in Q2 and $0.80 million for the first half affected GAAP revenue, gross profit and gross margin, with no corresponding reduction in cost of goods sold.
Concerns
- GAAP net loss was ($6,086,522) in Q2 2026 versus ($2,828,068) in Q2 2025, and was ($8,891,945) for the first half versus ($3,646,165) in the prior-year period.
- The quarter's net loss primarily reflected $2.65 million of non-cash charges, principally related to fair value adjustments on financing arrangements.
- Gross profit for the first half was $2,892,833, compared to $3,213,613 in the prior-year period, and first-half GAAP gross margin was 7.84%, compared to 11.29%.
- Adjusted EBITDA remained negative at ($1,130,888) in Q2 2026 and ($1,719,040) for the first half.
- Adjusted net loss was ($1,687,511) in Q2 2026 and ($2,652,219) for the first half, with the Company citing higher net interest expense for the first-half result.
What to watch
- Execution against the all-time-high contract manufacturing orderbook of over 25 million units across nine therapeutic categories.
- The contribution from the U.S. nutraceutical platform and skincare sales, which management said had already begun.
- Progress of C-Scrub and C-Sept planned EU expansion targeting $7.4 million in revenue and $5.3 million in gross profit.
- Further open-market repurchases under the up to $5.0 million program, which expires December 31, 2026.
- Potential financing under the European Investment Bank advisory agreement, under which EIB financing could represent up to €25 million.
- Progress on the letter of intent to acquire Doc Pharma S.A. and monetization of approximately $20 million in identified non-core assets.
Balance sheet and cash flow
- Cash & cash equivalents were $2,445,168 as of June 30, 2026, compared to $2,158,921 as of March 31, 2026 and $3,459,893 as of December 31, 2025.
- Digital assets and marketable securities were $1.70 million, and liquid assets were $4.15 million, as of June 30, 2026.
- Inventory was $4,518,560 as of June 30, 2026, compared to $5,650,458 as of March 31, 2026 and $5,778,142 as of December 31, 2025.
- Accounts receivable, prepaid expenses and other current assets were $29,217,388 as of June 30, 2026, compared to $28,594,752 as of March 31, 2026 and $28,662,583 as of December 31, 2025.
- Property and equipment, net, was $10,140,150 as of June 30, 2026, compared to $10,280,203 as of March 31, 2026 and $10,578,858 as of December 31, 2025.
- Goodwill and intangible assets, net, were $6,965,934 as of June 30, 2026, compared to $7,225,011 as of March 31, 2026 and $7,569,695 as of December 31, 2025.
- Loans receivable were $3,472,916 as of June 30, 2026, compared to $3,605,388 as of March 31, 2026 and $3,633,839 as of December 31, 2025.
- Other noncurrent assets were $4,701,838 as of June 30, 2026, compared to $4,854,278 as of March 31, 2026 and $5,794,508 as of December 31, 2025.
- Total assets were $61,461,954 as of June 30, 2026, compared to $62,369,011 as of March 31, 2026 and $65,477,518 as of December 31, 2025.
- Accounts payable and accrued expenses were $15,297,625 as of June 30, 2026, compared to $15,689,061 as of March 31, 2026 and $17,412,973 as of December 31, 2025.
- Other current liabilities were $6,760,621 as of June 30, 2026, compared to $6,701,051 as of March 31, 2026 and $6,047,940 as of December 31, 2025.
- Lines of credit were $8,745,807 as of June 30, 2026, compared to $7,856,208 as of March 31, 2026 and $9,177,684 as of December 31, 2025.
- Notes payable were $7,075,633 as of June 30, 2026, compared to $9,954,812 as of March 31, 2026 and $11,485,084 as of December 31, 2025.
- Other non-current and finance/lease liabilities were $2,907,785 as of June 30, 2026, compared to $2,341,520 as of March 31, 2026 and $2,929,208 as of December 31, 2025.
- Total liabilities decreased by $6.27 million, or 13.3%, to $40.79 million as of June 30, 2026, from $47.05 million at year-end 2025.
- Stockholders' and mezzanine equity was $20,674,483 as of June 30, 2026, compared to $19,826,359 as of March 31, 2026 and $18,424,629 as of December 31, 2025.
- The liabilities-to-assets ratio improved by 550 basis points to 66.4% from 71.9%.
Analysis
Cosmos Health reported record revenue for both Q2 and the first half. Q2 GAAP revenue rose 28.8% to $18,986,376, while first-half revenue rose 29.7% to $36,914,268. The company attributed the growth to higher sales volumes across all core segments. Commercial indicators included CosmoFarm revenue of over $15 million, more than 75 new pharmacies, Decahedron's near doubling of United Kingdom revenue, and Cana Laboratories' orderbook exceeding 25 million units.
The Q2 operating picture improved on an adjusted basis. Adjusted gross profit rose 58.4% to $1,843,588 and adjusted gross margin expanded 165 basis points to 9.54%. GAAP gross profit increased 29.9% to $1,511,662, broadly in line with revenue, while operating expenses rose 16.5% to $4,437,269. Management identified lower salaries and wages, which declined 0.7% year-over-year, as an indication of operating leverage, although administrative and brand-promotion costs increased.
The first-half comparison was less favorable at the GAAP gross-profit line. Gross profit was $2,892,833 versus $3,213,613 in the prior-year period, and gross margin was 7.84% versus 11.29%. The company attributed the difference to $0.80 million of sales discount reversals with no corresponding reduction in cost of goods sold. On the adjusted basis, first-half gross profit increased 15.0% to $3,695,361 and adjusted revenue increased 32.5% to $37,716,796.
Profitability remains the principal financial constraint. The Q2 GAAP net loss widened to ($6,086,522), with total other expense, net, of ($3,160,915). The company cited $2.65 million of non-cash charges, principally fair value adjustments on financing arrangements. Adjusted EBITDA improved to ($1,130,888) from ($1,312,280) in Q2, but the first-half adjusted EBITDA loss widened to ($1,719,040) from ($1,139,948). Higher net interest expense was cited as the primary factor in the adjusted net-loss comparison.
The balance sheet showed lower liabilities and inventory, but cash declined from year-end. Total liabilities fell to $40.79 million and stockholders' equity increased to $20.67 million, while the liabilities-to-assets ratio improved to 66.4%. Inventory declined to $4,518,560 and cash and cash equivalents were $2,445,168. The company also began repurchasing shares under its up to $5.0 million authorization. No quantified financial outlook was issued, although management said momentum carried into Q3 2026 and expected second-half seasonality to be materially stronger again this year.
Management, verbatim
Q2 2026 was a record second quarter, with revenue of $18.99 million, up 29% year-over-year, capping a record first half of $36.91 million.
Greg Siokas, CEO of Cosmos Health
Adjusted gross profit rose 58% in the quarter with adjusted gross margin expanding 165 basis points, operating expenses grew at little more than half the rate of revenue, and we reduced both receivables and inventory while revenue grew nearly 30%.
Greg Siokas, CEO of Cosmos Health
Moving forward, we are starting to see the benefits of economies of scale and vertical integration, and we expect increased efficiencies to play an important role as we progress toward sustained profitability.
Greg Siokas, CEO of Cosmos Health
Not in the filing
stated, not guessed- GAAP diluted EPS and basic EPS
- Non-GAAP diluted EPS and basic EPS
- Operating cash flow
- Free cash flow
- Capital expenditures
- Dividend declaration or payment
- Formal segment revenue disclosure for Decahedron, Cana Laboratories, proprietary brands, and other segments
- Quantified forward revenue, gross margin, operating expense, tax rate, earnings, EBITDA, or cash flow guidance
- Prior-release outlook for comparison
- Income tax expense or benefit
- Effective tax rate
- Total debt as a single reported line item
- Shares outstanding
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.