Revenue driven by 96% year-over-year growth in the Population Health segment
Gross margin improved 300 basis points to 33% in Q3 2025 from 30% in Q3 2024
Net loss decreased 46% year-over-year
Earnings per share improved to ($0.02) for Q3 2025 compared to ($0.6) for Q3 2024
CARMEL, Ind., Nov. 12, 2025 /PRNewswire/ -- Syra Health Corp. (OTCQB:SYRA) ("Syra Health" or the "Company"), a healthcare solutions company dedicated to powering better health outcomes through prevention-focused, accessible, and affordable solutions, announced today its financial results for the third quarter ended September 30, 2025.
Q3 2025 Financial and Operational Highlights
Syra Health's Population Health business unit grew 96% this quarter to $1,280,011 compared to $652,298 in Q3 2024. This increase was primarily driven by the successful upselling of our solutions to state health departments and private sector customers.
Gross margin expanded 300 basis points to 33% compared to 30% in the prior year period. Gross margin improved this quarter due to our strategic focus on higher-margin business units, including deprioritizing certain healthcare workforce contracts that carry lower margins.
Net loss for the third quarter of 2025 continued to decline, dropping 46% to ($225,902) from ($417,535) in the third quarter of 2024, due to improved operational efficiency.
SyraBot achieved a major commercial milestone. The HIPAA and ADA-compliant, white- labeled chatbot is now live with a managed care organization serving 400,000 members, demonstrating product-market fit and deployment scalability.
We continue to actively grow our sales pipeline quarter-over-quarter, driven by targeted marketing and sales initiatives across our Population Health solutions portfolio— including data analytics, large-scale program implementations, and health education and training, while also expanding our relationships with existing customers.
Management Commentary
Priya Prasad, Interim CEO of Syra Health, said, "While federal spending cuts have created near-term headwinds for our revenue, we're making meaningful progress on the fundamentals. Our Population Health business unit grew 96% this quarter, demonstrating strong market demand for our solutions. We've improved our gross margin by 300 basis points to 33%, and we've reduced our net loss by 46% through disciplined cost management and operational efficiency.
Our focus on overhead reduction delivered a 12% decrease in SG&A expenses, including the successful renegotiation of our lease terms. Combined with a 43% reduction in salary and benefits through workforce optimization, we're building a leaner, more efficient organization.
Our strategy refinement to focus our efforts more on our highly successful Population Health solutions is serving us well. Our pipeline continues to grow through targeted upselling to existing customers and expansion into the private sector. As federal budget clarity improves, we're well-positioned to capitalize on our market momentum while maintaining the cost discipline that we believe is steadily moving us toward profitability."
Q3 2025 Financial Results
Quarterly revenue fell to $1.7 million in Q3 2025 from $2.3 million in Q3 2024, primarily due to federal spending cuts that impacted budgets for our state and county government customers.
Negotiations for the Child Mental Health Wraparound Access Site contract discontinued.
Revenue from the Healthcare Workforce business unit declined as expected to $407,960 due to our continual review of contracts to ensure the appropriate margins and to comprise a more equal mix of our revenue base.
Total operating expenses for the third quarter of 2025 were $786,712 compared to $1,097,208 in the year-ago period, a decline of 28%. The reduction in operating expenses was driven by continued disciplined cost management.
Adjusted EBITDA for the third quarter of 2025 improved to ($218,601), compared to ($389,728) in the prior year period.
Salaries and benefits were down 43% to $336,390 due to our workforce optimization efforts.
Professional services increased 25% in Q3 2025 to $191,726 from $153,803 in Q3 2024 as we engaged external consultants to refine our corporate strategy around our Population Health and technology solutions, including, in some cases, bundling these offerings.
Research and Development expenses were down 98% to $816 due to a decrease in consulting expenses associated with the development of our technology-based solutions.
Selling, general, and administrative expenses decreased 12% from Q3 2024 to $252,384, as we worked diligently to reduce our overhead.
Cash of $2.0 million and no long-term debt as of September 30, 2025.
SYRA HEALTH CORP.
CONDENSED BALANCE SHEETS
September 30, 2025
December 31,2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
1,976,545
$
2,395,405
Accounts receivable, net
926,255
680,827
Other current assets
307,791
276,563
Total current assets
3,210,591
3,352,795
Property and equipment, net
9,176
27,347
Right-of-use asset
43,450
299,190
Total assets
$
3,263,217
$
3,679,332
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
317,413
$
101,690
Accounts payable, related parties
137,764
-
Accrued expenses
224,692
230,383
Deferred revenue
141,611
16,611
Current portion of operating lease liability, related party
43,450
111,978
Notes payable
188,899
152,887
Total current liabilities
1,053,829
613,549
Non-current portion of operating lease liability, related party
-
187,212
Total liabilities
1,053,829
800,761
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares designated, issued and outstanding
-
-
Class A common stock, $0.001 par value, 100,000,000 shares authorized, 11,339,169 and 8,979,204 shares issued andoutstanding at September 30, 2025 and December 31, 2024, respectively
11,339
8,979
Convertible class B common stock, $0.001 par value, 5,000,000shares authorized, 600,000 and 833,334 shares issued andoutstanding at September 30, 2025 and December 31, 2024, respectively
