HealthWarehouse.com Reports Full Year 2025 Results

46% increase in revenues and positive cash flow for the year
Record year for prescriptions processed and cash generated from operations

CINCINNATI: HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today its results of operations for the year ended December 31, 2025. The Company reported net sales for the year of $49.0 million, a 46% increase over the year ended December 31, 2024, resulting from 87% growth in our partner services prescription revenues, offset in part by a decline in direct-to-consumer sales.

The Company reported net income of $265,000 for the year and positive cash flow of $1.6 million, as reflected by the non-GAAP measure of Adjusted EBITDA defined below. The Company reported net loss of $69,000 and Adjusted EBITDA of $189,000 for the fourth quarter.

HealthWarehouse.com, a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (NABP). HealthWarehouse.com provides a platform focused on increasing access to and reducing costs of healthcare products for consumers and business partners nationwide.

Joseph Peters, President and CEO, commented, “2025 was a record year for the Company for total sales and prescriptions processed, while generating record cash from operations. We were able to report net income and positive cash flow by leveraging our prior investments in infrastructure. Our financial results for the past two years, during which our sales have increased $28.7 million and our Adjusted EBITDA $1.5 million, are further proof that our business model can scale profitably.”

“As we said in our third-quarter release in November, our sales of compounded versions of certain GLP-1 prescription medications were declining. Despite slower growth, we generated positive cash flow during the fourth quarter. Additionally, we are optimistic about new product launches that will allow us to continue to serve longstanding partners, and we are focused on adding partners via our new-business pipeline,” Peters said.

HealthWarehouse.com continues to invest in proprietary technology to remain at the forefront of new developments and offerings in the world of healthcare, focusing on patient experience, operational efficiency, and scalability.

Peters added, “Our success would not be achievable without our dedicated employees, who are committed to our mission of providing world-class service to our customers. I truly appreciate their dedication.”

The Company also announced that it will hold its Annual Meeting of Shareholders virtually on May 12, 2026. Shareholders of record as of March 13, 2026, will receive notice of the meeting and instructions for participating in proxy materials to be distributed soon.

2025 Annual Overview

Net Sales: Net sales increased from $33.6 million for the year ended December 31, 2024, to $49.0 million for the year ended December 31, 2025, an increase of $15.4 million, or 45.8%. Prescription sales were $46.2 million for the year ended December 31, 2025, an increase of $15.3 million, or 49.3%, compared with $30.9 million for the year ended December 31, 2024. These increases were primarily due to growth in our partner services (B2B) business related to fulfillment of brand and compounded GLP-1 medications. Sales for the direct-to-consumer (B2C) prescription business were down 24.3% in 2025 due to a reduction in sales of higher-cost branded medications and increased competition. Over-the-counter net sales increased by 15.9% from $2.2 million in the year ended December 31, 2024, to $2.5 million in the year ended December 31, 2025. The increase in B2C over-the-counter sales was primarily due to higher marketplace sales.

Our authority to dispense high-dollar compounded GLP-1 medications has ended this year. That will have a significant impact on our sales in 2026, and beyond until that volume can be replaced with new partners and expansion of the catalogs of our existing partners. The Company currently expects positive cash from operations during 2026.

Gross Profit: Cost of sales was $31.9 million for the year ended December 31, 2025, compared with $19.5 million for the year ended December 31, 2024. That increase of $12.4 million, or 63.4%, was primarily the result of growth in sales of high-cost GLP-1 medications in our B2B prescription businesses. Gross profit for the year ended December 31, 2025, was $17.1 million, a $3.0 million or 21.4% increase compared with the same period in 2024, due to the increase in sales volume, offset in part by lower gross margins. Gross margin percentage decreased year-over-year from 42.0% for the year ended December 31, 2024, to 35.0% for the year ended December 31, 2025. In the B2B prescription business, branded and compounded drugs have lower gross margins, due to higher costs and price competition.

Operating Expenses: Selling, general and administrative (SG&A) expenses totaled $16.7 million for the year ended December 31, 2025, compared with $14.2 million for the year ended December 31, 2024, an increase of $2.5 million, or 17.7%. Despite the increase, SG&A expenses were significantly lower relative to sales, decreasing 8.2 percentage points to 34.1% of sales for the year ended 2025. The growth in sales of high cost GLP-1 medications in our B2B prescription businesses did not result in a comparable increase in operating expenses. For the year ended December 31, 2025, increased expenses were primarily related to the growth in order volume in the B2B segment, which included increases in shipping expense, salaries and related expenses, shipping supplies expense; legal expense, advertising and marketing expense, rent expense, software and engineering expenses, corporate taxes, maintenance and repairs expenses and accounting services expense. Those increases were partially offset by decreases in credit card fees, health and other benefits expense, and stock-based compensation.

Net Income and Adjusted EBITDA: Net income of $265,000 for the year ended December 31, 2025, improved by $598,000 from the net loss of $333,000 for the year ended December 31, 2024, primarily as a result of increased sales and gross profit and continued controls on expenses. Earnings before interest, taxes, depreciation and amortization including amortization of a right-of-use lease asset (“EBITDA”), as adjusted for stock-based compensation and certain non-recurring charges (“Adjusted EBITDA”), were $1.6 million for 2025, up from $1.1 million for 2024. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Definitions of these non-GAAP terms and a reconciliation to GAAP measures are provided below.

2025 Fourth Quarter Overview

Net Sales: Total net sales were $9.9 million for the fourth quarter ended December 31, 2025, a decrease of $3.9 million, or 28.1%, compared with the fourth quarter of 2024. Prescription sales were $9.0 million for the fourth quarter, a decrease of $4.1 million, or 31.0%. That was due to lower sales in the B2B and B2C prescription business, primarily related to lower sales of compounded GLP1 medications. Over-the-counter sales increased by 40.2% to $776,000 due to an increase in marketplace sales.

Gross Profit: Gross profit for the fourth quarter of 2025 was $3.8 million, a $575,000 or 13.0% decrease compared with the fourth quarter of 2024. Lower revenues in the B2B and B2C prescription businesses were partly offset by higher gross margins. Gross margin was 39.0% in the fourth quarter of 2025 versus 32.2% in the same period in 2024, due primarily to improved margins in the prescription business.

Operating Expenses: Operating expenses were $4.0 million for the fourth quarter of 2025, a decrease of $250,000 or 6.0% compared with the same quarter in 2024. The decrease in 2025 was related to decreases in shipping and shipping-supplies expenses, salaries and related expenses, and credit card fees. The decreases were offset by increases in marketing and advertising expenses.

Net Income and (non-GAAP) Adjusted EBITDA: The Company reported a net loss of $69,000 for the fourth quarter of 2025, compared with net income of $189,000 during the same period in 2024. Adjusted EBITDA for the fourth quarter of 2025 was $189,000, compared with $523,000 in the fourth quarter of 2024.

Use of Non-GAAP Financial Measures

HealthWarehouse.com, Inc. (the "Company") prepares its consolidated financial statements in accordance with the United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDA and Adjusted EBITDA, which are commonly used. In addition to adjusting net income or net loss to exclude interest, taxes, depreciation and amortization, including amortization of right of use lease asset, (“EBITDA”), Adjusted EBITDA also excludes stock-based compensation, and certain nonrecurring charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, Adjusted EBITDA is used internally in planning and evaluating the Company`s performance. Accordingly, management believes that disclosure of this metric offers lenders and other shareholders an additional view of the Company`s operations that, when coupled with GAAP results, provides a more complete understanding of the Company’s financial results.

Adjusted EBITDA should not be considered as an alternative to net income, net loss, or to net cash provided by or used in operating activities, as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the Company`s performance.

Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP)