Cosmos Health Inc. Reports Strong Q1 2025 Results Amid Strategic Shift
CHICAGO, May 15, 2025 — Cosmos Health Inc. (NASDAQ: COSM), a diversified global healthcare company, announced its financial results for the first quarter ended March 31, 2025. The company, known for its innovative R&D, proprietary pharmaceutical and nutraceutical brands, and telehealth platform, reported a significant turnaround in its financial performance.
Key Financial Highlights:
Revenue: The company’s revenue for Q1 2025 was $13.71 million, marking a 5.98% decrease from $14.58 million in Q1 2024. This decline is attributed to a strategic shift towards higher-margin focus areas and a reduction in promotional-dependent activities.
Gross Profit: Gross profit saw a substantial increase of 53.70%, rising to $2.05 million from $1.33 million in the prior-year period. This growth was driven by an improved product mix and operational leverage.
Gross Margin: The gross margin expanded by 581 basis points to 14.95%, up from 9.14% in Q1 2024, reflecting the company’s focus on higher-margin products.
Adjusted EBITDA and Net Income: Cosmos Health achieved profitability with an Adjusted EBITDA of $0.37 million and an Adjusted Net Income of $0.28 million, indicating a meaningful turnaround in bottom-line performance.
Operating Cash Burn: The operating cash burn improved significantly, down 95% from -$3.41 million to -$0.19 million, as the company approaches cash flow breakeven.
Total Assets and Equity: Total assets increased by 5.3% to $57.2 million, with stockholders’ equity also showing growth. The CEO demonstrated confidence in the company’s future by investing $1.3 million in shares.
Liabilities: Total liabilities increased by 4.9% to $31.24 million, with increased lines of credit and notes payable.
Despite a decline in revenue, Cosmos Health’s strategic shift towards higher-margin products and operational efficiency has driven significant improvements in profitability. The company’s gross profit growth of 54% and near-breakeven cash flow position highlight a successful pivot from growth-at-all-costs to a focus on sustainable profitability. This transformation underscores the effectiveness of management’s strategic initiatives and operational improvements.