Executive Summary

Q3 2022 revenue was $12.02M, down 11.6% year over year (FX headwinds) and down 9.0% sequentially from Q2; gross margin compressed to 14.8% vs 17.3% YoY as distribution mix shifted toward lower-margin businesses .
Operating expenses fell 34.7% YoY to $2.13M, driving a smaller operating loss of $0.34M vs $0.91M YoY; net loss was $1.97M vs $1.94M YoY; diluted EPS was $(0.08) vs $(0.11) YoY .
Adjusted EBITDA declined to $0.49M vs $1.22M YoY; management cited FX translation impacts and mix as drivers; in local currencies, revenue rose ~7.5% (EUR and GBP) versus the prior year .
Corporate actions and listing risk: company priced a $7.5M public offering in October, exchanged structured warrants for “vanilla” warrants, and received Nasdaq non-compliance notices with a potential delisting (reverse split authorization sought Dec. 2) .

What Went Well and What Went Wrong

What Went Well
- Local-currency growth despite FX headwinds: “we managed to increase our revenue in the third quarter of 2022 to €11.9 million... an overall increase of almost 7.5%” (Greg Siokas, CEO) .
- Expense discipline: operating expenses decreased 34.7% YoY, improving operating loss vs prior year .
- Nutraceuticals momentum: SPL and Mediterranation launches and Amazon expansion (US, Canada, Singapore) with new partnerships/distribution agreements in EU, indicating a growing branded portfolio and channel presence .
What Went Wrong
- FX translation and mix pressure: consolidated USD revenues declined vs YoY due to EUR/GBP weakness; gross margins compressed to 14.8% (lower-margin distribution share) .
- Adjusted profitability deterioration: adjusted EBITDA fell to $0.49M vs $1.22M YoY; adjusted net income swung to $(0.37)M vs $0.39M YoY .
- Capital structure and listing risk: heavy debt, warrant overhang, and Nasdaq bid price non-compliance (including sub-$0.10 episode); potential delisting risk pending appeal and reverse split authorization .

Financial Results

Metric	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD)	$13.60M	$13.07M	$13.21M	$12.02M
Gross Profit ($USD)	$2.35M	$1.89M	$1.85M	$1.78M
Operating Expenses ($USD)	$3.26M	$1.65M	$1.92M	$2.13M
Operating Income (Loss) ($USD)	$(0.91)M	$0.24M	$(0.07)M	$(0.34)M
Net Income (Loss) ($USD)	$(1.94)M	$0.20M	$(1.24)M	$(1.97)M
Diluted EPS ($USD)	$(0.11)	$(0.31) (net loss attributable to common shareholders)	n/a disclosed EPS in release	$(0.08)
Adjusted EBITDA ($USD)	$1.22M	$— (not disclosed)	$0.45M	$0.49M
Adjusted Net Income ($USD)	$0.39M	$— (not disclosed)	$(0.12)M	$(0.37)M

Notes:

Q2 2022 and Q3 2022 adjusted figures per company non-GAAP; see reconciliation in exhibits .
Q1 2022 diluted EPS reflects deemed dividend effects; company reported net income but significant preferred/warrant-related deemed dividends affected EPS attributable to common shareholders .

Gross Margin Comparisons

Metric	Q3 2021	Q3 2022
Gross Margin %	17.3%	14.8%

Segment/Geography Breakdown (Revenue)

Country	Q3 2021	Q3 2022
Greece	$13.56M	$11.99M
UK	$23.3K	$26.2K
Cyprus	$14.0K	$0
Croatia	$3.1K	$(0.7)K
Germany	$(0.1)K	$0
Italy	$(0.1)K	$0
Denmark	$(0.5)K	$0
Total	$13.60M	$12.02M

Selected KPIs and Balance Sheet Indicators (Q3 2022)

KPI	Q3 2022
Cash and Equivalents	$0.31M
Working Capital	$1.95M
Total Debt (Notes Payable current + LT)	$13.42M (short-term notes $12.39M + LT $1.03M)
Lines of Credit Outstanding	$4.92M (current)
Warrants Outstanding	10.86M

Guidance Changes

No formal quantitative revenue, margin, OpEx, tax rate, or segment guidance was provided in Q3 2022 materials; management discussed strategy and market expansion but did not issue ranges.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4	None	None	Maintained: no guidance
Gross Margin %	FY/Q4	None	None	Maintained: no guidance
OpEx	FY/Q4	None	None	Maintained: no guidance
EPS	FY/Q4	None	None	Maintained: no guidance

Earnings Call Themes & Trends

No formal earnings call transcript was found for Q3 2022. Themes below reflect press release and 10‑Q commentary.

Topic	Previous Mentions (Q1 2022)	Previous Mentions (Q2 2022)	Current Period (Q3 2022)	Trend
FX/macro impacts	Stronger results; net income; noted FX/foreign currency effects in other income	Positive operating income for H1; foreign currency losses	USD revenue decline due to EUR/GBP weakness; foreign currency loss of $468K; unrealized FX loss $1.03M	Worsening FX headwinds
Nutraceutical expansion (SPL/Mediterranation)	SPL growth; Amazon Singapore; target 150 SKUs by YE22	Launch of Mediterranation; Amazon Singapore US/Canada expansion	SPL on Amazon US/Canada/Singapore; EU partnerships (Germany/Austria); market opportunity $455B→$988B by 2030	Accelerating product/channel rollouts
Distribution agreements	B2B/B2C platforms; ROWA automation; EU distributors	Continued partnerships/wholesalers	New EU agreements (Mediprovita), Nickelodeon vitamins distribution (Greece/Cyprus)	Expanding footprints
Regulatory/legal	Routine matters; Solgar packaging dispute; license renewal process	Ongoing legal items noted	Legal matters unchanged; internal controls partially effective	Stable
Nasdaq listing compliance	Uplisting and preferred issuance; warrants	—	Non-compliance letters; potential delisting; reverse split authorization sought	Elevated listing risk
Capital structure actions	Preferred issuance; debt modifications; gains on extinguishment	EBITDA improvement; positive operating income H1	$7.5M offering; warrant exchange into $0.12 exercise “vanilla” warrants	Dilution mitigation; liquidity raised

Management Commentary

“The slight decrease in our Consolidated Revenue reported in USD was mainly due to the high variation in FX differences of EUR and GBP to USD. In local currencies, we managed to increase our revenue... an overall increase of almost 7.5%.” — Greg Siokas, CEO .
“Our nutraceuticals segment is our strongest growth engine... SPL brand continues to be received well... launched our SPL products on Amazon Singapore... United States and Canada...” .
“To achieve our growth objectives, in October we successfully completed a capital raise totaling $7.5M... replaced our previously structured warrants with plain vanilla warrants...” .

Q&A Highlights

No earnings call transcript was available for Q3 2022; therefore, Q&A themes, guidance clarifications, and tone shifts cannot be assessed from a call transcript [Search returned none].

Estimates Context

Wall Street consensus for Q3 2022 could not be retrieved via S&P Global due to access limits (“Daily Request Limit... Exceeded”). As a result, estimate comparisons are unavailable for this recap; use caution when inferring beats/misses absent verified consensus [GetEstimates error].

Key Takeaways for Investors

FX translation materially impacted USD results while local-currency revenues grew; a stronger EUR/GBP would be supportive of reported revenue and margins .
Margin pressure stemmed from mix toward lower-margin distribution; continued SPL/Mediterranation growth and EU/US channel expansion are key levers to lift consolidated margins over time .
Expense discipline is notable with 34.7% YoY OpEx reduction; sustaining lean OpEx alongside branded growth could improve operating leverage despite FX volatility .
Balance sheet leverage and warrant overhang remain a risk; near-term dilution from the $7.5M offering and warrant exchanges mitigates structured constraints but contributes to equity supply .
Listing risk is a real catalyst: reverse split authorization (Dec. 2) and appeal outcome can drive stock volatility; failure to regain compliance risks delisting and reduced liquidity .
Acquisitions/LOIs (telemedicine, CANA S.A., LIFE NLB assets) and new distribution agreements could expand addressable markets, but execution and integration against constrained liquidity will be critical .
Without verified consensus estimates, traders should anchor decisions on reported YoY deterioration in adjusted profitability and margin compression versus sequential OpEx improvements and brand growth initiatives .

Citations: .

Cosmos Health Inc. (COSM)·Q3 2022 Earnings Summary