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Cosmos Health Inc. (COSM)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: revenue reached $17.11M, gross profit $2.60M, and gross margin 15.21% — all-time highs, with operating loss narrowing versus prior year despite higher OpEx investments .
  • Mix shift to higher-margin segments (nutraceuticals and contract manufacturing) and execution across Cana, Decahedron, and CosmoFarm drove margin expansion; however, GAAP net loss widened due to non-cash derivative/FX impacts .
  • Balance sheet strengthened with cash at $4.63M (vs. $0.66M in Q2) and total assets at $69.49M; liabilities increased amid utilization of a $300M digital financing facility for ETH purchases and working capital .
  • Estimates context: S&P Global consensus was unavailable; third-party data indicated a revenue beat (actual $17.11M vs. ~$16.40M consensus) and an EPS miss (actual -$0.17 vs. -$0.01 consensus), suggesting revisions to EPS expectations may be needed .

What Went Well and What Went Wrong

What Went Well

  • Record revenue, gross profit, and gross margin driven by ramping contract manufacturing (Cana), strong UK sales (Decahedron), and expanded CosmoFarm pharmacy network; management emphasized “record-breaking performance across all core business segments” .
  • Adjusted profitability improved substantially: Adjusted EBITDA loss narrowed to ($0.19M) from ($0.70M) YoY; Adjusted EPS improved to ($0.02) from ($0.34) YoY, with nine-month Adjusted EPS turning positive at $0.02 .
  • Liquidity improved: cash rose to $4.63M at quarter-end; total assets increased to $69.49M, supporting growth initiatives and diversification via ETH holdings under the $300M facility .
  • CEO tone confident: “defining quarter,” “trajectory heading into Q4 2025 is even stronger,” highlighting momentum across Cana, Decahedron, CosmoFarm, Sky Premium Life, and AI drug-repurposing platform Cloudscreen .

What Went Wrong

  • GAAP net loss widened to ($5.35M) due to non-cash charges tied to derivatives, convertible notes, and FX, highlighting ongoing variability from financing/digital asset strategies .
  • OpEx increased to $4.42M (vs. $3.45M YoY) on strategic investments in talent, sales, and scientific personnel; while supportive of growth, it constrains near-term operating profitability .
  • Balance sheet leverage increased: total liabilities rose to $46.36M (vs. $35.65M in Q2), reflecting facility utilization and higher notes payable; equity declined to $23.13M (vs. $26.23M in Q2) .

Financial Results

Income Statement – Quarterly Comparison

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$13.71M $14.75M $17.11M
Gross Profit ($USD)$2.05M $1.16M $2.60M
Gross Margin (%)14.95% 7.89% 15.21%
Total Operating Expenses ($USD)$2.88M $3.81M $4.42M
Operating Income (Loss) ($USD)($0.83M) ($2.65M) ($1.82M)
Net Income (Loss) ($USD)($0.82M) ($2.83M) ($5.35M)
Adjusted EBITDA ($USD)$0.37M ($1.31M) ($0.19M)
Adjusted Net Income (Loss) ($USD)$0.28M ($1.60M) ($0.85M)

EPS – GAAP and Adjusted

MetricQ1 2025Q2 2025Q3 2025
GAAP EPS ($USD)N/AN/A($0.17)
Adjusted EPS ($USD)N/AN/A($0.02)

Year-over-Year (Q3 2025 vs. Q3 2024)

MetricQ3 2024Q3 2025
Revenue ($USD)$12.41M $17.11M
Gross Profit ($USD)$1.21M $2.60M
Gross Margin (%)9.72% 15.21%
Operating Income (Loss) ($USD)($2.24M) ($1.82M)
Net Income (Loss) ($USD)($2.18M) ($5.35M)
GAAP EPS ($USD)($0.45) ($0.17)
Adjusted EBITDA ($USD)($0.70M) ($0.19M)
Adjusted EPS ($USD)($0.34) ($0.02)

Segment and KPI Highlights

MetricQ1 2025Q2 2025Q3 2025
Wholesale logistics distribution – Gross Profit ($USD)$1.18M Not disclosedNot disclosed
Owned nutraceuticals/pharmaceuticals & manufacturing – Gross Profit ($USD)$0.87M Not disclosedNot disclosed
Cash & Equivalents ($USD)$0.74M $0.66M $4.63M
Inventory ($USD)$4.74M $5.11M $5.68M
Total Assets ($USD)$57.19M $61.84M $69.49M
Total Liabilities ($USD)$31.24M $35.65M $46.36M
Stockholders’ & Mezzanine Equity ($USD)$25.95M $26.23M $23.13M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNot providedNot providedMaintained (no formal guidance)
Gross MarginFY/QuarterNot providedNot providedMaintained (no formal guidance)
OpExFY/QuarterNot providedNot providedMaintained (no formal guidance)
Tax rateFY/QuarterNot providedNot providedMaintained (no formal guidance)
Segment-specificFY/QuarterNot providedNot providedMaintained (no formal guidance)
Capital allocation (ETH facility)OngoingAnnounced Aug-6 FacilityContinued utilization indicatedMaintained (execution update)

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available in the document catalog during the review window.

TopicPrevious Mentions (Q-2, Q2 2025)Previous Mentions (Q-1, Q1 2025)Current Period (Q3 2025)Trend
AI/technology initiativesDigital financing facility enabling Ethereum treasury strategy announced; intent to explore blockchain use cases Cloudscreen AI drug-repurposing referenced as part of R&D pipeline Continued investment in ETH; balance sheet diversification; Cloudscreen referenced in CEO remarks Increasing focus on digital assets and AI-enabled R&D
Supply chain/logisticsOperational efficiencies and gross margin expansion; CosmoFarm execution Efficiency initiatives lowered cash OpEx; improved collections U.S. manufacturing commencement to reduce tariff/logistics risks Improving control; tariff/logistic risk mitigation
Tariffs/macroNot specifically highlightedTariff exposure reduction via U.S. manufacturing plan U.S. operations commenced for Sky Premium Life to reduce tariff/logistics risks Risk mitigation actions progressing
Product performanceStrong multi-unit contributions (gross profit up 51.6% YoY) Strong results from CosmoFarm, Sky Premium Life Record segment performance: Cana, Decahedron, CosmoFarm; Sky Premium Life global expansion Broad-based strength
Regional trendsNot detailedGlobal expansion referencedGCC expansion: Oman entry and initial 42k-unit order; Kuwait expansion with 65k+ units Middle East expansion accelerating
Regulatory/legal—Additional 180-day Nasdaq bid-price compliance period Nasdaq minimum bid price compliance regained (Oct 15) Compliance improved
R&D execution—CCX0722 weight management entering final phase; broader R&D progress Nanotechnology R&D program initiated to enhance phytochemical efficacy Pipeline building

Management Commentary

  • “This was a defining quarter for Cosmos. We not only achieved record revenue and gross profit, but also secured a game-changing $300 million financing facility, enabling us to build a substantial digital assets portfolio and accelerate our long-term strategy…” — Greg Siokas, CEO .
  • “Each of our core businesses continues to gain momentum… Cana Laboratories delivered record results… Decahedron… record performance… CosmoFarm… record-breaking trajectory… Sky Premium Life continues to expand internationally… Cloudscreen… advancing several promising projects.” — Greg Siokas .
  • U.S. operations commenced for Sky Premium Life, manufactured in GMP-certified, FDA-registered, and UL-audited facilities to reduce tariff exposure and logistics risks .

Q&A Highlights

No Q3 2025 earnings call transcript was available; consequently, Q&A themes and any guidance clarifications could not be extracted.

Estimates Context

  • S&P Global consensus data was unavailable for COSM in the period reviewed using the estimates tool.
  • Third-party aggregator indicated: consensus revenue ~$16.40M vs. actual $17.11M (beat), consensus EPS -$0.01 vs. actual -$0.17 (miss) .
MetricQ3 2025 ActualQ3 2025 ConsensusOutcome
Revenue ($USD)$17.11M ~$16.40M Beat
GAAP EPS ($USD)($0.17) ($0.01) Miss

Note: S&P Global consensus was unavailable; third-party estimates are indicative and may differ from SPGI methodology.

Key Takeaways for Investors

  • Mix-driven margin expansion with record gross margin (15.21%) signals operational leverage in higher-margin segments; sustained execution at Cana, Decahedron, and CosmoFarm remains central to the thesis .
  • Adjusted profitability trajectory is improving (Adjusted EBITDA and Adjusted EPS), but GAAP net loss widened on non-cash derivative/FX items tied to financing/digital asset strategies; expect earnings quality scrutiny and potential adjustments to EPS models .
  • Liquidity improved materially (cash $4.63M) and assets expanded; liabilities rose with facility utilization — monitor leverage and cash conversion against growth investments .
  • Strategic catalysts: U.S. manufacturing commencement (tariff/logistics risk reduction), GCC expansion (Oman, Kuwait), and nanotechnology R&D that could enhance nutraceutical efficacy — supports medium-term brand and margin development .
  • Near-term trading implication: headline beats on revenue and margin expansion vs. modest consensus likely supportive; however, EPS miss and derivative-related volatility may temper reaction and keep focus on adjusted metrics and cash trends .
  • Watch Q4 setup: management indicated stronger trajectory into Q4; track continued Cana backlog conversion, Sky Premium Life U.S. rollout, and region expansions for revenue durability .
  • Risk monitors: execution on ETH strategy under $300M facility (derivative/mark-to-market impacts), balance sheet leverage, and absence of formal guidance — favor evidence-based updates via filings and releases .