Executive Summary

Q3 2022 consolidated revenue declined 6% to $2.40M versus $2.55M YoY, but gross profit rose to $1.40M with gross margin expanding to 58% (from 50% YoY) on higher platform mix and improved TRxADE Prime margins .
Net loss narrowed to $0.53M (EPS: $(0.06)) from $1.30M (EPS: $(0.16)) YoY; operating expenses fell materially to $1.81M from $2.58M YoY on automation and staffing actions .
Adjusted EBITDA turned negative to $(0.395)M vs $0.723M YoY, reflecting weaker Prime volumes and the consolidated revenue decline despite margin mix improvements .
No quantitative guidance was issued; operational catalysts include telemedicine distribution agreements (Wakefern/ShopRite) and insurance broker partnerships for Bonum Health, and continued nationwide platform expansion .
Street consensus (S&P Global) for Q3 2022 EPS/revenue was unavailable for MEDS; therefore, beats/misses to estimates cannot be determined (S&P Global data unavailable via tool).

What Went Well and What Went Wrong

What Went Well
- Gross margin expanded to 58% (vs. 50% YoY) driven by the TRxADE Platform (no COGS) and Prime margin improvement to 3% (from -6%) .
- Cost discipline: overhead expense down 68% YoY for Q3 via automation software and staffing adjustments in admin and warehouse; OpEx fell to $1.81M vs $2.58M YoY .
- Strategic progress: Bonum Health signed telemedicine services distribution with Wakefern’s ShopRite pharmacies and entered insurance broker agreements to reach SMB employer groups; platform members grew to ~14,100+ .
- Quote (CEO): “We continue to focus the Company’s strategic plans and partnerships working towards creating sustainable value for our stockholders… I am pleased with the growth we have experienced in our TRxADE platform.” — Suren Ajjarapu .
What Went Wrong
- Consolidated revenue fell 6% YoY to $2.40M, driven by declines in TRxADE Prime and Community Specialty Pharmacy despite platform strength .
- Adjusted EBITDA deteriorated to $(0.395)M from $0.723M YoY, reflecting weaker volume/mix and prior-year non-GAAP tailwinds not recurring .
- Prime volumes contracted: processed sales volume down 28% and units sold down 35% YoY in Q3, weighing on top-line despite margin repair .

Financial Results

Metric	Q1 2022	Q2 2022	Q3 2022
Revenue ($USD Millions)	$3.24	$3.28	$2.40
Gross Profit ($USD Millions)	$1.34	$1.17	$1.40
Gross Profit Margin (%)	41%	36%	58%
Operating Expenses ($USD Millions)	$2.30	$2.27	$1.81
Operating Loss ($USD Millions)	$(0.97)	$(1.10)	$(0.41)
Net Loss ($USD Millions)	$(0.97)	$(1.08)	$(0.53)
Diluted EPS ($)	$(0.12)	$(0.13)	$(0.06)
EBITDA ($USD Millions, non-GAAP)	$(0.96)	$(1.09)	$(0.36)
Adjusted EBITDA ($USD Millions, non-GAAP)	$(0.67)	$(1.06)	$(0.40)

Segment and Mix Breakdowns

Segment/KPI	Q1 2022	Q2 2022	Q3 2022
TRxADE Platform – Processed Sales Volume (YoY %)	+25%	+21%	+18%
TRxADE Platform – Total Revenue (YoY %)	+13%	+11%	+6%
TRxADE Platform – Registered Users (YoY %)	+7%	+8%	+9%
TRxADE Prime – Processed Sales Volume (YoY %)	+667%	+435%	-28%
TRxADE Prime – Units Sold (YoY %)	+539%	+713%	-35%
TRxADE Prime – Gross Margin (%)	n/a	n/a	3% (from -6% YoY)

Key KPIs

KPI	Q1 2022	Q2 2022	Q3 2022
End-of-Period Registered Members	~13,475+	~13,815+	~14,100+
New Registrations (Quarter)	339	339	291

Non-GAAP Adjustments (context): Adjusted EBITDA excludes items such as stock-based compensation, bad debt recovery/write-off, loss on inventory investment, litigation expenses, and gains/losses on assets, as defined in the release and reconciled therein .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	n/a	No quantified guidance provided	Maintained: no formal guidance
Margins	FY/Quarter	n/a	No quantified guidance provided	Maintained: no formal guidance
OpEx	FY/Quarter	n/a	Emphasis on overhead reduction; no numeric guide	Qualitative focus only
Other (tax, OI&E, dividends)	FY/Quarter	n/a	Not addressed	n/a

No explicit numeric guidance ranges were disclosed; management emphasized cost actions and partnerships rather than forward revenue/margin targets .

Earnings Call Themes & Trends

Note: The Q3 2022 earnings call occurred on Nov 7, 2022 (with replay/webcast details), but the full transcript was not retrievable via tools; themes below synthesize recurring narrative from quarterly disclosures .

Topic	Previous Mentions (Q1 2022)	Previous Mentions (Q2 2022)	Current Period (Q3 2022)	Trend
Platform Expansion & Technology	Platform growth; SOSRx venture announced to optimize short-dated/overstock pharma flows	Continued platform/Prime expansion; preferred distribution with GALT Pharma	Nationwide platform expansion; ~14,100+ members; continued innovation focus	Steady expansion; ecosystem build-out
Telemedicine (Bonum Health)	Telehealth services highlighted	Telehealth under Bonum Health referenced	Wakefern/ShopRite telemedicine distribution; insurance broker partnerships for SMB employers	Scaling distribution
Cost Discipline/Overhead	Elevated OpEx on IT, salary, legal	OpEx down YoY; restructuring	Overhead down 68% YoY; automation and staffing actions	Strengthening cost control
Prime Performance & Margin	Prime volumes up sharply YoY	Prime volumes up sharply YoY	Prime volumes down YoY but margin improved from -6% to 3%	Mixed: volume pressure, margin repair
Regulatory/Macro	Inflation/COVID cited in forward-looking risks	Inflation/macro risks reiterated	Inflation, listing compliance, funding risks reiterated	Persistent macro headwinds

Management Commentary

“These first nine months of 2022 have been an exciting and challenging time for TRxADE… We continue to achieve key milestones in our internal roadmap with a focus on innovation and development through our various complementary growth opportunities.” — Suren Ajjarapu, CEO (Q3) .
“2022 is an exciting time for TRxADE… I am pleased with the growth we have experienced in our TRxADE and TRxADE Prime platforms.” — Suren Ajjarapu (Q2) .
“Our new venture, SOSRx, is an exciting addition that provides additional availability to short dated and overstocked drugs… We believe the TRxADE and SOSRx platforms provide the opportunity to deliver more affordable prescription costs for consumers.” — Suren Ajjarapu (Q1) .

Q&A Highlights

The company hosted its Q3 2022 call on Nov 7, 2022 at 5:00 pm ET; replay was available through Dec 7, 2022 (U.S. 1-844-512-2921; replay pin 10172776), with webcast link provided .
Full transcript could not be retrieved via our tools; no specific Q&A themes or clarifications can be summarized from primary sources accessible here .

Estimates Context

S&P Global consensus estimates for MEDS Q3 2022 EPS and revenue were unavailable via our tool due to missing mapping; thus, performance versus Street cannot be assessed at this time (S&P Global data unavailable).

Key Takeaways for Investors

Margin mix improved significantly (58% gross margin), aided by the high-margin platform and Prime margin repair, even as consolidated revenue declined; continued mix shift and cost control are near-term supports .
Prime volume pressure in Q3 suggests near-term variability; monitoring whether distribution partnerships (GALT in Q2) and pricing/vendor efforts stabilize Prime throughput is key .
Overhead reductions (automation, staffing) drove OpEx down; sustaining opex discipline can accelerate the path to break-even as volume normalizes .
Bonum Health’s distribution (ShopRite/Wakefern) and insurance broker channel expansion provide incremental top-line optionality outside the core marketplace; watch adoption/activation metrics .
Liquidity and financing considerations remain relevant given increased liabilities and prior funding/revenue sale arrangements; interest expense up in Q3 warrants ongoing balance sheet monitoring .
With no formal guidance and no accessible Street consensus, position sizing should reflect execution risk in Prime volumes versus platform scalability; catalysts are partner ramp and continued cost leverage .
Near-term trading: margin expansion and cost cuts are positives; sustained platform member growth and evidence of Bonum Health activation could drive sentiment; lack of guidance and Prime volume dip are overhangs .

Sources

Q3 2022 8-K/Press Release and Financials
Q2 2022 8-K/Press Release and Financials
Q1 2022 8-K/Press Release and Financials
Q3 2022 call logistics confirmations: Investor news and scheduling references

TRxADE HEALTH, INC (MEDS)·Q3 2022 Earnings Summary