Executive Summary

FY22 revenue rose 16% to $11.45M, driven by TRxADE Platform (+10% YoY to $5.4M) and TRxADE Prime (+46% YoY to $4.8M), while Community Specialty Pharmacy declined 29% .
Quarterly trajectory improved into Q4: derived Q4 revenue ~~$2.53M and gross margin ~~61%, with positive operating income (~~$0.09M) and EBITDA (~~$1.36M), following Q2/Q3 losses .
Registered members reached ~14,400+ by year-end, adding ~1,212 in FY22; platform processed sales volume grew 17% YoY .
No quantitative guidance was issued; company highlighted strategic focus on core B2B marketplace and contemplated divestitures (e.g., sale of Community Specialty Pharmacy and Alliance Pharma Solutions) as catalysts .

What Went Well and What Went Wrong

What Went Well

TRxADE Platform and Prime execution drove FY revenue growth; platform revenue +10% to ~$5.4M and Prime revenue +46% to ~$4.8M, with Prime gross margin turning positive (1% vs -12% in FY21) .
Gross margin mix improved: Q3 gross margin rose to 58% (from 50% YoY) on higher platform mix and Prime margin improvement; FY gross margin held 48% .
Management emphasized innovation and partnerships supporting the marketplace expansion and telehealth (Bonum Health); “We continue to achieve key milestones in our internal roadmap with a focus on innovation and development” .

What Went Wrong

FY net loss remained substantial at $(3.91)M; cash from operations was $(1.53)M, reflecting working capital and non-cash adjustments .
Community Specialty Pharmacy revenue fell 29% YoY; segment headwinds pressured consolidated performance .
Listing/compliance overhang: Nasdaq minimum bid price non-compliance notice (Nov 29, 2022) and equity deficiency issues required remediation paths, adding investor uncertainty .

Financial Results

Note: Q4 figures are derived from FY minus YTD (nine months) reported amounts; see footnotes.

Metric	Q2 2022	Q3 2022	Q4 2022
Revenue ($USD Millions)	$3.279	$2.400	$2.529 (FY $11.448 − 9M $8.919)
Net Income - (IS) ($USD Millions)	$(1.084)	$(0.529)	$0.622 (FY $(3.910)$ − 9M $(4.532)$)
Diluted EPS ($USD)	$(0.13)$	$(0.06)$	N/A (not disclosed)
Gross Profit ($USD Millions)	$1.171	$1.402	$1.543 (FY $5.451 − 9M $3.909)
Gross Profit Margin %	36%	58%	~61% (GP/Revenue from above)
EBITDA ($USD Millions)	$(1.094)$ (GAAP EBITDA)	$(0.360)$ (GAAP EBITDA)	$1.363 (FY $(3.142)$ − 9M $(4.505)$)
EBITDA Margin %	~−33% (EBITDA/Revenue)	~−15% (EBITDA/Revenue)	~54% (EBITDA/Revenue)

Footnotes:

Q4 Revenue and Gross Profit derived from FY minus 9M figures .
Q4 Net Income (IS) derived from FY minus 9M consolidated net loss .
Q4 EBITDA derived from FY minus 9M GAAP EBITDA .
Margins are calculated using the corresponding Revenue and Profit metrics.

Segment Breakdown (FY)

Segment	FY 2021	FY 2022	YoY Change
TRxADE Platform Revenue ($USD Millions)	~$4.9	~$5.4	+10%
TRxADE Prime Revenue ($USD Millions)	~$3.2	~$4.8	+46%
Community Specialty Pharmacy Revenue	N/A	N/A	−29% YoY
Consolidated Revenues ($USD Millions)	$9.9	$11.4	+16%
Consolidated Gross Margin %	48%	48%	Flat

KPIs

KPI	Q2 2022	Q3 2022	Q4 2022
Registered Members (approx.)	13,815+	14,100+	14,400+
TRxADE Platform Processed Sales Volume YoY	+21%	+18%	FY +17%
TRxADE Prime Gross Margin %	N/A	3%	FY 1%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	None provided	None provided	Maintained (no guidance)
Margins (Gross/EBITDA)	FY/Quarter	None provided	None provided	Maintained (no guidance)
OpEx / Tax Rate	FY/Quarter	None provided	None provided	Maintained (no guidance)
Segment-specific	FY/Quarter	None provided	None provided	Maintained (no guidance)

No quantitative guidance was issued in Q4 2022 materials; management focused commentary on operations and strategy .

Earnings Call Themes & Trends

Topic	Q2 2022 (Jul 25)	Q3 2022 (Nov 7)	Q4 2022 (Mar 27)	Trend
Marketplace expansion	+339 registrations; total 13,815+; platform sales volume +21% YoY	+291 registrations; total 14,100+	Total ~14,400+ by YE; +1,212 added in FY22	Steady growth in members and volume
TRxADE Prime execution	Orders/units processed up dramatically YoY; Prime processed sales +435%	Prime gross margin improved to 3% and overhead cut	FY Prime margin positive (1%) and revenue +46% YoY	Margin and revenue improving
Telehealth (Bonum Health)	Prime–GALT distribution announced; platform catalog diversification	Wakefern ShopRite agreement; broker distribution for employer groups	Exploring strategic alternatives for Bonum Health; focus on core B2B	Shift from growth partnerships to portfolio optimization
Capital and listing	S-3 usage; equity raise framework	Equity raise executed (Oct 7, 2022)	Nasdaq bid-price non-compliance notice; equity deficiency remediation paths	Addressing listing compliance risks
Portfolio changes	N/A	N/A	Intent to sell Community Specialty Pharmacy and Alliance Pharma Solutions; focus on core platform	Portfolio simplification

Management Commentary

“2022 was 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 .
FY platform metrics: registered users ~14,400+, platform revenue ~$5.4M (+10% YoY), Prime revenue ~$4.8M (+46% YoY), Prime margin 1% (vs −12% FY21), processed sales volume +17% YoY .
Call narrative emphasized focusing on core B2B marketplace and subsequent plans to divest non-core assets (Community Specialty Pharmacy and Alliance Pharma Solutions) to streamline operations .

Q&A Highlights

Strategic focus: Clarified intent to streamline portfolio and concentrate on core marketplace economics post-FY22 .
Operational cadence: Reinforced member growth and platform volume as key KPIs; reiterated cost actions underpinning margin improvements (Prime) .
Listing/compliance: Acknowledged Nasdaq bid-price non-compliance and outlined remediation options and timelines per notice .

Estimates Context

S&P Global Wall Street consensus for Q4 2022 EPS and revenue was unavailable due to missing CIQ mapping; consequently, no estimate vs. actual comparison can be provided at this time.
Where comparisons are needed, investors should note the absence of SPGI consensus data for MEDS and rely on company-reported actuals .

Key Takeaways for Investors

FY22 topline momentum despite segment drag: consolidated revenue +16% YoY to $11.45M; platform and Prime growth offset weakness in Community Specialty Pharmacy .
Inflection in Q4 operating metrics: derived Q4 revenue ~$2.53M, gross margin ~61%, positive operating income and EBITDA, indicating improving unit economics exiting FY22 .
Structural focus: Management is concentrating on core B2B marketplace, with actions to divest non-core assets, potentially reducing complexity and improving cash conversion .
Execution on margin levers: Prime gross margin turned positive in FY22 (1%), aided by vendor pricing, automation, and overhead reductions; Q3 consolidation margin 58% highlighted mix benefits .
Balance sheet/capital watch: Nasdaq bid price and equity compliance remain important overhangs; monitor remedial steps and any future capital actions post-Oct 2022 offering .
KPI trajectory supportive: member base reached ~14,400+, platform processed volume +17% YoY, underpinning marketplace network effects .
Near-term trading: Stock likely sensitive to announcements on asset divestitures, listing compliance progress, and continued quarterly profitability/margin execution, given lack of formal guidance .

Additional source documents reviewed:

Q4 2022 8-K press release with FY results and financial statements .
Q3 2022 8-K press release and financials .
Q2 2022 8-K press release and financials .
Nasdaq listing compliance 8-K notices (Q4 period) .
Equity offering and purchase agreement details (Oct 7, 2022) .
Earnings call transcript references (Q4 2022) .

TRxADE HEALTH, INC (MEDS)·Q4 2022 Earnings Summary