Executive Summary

Record revenue: $14.628M (+28% YoY) on strong prescription growth and 340B contract services; gross margin 27% (-100 bps YoY); net loss widened to $0.372M as operating expenses rose from amortization, salaries, and an impairment charge .
340B contract revenue more than doubled to $3.304M (+110% YoY), driven by both new and existing contracts; prescriptions filled rose to ~134,000 (+12% YoY) .
No formal guidance or Q1 2024 earnings call transcript was published; comparisons to Wall Street consensus estimates are unavailable via S&P Global for RXMD.
Potential stock catalysts: continued 340B momentum, long-term care sales ramp, and proposed NextPlat merger synergies; risks include drug cost inflation pressuring margins and higher opex from push-down accounting amortization .

What Went Well and What Went Wrong

340B services expansion: 340B contract revenue rose to $3.304M (+110%), with ~$0.9M from new contracts and ~$0.8M from existing contracts; CEO: “First quarter results clearly demonstrate the continued positive momentum... highlighted by considerable growth in our 340B contract services segment.” .
Prescription growth: ~134,000 prescriptions filled (+14,000 YoY), with favorable reimbursement rates per prescription adding ~$1.0M to revenue .
Segment profitability improvement: Pharmacy Operations posted a modest operating profit ($0.113M) and TPA $0.193M, indicating segment-level earnings despite corporate costs .

Margin pressure: gross margin fell to 27% from 28% YoY, driven by a “significant increase in drug cost per prescription” (~$1.9M headwind) .
Higher operating expenses: opex increased by ~$1.269M (+41%) YoY, including ~$0.7M amortization from push-down accounting, ~$0.5M salaries, ~$0.132M right-of-use asset impairment, and higher computer costs .
Cash flow timing: operating cash flow of $(2.277)M vs $0.827M prior year due to quarter-end payment timing to 340B covered entities versus collections received in early Q2 .

Metric	Q1 2023	Q1 2024
Revenue ($USD Millions)	$11.392	$14.628
Gross Profit ($USD Millions)	$3.147	$4.005
Gross Margin (%)	28%	27%
Operating Income ($USD Millions)	$0.014	$(0.397)
Net Income ($USD Millions)	$(0.130)	$(0.372)
Diluted EPS ($)	$(0.04)	$(0.06)

Q4 2023 revenue increased ~18% sequentially versus Q3 2023 per FY press release (implies momentum into year-end, though exact Q4 figure not disclosed) .
Q3 2023 baseline: Revenue $12.359M; Gross margin ~31%; Operating loss $(1.358)M; Net loss $(1.375)M .

Segment	Q1 2023 Revenue ($MM)	Q1 2023 Op Inc ($MM)	Q1 2024 Revenue ($MM)	Q1 2024 Op Inc ($MM)
Pharmacy Operations	$10.875	$0.203	$14.095	$0.113
TPA (340B/data services)	$0.517	$0.331	$0.533	$0.193
Corporate	—	$(0.520)	—	$(0.703)
Total	$11.392	$0.014	$14.628	$(0.397)

KPI	Q1 2023	Q1 2024
Prescriptions Filled (Units)	~120,000	~134,000
340B Contract Revenue ($MM)	$1.576	$3.304
Cash and Equivalents ($MM)	$7.452	$5.544
Accounts Receivable – Trade, Net ($MM)	$4.300	$12.253
Adjusted EBITDA ($MM)	$0.084	$0.420

No formal financial guidance was provided for Q1 2024.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	N/A	N/A	Maintained (no guidance)
Gross Margin	FY/Quarter	N/A	N/A	Maintained (no guidance)
OpEx	FY/Quarter	N/A	N/A	Maintained (no guidance)
Tax Rate	FY/Quarter	N/A	N/A	Maintained (no guidance)
Segment Guidance	FY/Quarter	N/A	N/A	Maintained (no guidance)

No Q1 2024 earnings call transcript available; themes derived from filings and press releases.

Topic	Previous Mentions (Q-2: Q3 2023)	Previous Mentions (Q-1: Q4 2023)	Current Period (Q1 2024)	Trend
340B services expansion	340B revenue +114% YoY; margin lift from 340B mix	Annual 340B +136% YoY; added contracts in 2H23	340B +110% YoY; ~$0.9M new, ~$0.8M existing	Positive growth, sustained
Prescription volumes	~122k scripts; +4% YoY	Annual scripts +6% YoY	~134k scripts; +12% YoY	Accelerating volumes
Margins/costs	Gross margin ~31% (Q3)	Annual GM 30% (FY23)	GM 27%; drug cost inflation headwind	Mixed: margin down QoQ/YoY
DIR fee mechanics	—	—	PBMs began charging DIR at claim settlement starting Jan 1, 2024	Operational change; improves timing clarity
Long-term care & OTC programs	—	OTC partnerships (NationsBenefits, ProHealth); Cost Plus Drugs program	Ramping sales/marketing to long-term care; dedicated team	Building new channels
Strategic/Corporate	Push-down accounting; improved cash via PIPE/warrants	FY23 record rev; NextPlat consolidated subsidiary	Proposed NextPlat merger, expected close in Q3 2024 (as stated at the time)	Potential synergies

“First quarter results clearly demonstrate the continued positive momentum in our business, highlighted by considerable growth in our 340B contract services segment.” — Charles M. Fernandez, Chairman & CEO .
“Through the recently proposed merger with NextPlat Corp, we believe that Progressive Care will have the opportunity to leverage additional capabilities and resources...” .
FY 2023 context: “We continue to seek opportunities to expand our pharmacy operations with new programs, such as the OTC benefit programs... and add additional clients within the 340B space.” .

No Q1 2024 earnings call transcript was available; no Q&A or clarifications identified in filings or press releases.

Wall Street consensus (S&P Global) estimates for RXMD were unavailable; as a result, we do not present comparisons vs consensus for revenue or EPS this quarter.

Where estimates are unavailable, we explicitly note the absence and anchor analysis to reported actuals in SEC filings and company press releases .

Strong topline momentum: Revenue +28% YoY with 340B +110% YoY indicates durable growth vectors beyond core dispensing .
Margin watch: Gross margin dipped to 27% on higher drug costs per prescription; monitor pricing, reimbursement mix, and cost containment .
Segment profitability: Pharmacy and TPA segments generated positive operating income; corporate costs drove consolidated operating loss .
Cash flow timing: Q1 operating cash flow impacted by quarter-end payments vs early Q2 receipts on 340B claims; underlying liquidity remains adequate ($5.544M cash) .
Strategic optionality: Proposed NextPlat merger posits cost reductions and revenue synergies; governance/control dynamics should be considered .
Operational change: DIR fees now charged at claim settlement (from Jan 1, 2024), potentially reducing accrual uncertainty and smoothing revenue adjustments .
Near-term focus: Execution on long-term care sales ramp, OTC benefit capture, and maintaining reimbursement rate improvements amid drug cost inflation .

Notes and clarifications:

340B split disclosure: The 10-Q attributes ~$0.9M from new and ~$0.8M from existing contracts; the press release bullet referenced ~$1.1M existing and ~$0.6M new. We rely on the 10-Q’s detailed breakdown for accuracy .