Executive Summary

Q3 2023 delivered record revenue of $12.36M (+22% YoY) with gross margin up to 31% (from 21% YoY), driven by strong 340B contract growth and steady prescription volume; sequential revenue rose 7% from Q2 .
Operating loss narrowed YoY to $(1.36)M from $(1.88)M, while net loss improved to $(1.37)M from $(8.96)M (EPS $(0.22) vs $(3.29)), aided by the absence of prior-year transaction-related losses .
340B contract revenue more than doubled YoY to $2.47M (20% of total), driving margin mix improvement; prescription revenue rose 13% YoY to $9.87M as prescriptions filled increased ~4% YoY to ~122k .
Governance shifted in Q3 following a change in control (NextPlat/insiders now ~53% voting power) and push-down accounting; operating expenses rose 27% YoY (amortization of intangibles, franchise taxes, salaries) .
No S&P Global consensus estimates were available for RXMD for Q3 2023 (unavailable mapping), so beats/misses vs street cannot be assessed; no earnings call transcript was found for Q3 [GetEstimates tool error; see Estimates Context].

What Went Well and What Went Wrong

What Went Well

Revenue and mix improvement: Total revenue up 22% YoY to $12.36M; gross margin expanded to 31% on higher-margin 340B contracts .
340B growth: 340B contract revenue rose to $2.47M (+114% YoY), reaching 20% of total revenue; prescriptions filled increased to ~122k (+4% YoY) .
CEO confidence and pipeline: “Our team continues to capitalize on the many growth opportunities... expanding services... partnering with organizations that can provide us... reach large numbers of new customers.” — Charles M. Fernandez, Chairman & CEO .

What Went Wrong

Expense pressure: Operating expenses +27% YoY (+$1.10M) primarily from amortization of intangibles due to push-down accounting (~~$0.6M), franchise taxes (~~$0.3M) and salaries (~$0.2M) .
Profitability: Adjusted EBITDA was negative $(0.63)M in Q3 (vs $(0.91)M in Q3 2022), and operating loss was $(1.36)M .
Fading COVID-19 testing: COVID testing revenue fell ~97% YoY to ~$0.006M, removing a prior revenue tailwind; management notes demand has structurally declined since early 2022 .

Financial Results

Quarterly Trend (oldest → newest)

Metric	Q1 2023	Q2 2023	Q3 2023
Revenues ($USD Millions)	$11.392	$11.556	$12.359
Gross Profit Margin %	28%	31%	31%
Operating Income (Loss) ($USD Millions)	$0.014	$0.624	$(1.358)
Net Loss ($USD Millions)	$(0.130)	$(4.637)	$(1.375)
Diluted EPS ($USD)	—	$(1.05)	$(0.22)

YoY Comparison

Metric	Q3 2022	Q3 2023
Revenues ($USD Millions)	$10.144	$12.359
Gross Profit Margin %	21%	31%
Operating Expenses ($USD Millions)	$4.040	$5.139
Loss from Operations ($USD Millions)	$(1.878)	$(1.358)
Other Loss ($USD Millions)	$(7.085)	$(0.017)
Net Loss ($USD Millions)	$(8.963)	$(1.375)
Diluted EPS ($USD)	$(3.29)	$(0.22)

Segment Breakdown (oldest → newest)

Segment Metric ($USD Millions)	Q3 2022	Q2 2023	Q3 2023
Prescription revenue, net of PBM fees	$8.754	$9.865	$9.873
340B contract revenue	$1.154	$2.094	$2.472
COVID-19 testing revenue	$0.235	$0.008	$0.006
Other revenue	~$0.001	$0.006	$0.009
Revenues, net	$10.144	$11.556	$12.359

KPIs and Profitability

KPI	Q2 2023	Q3 2023
Prescriptions filled (units)	~118,000	~122,000
Gross Profit Margin %	31%	31%
Adjusted EBITDA ($USD Millions)	$0.706	$(0.629)
Cash and Equivalents ($USD Millions)	$7.352	$7.015

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance	FY/Quarter	None issued	None issued	Maintained (no guidance)

Note: The company did not provide quantitative revenue, margin, OpEx, OI&E, tax, or dividend guidance in Q3 materials .

Earnings Call Themes & Trends

No Q3 2023 earnings call transcript was found; we searched and did not locate any transcript for RXMD in the period [ListDocuments returns 0].

Topic	Previous Mentions (Q1 2023)	Previous Mentions (Q2 2023)	Current Period (Q3 2023)	Trend
340B/data platform expansion	340B $1.6M; margin accretive; ClearMetrX programs; record revenues	340B $2.09M; ClearMetrX/340MetrX platform supports entities; high margins	340B $2.47M; 20% of revenue; further expansion in existing contracts	Accelerating mix shift to services
Gross margin	28% (vs 24% YoY) on 340B mix	31% (vs 20% YoY)	31% (vs 21% YoY)	Improved YoY; stable sequentially
Capital structure/ownership	$1.0M NextPlat investment; net cash up	Debt conversion expense $5.21M; share/warrant issuance; change in control imminent	Push-down accounting; NextPlat/insiders collectively ~53% voting control; related-party fees	Simplified debt; concentrated control
Liquidity	Cash ~$7.5M; improving	Cash ~$7.35M; mgmt expects adequate liquidity	Cash ~$7.01M; mgmt expects ability to operate next 12 months	Stable; adequate per mgmt
PBM/vendor concentration	—	Significant vendor concentration (97% of purchases); PBM concentration metrics	Vendor ~99% of purchases; PBM reimbursements 35%/31%/16%	Ongoing concentration risk
COVID testing	Demand down vs 2022	Down sharply (near-zero)	Near-zero revenue; positioned if resurgence	Fading tailwind

Management Commentary

Strategic positioning: “Our team continues to capitalize on the many growth opportunities... expanding our services for our existing patients and partnering with organizations that can provide us with the potential to reach large numbers of new customers.” — Charles M. Fernandez, Chairman & CEO .
Outlook: “Supported by a solid financial foundation, we continue to execute on our strategic plan and look forward to further capitalizing on the value we can deliver to patients, providers, and our shareholders.” — Charles M. Fernandez .
Margin drivers: Gross margin expansion to 31% attributed primarily to higher-margin 340B contract revenue .
Liquidity and runway: Management expects cash plus pharmacy sales to support operations over the next 12 months .

Q&A Highlights

No Q3 earnings call transcript was available; therefore, no Q&A highlights or guidance clarifications could be extracted [ListDocuments returns 0].

Estimates Context

S&P Global consensus estimates for RXMD’s Q3 2023 EPS and revenue were unavailable due to missing CIQ mapping for the ticker in the S&P dataset (tool error). As a result, we cannot assess beats/misses vs Wall Street consensus for Q3 2023. Values retrieved from S&P Global would normally be shown here; however, consensus data was unavailable for this ticker in Q3 2023.

Key Takeaways for Investors

Revenue/mix momentum: Strong YoY revenue growth (+22%) with 340B services scaling (+114% YoY) and reaching 20% of revenue; this mix is structurally margin-accretive (31% gross margin) .
Sequential growth: Revenue rose 7% QoQ on 18% sequential growth in 340B and 4% in prescriptions; prescriptions filled rose ~3% sequentially .
Profitability trajectory: Operating loss narrowed YoY; Q3 net loss $(1.37)M vs $(8.96)M prior year, with Adjusted EBITDA at $(0.63)M (improved vs $(0.91)M YoY) despite higher amortization and taxes from push-down accounting .
Ownership and governance: NextPlat/insiders now collectively control ~53% of voting power via warrants and voting agreement; expect governance alignment but note minority influence is limited .
Liquidity: Cash ~$7.0M at quarter end; management expects sufficient liquidity over the next 12 months; watch working capital dynamics with 340B payment terms .
Concentration risks: One vendor accounts for ~99% of purchases; top three PBMs account for a majority of reimbursements (35%/31%/16%); monitor reimbursement/pricing policies and DIR fees .
COVID-19 normalization: Testing revenue is now de minimis, removing prior volatility; the pharmacy/core services thesis is the driver going forward .

Sources: Q3 2023 8-K press release and 10-Q; Q2 and Q1 8-K/10-Q filings .

Progressive Care Inc. (RXMD)·Q3 2023 Earnings Summary