Executive Summary

Q2 2025 revenue was $7.79M*, down sequentially from $10.86M* in Q1 2025, with GAAP diluted EPS of -$0.1080*; management highlighted an “inflection point” with operational integration and balance sheet repair underway . Values retrieved from S&P Global.
On a non-GAAP pro forma basis, H1 2025 revenue was $18.65M vs. $18.25M in H1 2024, reflecting modest growth and stability while foundational initiatives were executed .
Wellgistics converted $10.1M of debt to equity (including $8.6M after June 30), materially improving balance sheet flexibility and reducing interest burden; SOC 2 progress and appointment of UHY LLP (PCAOB top 20) support governance credibility .
Q2 operations expanded materially: +116 manufacturer partnerships, +12,400 products (NDCs), and +275 pharmacies added, reinforcing platform scale and DTP ambitions .
No Wall Street consensus estimates for EPS or revenue were available via S&P Global for Q2 2025; stock reaction drivers likely center on debt conversions, direct-to-patient rollout, and execution against ERP/SOC 2 milestones . Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Debt-to-equity conversion of $10.1M (including $8.6M post quarter-end) eased leverage and improved financial flexibility, a key step to fund DTP and technology scaling .
Governance and controls improved: UHY LLP completed Q2 review; SOC 2 certification advanced; ERP upgrade delivered “real-time visibility, tighter controls, and scalable infrastructure” .
Management emphasized strategic positioning for DTP with a national network of 6,500+ pharmacies and 200 manufacturers, and continued expansion of manufacturer and pharmacy partnerships .

What Went Wrong

Sequential revenue decline to $7.79M* from $10.86M* and a net loss of -$6.67M* underscore margin pressure and under-scale cost structure in the near term. Values retrieved from S&P Global.
Gross margin remained low at 6.49%* and EBITDA margin at -60.58%*, indicating limited operating leverage and the need for continued cost discipline and mix optimization. Values retrieved from S&P Global.
Absence of formal quantitative guidance and no available Wall Street consensus hampered near-term visibility; investors must anchor on operational KPIs and balance sheet milestones rather than earnings beats/misses . Values retrieved from S&P Global.

Financial Results

Quarterly performance vs prior quarter and prior year:

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$12.41M*	$10.86M*	$7.79M*
Diluted EPS ($USD)	-$0.0888*	-$0.6247*	-$0.1080*
Gross Profit Margin (%)	10.06%*	6.38%*	6.49%*
EBITDA Margin (%)	-24.26%*	-280.97%*	-60.58%*
EBIT Margin (%)	-30.20%*	-288.57%*	-70.60%*
Net Income ($USD Millions)	-$4.33M*	-$32.43M*	-$6.67M*
Net Income Margin (%)	-34.90%*	-298.53%*	-85.64%*
Cash from Operations ($USD Millions)	-$2.66M*	-$1.35M*	-$2.08M*

Values retrieved from S&P Global.

Year-over-year comparison:

Metric	Q2 2024	Q2 2025
Revenue ($USD Millions)	$0.04M*	$7.79M*
Diluted EPS ($USD)	-$0.0125*	-$0.1080*
Gross Profit Margin (%)	-5.86%*	6.49%*
Net Income ($USD Millions)	-$0.57M*	-$6.67M*

Values retrieved from S&P Global.

KPIs and operational scale:

KPI	Q2 2025
New manufacturer partnerships added	116
New products (NDCs) added	12,400+
New pharmacies added to platform	275+
H1 2025 pro forma revenue	$18.65M
H1 2024 pro forma revenue	$18.25M

Segment breakdown: Not disclosed in Q2 materials; distribution and hub services highlighted qualitatively .

Guidance Changes

No formal quantitative guidance was provided for revenue, margins, OpEx, OI&E, tax rate, or segments in Q2 2025 communications; management focused on balance sheet actions and strategic funding to accelerate DTP growth .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3	Not provided	Not provided	Maintained (no formal guidance)
Margins (gross/EBITDA)	FY/Q3	Not provided	Not provided	Maintained (no formal guidance)
OpEx	FY/Q3	Not provided	Not provided	Maintained (no formal guidance)
Tax rate	FY/Q3	Not provided	Not provided	Maintained (no formal guidance)
Segment KPIs	FY/Q3	Not provided	Qualitative expansion only	Maintained (qualitative only)
Capital actions	FY/Q3	N/A	$10.1M debt converted to equity	Raised balance sheet flexibility

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was located despite targeted searches across document repositories and public sources; therefore, themes are drawn from press releases and prior-quarter disclosures. We searched for “earnings call transcript Q2 2025” for WGRX and found no transcript available .

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
AI/technology initiatives	Q1: Upcoming Peek platform expansion; building prescription technology backbone	Advanced AI-driven prescription routing/filtering; ERP upgrade delivering controls/scale	Strengthening tech stack and operational systems
Supply chain/ERP	Limited prior-quarter public detail	ERP upgrade implemented; scalable infrastructure cited	Improving controls and scalability
Direct-to-Patient (DTP) model	Q1: Platform momentum and pharmacy onboarding	Positioned to expand DTP across diabetes, weight loss, pain, sleep, men’s/women’s health	Accelerating DTP narrative
Governance/compliance	Q1: Leadership rebuild, board support	UHY LLP review completed; SOC 2 progress	Governance and controls improving
Manufacturer/pharmacy expansion	Q1: +354 pharmacies added; 22 manufacturers onboarded	Q2: +116 manufacturers, +12,400 products, +275 pharmacies	Continued scaling across ecosystem
Funding/Balance Sheet	Q1: ELOC referenced cautiously; capital deployment tied to outsized growth	$10.1M debt-to-equity conversion; pursuing strategic funding to accelerate growth	Deleveraging and funding focus

Management Commentary

CFO perspective: “This quarter marks an inflection point where disciplined execution and balance sheet improvements begin to align with our long-term growth strategy, setting the stage for results that extend far beyond today’s numbers… We are reshaping the company into a more resilient, technology-driven, and innovative organization.” — Mark DiSiena, CFO .
CEO perspective: “Wellgistics Health is positioned to expand access through direct-to-patient delivery models… Our focus now is closing strategic funding to accelerate growth as we deliver a faster, smarter, and more direct path to patients while keeping community pharmacies at the center of care.” — Brian Norton, CEO .
Strategic framing: Leveraging 6,500+ independent pharmacies and 200 manufacturers to scale DTP programs; expansion of manufacturer and pharmacy partnerships and continued leadership development were emphasized .

Q&A Highlights

No Q2 2025 earnings call transcript or Q&A content was available from primary sources, SEC-listed documents, or major transcript aggregators at time of review .
As a result, no management clarifications or Q&A-specific tone shifts can be assessed beyond press release commentary .

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for Q2 2025 (EPS and revenue). Values retrieved from S&P Global.
Without consensus, we cannot designate beats/misses; investors should anchor on sequential trends (revenue $10.86M* → $7.79M*) and margin trajectory (Gross margin 6.49%; EBITDA margin -60.58%) pending broader sell-side coverage. Values retrieved from S&P Global.

Key Takeaways for Investors

Foundational quarter: While Q2 GAAP results remained loss-making, governance, ERP, and SOC 2 progress plus debt-to-equity conversion improved the setup for scaling DTP and tech-enabled fulfillment .
Ecosystem expansion is real: Q2 saw +116 manufacturers, +12,400 products, and +275 pharmacies added, supporting future volume potential once hub services and DTP programs fully ramp .
Near-term caution: Sequential revenue decline to $7.79M* and negative EBITDA margin (-60.58%*) highlight the need for operating leverage and mix improvements before sustained profitability. Values retrieved from S&P Global.
Balance sheet flexibility: $10.1M debt conversion and intent to secure strategic funding reduce interest drag and enable investment in growth initiatives—potential catalysts if capital is deployed to accelerate DTP adoption .
Monitoring priorities: Look for formal guidance, sell-side coverage (to benchmark against consensus), margin improvement from ERP and scale, and DTP program commercial wins in diabetes/weight loss categories .
Short-term trading lens: Headlines around funding closure, additional debt conversions, and SOC 2 certification completion may move sentiment; absence of estimates will make prints less binary and more KPI-driven .
Medium-term thesis: If the platform can translate ecosystem expansion into higher-margin DTP flows and sustained manufacturer-backed programs, profitability can inflect; execution on ERP-driven controls and hub automation is critical .

Notes:

Non-GAAP disclosure: H1 2025 pro forma revenue ($18.65M) is a non-GAAP measure reflecting distribution operations as if consolidated for the full comparable period; compare cautiously versus GAAP quarterly results .
All S&P Global-derived financial metrics are marked with an asterisk (*) and include the following disclaimer: Values retrieved from S&P Global.

Wellgistics Health, Inc. (WGRX)·Q2 2025 Earnings Summary