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SRx Health Solutions (SRXH)
:SRXH
US Market

SRx Health Solutions (SRXH) AI Stock Analysis

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SRXH

SRx Health Solutions

(SRXH)

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Neutral 41 (OpenAI - 5.2)
Rating:41Neutral
Price Target:
$0.19
▼(-19.17% Downside)
The score is driven primarily by weak financial performance (sharp revenue decline, very large losses, renewed cash burn, and high leverage), reinforced by bearish technicals (price below key moving averages and negative MACD). A very low P/E provides only limited support given the unstable fundamentals, while corporate events are offset by dilution and listing-compliance risks.
Positive Factors
Strategic acquisition and leadership change
Acquiring EMJ Crypto and installing its founder as CEO signals a deliberate shift from an unstable healthcare footing to a platform-oriented digital-asset treasury business. This creates a clearer strategic focus, aligns leadership with the new model, and supports building recurring platform revenue and institutional partnerships over time.
AI and risk-intelligence platform differentiation
Integrating LLMs and market-implied probability signals into a quantitative treasury OS creates a durable competitive advantage: better synthesis of macro/protocol data, systematic risk scoring, and disciplined hedging. These capabilities support institutional-grade treasury management and can reduce tail-risk exposure across cycles.
Access to committed capital
A $15.23M private placement demonstrates the company can secure external financing to fund its strategic pivot and technology integrations. This immediate capital infusion extends runway, supports integration and platform development, and provides breathing room while revenue models are rebuilt post-acquisition.
Negative Factors
Severe revenue decline and loss of profitability
An ~82% revenue drop and collapse to massive net losses indicate structural demand or execution failures. Sustained volatility undermines repeatable revenue generation, pressures margins, and limits ability to invest organically in product, sales, or tech, making the success of any strategic pivot more urgent and uncertain.
Renewed cash burn and weak cash generation
Negative operating and free cash flow of roughly $8.1M reflects renewed cash burn, increasing reliance on external funding. Persistent negative cash generation constrains reinvestment, elevates refinancing risk, and increases likelihood of dilutive financings that can erode equity value and limit strategic flexibility over the medium term.
Balance-sheet stress, dilution and listing risk
Debt around 11x equity and a history of negative equity signal limited solvency cushions. Dramatic share-authority expansion and approvals to issue large equity stakes increase dilution risk. Coupled with an NYSE compliance notice, these factors materially raise financing, governance, and potential delisting risks for the business over the coming quarters.

SRx Health Solutions (SRXH) vs. SPDR S&P 500 ETF (SPY)

SRx Health Solutions Business Overview & Revenue Model

Company DescriptionSRx Health Solutions Inc. is an integrated Canadian healthcare services provider operating within the specialty healthcare industry. The company offers comprehensive, integrated, and customized specialty healthcare services across all ten Canadian provinces. SRx combines industry knowledge, technology, and a patient-centric focus to create strategies and solutions aimed at improving the wellness of Canadians.
How the Company Makes MoneyThe company makes money primarily through the sale of its premium pet food and nutritional products. Better Choice Company generates revenue by distributing its products through various channels, including direct-to-consumer sales via its online platform, as well as partnerships with retail chains and specialty pet stores. Key revenue streams include product sales in both domestic and international markets. The company's earnings are bolstered by strategic partnerships with distributors and retailers, as well as by leveraging its brand reputation and product quality to capture a loyal customer base seeking healthier options for their pets.

SRx Health Solutions Earnings Call Summary

Earnings Call Date:Mar 27, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in profitability measures, including gross profit margins, net loss, and EBITDA. Revenue growth, particularly in the fourth quarter and international markets, was strong. However, there were challenges such as a decline in annual net revenues and ongoing EBITDA losses. Overall, the company's strategic pivots and financial health improvements contributed to a positive outlook.
Q4-2024 Updates
Positive Updates
Improved Gross Profit Margin
The company reported a gross profit margin of 37% for the full year, representing an increase of over 600 basis points.
Significant Improvement in Adjusted EBITDA
Adjusted EBITDA loss improved by 78% year-over-year to $1.9 million.
Fourth Quarter Revenue Growth
Fourth quarter revenue grew by 26% year-over-year, driven by 32% growth across Amazon and Chewy.
Debt Extinguishment and Financial Health
The company achieved a $6.2 million gain from extinguishing debt and accounts payable, contributing to a healthier balance sheet with a working capital position of $7.9 million.
International Growth
International revenue grew by 18%, with significant contributions from the Asia Pacific market.
Improved Net Loss and EPS
Year-to-date GAAP net loss improved by 99% year-over-year, with EPS improving to a $0.11 loss per share from a $32 loss per share in 2023.
Negative Updates
Decline in Annual Net Revenues
Annual net revenues were down 9% due to strategic exits from non-core sales channels and the closure of an unprofitable direct-to-consumer business.
Ongoing Adjusted EBITDA Loss
Despite improvements, the company still reported an adjusted EBITDA loss of approximately $700,000 for the fourth quarter.
Company Guidance
In the fourth quarter of 2024, Better Choice Company reported notable financial achievements and strategic advancements. The company delivered a gross profit margin of 37%, improving by over 600 basis points year-over-year, and adjusted EBITDA loss was reduced by 78% to approximately $1.9 million on annual net revenues of $35 million. The company experienced a 26% increase in fourth-quarter revenue, driven by 32% growth on platforms like Amazon and Chewy, and 18% international growth. Key operational improvements included a 22% reduction in SG&A expenses and a more than 40% reduction in inventory, leading to a working capital position of $7.9 million. Additionally, Better Choice successfully negotiated a $6.2 million gain from extinguishing debt and accounts payable. The company's focus on e-commerce channels is expected to continue propelling growth into 2025, as evidenced by the profitability improvements and strategic exits from non-core sales channels. Looking forward, Better Choice is poised for expanded growth through its acquisition of SRx Health Solutions, which is anticipated to close in April, further solidifying its position as a leader in the pet health and wellness sector.

SRx Health Solutions Financial Statement Overview

Summary
Financials indicate very high risk: 2025 revenue fell ~82% to ~$6.5M, profitability collapsed to a very large net loss, and operating/free cash flow were about -$8.1M. Balance-sheet leverage is also severe (debt ~11x equity) with a history of negative equity, limiting flexibility despite some prior periods of better cash generation.
Income Statement
18
Very Negative
Profitability and growth have deteriorated materially. In 2025 (annual), revenue fell sharply to ~$6.5M (down ~82%), while margins collapsed with a very large net loss (net margin roughly -689%) and deeply negative EBIT/EBITDA. The prior year (2024) was closer to break-even at the bottom line, but the multi-year pattern shows volatile results and an inability to sustain consistent operating profitability.
Balance Sheet
22
Negative
Leverage and capital structure are a key concern. In 2025 (annual), debt is ~11x equity, signaling limited balance-sheet flexibility and elevated refinancing/solvency risk if losses persist. Equity has also been negative in several prior annual periods (e.g., 2024 and 2023), highlighting historical balance-sheet stress, even though total debt appears to have come down substantially in 2025 versus 2024.
Cash Flow
24
Negative
Cash generation is weak and inconsistent. Operating cash flow and free cash flow were negative in 2025 (annual) at about -$8.1M, worse than 2024, indicating ongoing cash burn. Earlier years show the business can produce positive operating cash flow at times (2022–2023), but the latest results point to renewed pressure on liquidity and a need for funding if the trend continues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue-8.78M9.11M34.98M118.94M92.63M46.01M
Gross Profit-1.12M2.08M12.86M23.61M13.31M13.70M
EBITDA5.50M-11.00M438.00K-7.05M-539.40K8.30M
Net Income-32.58M-63.00M-168.00K-11.14M-2.45M2.98M
Balance Sheet
Total Assets8.40M11.72M15.80M64.51M34.79M77.42M
Cash, Cash Equivalents and Short-Term Investments1.31M1.83M3.07M2.07M1.66M28.94M
Total Debt4.47M6.24M45.31M39.38M17.85M10.33M
Total Liabilities8.00M11.15M7.15M70.80M33.86M19.55M
Stockholders Equity407.00K567.65K-55.12M-6.29M927.48K57.88M
Cash Flow
Free Cash Flow-9.32M-11.00M-4.40M1.58M3.13M-12.21M
Operating Cash Flow-9.31M-11.00M-4.36M2.85M3.38M-11.86M
Investing Cash Flow5.13M8.24M-2.25M-19.78M-6.83M-353.00K
Financing Cash Flow8.10M16.98M5.22M16.43M3.80M37.16M

SRx Health Solutions Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.24
Price Trends
50DMA
0.29
Negative
100DMA
0.32
Negative
200DMA
0.57
Negative
Market Momentum
MACD
-0.04
Positive
RSI
37.62
Neutral
STOCH
14.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRXH, the sentiment is Negative. The current price of 0.24 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.29, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.62 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRXH.

SRx Health Solutions Risk Analysis

SRx Health Solutions disclosed 44 risk factors in its most recent earnings report. SRx Health Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SRx Health Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$7.83B14.546.93%1.56%9.45%167.00%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
53
Neutral
$2.26B4.5271.62%4.80%-1.69%-61.89%
45
Neutral
$91.58M-3.11
41
Neutral
$13.24M0.07-8.12%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SRXH
SRx Health Solutions
0.18
-1.95
-91.69%
GRFS
Grifols SA
8.89
1.72
23.99%
SCLX
Scilex Holding Company
11.34
-4.38
-27.86%
OGN
Organon
8.76
-6.59
-42.91%
CTOR
Citius Oncology
1.05
-0.22
-17.32%
MIRA
MIRA Pharmaceuticals, Inc.
1.46
0.25
20.66%

SRx Health Solutions Corporate Events

Delistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
SRx Health Wins NYSE American Extension for Compliance Plan
Neutral
Jan 8, 2026

On January 6, 2026, SRx Health Solutions, Inc., listed on the NYSE American under the symbol SRXH, received notice that the exchange had accepted its plan to regain compliance with continued listing standards related to minimum stockholders’ equity. The exchange had previously notified the company on October 14, 2025, that it was out of compliance after reporting negative stockholders’ equity of $45.9 million as of June 30, 2025 and losses in three of its four most recent fiscal years ended December 31, 2024. With the NYSE American’s acceptance of its remediation plan, SRx Health Solutions’ listing will continue under an extension through July 14, 2026, during which the company must execute its plan to restore equity levels, provide quarterly progress updates to the exchange, and seek to regain full compliance, a move that stabilizes its immediate listing status but underscores ongoing financial pressures and execution risk for shareholders and other stakeholders.

The most recent analyst rating on (SRXH) stock is a Hold with a $0.19 price target. To see the full list of analyst forecasts on SRx Health Solutions stock, see the SRXH Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings
SRx Health Holders Approve AI-Crypto Pivot and Leadership Shift
Positive
Dec 23, 2025

On December 17, 2025, stockholders of SRx Health Solutions, Inc. holding 45.42% of the company’s voting power approved by written consent a series of transformative corporate actions as of the December 12, 2025 record date, including a proposed name and ticker change to EMJX, Inc. and “EMJX” on the NYSE American, contingent on closing a transaction to acquire EMJ Crypto Technologies Inc., CCC Crypto Corp., and all associated AI-based intellectual property assets. Shareholders also authorized the potential issuance of 20% or more of the company’s outstanding common stock, possibly below market value, to fund the crypto and AI-focused acquisition and approved the appointment of Eric M. Jackson, PhD as chief executive officer and board chairman in connection with the deal, signaling a strategic pivot toward AI-driven crypto trading technologies. In addition, investors approved an increase in shares available under the 2019 Incentive Award Plan to 10% of outstanding shares (with a minimum threshold), elected four directors to serve until the 2026 annual meeting, endorsed executive compensation on an advisory basis, and ratified Davidson and Company LLP as the independent auditor for 2025, with all measures passing without opposition and an information statement to be filed with the SEC before the transaction is consummated.

The most recent analyst rating on (SRXH) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on SRx Health Solutions stock, see the SRXH Stock Forecast page.

Business Operations and StrategyM&A Transactions
SRx Health Solutions Acquires EMJ Crypto Technologies
Positive
Dec 16, 2025

On December 16, 2025, SRx Health Solutions, Inc. announced a definitive agreement to acquire EMJ Crypto Technologies Inc. and CCC Crypto Corp. for approximately $55 million in an all-stock transaction. This strategic move aims to establish a next-generation digital asset treasury operating system, leveraging EMJX’s platform that uses quantitative models and AI for multi-asset digital treasury management. The transaction, subject to customary closing conditions and shareholder approval, is expected to close in the first quarter of 2026. Upon completion, Eric M. Jackson, founder and CEO of EMJX, will lead the combined company as CEO and Chairman, marking a significant shift towards disciplined risk management and capital allocation in digital asset treasuries.

The most recent analyst rating on (SRXH) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on SRx Health Solutions stock, see the SRXH Stock Forecast page.

Private Placements and FinancingRegulatory Filings and Compliance
SRx Health Solutions Increases Authorized Common Shares
Positive
Nov 20, 2025

On November 19, 2025, SRx Health Solutions, Inc. filed a Certificate of Amendment to its Certificate of Incorporation, following approval from stockholders on October 8, 2025. This amendment significantly increases the number of authorized shares of the company’s common stock from 200 million to 5 billion, while the number of authorized preferred shares remains unchanged at 4 million. The amendment’s implementation potentially enhances the company’s capital structure, offering greater flexibility for future financing and growth opportunities.

The most recent analyst rating on (SRXH) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on SRx Health Solutions stock, see the SRXH Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
SRx Health Solutions Appoints Sammy Dorf to Board
Positive
Nov 10, 2025

SRx Health Solutions, Inc., a company listed on the NYSE American under the ticker SRXH, announced on November 10, 2025, the appointment of Sammy Dorf to its Board of Directors. Sammy Dorf, known for his leadership in the cannabis and capital markets, brings a wealth of experience from his previous roles, including Executive Chairman of Flora Growth Corp. and Co-Founder of Verano Holdings. His expertise in strategic development and growth initiatives is expected to enhance SRx Health Solutions’ market positioning and operational strategies.

The most recent analyst rating on (SRXH) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on SRx Health Solutions stock, see the SRXH Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
SRx Health Solutions Completes Private Placement for $15.23M
Positive
Oct 31, 2025

SRx Health Solutions, Inc. entered into a Securities Purchase Agreement on October 27, 2025, with accredited investors to issue Series A convertible preferred stock and accompanying warrants. On October 31, 2025, the company completed a private placement, selling 19,035 shares of Series A Preferred Stock and 54,527,811 warrants for approximately $15.23 million. This move is part of a broader strategy to strengthen its financial position, with implications for increased flexibility in its capital structure and potential impacts on shareholder value.

The most recent analyst rating on (SRXH) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on SRx Health Solutions stock, see the SRXH Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
SRx Health Solutions Faces NYSE Compliance Notice
Negative
Oct 17, 2025

On October 14, 2025, SRx Health Solutions, Inc. received a notice from NYSE American LLC indicating non-compliance with the listing standards due to insufficient stockholders’ equity, as required by Section 1003(a)(ii) of the NYSE American Company Guide. The notice does not immediately affect the company’s stock trading, but SRx Health must submit a compliance plan by November 13, 2025, to avoid potential delisting. The company is actively working on regaining compliance by July 14, 2026, and the notice does not impact its business operations or SEC reporting requirements.

The most recent analyst rating on (SRXH) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on SRx Health Solutions stock, see the SRXH Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 06, 2026