Syra Health Corp.

Syra Health reported Q3 2025 revenue of $1.7 million, a decrease from $2.3 million in Q3 2024. This 25% year-over-year decline was primarily attributed to federal spending cuts impacting state and county government customer budgets. Despite the overall revenue dip, the Population Health business unit demonstrated exceptional growth, expanding 96% year-over-year to $1,280,011 from $652,298 in Q3 2024. This growth was driven by successful upselling of solutions to state health departments and private sector customers. Conversely, revenue from the Healthcare Workforce business unit declined to $407,960, a planned reduction resulting from the company's strategic review to prioritize higher-margin contracts and achieve a more balanced revenue mix.

The company significantly improved its profitability and operational efficiency during the quarter. Gross margin expanded by 300 basis points to 33% in Q3 2025 from 30% in the prior year, a direct result of focusing on higher-margin business units and deprioritizing lower-margin healthcare workforce contracts. Net loss decreased substantially by 46% year-over-year, narrowing to ($225,902) from ($417,535). Consequently, earnings per share improved to ($0.02) from ($0.06). Total operating expenses saw a considerable 28% reduction, falling to $786,712 from $1,097,208, driven by disciplined cost management. Adjusted EBITDA also improved to ($218,601) from ($389,728) in Q3 2024.

Syra Health executed several strategic initiatives to streamline operations and enhance market position. Workforce optimization efforts led to a 43% reduction in salaries and benefits to $336,390, alongside a 12% decrease in Selling, General, and Administrative (SG&A) expenses to $252,384, partly due to successful lease renegotiations. Research and Development expenses were down 98% to $816. A major commercial milestone was achieved with SyraBot, their HIPAA and ADA-compliant chatbot, going live with a managed care organization serving 400,000 members, demonstrating strong product-market fit and deployment scalability for their digital health solutions.

Interim CEO Priya Prasad acknowledged federal spending cuts as near-term headwinds but emphasized the meaningful progress on fundamentals. The company's strategy refinement to focus on highly successful Population Health solutions is serving it well, with the sales pipeline continuing to grow through targeted upselling and expansion into the private sector. Management expressed confidence in the company's positioning to capitalize on market momentum and achieve profitability by maintaining cost discipline, anticipating improved clarity in federal budgets. As of September 30, 2025, Syra Health held $2.0 million in cash and no long-term debt, providing a stable financial foundation.