Hydreight Posts Record Q2 Revenue Of $28 Million

Hydreight Technologies Inc. reported record second-quarter revenue of $28.0 million, marking a 421% increase from $5.4 million in the same period last year, the company announced Monday. The Vancouver and Las Vegas-based digital health infrastructure platform, which trades on the TSX Venture Exchange, OTCQB and Frankfurt Stock Exchange, said the results represented its strongest quarterly performance to date.

Net income for the quarter reached $2.5 million, up sharply from $0.05 million in the second quarter of 2025. Adjusted EBITDA came in at $3.2 million, compared with $0.2 million a year earlier. Gross profit rose 182% to $5.4 million from $1.9 million in the prior-year period. The company said revenue also grew approximately 12.5% on a sequential basis compared with the first quarter of 2026, while gross profit increased roughly 7% quarter-over-quarter, with net income and adjusted EBITDA holding relatively steady against Q1 levels.

For the six months ended June 30, 2026, Hydreight generated $53.0 million in revenue, a 434% increase from $9.9 million in the first half of 2025. Six-month net income totaled $5.1 million, and adjusted EBITDA for the period reached approximately $6.5 million. The company reported working capital of $35.0 million and cash of $20.0 million as of June 30, 2026. All figures were reported in Canadian dollars.

Company executives attributed the growth primarily to continued expansion of the VSDHOne platform and associated order flow, along with organic growth from new and renewing business partners and an expanded range of service offerings. Pharmacy product sales climbed to approximately $26.2 million in the quarter, up from $4.5 million a year earlier. The virtual healthcare and direct-to-consumer segment generated roughly $22.8 million in the quarter, compared with $0.7 million in Q2 2025, and $42.7 million over the first six months of 2026 versus $1.0 million in the same period last year.

The company noted that gross margin percentage declined compared with the prior year, largely because pharmacy sales made up a larger share of total revenue and because of pricing concessions tied to initial transactions with several new compounding pharmacy partners. Hydreight said it generally targets about a 20% margin on pharmacy sales before discounts and incentives, though margins vary depending on product type, manufacturer and promotional timing.

The results arrive amid broader momentum in the telehealth and direct-to-consumer pharmacy sector, which has seen accelerated adoption since the pandemic reshaped how patients access prescriptions and remote care. Platforms that connect licensed providers, pharmacies and independent practitioners have increasingly positioned themselves as infrastructure providers rather than direct care companies, aiming to capture transaction volume across a fragmented market of wellness and specialty medication services.

Investors have shown growing interest in companies that can demonstrate both rapid top-line growth and a path to sustained profitability, a combination that has been harder to find among early-stage digital health firms still burning cash. Compounding pharmacy partnerships, in particular, have become a focal point for platforms seeking to expand product breadth, though such arrangements often come with thinner initial margins as new supplier relationships mature.

Hydreight said its board and management continue to focus on scaling the VSDHOne platform while managing margin pressures associated with its expanding pharmacy network. Additional details on the company’s second-quarter results, including its full financial statements, are expected to be filed with securities regulators.

The announcement was first reported in a press release published via PR Newswire.