HealthWarehouse.com Reports Results for First Quarter 2026

New Partnerships and Technology Investments Support Next Phase of Growth

CINCINNATI--(BUSINESS WIRE)--HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today that its net sales for the first quarter ended March 31, 2026, totaled $6.3 million, a 58% decrease from the quarter ended March 31, 2025, as the U.S. Food and Drug Administration ended a nationwide shortage that allowed pharmacies to make and offer compounded GLP-1 prescription medications during a shortfall in supply of brand-name versions. The Company reported a net loss of $361,000 and Adjusted EBITDA of negative $28,000 for the quarter.

HealthWarehouse.com, a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (NABP). HealthWarehouse.com provides a platform focused on increasing access to and reducing costs of healthcare products for consumers and business partners nationwide.

Joseph Peters, President and CEO, commented, “As anticipated, our revenue reflects the effect of the FDA’s curtailment of compounded GLP-1 medications in early 2025 as brand-name manufacturers increased production to meet strong demand. At the same time, we are expanding our offerings through new business units and strategic partnerships that are already helping fill the gap. Our scalable platform, combined with world-class customer service, positions us to capitalize on these growth opportunities and continue delivering value to both partners and customers.”

HealthWarehouse.com continues to invest in proprietary technology to remain at the forefront of new developments and offerings in the world of healthcare, focusing on customer experience, operational efficiency, and scalability. The Company recently announced a new strategic partnership with healthwords.ai, one of the world’s leading healthcare focused artificial intelligence companies.

“Our partnership with healthwords.ai represents a massive step for HealthWarehouse.com, combining financial upside with the ability to leverage AI to streamline operations, enhance scalability, and accelerate growth,” said Peters. “While AI will supplement how we work, the expertise, creativity, and commitment of our employees remain essential for us to deliver the world-class service that sets us apart. We see AI as a tool to empower our team, enabling them to focus on higher-value work and innovation that drive long-term value for our customers and shareholders.”

2026 First Quarter Overview:

Net Sales:

Net sales for the three months ended March 31, 2026, decreased to $6.3 million from $15.0 million for the three months ended March 31, 2025, a decrease of $8.7 million or 57.8%. Prescription sales were $5.3 million for the first quarter, down $9.1 million or 62.8% from $14.4 million for the same period last year. The decrease was primarily due to a decline in our sales for the partner services (B2B) prescription business, which were down $8.8 million or 71.9% from the first quarter of 2025 due to the expected reduction in our compounded GLP-1 product sales. First-quarter over-the-counter net sales of $934,000 this year increased by $357,000 or 61.9% from $577,000 in the same period last year primarily due to increases in marketplace sales, offset by a reduction in sales for the partner services over-the-counter business (B2B).

Gross Profit:

Gross profit for the first quarter of 2026 was $3.3 million, a $1.2 million or 27.3% decrease versus the same period in 2025, as B2B prescription sales declined and sales of over-the-counter products increased. First-quarter gross margin improved from 30.2% to 52.1% year-over-year as margins in the B2B prescription and B2C prescription businesses increased, offset by lower margins in the B2C over-the-counter businesses.

Operating Expenses:

Selling, general and administrative expenses totaled $3.6 million for the first quarter of 2026, a decrease of $664,000, or 15.5% compared with $4.3 million for first quarter of 2025. Expense decreases included a $712,000 decrease in shipping and shipping supplies expenses due to decreased sales, and a $99,000 decrease in salaries and related expenses. These decreases were offset by an increase of $111,000 in advertising and marketing expenses.

Net Income (Loss) and Adjusted EBITDA: Net loss for the first quarter of 2026 was $361,000, a $539,000 decline from net income of $178,000 in the first quarter last year, primarily due to the decrease in sales of compounded GLP-1 products. Adjusted EBITDA was negative $28,000 in the first quarter of 2026, compared with positive $561,000 in the year-earlier quarter.

HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	For the Three Months Ended
	March 31,
		2025			2025
	In thousands
Net sales	$	6,347		$	15,036
Cost of sales		3,042			10,492
Gross profit		3,305			4,544
Selling, general and administrative expenses		3,617			4,281
Income (loss) from operations		(312	)		263
Interest expense		(49	)		(23	)
Income (loss) before taxes		(361	)		240
Income tax expense		-			(62	)
Net income (loss)		(361	)		178
Preferred stock:
Series B convertible contractual dividends		(86	)		(86	)
Net income (loss) attributable to common stockholders	$	(447	)	$	92
Per share data:
Net income (loss) - basic	$	(0.01	)	$	0.00
Net income (loss) - diluted	$	(0.01	)	$	0.00
Series B convertible contractual dividends	$	(0.01	)	$	0.00
Net income (loss) attributable to common stockholders - basic	$	(0.01	)	$	0.00
Net income (loss) attributable to common stockholders - diluted	$	(0.01	)	$	0.00
Weighted average common shares outstanding - basic		56,917			55,887
Weighted average common shares outstanding - diluted		56,917			68,249

Use of Non-GAAP Financial Measures

HealthWarehouse.com, Inc. (the "Company") prepares its consolidated financial statements in accordance with the United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDA and Adjusted EBITDA, which are commonly used. In addition to adjusting net income or net loss to exclude interest, taxes, depreciation and amortization, including amortization of right of use lease asset, (“EBITDA”), Adjusted EBITDA also excludes stock-based compensation, and certain nonrecurring charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, Adjusted EBITDA is used internally in planning and evaluating the Company's performance. Accordingly, management believes that disclosure of this metric offers lenders and other shareholders an additional view of the Company's operations that, when coupled with GAAP results, provides a more complete understanding of the Company’s financial results.

Adjusted EBITDA should not be considered as an alternative to net income, net loss, or to net cash provided by or used in operating activities, as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating the Company's performance.

Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP)

	Three Months Ended
	March 31,
		2026			2025
	In thousands
Net income (loss)	$	(361	)	$	178
Interest expense		49			23
Income tax expense		-			62
Amortization of ROU asset		43			40
Depreciation and amortization		88			86
EBITDA (non-GAAP)		(181	)		389
Adjustments to EBITDA:
Stock-based compensation		153			172
Adjusted EBITDA	$	(28	)	$	561

About HealthWarehouse.com

HealthWarehouse.com, Inc. (OTCQB: HEWA), a technology company with a focus on healthcare e-commerce, sells and delivers prescription and over-the-counter medications to all 50 states as an Approved Digital Pharmacy through the National Association of Boards of Pharmacy (“NABP”). HealthWarehouse.com provides a platform focused on increasing access and reducing costs of healthcare products for consumers and business partners nationwide. Based in Florence, Kentucky, the Company operates America's Leading Online Pharmacy and is a pioneer in affordable healthcare. As one of the first Approved Digital Pharmacies by the National Association of Boards of Pharmacy, HealthWarehouse.com services the mission of providing affordable healthcare and incredible patient services to help Americans. Learn more at www.HealthWarehouse.com

Forward-Looking Statements

This announcement and the information incorporated by reference herein contain “forward-looking statements” as defined in federal securities laws, including but not limited to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, which statements are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those expressed in forward looking statements or in management's expectations. Important factors which could cause or contribute to actual results being materially and adversely different from those described or implied by forward looking statements include, among others, risks related to competition, management of growth, access to sufficient capital to fund our business and our growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, cyber-attacks, access to sufficient inventory, government regulation and taxation and fraud. More information about factors that potentially could affect HealthWarehouse.com's financial results is included in HealthWarehouse.com's audited Annual Reports and Quarterly Reports available at otcmarkets.com and prior filings with the Securities and Exchange Commission.