OSRH earnings analysis
What we found in OSRH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
OSR Health’s Q2 results showed a sharp revenue contraction to $315,669, down 72% year over year and 35% sequentially, although gross margin improved to approximately 27% from approximately 3% in the prior-year quarter due to the RMC consignment model. SG&A reductions narrowed the operating loss year over year, but operating cash flow remained negative at $3.42 million for the first half and cash was only $1.50 million at quarter-end. The company continues to depend on equity and convertible financing, while unremediated material weaknesses, potential dilution, Nasdaq compliance requirements, and pending litigation remain significant risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue declined sharply
- Q2 revenue declined 72% year over year to $315,669 from $1,135,517, and fell 35% sequentially from $484,057 in Q1 2026. Management attributed the year-over-year decline primarily to RMC’s shift from purchase-and-resale to a consignment model, under which only commission revenue is recognized.
- Gross profitability improved
- Gross profit increased 165% year over year to $86,605 from $32,782, lifting gross margin to approximately 27% from approximately 3%. Cost of sales fell 79% to $229,065, exceeding the 72% decline in revenue.
- Operating loss narrowed year over year
- SG&A decreased 41% year over year to $3,119,519 from $5,261,960, reducing the operating loss 42% to $3,032,915 from $5,229,177. However, the operating margin was approximately -960.9%, versus -757.6% in Q1 2026, because revenue declined sequentially.
- Per-share results remained negative
- Q2 net loss attributable to OSR Health was $848,905, or $0.02 per basic share, compared with income of $331,414, or $0.02 per share, in Q2 2025 and a loss of $0.09 per share in Q1 2026.
- Cash burn remains elevated
- Operating cash flow was negative $3,422,481 for the first half of 2026, versus negative $546,678 in the first half of 2025. No material equipment purchases were reported in the period; equipment and vehicle purchases were $0 in first-half 2026 versus $2,681 in first-half 2025.
- Woori-IO expands digital-health platform
- The company acquired Woori-IO for consideration of $10,453,116 and recognized $6,405,124 of goodwill. Woori-IO contributed $90,140 of operating loss during the first half of 2026, including $29,760 of wages and salaries.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Cash burn and near-term funding needs
- Liquidity remains a significant risk: cash and cash equivalents were $1,499,603 at June 30, 2026, while first-half operating cash flow was negative $3,422,481 and the accumulated deficit was approximately $40.95 million. Contractual borrowings of $5,212,019 were due within one year.
- Financing and dilution exposure
- The company relies on equity and convertible financing. It issued 4,875,440 shares under the ELOC for gross proceeds of $3.38 million through June 30, 2026, and the 2026 convertible note includes a 90% of market-price conversion feature if Nasdaq non-compliance is not cured by August 31, 2026, creating potential dilution.
- Unremediated control weaknesses
- Material weaknesses in liability completeness and accuracy and accounting personnel sufficiency had not been fully remediated as of June 30, 2026; management concluded disclosure controls were not effective. The filing states there were no material changes to the risk factors in the December 31, 2025 Form 10-K.
- Pending litigation exposure
- The company faces ongoing legal claims, including a civil action seeking $425,000 in brokerage fees and costs and a separate Chardan complaint for breach of contract and related causes of action. The filing states the Chardan matter remained in discovery and settlement discussions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.02
- Gross margin
- 27.4%
- Operating margin
- -960.9%
- Segment
- One operating segment; Q2 2026 revenue was $315,669 versus $1,135,517 in Q2 2025 and $484,057 in Q1 2026. RMC generated approximately 98% of first-half 2026 revenue; Woori-IO was first consolidated in Q1 2026.
What they said about what is next.
No numeric revenue or EPS guidance was provided. Management stated that, if financing efforts progress successfully, quarterly R&D expense is expected to be approximately $2.5 million-$3.0 million initially and could increase to approximately $5.0 million-$6.0 million in the future. The ELOC commitment period ends December 31, 2026.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 13, 2026
- OSR Holdings, Inc. reported a challenging Q1 2026, with net sales dropping by 36% to $484,057 compared to $761,272 in Q1 2025. Despite a significant reduction in cost of sales, expenses increased, leading to a broader…
- 10-K · March 31, 2026
- OSR Holdings positions itself as a hub‑and‑spoke global healthcare holding company operating in South Korea and Switzerland with a U.S. office, focused on advancing subsidiary drug/device programs (notably Vaximm’s oral…
- 10-Q · August 14, 2025
- OSR reported Q2 net sales of $1,135,517 (Q2 2024: $881,829) and basic income per share of $0.02 (Q2 2024: $(0.41)), showing revenue and EPS improvement year-over-year. Gross profit collapsed to $32,782 (gross margin…
- 10-Q · May 20, 2025
- OSR Holdings reported Q1 revenue of $761,272, down from $910,225 in Q1 2024, and a large net loss of $11,392,814 (basic loss per share $1.04). Operating loss widened to $(2,917,826) and was driven by a one-time increase…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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