10-Q: Healthy Extracts Reports Q1 2026 Results, Revenue Up 73%

Healthy Extracts Inc. announced its first quarter 2026 financial results, showcasing a significant 73% increase in revenue to $1.61 million, alongside improvements in gross profit margin.

Summary

• Healthy Extracts Inc. reported first quarter 2026 revenue of $1,610,744, a 73% increase from $931,280 in the same period of 2025.
• Cost of revenue increased by 23% to $622,043, leading to a gross profit of $988,701, up 61% from the prior year.
• Gross profit margin improved to 39% from 54% in the prior year's quarter.
• Operating expenses, primarily general and administrative, rose significantly by 147% to $1,317,403, driven by increased salaries, wages, and stock-based compensation.
• The company reported a net loss of $200,590 for the quarter, an improvement from a net loss of $398,860 in Q1 2025.
• Cash on hand increased to $164,385 as of March 31, 2026.
• The company continues to face going concern issues, with an accumulated deficit of $20,322,053 as of March 31, 2026, and plans to seek further financing.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this filing as cautiously optimistic due to strong revenue growth, but tempered by significant increases in operating expenses and persistent going concern issues.

Positives

• Revenue increased by 73% to $1,610,744 in Q1 2026 compared to Q1 2025.
• Gross profit increased by 61% to $988,701.
• Gross profit margin improved significantly from 54% to 39%.
• Net loss narrowed to $200,590 from $398,860 in the prior year's quarter.
• Cash balance increased by $17,450 to $164,385.
• Positive net cash from operating activities of $105,970 for the quarter.

Negatives

• General and administrative expenses increased by 147% to $1,317,403.
• The company continues to have substantial accumulated deficit of $20,322,053.
• The company's auditors report reflects doubt about its ability to continue as a going concern.
• The company will likely require additional financing, which may be dilutive to stockholders.

Risks

• The company's ability to continue as a going concern is dependent on raising additional capital.
• Failure to secure necessary financing could lead to business failure and loss of investment.
• Financing obtained may be dilutive to existing stockholders.
• The company's products have not been evaluated by the FDA or similar regulatory bodies.
• The company operates in a competitive market with potential for loss of significant customers or suppliers.
• Risks associated with international, national, and local economic conditions.
• Potential for adverse publicity and changes in government regulations.

Future Outlook

The company expects revenue growth to increase as its direct consumer sales and marketing efforts continue to perform. Management plans to continue seeking funding through debt and equity financing to mitigate conditions that raise substantial doubt about the entity's ability to continue as a going concern.

Management Comments

• Since our acquisitions of Bergamet and UBN, we have focused on increasing revenue, maintaining our margins, and generating positive cash flow from our existing operations.
• In October 2025, we acquired GummyUSA, which accelerated our revenue growth and increased our gross profit.
• We are a platform for acquiring, developing, patenting, marketing, and distributing plant-based nutraceuticals.
• Our mission is to acquire or create products with health and performance benefits that have mass consumer appeal.
• GummyUSA added contract manufacturing and formulation services to our offering, and we now operate at the intersection of nutraceutical manufacturing, drug delivery innovation, and precision formulation technologies.
• While we had positive net cash from operations for the three months ended March 31, 2026 and 2025, we have both short and medium-term cash needs. We anticipate that these needs will be satisfied through increased revenues and the issuance of debt or the sale of our securities until such time as our cash flows from operations will consistently satisfy our cash flow needs.

Industry Context

StockSavvy.ai notes that Healthy Extracts Inc. operates in the growing nutraceuticals market, a sector characterized by increasing consumer demand for plant-based and health-focused products. The company's strategy of acquiring and developing brands like BergaMet, UBN, and Gummy USA aligns with industry trends towards specialized health solutions and integrated manufacturing capabilities.

Comparison to Industry Standards

• Healthy Extracts' revenue growth of 73% in Q1 2026 is strong, but direct comparison to industry benchmarks is difficult without specific segment data for competitors like Nature's Bounty or GNC, which operate at a larger scale.
• The improvement in gross profit margin from 54% to 39% is a positive operational development, though it still lags behind more established nutraceutical companies that may benefit from greater economies of scale.
• The significant increase in general and administrative expenses (147%) warrants close monitoring, as it outpaces revenue growth and could indicate inefficiencies or significant investment in growth initiatives that need to demonstrate a clear return.
• The company's net loss, while narrowed, indicates that profitability remains a challenge, a common theme for smaller companies in the highly competitive nutraceutical space aiming for rapid expansion.

Legal Proceedings

• In the ordinary course of business, the company is from time to time involved in various pending or threatened legal actions. Management believes these matters are not expected to have a material adverse effect on its financial position or results of operations.

Related Party Transactions

• Accrued interest payable - related party was $96,257 as of March 31, 2026, compared to $76,401 as of December 31, 2025.
• Notes payable - related party - current was $683,711 as of March 31, 2026, compared to $601,250 as of December 31, 2025.
• Notes payable - related party - non-current was $137,752 as of March 31, 2026, compared to $156,835 as of December 31, 2025.
• Donald Swanson was granted anti-dilution rights to maintain his ownership percentage in the event of option and warrant exercises in relation to the Gummy USA acquisition.

Stakeholder Impact

• Shareholders: Potential dilution from future equity financing; improved revenue may lead to future value appreciation if profitability is achieved.
• Creditors: The company's going concern status and need for financing may impact the security of existing debt.
• Employees: Increased salaries and wages contributed to higher operating expenses; stock-based compensation is also a factor.
• Suppliers: Increased cost of revenue suggests higher demand or input costs.
• Customers: Continued availability of health supplements and manufacturing services.

Next Steps

• Continue to focus on increasing revenue and maintaining margins.
• Seek additional funding through debt and equity financing.
• Continue direct consumer sales and marketing efforts.
• Integrate contract manufacturing and formulation services from Gummy USA.
• Monitor and manage operating expenses, particularly general and administrative costs.

Key Dates

Recommendation

The strong revenue growth is a positive indicator, but the significant increase in operating expenses, coupled with the ongoing going concern issues and the need for further dilutive financing, warrants a cautious 'hold' recommendation. Investors should monitor expense management and the company's ability to secure sustainable funding and achieve profitability.

Keywords

Healthy Extracts, 10-Q, Quarterly Report, Nutraceuticals, Health Supplements, Revenue Growth, Financial Results, Going Concern, SEC Filing, Gummy USA