Strategic Partnership Accelerates Integration of Artificial Intelligence Across Operations

CINCINNATI--(BUSINESS WIRE)--HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today that its net sales for the second quarter ended June 30, 2026, totaled $6.1 million, a 61% decrease from the quarter ended June 30, 2025. In the first half of 2025, the U.S. Food and Drug Administration ended a nationwide program that allowed pharmacies, including HealthWarehouse.com, to offer compounded GLP-1 prescription medications during a shortfall in supply of proprietary brand-name versions.

The Company reported a net loss of $414,000 and Adjusted EBITDA of negative $84,000 for the second quarter this year, versus net income of $228,000 and Adjusted EBITDA of $609,000, respectively, in the second quarter last year.

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, “Our revenue continued to reflect the impact of the FDA’s curtailment of production and sales of compounded GLP-1 medications in early 2025, which had met a shortfall in supply while brand-name manufacturers increased production capacity to meet strong demand. At the same time, we continue to expand our offerings through new business units and strategic partnerships that are helping to offset this impact. Our scalable platform, combined with world-class customer service, positions us to capitalize on these growth opportunities and continue delivering value to our 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. Through its strategic partnership with healthwords.ai, one of the world’s leading healthcare focused artificial intelligence companies, the Company has begun to integrate artificial intelligence tools into its operating software to improve efficiency and scalability.

“Our partnership with healthwords.ai is already beginning to deliver meaningful benefits by leveraging artificial intelligence to streamline operations, improve efficiency, and identify new opportunities across our business. We are excited about the next phase of the partnership, which will focus on expanding the practical applications of AI throughout the Company and on further strengthening our operations,” said Peters. “We believe AI can be a powerful tool to help us operate more efficiently and better serve our customers. At the same time, technology will never replace the expertise, creativity, judgment, and commitment of our employees. Our people are at the heart of the world-class service that differentiates HealthWarehouse.com. We see AI as an opportunity to empower our team by reducing manual work, enabling employees to focus on higher-value activities and innovation, and by helping us build a more efficient, agile, and customer-focused company that delivers long-term value to our customers, partners, and shareholders.”

Overview of Results for Three and Six Months Ended June 30, 2026

Net Sales: Total net sales for the three and six months ended June 30, 2025, were $6.1 million and $12.5 million, respectively, decreasing by $9.6 million (61.0%) and $18.3 million (59.4%), respectively, versus the same periods in 2025.

Prescription sales were $5.5 million and $10.4 million for the three and six months ended June 30, 2026, respectively, a decrease of $10.0 million (66.4%) and $19.0 million (64.7%), respectively, compared with the same periods in 2025. The decrease in prescription sales was due to the expected reduction in compounded GLP-1 product sales this year, stemming from the FDA’s determination in February 2025 that the shortage of branded semaglutide injection products and in May 2025 that the shortage of branded tirzepetide injection products had been resolved. As a result, we could no longer provide those compounded GLP-1 products beginning in the first quarter of 2026.

Sales of over-the-counter products were $934,000 and $1.9 million for the three and six months ended June 30, 2026, respectively, increases of $409,000 (68.2%) and $791,000 (68.7%), respectively, over the same periods in 2025, primarily due to increases in website and marketplace sales resulting from an increase in advertising.

Gross Profit: Gross profit for the three and six months ended June 30, 2026, was $3.6 million and $6.7 million, respectively, representing decreases of $1.8 million and $3.1 million, respectively, compared with the same periods in 2025. The decreases were the result of lower sales, offset in part by higher margins on our direct-to-consumer and partner services prescription businesses. Gross margin percentages were 54.6% and 53.3% for the three and six months ended June 30, 2026, respectively, both of which were 21.7 percentage points higher versus prior-year periods. The improvements were primarily due to higher margins on our direct-to-consumer and partner services prescription businesses.

Operating Expenses: Selling, general and administrative expenses were $3.7 million and $7.3 million for the three and six months ended June 30, 2026, respectively, which were increases of $1.1 million (23.4%) and $1.8 million (19.7%), respectively, compared with the same periods in 2025. Expenses decreased for shipping and shipping supplies, salaries, primarily related to direct pharmacy labor, and legal expenses.

Net Income and Adjusted EBITDA: The Company reported net losses of $414,000 and $775,000 for the three and six months ended June 30, 2025, respectively, net income of $228,000 and $406,000, respectively, for the same periods in 2025.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”), as adjusted for stock-based compensation and certain non-recurring charges (“Adjusted EBITDA”), were negative $84,000 for the three months and negative $112,000 for the six months ended June 30, 2025. That compares with Adjusted EBITDA of $609,000 and $1.2 million for the three and six months ended June 30, 2025, respectively. EBITDA and Adjusted EBITDA are non-GAAP financial measures. Definitions of these non-GAAP terms and a reconciliation to GAAP measures are provided below.

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)

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 its prior filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260813375323/en/

Dan Seliga, Chief Financial Officer, (800) 748-7001

Source: HealthWarehouse.com, Inc.