Custom Health Holdings Inc (TSX:CHLT) reported first-quarter revenue of US$4.3 million, up 5% from a year earlier, as the company pointed to early gains from its acquisition of InnovativeRx as validation of its growth strategy.
The healthcare technology company, formerly known as Queue Ventures Ltd, said gross profit rose 14% to US$2.1 million in the quarter ended March 31, 2026, from US$1.8 million a year earlier, with gross margin improving to 48.6% from 44.8%.
CEO Shane Bishop said Custom Health is now operating at a “fundamentally different scale” than a year ago, pointing to the combined revenue from core operations and the InnovativeRx acquisition as evidence of the company's tech-enabled platform gaining traction across North American healthcare systems.
“This early success validates our acquisition strategy and positions us perfectly to drive sustained growth and accelerate our North American footprint,” Bishop told shareholders. “With our successful TSX listing, expanded pharmacy network, strengthened capital position, and continued investment in AI-enabled clinical workflows, we are entering our next phase of growth from a position of exceptional strength.”
InnovativeRx, acquired last month for approximately US$16.55 million in cash and equity, generated fiscal second-quarter revenue of US$8.6 million, up 10.5% from US$7.8 million a year earlier, with positive adjusted EBITDA of US$0.6 million. The acquisition is expected to add approximately US$34.3 million in annualized revenue and US$2.53 million in annualized EBITDA to Custom Health's financial profile, based on preliminary first-quarter figures.
The company reported an adjusted EBITDA loss of US$5.3 million compared to US$3 million in the same period last year. Net loss from continuing operations was US$8.5 million, compared with US$7.3 million a year earlier.
CFO Jason Nalewany highlighted a corporate capital structure supported by up to US$50 million in newly secured credit facilities and notes, with US$35 million currently undrawn.
The financing arrangements include senior secured convertible notes with Funicular Funds LP for up to US$20 million, a promissory note purchase agreement with YA II PN Ltd for up to US$15 million, an unsecured convertible credit facility of up to US$15 million from 102114598 Saskatchewan Ltd, and a C$10 million senior secured credit facility with Fair Capital Partners Inc.
Custom Health also announced leadership additions following its public listing, naming Robert Guzman as chief compliance and regulatory officer and Brent Herman as executive vice president, corporate development. Guzman previously held executive roles at Getinge, CR Bard and Chimerix. Herman is the founder of InnovativeRx and a former corporate securities legal partner.