Custom Health Holdings Inc (TSX:CHLT) reported second-quarter revenue of US$7.4 million, up 70% from a year earlier, as the company advances its medication management platform with two pending acquisitions.
The Kelowna, British Columbia-based company said the higher revenue came from its purchase of InnovativeRx, which closed on June 5, 2026. Combined revenue for both companies over the same three months was US$14.3 million.
Gross profit rose 43% to US$2.9 million. Gross margin was 39.3%, down from 46.7% a year earlier. The company's adjusted EBITDA loss grew to US$3.3 million from US$3 million a year earlier.
After the quarter ended, Custom Health signed a binding letter of intent to buy Evergreen Pharmacy LLC, a specialty pharmacy in Wisconsin. Evergreen brings in more than US$78 million a year in revenue. The deal is meant to grow Custom Health's specialty pharmacy business in the US.
According to Custom Health, Evergreen had unaudited revenue of about US$78.8 million and normalized EBITDA of US$0.6 million in fiscal 2025, and was profitable on both an EBITDA and net income basis. The deal is expected to close in the third quarter of 2026, pending standard conditions.
Custom Health also signed a binding agreement to buy Spencer Health Solutions. This will bring the spencer smart in-home medication dispensing and monitoring platform fully under Custom Health's control. The company will pay up to US$1.5 million in cash plus pre-funded warrants worth about US$23.5 million. The deal is expected to close around September 1, 2026, pending regulatory approval.
If both deals close, Custom Health expects to pass US$130 million in yearly revenue by the end of 2026, and to turn EBITDA-positive in 2027.
CEO Shane Bishop said the second quarter marked an important period for the company as it continued building the infrastructure for medication management at home, adding that the company completed its Toronto Stock Exchange listing and advanced the integration of InnovativeRx during the period.
“Our proposed acquisition of Evergreen Pharmacy is expected to further expand our pharmacy network, while our agreement to acquire Spencer Health Solutions is expected to bring an important in-home technology capability fully in-house,” Bishop told shareholders.
“Together, these steps strengthen the alignment across technology, pharmacy and clinical care that is central to how Custom Health supports patients at home."