Custom Health Reports 70% Revenue Growth Amid Strategic Acquisitions
Custom Health Holdings Inc (CHLT.TO) reported a second-quarter revenue of US$7.4 million, representing a 70% year-over-year increase driven by the acquisition of InnovativeRx in June 2026. The combined quarterly revenue for Custom Health and InnovativeRx reached US$14.3 million, with gross profit rising to US$2.9 million despite a decline in gross margin from 46.7% to 39.3%. However, the company's adjusted EBITDA loss widened slightly to US$3.3 million. Custom Health has also signed agreements for two additional acquisitions: Evergreen Pharmacy LLC and Spencer Health Solutions. The acquisition of Evergreen is expected to add over US$78 million in annual revenue and close by Q3 2026, while the purchase of Spencer will bring its medication dispensing platform under Custom's control and is set to finalize around September 1, 2026. If both deals proceed as planned, the company anticipates surpassing a US$130 million annual revenue run rate by year-end and achieving EBITDA positivity in 2027.
Topics: acquisition pharmacy_deals revenue_growth