Healthy Extracts Inc. (OTCQB:HYEX) reported third‑quarter 2025 revenue of $918,000, a 23% year‑over‑year increase from $745,000 in Q3 2024. The nine‑month period ended September 30, 2025 generated $2.8 million in revenue, up 20% from $2.34 million in the prior year, underscoring the company’s ability to scale its plant‑based nutraceutical offerings.
Gross profit fell sharply to $447,000 in Q3 2025, a 26% decline from $602,460 in Q3 2024, and the gross margin contracted to 48.7% from 80.9%. The loss in margin is largely attributable to higher supply‑chain and raw‑material costs, which have risen sharply in the wake of new import tariffs and transportation bottlenecks. Operating expenses surged 75% to $907,000, driven by one‑time merger and stock‑for‑services costs associated with the Gummy USA acquisition that closed on October 1, 2025.
Revenue growth was powered by a 98% increase in Amazon “Subscribe & Save” customers and a 58% rise in direct‑to‑consumer subscribers, reflecting the company’s successful expansion of its subscription channels. New product launches in sleep and gut‑health categories, coupled with the integration of Gummy USA’s manufacturing capacity, added further upside. The company also leveraged its proprietary delivery technologies—Gelteq gel‑packs and functional drinking straws—to differentiate its product line and capture new market share.
Despite the top‑line gains, Healthy Extracts reported a net loss of $395,000 for Q3 2025, a swing from a $354,000 net income in Q3 2024. The loss is driven by the margin compression and the significant operating‑expense increase, which together eroded profitability. Management highlighted that the company is investing heavily in scaling its distribution network and integrating the Gummy USA acquisition, which will require continued capital outlays in the near term.
CEO Don Swanson emphasized that the record revenue “demonstrates the strength of our growth strategy across direct‑to‑consumer and retail channels.” He also noted that the company is “focused on driving future growth by launching additional products across new categories during the final quarter of 2025 and into next year.” However, the company’s SEC filing disclosed substantial doubt about its ability to continue as a going concern within one year, underscoring the urgency of turning the margin story around.
The earnings report signals a mixed outlook: while revenue momentum and subscription growth are encouraging, the sharp decline in gross margin and the net loss raise concerns about the company’s cost structure and cash‑flow sustainability. The going‑concern warning suggests that Healthy Extracts must accelerate margin recovery and manage operating expenses to maintain financial viability, even as it pursues strategic acquisitions and product innovation.
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