Company: SYRA
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-022023
Chunk: 35

Company: Syra Health Corp
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 35
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Net
revenue during the nine months ended September 30, 2025 was comprised of $1,425,624 of healthcare staffing services revenue, $4,066,320
of population health revenue, and $0 of behavioral and mental health revenue, compared to net revenue during the nine months ended September
30, 2024 comprised of $4,411,683 of healthcare staffing services revenue, $1,518,329 of population health revenue, and $45,345 of behavioral
and mental health revenue, an overall revenue decrease of $483,413, or 8%. The decrease in healthcare workforce revenue was due to fewer
new customer acquisitions and lower renewal value on our FSSA (NeuroDiagnostic Institute contract in January 2025, which runs through
June 2026 and has a ceiling value of approximately $1,480,000). Population health revenues increased in 2025 due to additional services
provided to state departments and other customers. We depend heavily on state, local and county
government budgets for our revenue. In 2025, the United States federal government began pausing or terminating numerous spending programs
that potentially fund those programs and institutions that are our customers. As such, we have begun to see delays in new contract awards,
or cancellations of previous requests for proposals. These factors, and the possibility of further spending reviews and cancellations
are expected to negatively affect the quantity and time of our revenue, results of operations and cash flows in the near term.

Cost
of Services

Our
cost of services included wages and related payroll taxes, employee benefits and certain other employee-related costs of our
contract service employees while they worked on contract assignments. We incurred $3,595,352 of cost of services for the nine months
ended September 30, 2025, compared to $4,657,273 for the nine months ended September 30, 2024, a decrease of $1,061,921, or 23%. Our
gross profit was approximately 35% for the nine months ended September 30, 2025, compared to approximately 22% for the nine months
ended September 30, 2024, an increase of approximately 13%. Our cost of services decreased primarily due to a decrease in labor
costs, and decreased consulting costs associated with a change in service mix from healthcare workforce services to project-based
population health and digital health services that carry better margins. In addition, the cost of services for the nine