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Custom Health Holdings Inc
Symbol CHLT
Shares Issued 25,849,910
Close 2026-07-03 C$ 8.15
Market Cap C$ 210,676,767
Recent Sedar+ Documents

Custom Health loses $8.05-million (U.S.) in Q1

2026-07-03 14:48 ET - News Release

Mr. Shane Bishop reports

CUSTOM HEALTH DELIVERS US$51.6 MILLION PROFORMA ANNUALIZED REVENUE RUN-RATE IN Q1-2026

Custom Health Holdings Inc. (formerly, Queue Ventures Ltd.) has released its consolidated financial results for the fiscal first quarter ended March 31, 2026. A summary of the company's financial and operational results is set out below, and more detailed information is contained in the quarterly financial statements and related management discussion and analysis, which are available on the company's SEDAR+ page.

Highlights:

  • For the three months ended March 31, 2026, Custom Health achieved quarterly revenue of $4.3-million (U.S.), while InnovativeRx (as defined below) achieved record quarterly revenue of $8.6-million (U.S.), reflecting total consolidated quarterly revenue of $12.9-million (U.S.) and pro forma annualized revenue run rate of $51.6-million (U.S.)
  • Custom Health successfully completed its public listing and started trading on the Toronto Stock Exchange on June 24, 2026, under the symbol CHLT, significantly enhancing the company's capital markets access and liquidity.
  • In conjunction with the public listing, Custom Health received $9.6-million (U.S.) pursuant to the conversion of the subscription receipts issued in connection with the brokered private placement completed in connection with the arrangement (as defined below). In addition, Custom Health strengthened its balance sheet with up to $50-million (U.S.) in newly secured financing facilities. The company currently has over $35-million (U.S.) in undrawn credit facilities, providing substantial capital to support future acquisitions and long-term growth.

Shane Bishop, chief executive officer of Custom Health, commented: "Custom Health is now operating at a fundamentally different scale than even a year ago. The combined revenue generated from our core operations and the InnovativeRx acquisition reflects the successful model of our tech-enabled platform across North American health care systems. Even prior to closing the acquisition, we increased InnovativeRx's revenue demonstrating that our model is working. By integrating acquired pharmacies onto our proprietary AdhereNett platform, we are able to rapidly grow patient volumes and accelerate revenue growth. This early success validates our acquisition strategy and positions us perfectly to drive sustained growth and accelerate our North American footprint."

Mr. Bishop added: "Our strategy has always been focused on building the health care infrastructure of the future. With our successful TSX listing, expanded pharmacy network, strengthened capital position and continued investment in AI-enabled [artificial intelligence] clinical workflows, we are entering our next phase of growth from a position of exceptional strength. We remain focused on disciplined execution, delivering measurable outcomes for patients and partners, and creating long-term value for our shareholders."

Jason Nalewany, chief financial officer of Custom Health, commented: "This quarter reflects continued progress in strengthening the company's financial foundation as we scale a larger, more diversified business. Our priority remains disciplined capital allocation, and, with a robust corporate capital structure supported by up to $50-million (U.S.) in newly secured credit facilities and notes with $35-million (U.S.) undrawn, Custom Health is well positioned to execute on our long-term growth strategy as we move past these Q1 milestones. We are thankful for our funding partners including Funicular, Yorkville and FairCap for believing in Custom Health's ability to revolutionize health care delivery through innovative, technology-driven solutions."

Custom Health -- fiscal first quarter 2026 financial highlights

Significant financial highlights for the company's continuing operations during the three months ended March 31, 2026, included:

  • Custom Health achieved quarterly revenue from continuing operations of $4.3-million (U.S.) in Q1 2026, an increase of 5 per cent compared with revenue of $4.1-million (U.S.) generated in Q1 2025.
  • Custom Health achieved gross profit of $2.1-million (U.S.) during Q1 2026, an increase of 14 per cent compared with $1.8-million (U.S.) in Q1 2025. The increase is primarily due to an increase in gross margin percentage and higher revenues in the quarter.
  • Custom Health achieved gross margin of 48.6 per cent during Q1 2026, compared with 44.8 per cent in Q1 2025.
  • During Q1 2026, Custom Health reported an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $5.3-million (U.S.), compared with an adjusted EBITDA loss of $3-million (U.S.) in Q1 2025.
  • During Q1 2026, the company's IFRS (international financial reporting standards) net loss from continuing operations was $8.5-million (U.S.), compared with a net loss of $7.3-million (U.S.) for the previous year.

InnovativeRx -- fiscal second quarter 2026 financial highlights

Significant financial highlights for InnovativeRx's continuing operations during the three months ended March 31, 2026, included:

  • InnovativeRx generated revenue of $8.6-million (U.S.) in Q2 2026, an increase of 10.5 per cent compared with $7.8-million (U.S.) in fiscal Q2 2025.
  • During fiscal Q2 2026, InnovativeRx reported positive adjusted EBITDA of $600,000 (U.S.), compared with an adjusted EBITDA of $400,000 (U.S.) in Q2 2025.

Financial results for InnovativeRx are based upon unaudited internal management prepared financial figures.

Events subsequent to March 31, 2026

Significant business and operational highlights for the company subsequent to March 31, 2026, included:

  • Receipt of conditional approval for TSX listing: On April 9, 2026, the company (then Queue Ventures) announced that it obtained conditional approval from the TSX to list its common shares following the completion of its statutory plan of arrangement transaction with Custom Health Inc. (Custom Delaware).
  • Overwhelming shareholder approval for the arrangement: On May 1, 2026, and May 7, 2026, respectively, the company (then Queue Ventures) announced the voting results from the special meeting shareholders of the company and special meeting of stockholders of Custom Delaware held on April 30, 2026, and May 6, 2026, respectively. Custom Health shareholders and Custom Delaware stockholders each voted overwhelmingly in favour of the resolution to approve the arrangement.
  • Supreme Court approval and final order for plan of arrangement: On May 13, 2026, the company (then Queue Ventures) announced that it has been granted a final order from the British Columbia Supreme Court approving the arrangement.
  • Appointment of executive leadership and board of directors and shareholder approval: On May 14, 2026, Custom Health announced the strategic appointment of Jason Nalewany as chief financial officer to oversee the company's financial strategy, capital allocation and capital markets activities as a public issuer. The company also announced its proposed postarrangement board of directors, consisting of experienced leaders across health care delivery, technology innovation, governance and capital markets.
  • Strategic acquisition of InnovativeRx operating subsidiaries: On June 3, 2026, immediately prior to the completion of the arrangement, Custom Delaware completed its acquisition of substantially all operating assets of InnovativeRx U.S. Holdings Inc. for a total transaction value of approximately $16.55-million (U.S.) in cash and equity. The acquisition expands Custom Health's operational footprint across Indiana and Ohio, strengthening its care model for chronic and complex patient populations. InnovativeRx is an existing operational partner already utilizing Custom Health's proprietary AdhereNett platform, which ensures workflow continuity and accelerated integration. Financially, the transaction is expected to add approximately $34.3-million (U.S.) in annualized revenue and $2.53-million (U.S.) in annualized EBITDA to the company's financial profile based on preliminary Q1 2026 financials.
  • Completion of plan of arrangement and name change: On June 5, 2026, Custom Health announced the successful completion of the arrangement. Under the terms of the arrangement, the company acquired 100 per cent of the issued and outstanding common stock of Custom Delaware in exchange for the issuance of, inter alia, approximately 22.1 million common shares of the company. In connection with the closing, the company officially changed its name from Queue Ventures Ltd. to Custom Health Holdings Inc.
  • Commencement of trading on the TSX: On June 22, 2026, Custom Health announced that it received final approval to list its common shares on the TSX under the symbol CHLT, with trading commencing at market open on June 24, 2026. This milestone significantly strengthening Custom Health's capital markets presence, enhancing liquidity and supporting its long-term corporate trajectory.
  • Execution of comprehensive corporate financing arrangements: In connection with its public listing, Custom Health announced on June 22, 2026, that it entered into several strategic financing agreements to support its long-term operations. The capital structure additions include senior secured convertible notes with Funicular Funds LP for up to $20-million (U.S.) and a promissory note purchase agreement with YA II PN Ltd. for up to $15-million (U.S.). Additionally, the company secured a $15-million (U.S.) unsecured convertible credit facility from 102114598 Saskatchewan Ltd. alongside a $10-million (Canadian) senior secured credit facility with Fair Capital Partners Inc. to finance acquisitions and working capital requirements. The company currently has over $35-million (U.S.) in undrawn credit facilities, providing substantial capital to support future acquisitions and long-term growth.
  • Strategic leadership appointments for growth and regulatory excellence: On June 25, 2026, Custom Health announced the appointments of Robert Guzman as chief compliance and regulatory officer and Brent Herman as executive vice-president, corporate development, to reinforce its governance framework and accelerate North American expansion. Mr. Guzman brings over 25 years of experience leading compliance, quality assurance and regulatory affairs across global health care sectors, including executive roles at Getinge, C.R. Bard and Chimerix, alongside strategic collaborative work with the U.S. Food and Drug Administration. Mr. Herman, founder of long-term care pharmacy group InnovativeRx and a former corporate securities legal partner, joins with a 35-year record spanning corporate finance, operational leadership, and cross-border mergers and acquisitions. These leadership additions are positioned to significantly strengthen Custom Health's tech-enabled pharmacy platform as the company executes on new partnerships and long-term strategic growth objectives.

Selected financial information

About Custom Health Holdings Inc.

Custom Health is an AI-enabled health care technology company that operates an infrastructure platform designed to ensure medication therapy works as intended. The company connects in-home technology, pharmacy and pharmacist-led clinicians to create continuous visibility into a patient's therapy. Powered by the proprietary AdhereNett platform, Custom Health operates an integrated pharmacy network across Canada and the United States as part of its broader infrastructure, supporting medication delivery, continuous monitoring and clinical action to enable earlier engagement and support improved outcomes.

We seek Safe Harbor.

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