Cosmos Health (COSM, Financial) announced first-quarter revenue of $13.7 million, a decrease from $14.6 million in the same period last year. Despite the dip in revenue, the company demonstrated solid performance as gross profit and margins saw substantial growth. This improvement was attributed to a better product mix and enhanced operating leverage.
The company's strategic emphasis on efficiency and cost management has started to bear fruit, as evidenced by their return to profitability on both an Adjusted EBITDA and Adjusted Net Income basis. Additionally, COSM has made significant strides in reducing its operating cash burn, moving closer to achieving operational cash flow breakeven.
The quarter concluded with strengthened stockholders' equity and improved liquidity, bolstered by a higher cash balance. The company's balance sheet remains robust with modest leverage. Advancements are ongoing in their strategic initiatives, particularly in R&D, where the CCX0722 weight management solution is nearing launch. Moreover, their contract manufacturing segment is expanding through new long-term agreements, and the global outreach of their Sky Premium Life brand is increasing.
Additionally, the company is successfully growing its C-Scrub antiseptics line, especially in the UK market. CEO Greg Siokas personally demonstrated his confidence in COSM's strategy by significantly increasing his shareholding, investing over $1.3 million since December 2024.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Cosmos Health Inc (COSM, Financial) is $3.00 with a high estimate of $3.00 and a low estimate of $3.00. The average target implies an upside of 579.38% from the current price of $0.44. More detailed estimate data can be found on the Cosmos Health Inc (COSM) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Cosmos Health Inc's (COSM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
