SRXH

SRXH is not an investable company today — it is the wreckage of a failed roll-up mid-restructuring. The MD&A is explicit: SRx Canada filed for creditor protection under Canada's CCAA after breaching financial covenants on its Canadian Western Bank facility (debt became callable at June 30, 2025), and 'the majority of SRx's former specialty pharmacy, clinical services, and distribution operations have been discontinued or wound down.' What remains is a single Halo-brand pet-food line (Consumer Products segment) bolted on via a reverse takeover of the former Better Choice Company (BTTR). The reported FY2025 'revenue growth' of +226.7% to $6.53M is an artifact of that reset off a collapsed $2.00M FY2024 base — revenue is down from $46.0M (FY2021) and $54.7M (FY2022), so this is a company that has lost ~90% of its top line, not one that is growing.

The financials are severely distressed on every axis. FY2025 net income is -$45.0M against $6.53M of revenue (a -688.8% net margin), operating income is -$11.4M, and operating cash flow is -$8.14M against just $1.31M of cash — a burn rate that cannot be self-funded. Gross profit collapsed 88.3% to $1.53M (23.4% gross margin). The balance sheet is effectively insolvent: stockholders' equity is a razor-thin $407K against $8.00M of liabilities (19.6x liabilities/equity), retained earnings are -$22.9M, and the FY2024 data already showed $31.6M of current-portion debt. Survival has come entirely from printing shares — shares outstanding rose 2,969% YoY to 27.4M, obliterating existing holders, and diluted EPS was -$2.13.