Star Metro - NexgenRx Announces Second Quarter Results (With Substantial Increases in Revenue, EBITDA and Financial Position) and Declaration of Dividend

Q2 Financial Results

The second quarter of 2026 represented another very strong quarter for the Company, reflecting continued execution of its strategic objectives and the resilience of its business model. As market activity remained favourable, NexgenRx continued to expand its client relationships, enhance its technology platform, and improve operational efficiency, positioning the Company for sustained long-term growth.

Throughout the quarter, management remained focused on initiatives that strengthen the Company's competitive advantage. The Company's investments in digital transformation and automation continued to improve service delivery and streamline internal processes, while the Company's Artificial Intelligence ("AI") Committee advanced its evaluation of practical AI applications across the organization. These initiatives are intended to improve productivity, strengthen decision-making through enhanced analytics, and deliver greater value to both customers and shareholders. At the same time, the Company continued investing in its people and organizational capabilities, recognizing that its employees remain one of the Company's most important competitive strengths.

The Company's financial performance in the second quarter reflects the continued success of the Company's strategic initiatives. Revenue increased 20.8% year over year to $5.16 million, driven primarily by higher transaction fee revenue resulting from increased transaction volumes and continued business expansion. Gross profit increased to $4.42 million, while net income nearly tripled to $993,095 from $353,521 in the second quarter of 2025. EBITDA increased 92.5% to $1.21 million from $627,631 in the prior year quarter.

Performance for the first half of 2026 was equally strong. Revenue for the six-month period increased 16.1% year over year to $10.16 million, while net income rose more than 152.2% to $2.22 million. EBITDA also delivered strong growth, increasing 82.2% to $2.65 million compared to the first half of 2025. These results reflect continued demand for the Company's services, disciplined execution of its growth strategy, and ongoing improvements in operational efficiency, positioning the Company for continued long-term growth.

The Company's financial position remains very healthy and provides a solid foundation for continued growth. At June 30, 2026, total assets increased to $46.0 million, while shareholders' equity strengthened to $9.4 million, reflecting the Company's strong earnings performance during the first half of the year. Cash and cash equivalents totaled $3.6 million, providing the liquidity to support ongoing operations, technology investments, future growth initiatives, and the continued return of capital to shareholders through the Company's dividend program. Restricted client funds on deposit increased to $34.7 million, reflecting continued growth in client activity and transaction volumes.

Dividend Declaration

A dividend in the amount of one-half of one cent per share ($0.005) has been declared in respect of all of the Company's outstanding common shares and series 1 preferred shares. The dividend will be payable on or before August 31, 2026 to all shareholders of record as at the close of business on August 28, 2026. As of the date of this press release, there are a total of 71,117,132 common shares and 6,600,000 series 1 preferred shares issued and outstanding. The common shares are listed and posted for trading on the TSX Venture Exchange under the symbol 'NXG'. The series 1 preferred shares are not listed or posted for trading on any stock exchange.

Ron Loucks, President and CEO, stated "Our exemplary Q2 results continue to underscore the scalability of our business model, the effectiveness of our growth strategy, and our ongoing ability to generate strong operating cash flow while delivering sustainable, profitable growth. As we enter the second half of 2026, management remains optimistic about the opportunities ahead. We will continue investing in technology, artificial intelligence, and process automation while pursuing initiatives that enhance customer experience, improve operational scalability, and expand our market presence. Supported by a strong balance sheet, a dedicated team, and a disciplined approach to execution, management believes that the Company is well positioned to build on its momentum and continue delivering sustainable growth and long-term value for our shareholders."

About NexgenRx

NexgenRx is Canada's only independent full-service Third-Party Administrator and Technology Solutions Provider, offering proprietary full front-end, eligibility, enrolment, hour bank and mobile access capabilities, together with state-of-the-art claims adjudication and full provider network coverage. These combined capabilities allow NexgenRx to provide Plan Sponsors, sophisticated administration and health benefit technology applications in a cost-effective SaaS (Software as a Service) Model.

NexgenRx is committed to building partnerships with organizations looking to exceed the expectations of their clients and plan members and deliver superior administration and claims processing solutions at a competitive cost. More information on NexgenRx can be found at www.nexgenrx.com.

Caution Regarding Forward-Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although management believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. The Company cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: uncertainty as to whether the Company's strategies and business plans will yield the expected benefits; potential increases in sales and revenues; availability and cost of capital; the ability to identify and develop and achieve commercial success for existing and new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; continued development and enhancement of the Company's proprietary software technology; cyber security risks and the other risks and uncertainties disclosed in the Company's annual Management's Discussion and Analysis, as filed under the Company's profile on SEDARPLUS at www.sedarplus.ca. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The Company undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in the Company's expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

FOR FURTHER INFORMATION PLEASE CONTACT:

Ronald C. Loucks
NexgenRx Inc.
President and CEO
416.695.3393 x801

Kelly Ehler CPA, CA
NexgenRx Inc.
Chief Financial Officer
416-695-3393x803

SOURCE: NexgenRx Inc.

View the original press release on ACCESS Newswire

W.Fortin--SMC