QHSLab, Inc.

QHSLab, Inc. (USAQ) Preliminary 2025 Financials: A Deep Dive for Investors

QHSLab, Inc. (USAQ) has released its preliminary, unaudited financial results for the full year 2025. These early figures offer significant insights into the company's performance and strategic direction, providing investors with an important glimpse into its operational health and future prospects.

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1. Event Description

QHSLab, Inc. (ticker: USAQ) recently announced its preliminary, unaudited financial results for the full year 2025. These preliminary figures offer significant insights into the company's performance and strategic direction. Key highlights include:

• Strong Revenue Growth: The company boosted revenue by 25% to over $2.67 million in 2025, rising from approximately $2.13 million in 2024. This reflects growing demand for its products and services.
• Expanding Gross Margins: QHSLab enhanced its operational efficiency. Gross profit margins expanded from about 64% in 2024 to 67% in 2025.
• Significant Debt Reduction (with shareholder dilution): The company substantially reduced its convertible debt from roughly $2 million to just $20,000. QHSLab achieved this by converting a substantial portion of the debt into company stock. This move significantly strengthens the balance sheet by reducing interest obligations and financial risk. However, investors must recognize that this conversion resulted in significant dilution for existing shareholders.
• New Product Momentum with Q-Cog: The new Q-Cog program, which helps doctors screen for cognitive and behavioral health issues, has begun generating revenue. Although specific figures for Q-Cog's contribution are not yet detailed in this preliminary report, management considers it a key growth driver.

Key Missing Details from this Preliminary Report: Investors will need to see the full picture, including:

• Net Income/Loss: Whether the company achieved profitability or incurred a loss.
• Cash Flow: The amount of cash generated from operations and the overall cash position.
• Balance Sheet Details: Total assets, liabilities, and shareholder equity, particularly after the debt conversion.
• Share Count & Dilution Impact: The precise number of shares issued from the debt conversion and its effect on per-share metrics.

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2. Event Date/Timeline

The company officially announced this news on January 26, 2026, via an 8-K filing with the SEC.

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3. Impact Assessment

This 8-K filing indicates the company is making significant strides in both operational growth and financial stability, affecting investors directly:

• Investors: This news is generally positive, potentially boosting investor confidence and influencing stock price movement. However, existing investors must weigh the impact of dilution from the debt conversion. The debt holders' conversion of debt into equity demonstrates strong confidence in the company's future value, potentially attracting new investors.

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4. Financial Impact

The preliminary results indicate several key financial impacts:

• Revenue Growth: A 25% increase in revenue to over $2.67 million in 2025 demonstrates strong market traction and increased sales.
• Improved Gross Margins: An expansion from 64% to 67% reflects enhanced operational efficiency and a larger contribution from each sales dollar to gross profit.
• Significant Debt Reduction: The reduction of convertible debt from approximately $2 million to $20,000 substantially improves the balance sheet. This reduction is expected to save the company over $200,000 annually in interest payments, freeing up crucial cash for reinvestment in growth and innovation.
• Shareholder Dilution: The debt conversion, while beneficial for the balance sheet, caused significant dilution for existing shareholders. The exact number of new shares issued and the impact on earnings per share will be critical details awaiting the final audited report.
• Q-Cog Revenue Generation: The Q-Cog program has begun generating revenue, signaling a promising new revenue stream, though specific contribution figures are not yet detailed in this preliminary report.

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5. Key Takeaways for Investors

• Generally Positive, but Nuanced: Strong revenue growth, improved margins, and significant debt reduction represent very positive indicators. However, the substantial dilution from the debt conversion is a critical factor that affects existing shareholder value and warrants careful consideration.
• "Preliminary" Means Watch for Audited Results: While these preliminary figures are encouraging, the audited results in the upcoming 10-K will provide the definitive numbers. While significant changes are rare, they are possible. The 10-K will also provide the missing financial details (net income, cash flow, full balance sheet, and precise share count).
• Understand the Dilution: The debt-to-equity conversion represents a major event. Understand its impact on the total number of outstanding shares and what that means for your ownership percentage and potential future earnings per share.
• Consider Your Strategy: If you own the stock, this news might reinforce your decision, especially if you believe in the long-term growth of Q-Cog and the digital health platform. If you are considering buying, weigh the improved financial health and growth prospects against the impact of recent dilution and the inherent risks of the sector.
• Volatility is Still Possible: Even with good news, market reactions can be unpredictable. Always conduct your own due diligence and avoid making rash decisions.
• Future Implications: QHSLab's stock (USAQ) may react positively. QHSLab expects to release its final, audited financial results for 2025 in its Form 10-K filing with the SEC before the end of March 2026. Investors should monitor updates on Q-Cog's adoption rates, revenue contribution, and the broader expansion of QHSLab's digital health platform. Management anticipates Q-Cog will become a "meaningful incremental revenue stream" in 2026.