SRx Health (SRXH) 20.93% Plunge: Earnings Misses, Mixed Signals Spur Sharpest Selloff Since 2023

The share price fell to its lowest level since this month, with an intraday decline of 9.68% on Dec. 24. SRx Health (SRXH) has now dropped 20.93% over four consecutive trading days, marking its sharpest selloff since at least early 2023.

The stock’s recent collapse follows a string of earnings misses and mixed financial signals. In March 2025, the company is expected to report a 460% earnings-per-share shortfall and a 44.5% revenue miss, though markets showed little reaction to prior negative forecasts. Meanwhile, while gross margins expanded to 37% and adjusted EBITDA losses narrowed by 78% in Q4 2024, annual revenue still declined 9% to $35 million. Strategic moves such as the planned April 2025 acquisition of its own shares and the 2024 $8.1 million sale of Halo Asia have yet to translate into sustained investor confidence.

Analysts highlight a disconnect between operational improvements and market sentiment. Despite a 26% year-over-year growth in the Halo brand and inventory reductions exceeding 40%, SRXH remains unprofitable. Management’s emphasis on disciplined growth and long-term value creation has not offset near-term concerns over revenue contraction and execution risks tied to its acquisition strategy. With analysts projecting 4.18% revenue growth for the current fiscal year but no near-term profitability, the stock’s volatility underscores investor skepticism about the company’s ability to balance strategic ambition with consistent financial performance.