Revenue growth has stalled into a 9.9% contraction as of 2026Q1, while SG&A expenses consistently track near or above the 38.0% gross margin level, preventing operational profitability.
| Sales/Revenue | 76.19M | 78.21M | 69.37M | 55.69M | 29.01M | 11.24M | 11.46M |
| Revenue Growth % | 3.33% | 12.74% | 24.57% | 91.97% | 158.21% | -1.98% | - |
| Cost of Goods Sold | 46.45M | 47.55M | 42.31M | 35.34M | 18.93M | 7.19M | 7.11M |
| COGS % of Revenue | - | 60.8% | 60.98% | 63.46% | 65.24% | 63.98% | 62.03% |
| Gross Profit | 29.74M | 30.66M | 27.07M | 20.35M | 10.08M | 4.05M | 4.35M |
| Gross Margin % | 39.03% | 39.2% | 39.02% | 36.54% | 34.76% | 36.02% | 37.97% |
| Gross Profit Growth % | - | 13.27% | 33.01% | 101.8% | 149.14% | -7% | - |
| Operating Expenses | 33.43M | 33.14M | 28.84M | 30.87M | 14.25M | 5.81M | 5.96M |
| OpEx % of Revenue | - | 42.38% | 41.58% | 55.44% | 49.13% | 51.74% | 52.02% |
| Selling, General & Admin | 31.64M | 33.14M | 29.05M | 24.77M | 14.25M | 5.81M | 5.58M |
| SG&A % of Revenue | - | 42.38% | 41.87% | 44.48% | 49.13% | 51.74% | 48.69% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | -205.15K | 6.1M | 0 | 0 | 380.65K |
| Operating Income | -3.69M | -2.48M | -1.78M | -10.52M | -4.17M | -1.77M | -1.61M |
| Operating Margin % | -4.84% | -3.18% | -2.56% | -18.9% | -14.37% | -15.71% | -14.05% |
| Operating Income Growth % | - | -39.76% | 83.11% | -152.52% | -136.07% | -9.66% | - |
| EBITDA | 1.75M | 2.96M | -201.02K | -9.09M | -3.16M | -1.31M | -1.11M |
| EBITDA Margin % | 2.3% | 3.79% | -0.29% | -16.33% | -10.91% | -11.64% | -9.66% |
| EBITDA Growth % | 2931.04% | 1573.55% | 97.79% | -187.34% | -142.06% | -18.01% | - |
| D&A (Non-Cash Add-back) | 5.44M | 5.45M | 1.58M | 1.43M | 1M | 458.21K | 502.15K |
| EBIT | -4.12M | -2.92M | -1.98M | -4.42M | -4.17M | -1.77M | -1.23M |
| Net Interest Income | -522.59K | -1.01M | -848.65K | -199.68K | -29.99K | -47.16K | -71.25K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 522.59K | 1.01M | 848.65K | 199.68K | 29.99K | 47.16K | 71.25K |
| Other Income/Expense | -3.21M | -1.45M | -2.73M | 591.45K | 844.91K | -47.19K | -71.34K |
| Pretax Income | -6.9M | -3.94M | -4.51M | -9.93M | -3.32M | -1.81M | -1.68M |
| Pretax Margin % | -9.06% | -5.03% | -6.5% | -17.84% | -11.45% | -16.13% | -14.67% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -6.9M | -3.94M | -4.51M | -9.93M | -3.32M | -1.81M | -1.68M |
| Net Margin % | -9.06% | -5.03% | -6.5% | -17.84% | -11.45% | -16.13% | -14.67% |
| Net Income Growth % | -52.76% | 12.66% | 54.63% | -198.93% | -83.31% | -7.82% | - |
| Net Income (Continuing) | -6.9M | -3.94M | -4.51M | -9.93M | -3.32M | -1.81M | -1.68M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.32 | -0.24 | -0.48 | -1.08 | -0.34 | -0.18 | -0.17 |
| EPS Growth % | 29.41% | 50% | 55.56% | -217.65% | -88.89% | -5.88% | - |
| EPS (Basic) | - | -0.24 | -0.48 | -1.08 | -0.34 | -0.18 | -0.17 |
| Diluted Shares Outstanding | 21.43M | 16.57M | 9.4M | 9.23M | 9.8M | 9.8M | 9.8M |
| Basic Shares Outstanding | 21.43M | 16.57M | 9.4M | 9.23M | 9.8M | 9.8M | 9.8M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Persistent operating losses
According to the latest quarterly financial data, HCWC's revenue growth has shifted from a peak of 43.5% in 2024Q3 to a contraction of 9.9% in 2026Q1, suggesting that the initial inorganic expansion phase has stalled and organic demand for its regional retail banners is currently waning.
The rapid deceleration in top-line performance indicates that the company's acquisition-led growth strategy may be reaching a point of diminishing returns. Investors should monitor whether this trend reflects broader consumer fatigue in the organic grocery space or a failure to successfully integrate and cross-sell wellness services across the existing store footprint.
As reported in recent income statements, HCWC has maintained a relatively stable gross margin profile, averaging approximately 38-40% over the last ten quarters, which suggests that the company's product mix of supplements and wellness services provides a defensive buffer against standard grocery sector margin compression.
While the gross margin remains robust for a retail-heavy business, the inability to translate this into positive operating income suggests that the cost of maintaining disparate regional brands is excessive. The company appears to be struggling with the inherent complexity of its hybrid retail-service model, which may be preventing the realization of necessary economies of scale.
Based on the provided financial figures, HCWC's SG&A expenses have consistently tracked near or above gross profit levels, resulting in persistent operating losses that indicate a lack of operational leverage and an inability to scale the corporate overhead relative to the current revenue base.
The company's failure to achieve positive operating margins despite a healthy gross margin profile suggests that the current cost structure is misaligned with its revenue generation capacity. This warrants further investigation into whether the corporate infrastructure is bloated or if the integration of wellness centers is incurring higher-than-anticipated recurring operational costs.
Data from the most recent quarterly filings reveals a concerning trend where net losses have widened to $3.7M in 2026Q1, highlighting a significant cash burn that may necessitate external financing if the company cannot achieve a rapid inflection toward profitability in the coming fiscal periods.
Short-sellers would likely focus on the widening gap between revenue and net income, which suggests that the business model may be fundamentally unprofitable at its current scale. The reliance on external capital to fund operations appears to be a growing risk, especially given the lack of clear evidence that the wellness service layer is driving meaningful bottom-line improvement.
Quick answers to the most common questions about buying HCWC stock.
For fiscal year 2025, Healthy Choice Wellness Corp. (HCWC) reported total revenue of $78.2M. This represents a 582.3% increase compared to $11.5M in 2020.
Healthy Choice Wellness Corp. (HCWC) reported a net loss of $3.9M for the fiscal year ending 2025.
Healthy Choice Wellness Corp. (HCWC) reported an operating income of $-2.5M, resulting in an operating profit margin of -3.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Healthy Choice Wellness Corp. (HCWC) generated $30.7M in gross profit for the year, representing a gross profit margin of 39.2%. This demonstrates the company's core pricing power and production efficiency.