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This small Canadian healthcare stock is one to watch, analyst says

Beacon Securities analyst Gabriel Leung placed Hydreight Technologies (Hydreight Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:NURS) on his Watchlist in a Sept. 4 update, noting solid Q2 performance and new strategic initiatives that could act as catalysts. The stock has traded in a 52-week range of C$0.23 to C$3.87.

Leung did not issue a formal rating or price target revision as part of this note.

Nevada-based Hydreight operates an integrated healthcare platform that connects a network of roughly 3,000 nurses with brick-and-mortar franchises and digital health providers. The platform bundles appointment scheduling, inventory management, and patient record tools with nationwide physician access, telehealth, and both 503A and 503B pharmacy networks.

Hydreight reported Q2 2025 revenue of $5.4-million, up 31 per cent year-over-year and 18 per cent sequentially, with pharmacy revenues accounting for about 83 per cent of the total. Gross margin was 35.9 per cent, compared with 33.1 per cent in Q1 and 38 per cent last year. Adjusted EBITDA was $182,000, while GAAP net income came in at $50,000, versus a $27,000 loss a year ago. Free cash flow was negative $167,000. The company finished the quarter with $6.1-million in cash and $750,000 in debt. Subsequent warrant exercises and a C$11.5-million convertible financing lifted pro forma cash to $18.6-million and debt to $12.2-million.

“Hydreight expects to leverage its cash for operations, M&A, and also to build out a 503B pharmacy with partners,” Leung said, pointing to a newly signed definitive agreement to acquire a 5-per-cent equity stake in Perfect Scripts, LLC, with the option to raise that holding to 40 per cent. “In our opinion, the partnership with Perfect Scripts should be positive for Hydreight in that it will ensure priority allocation for high-demand pharmaceuticals, better pricing versus existing partners, potential cross-selling opportunities, and the opportunity to build out a high-margin compounding pharmacy.”

Order flow is another emerging catalyst. Hydreight told investors it remains on track to reach 1.3 million orders on its VSDHOne platform in 2025. “Based on its June–August actual results and outlook, we estimate monthly order flow of roughly 305,000 through year-end,” Leung said. “We believe positive traction towards this metric could be a very positive catalyst for the stock.”

 

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Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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