Hydreight is set to grow fast, this analyst says

Beacon Securities analyst Gabriel Leung says Hydreight (Hydreight Stock Quote, Chart, News, Analysts, Financials TSXV:NURS) is positioned for a sharp ramp in revenue and profitability as its VSDHOne division scales.

In a May 28 preview of the company’s first-quarter results, Leung maintained his “Speculative Buy” rating and $10.00 target on Hydreight.

Hydreight is scheduled to report its Q1 2026 results after market close on June 1, with a conference call set for June 2.

Leung is forecasting first-quarter revenue and EBITDA of $25.2-million and $2.4-million, respectively, compared with consensus at $24.9-million and $2.9-million. The company had previously guided to Q1 revenue of $25-million to $28-million.

“Our estimates represent a 69% and 105% q/q increase in revenues and EBITDA, respectively,” Leung said. “We expect this growth to be driven primarily by the VSDHOne division based on accelerating transaction volume amongst onboarded VSDHOne customers (there was last reported 12,000+ licensees in various stages of onboarding), along with the availability of (in some cases) exclusive pharmaceutical products within Hydreight’s pharmacy network.”

Leung said working capital will be a key item to watch, particularly receivables, prepaids and deposits. He expects working capital to be a near-term drain on cash flow because of Hydreight’s revenue ramp and its strategy of securing pharmacy ingredients for its 503A pharmacy partners.

The analyst estimates Hydreight has more than $30-million in cash, offset by $11.9-million of convertible debt, which he said leaves the company in good position to manage near-term working capital fluctuations.

“We’ll also be looking for data points around the company’s ability to hits its 2026 outlook, which includes (baseline) revenues of ~$150M and EBITDA margins of 15–17% (i.e. $23–26M based on baseline revenue guidance),” Leung said. “This would represent a significant increase from CY25 results of $35.4M and $1.9M.”

Leung said 2025 was focused on building the infrastructure for growth, while 2026 should begin to show the benefits, particularly from VSDHOne. He said potential deregulation of various peptides in the U.S. could also become a growth tailwind, with the Pharmacy Compounding Advisory Committee scheduled to meet July 23 and 24 to discuss potentially loosening restrictions around certain peptides.

“We continue to view Hydreight as being in the unique position of providing an end-to-end national healthcare infrastructure platform for businesses to compliantly offer services across all 50 states,” Leung said.

Leung expects Hydreight to generate Adjusted EBITDA of $22.6-million on revenue of $150.0-million in fiscal 2026. He expects those numbers to improve to Adjusted EBITDA of $31.8-million on revenue of $198.4-million in fiscal 2027.

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