QHSLab Reports Q2 2026: ISP Revenue Doubles, Swings to Net Profit

summarizeSummary

QHSLab swung to a Q2 net profit of $38,030 as ISP revenue more than doubled and interest costs collapsed after retiring convertible debt. The results mark a sharp improvement from the going-concern warning issued in May, though H1 remains loss-making.

check_boxKey Events · Earnings and Guidance · USAQ

• Q2 Swings to Profit

  Net income of $38,030 vs. a $(52,958) loss in Q2 2025, driven by 40% revenue growth and margin expansion.

• ISP Revenue More Than Doubles

  Integrated Service Program revenue surged 86.4% to $491,399 in Q2 and 103.2% to $865,900 in H1, now 55% of total revenue.

• Gross Margins Expand

  Gross margin improved to 69.6% in Q2 (from 65.9%) and 67.3% in H1 (from 66.3%), reflecting a higher-mix of recurring ISP revenue.

• Convertible Debt Overhang Removed

  Interest expense fell 87.3% to $16,741 in H1 after retiring substantially all legacy convertible debt, strengthening the balance sheet.

auto_awesomeAnalysis · USAQ · Industrial Applications And Services

QHSLab delivered a sharp operational turnaround in Q2 2026, swinging from a net loss to a $38,030 profit on 40% revenue growth. The core ISP business more than doubled year-over-year, now driving over half of total revenue, while gross margins expanded to nearly 70%. Critically, the company retired nearly all legacy convertible debt, slashing interest expense by 87% and removing a major overhang. This comes just three months after a going-concern warning and disclosure of ineffective internal controls — making the improved profitability and cleaner balance sheet a material positive signal, though the company remains unprofitable for the first half and still faces control weaknesses.