Press release·08/15/2026 08:00:59

General Overview

Vaso Corporation (“Vaso”) is a diversified medical technology and IT company that operates in three main business segments: IT services, professional sales services, and medical equipment. The company has recently divested its NetWolves managed network services operations and sold its VasoHealthcare IT Corp subsidiary, focusing its efforts on the remaining two core segments.

Our Business Segments

1. IT Segment: This segment, operated through the VasoTechnology subsidiary, primarily focuses on managed network technology services. The NetWolves managed network services operations have been reported as discontinued, while the historical results of VasoHealthcare IT Corp, which was sold in November 2025, continue to be presented in segment disclosures.

2. Professional Sales Service Segment: This segment, operated through the Vaso Diagnostics, Inc. d/b/a VasoHealthcare subsidiary, primarily focuses on the sale of healthcare capital equipment for GE HealthCare Technologies, Inc. (“GEHC”) into the healthcare provider middle market.

3. Equipment Segment: This segment, operated through the VasoMedical, Inc. subsidiary, primarily focuses on the design, manufacture, sale, and service of proprietary medical devices and software.

The company has ended its operations in the IT segment after the sale of VHC-IT in November 2025 and the sale of NetWolves in July 2026.

Critical Accounting Policies and Estimates

Vaso’s financial statements are prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). The preparation of these financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. The company’s critical accounting policies include revenue recognition, inventory valuation, and the assessment of goodwill and intangible assets for impairment.

Results of Operations – For the Three Months Ended June 30, 2026 and 2025

Revenues:

• Total revenue increased by 8% year-over-year, from $10,331,000 in Q2 2025 to $11,187,000 in Q2 2026.
• Commission revenues in the professional sales service segment increased by 20% due to higher deliveries of diagnostic imaging equipment, partially offset by decreased deliveries of ultrasound products.
• Revenue in the equipment segment increased by 31% due to higher equipment deliveries in the company’s China operations.

Gross Profit:

• Gross profit increased by 12% year-over-year, from $7,941,000 (77% of revenue) in Q2 2025 to $8,889,000 (79% of revenue) in Q2 2026.
• The professional sales service segment’s gross profit increased by 20% due to higher commission revenue and lower blended cost of commission rates.
• The equipment segment’s gross profit increased by 8% due to higher revenue in the China operations, partially offset by lower SaaS margins in the US.

Operating Income:

• Operating income increased significantly from $93,000 in Q2 2025 to $974,000 in Q2 2026, a 948% increase, due primarily to the increase in gross profit, partially offset by higher selling, general, and administrative (SG&A) costs.
• The professional sales service segment’s operating income increased by $906,000 due to higher gross profit, partially offset by higher SG&A costs.
• The equipment segment reported an operating loss of $220,000, compared to a loss of $177,000 in Q2 2025, due mainly to higher R&D expenses and SG&A costs.

Adjusted EBITDA:

• Adjusted EBITDA from continuing operations increased by $907,000 to $1,052,000 in Q2 2026, primarily due to the increases in net income and income tax expense.
• Adjusted EBITDA from discontinued operations increased by $153,000 to ($245,000) in Q2 2026, mainly due to decreases in net loss and income tax expense.

Results of Operations – For the Six Months Ended June 30, 2026 and 2025

Revenues:

• Total revenue increased by 3% year-over-year, from $20,464,000 in the first half of 2025 to $20,982,000 in the first half of 2026.
• Commission revenues in the professional sales service segment increased by 13% due to increased deliveries of diagnostic imaging equipment, partially offset by lower deliveries of ultrasound products.
• Revenue in the equipment segment increased by 29% due to higher equipment deliveries in the company’s China operations.

Gross Profit:

• Gross profit increased by 5% year-over-year, from $15,577,000 (76% of revenue) in the first half of 2025 to $16,410,000 (78% of revenue) in the first half of 2026.
• The professional sales service segment’s gross profit increased by 12% due to higher commission revenue, partially offset by higher blended cost of commission rates.
• The equipment segment’s gross profit increased by less than 1% due to higher revenue, partially offset by lower SaaS margins in the US operations.

Operating Loss:

• Operating loss decreased by 85%, from $519,000 in the first half of 2025 to $80,000 in the first half of 2026, due primarily to higher gross profit, partially offset by higher SG&A costs.
• The professional sales service segment reported operating income of $1,346,000, an increase of $546,000 from the first half of 2025, due to higher gross profit, partially offset by higher SG&A costs.
• The equipment segment reported an operating loss of $595,000, compared to a loss of $442,000 in the first half of 2025, due mainly to higher SG&A and R&D costs.

Adjusted EBITDA:

• Adjusted EBITDA from continuing operations increased by $563,000 to $90,000 in the first half of 2026, primarily due to lower net loss and higher depreciation and amortization and income tax expense.
• Adjusted EBITDA from discontinued operations increased by $537,000 to ($359,000) in the first half of 2026, mainly due to lower net loss, partially offset by the change from income tax expense to income tax benefit.

Liquidity and Capital Resources

• As of June 30, 2026, the company had cash and cash equivalents of $38,291,000 and working capital of $22,323,000, compared to $34,081,000 and $21,714,000, respectively, as of December 31, 2025.
• Cash provided by operating activities was $4,819,000 in the first half of 2026, compared to $6,229,000 in the same period of 2025, primarily due to changes in working capital accounts.
• Cash used in investing activities was $963,000 for the purchase of equipment and software.
• Cash used in financing activities was $146,000 for the repayment of notes payable and finance lease obligations.
• The company expects to generate sufficient cash flow from operations to satisfy its obligations for at least the next twelve months.