Cheelcare Announces First Quarter Fiscal 2027 Financial Results

Cheelcare nearly doubled revenue and strengthened cash, but losses persist as growth investments continue.

What the company is saying

Cheelcare Inc. (TSXV:CHER, OTC:CHCRF) is highlighting a transformative quarter, emphasizing a 98% year-over-year revenue increase to $828,516 and improved gross margin to 58.1%. The company frames this as the first full quarter reflecting the commercial impact of Companion’s U.S. Medicare and Medicaid reimbursement eligibility, received in January 2026. CEO Eugene Cherny attributes the revenue growth to expanded reimbursement access and a growing dealer and clinician network, positioning these as drivers for future sustained Companion sales. The company also spotlights operational milestones: the May 2026 issuance of Canadian Patent No. 3,090,535 for the Companion platform, completion of a $3.02 million private placement in July, and progress on Curio’s engineering, validation, and cybersecurity testing. Cheelcare states it has repaid all outstanding bank loans with the Business Development Bank of Canada post-quarter, and is focused on converting its expanded market access and distribution into ongoing growth, while advancing Curio through regulatory pathways. The tone is confident and forward-looking, with realized financial improvements used to support claims of momentum.

What the data suggests

The reported numbers show Cheelcare’s revenue rose 98% year-over-year to $828,516 for the quarter ended July 31, 2026, up from $417,981. Gross profit increased to $481,637, with gross margin improving from 50.9% to 58.1%. Net loss narrowed sharply to $501,008 ($0.02 per share) from $1,630,108 ($0.15 per share), with last year’s loss inflated by a one-time listing expense. Cash and cash equivalents surged to $2.4 million at July 31, 2026, from $163,416 at April 30, 2026, primarily due to the $3.02 million private placement completed on July 3, 2026. The company claims to have fully repaid its bank loans after quarter-end but does not specify the amount. Operationally, the Companion platform’s U.S. reimbursement eligibility and new Canadian patent are realized milestones, while Curio’s regulatory progress remains in the engineering and validation phase. Most financial improvements are supported by concrete figures, but future growth for Companion and Curio is still dependent on further commercialization and regulatory approvals.

Analysis

The announcement is generally positive, highlighting strong revenue growth (98% YoY), improved gross margin, and a significantly reduced net loss. These realised financial improvements are well-supported by disclosed numbers. However, the tone is somewhat inflated by forward-looking statements about converting reimbursement access into 'sustained Companion growth' and advancing Curio toward broader commercialization, which remain unquantified and contingent on future regulatory and market developments. The $3.02 million private placement is a notable capital raise, but the benefits from this outlay are not immediate and are tied to ongoing commercialization and product development efforts. While the company has made measurable progress, the narrative somewhat overstates the certainty and imminence of future growth, especially regarding Curio's regulatory pathway and broader market impact. The overall hype is moderate, as most claims are grounded in realised results, but some future-oriented language inflates expectations beyond what is currently achieved.

Risk flags

• ●Despite strong revenue growth, Cheelcare remains unprofitable, reporting a net loss of $501,008 for the quarter. Continued losses could pressure liquidity if growth investments do not translate into sustained profitability.
• ●The company’s future growth narrative relies heavily on expanded reimbursement and regulatory progress for Companion and Curio. Delays or setbacks in FDA 510(k) clearance or Ontario Assistive Devices Program resubmission for Curio could stall commercialization and revenue expansion.
• ●The $3.02 million private placement has boosted cash reserves to $2.4 million, but ongoing product development and commercialization efforts are capital-intensive. If revenue growth slows or margins compress, further dilution or debt may be required.

Bottom line

Cheelcare’s Q1 results show clear operational and financial progress, with revenue nearly doubling and cash reserves strengthened by a $3.02 million private placement. The company is leveraging new U.S. reimbursement eligibility and a Canadian patent to drive Companion’s commercialization, and is advancing Curio through regulatory and engineering milestones. However, Cheelcare remains loss-making, and future value depends on successfully converting expanded market access into sustained sales and achieving regulatory clearance for Curio. The evidence supports a positive trajectory, but execution and regulatory risks remain. Investors should focus on whether revenue growth persists, losses narrow further, and Curio achieves key approvals in the coming quarters. The most important takeaway is that Cheelcare is showing momentum, but profitability and regulatory wins are not yet in hand.

Announcement summary

(TSXV:CHER) (OTC:CHCRF) Cheelcare Inc. announced its financial results for the three months ended July 31, 2026. The company continued to advance the U.S. commercialization of its Companion platform following PDAC verification and Medicare and Medicaid reimbursement eligibility received in January 2026, with increased engagement across dealer, clinician, and funding networks. In May 2026, the Canadian Intellectual Property Office granted Canadian Patent No. 3,090,535 covering core technologies underlying the Companion power-assist platform, complementing existing U.S. patent protection and providing additional intellectual property protection in North America. On July 3, 2026, Cheelcare completed an upsized private placement for gross proceeds of $3.02 million to support commercialization, product development, and working capital. The company continued engineering and validation activities for Curio in support of a future resubmission under Ontario's Assistive Devices Program and advanced the U.S. FDA 510(k) process, with cybersecurity testing for Curio completed. Subsequent to quarter-end, Cheelcare participated in Numotion's Commercial Growth Summit in Denver, presenting Companion to clinicians, Assistive Technology Professionals, and other decision-makers within one of North America's largest Complex Rehab Technology networks. For the quarter ended July 31, 2026, Cheelcare reported revenue of $828,516, compared to $417,981 in Q1 fiscal 2026, representing an increase of approximately 98%. Gross profit was $481,637, with a gross margin of 58.1%, compared to a gross profit of $212,787 and a gross margin of 50.9% in Q1 fiscal 2026. Net loss was $501,008, or $0.02 per share, compared to a net loss of $1,630,108, or $0.15 per share, in Q1 fiscal 2026, with the prior-year period including a significant listing expense associated with the company's reverse takeover. Cash and cash equivalents were $2.4 million at July 31, 2026, compared with $163,416 at April 30, 2026. Subsequent to quarter-end, the company repaid its outstanding bank loans with the Business Development Bank of Canada in full. Eugene Cherny, CEO of Cheelcare, stated that Q1 is the first full quarter showing the commercial impact of Companion's Medicare and Medicaid reimbursement eligibility in the United States, and that expanded access and network growth are creating more opportunities for users. The company is focused on converting broader reimbursement access and distribution footprint into sustained Companion growth, improving manufacturing efficiency as volumes increase, and advancing Curio through engineering, validation, and regulatory work required for broader commercialization.

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