Pacific Health Care Organization, Inc. Reports its Third Quarter 2026 Financial Results

Net income rose despite lower revenue and operating income this quarter.

What the company is saying

Pacific Health Care Organization, Inc. (OTCQB:PFHO) is reporting its Q3 2026 financial results, emphasizing a net income of $334,610 ($0.03 per share), up from $223,002 ($0.02 per share) in Q3 2025. The company highlights total revenues of $1,512,564 for the quarter, down from $1,586,984 a year earlier, and income from operations of $134,334, down from $205,037. Management attributes the decrease in cash flow from operations to lower operating income, reduced receipt of employee retention credit refund checks, and changes in working capital. The release points to a cash and cash equivalents balance of $2,653,434 at September 30, 2026, up from $2,168,808 at December 31, 2025. The company frames its business as focused on workers’ compensation cost containment and refers readers to the full 10-Q for additional detail. The tone is factual, with no forward-looking statements or promotional language.

What the data suggests

The disclosed numbers show a mixed picture: revenue declined year-over-year from $1,586,984 to $1,512,564, and income from operations fell from $205,037 to $134,334, indicating operational headwinds. Despite this, net income increased to $334,610 from $223,002, and EPS rose to $0.03 from $0.02, suggesting improved profitability from non-operating items or tax effects. Net cash provided by operating activities dropped to $730,169 for the nine months ended September 30, 2026, from $809,710 in the prior-year period, with management citing lower operating income and reduced employee retention credit refunds as causes. Cash used in investing activities decreased to $245,543 from $665,443, due to a one-time investment in the prior period. No cash was used in financing activities in 2026, compared to $36,055 in 2025, as an insurance financing agreement matured. The cash and cash equivalents position strengthened to $2,653,434 at quarter-end. The data is comprehensive for headline financials, but lacks segment detail or deeper operational breakdowns.

Analysis

The announcement is a straightforward quarterly financial disclosure, presenting realised results for revenues, income from operations, net income, cash flows, and cash balances. All claims are supported by specific numerical data for both the current and prior periods, with no forward-looking statements or projections included. There is no promotional or exaggerated language; the tone is factual and neutral. No large capital outlays or long-term benefit projections are mentioned, and all financial impacts are immediate and measurable. The data allows for direct comparison and trend analysis, but does not attempt to frame results in an overly positive or negative light. There is no gap between narrative and evidence.

Risk flags

• ●Revenue and operating income both declined year-over-year, which could indicate ongoing operational challenges or market pressures. Sustained declines in these metrics may eventually impact profitability if not addressed.
• ●Net income growth appears to be driven by factors outside core operations, such as non-operating items or tax effects. If these are one-off or non-recurring, future profitability may not be sustainable without operational improvement.
• ●The decrease in cash flow from operations, attributed to lower operating income and reduced employee retention credit refunds, signals potential pressure on cash generation if these trends persist.

Bottom line

Pacific Health Care Organization, Inc. delivered higher net income and EPS for Q3 2026 despite lower revenue and operating income, with net income at $334,610 ($0.03 per share) and revenue at $1,512,564. The company’s cash position improved to $2,653,434, but cash flow from operations weakened to $730,169 for the nine months, reflecting lower operating income and reduced one-time credits. The headline profitability improvement is not matched by the underlying operating trend, which shows some deterioration. Investors should focus on whether the drivers of net income growth are sustainable and watch for further detail in the full 10-Q, especially regarding recurring versus non-recurring items. The most important takeaway is that headline profit growth masks underlying operational softness.

Announcement summary

(OTCQB:PFHO) Pacific Health Care Organization, Inc. announced its financial results for the quarter ended September 30, 2026. The Company reported total revenues of $1,512,564 for the quarter ended September 30, 2026, compared to $1,586,984 for the quarter ended September 30, 2025. Income from operations was $134,334 for the quarter ended September 30, 2026, versus $205,037 for the same quarter in 2025. Net income for the quarter ended September 30, 2026 was $334,610, or $0.03 per weighted average share outstanding, basic and diluted, compared to net income of $223,002, or $0.02 per weighted average share outstanding, basic and diluted, for the quarter ended September 30, 2025. Net cash provided by operating activities was $730,169 for the nine months ended September 30, 2026, and $809,710 for the nine months ended September 30, 2025. The decrease in cash flow from operations was attributed to lower operating income, lower receipt of employee retention credit refund checks, and changes in working capital balances. Net cash used in investing activities was $245,543 during the nine months ended September 30, 2026, compared to $665,443 during the nine months ended September 30, 2025, with the change due to an additional cash investment made in the prior period that was not repeated in the current period. During the nine months ended September 30, 2026, the Company had $0 net cash used in financing activities, compared to $36,055 during the nine months ended September 30, 2025, with the change resulting from the Company’s insurance financing agreement maturing during fiscal year 2025. The Company’s balance of cash and cash equivalents was $2,653,434 at September 30, 2026, and $2,168,808 at December 31, 2025. The Company specializes in workers’ compensation cost containment and provides a range of services through its wholly owned subsidiaries.

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