Custom Health Achieves 70% Increase in Quarterly Revenue in Q2-2026 and Advances Medication Management Platform with Evergreen Pharmacy and Spencer Health Solutions Acquisitions

• For the three months ended June 30, 2026, Custom Health achieved quarterly revenue of US$7.4 million, an increase of 70% from Q2-2025. The results reflect the acquisition of InnovativeRx during the period. The equity pickup for IRX accounts for an acquisition date of June 5, 2026. Proforma Revenue for the combined entity for the 3 months ended June 30, 2026 is US$14.3 million(1).

• Subsequent to quarter-end, Custom Health entered into a binding letter of intent to acquire Evergreen Pharmacy LLC ("Evergreen"), a Wisconsin-based specialty pharmacy, expected to add over US$78 million in annual revenue. The acquisition will expand Custom Health's specialty pharmacy footprint in the U.S. and further strengthen its presence in the growing specialty pharmacy market.

• Subsequent to quarter-end, Custom Health entered into a binding agreement to acquire Spencer Health Solutions, Inc. ("Spencer"), bringing the spencer® in-home smart dispensing and monitoring platform fully in-house. Spencer is expected expand its connected medication management capabilities and create opportunities for margin expansion through greater control over the technology platform and associated hardware and support costs.

• Upon closing and integration of both Evergreen and Spencer acquisitions, Custom Health expects to exceed US$130 million in annualized revenue run-rate by the end of 2026 and achieve positive EBITDA in 2027 as we continue to execute on our business plan of accretive acquisitions.

Kelowna, British Columbia--(Newsfile Corp. - August 17, 2026) - Custom Health Holdings Inc. (TSX: CHLT) ("Custom Health" or the "Company") is pleased to announce its consolidated financial results for the fiscal second quarter ended June 30, 2026. A summary of the Company's financial and operational results is set out below, and more detailed information is contained in the quarterly financial statements and related management discussion and analysis, which are available on the Company's SEDAR+ page at www.sedarplus.ca.

Shane Bishop, Chief Executive Officer of Custom Health, commented, "Our second quarter marked an important period for Custom Health as we continued building the infrastructure for medication management at home. We completed our Toronto Stock Exchange listing and advanced the integration of InnovativeRx, expanding our pharmacy capabilities and reach in the United States. Since quarter-end, we have continued to execute on that strategy. Our proposed acquisition of Evergreen Pharmacy is expected to further expand our pharmacy network, while our agreement to acquire Spencer Health Solutions is expected to bring an important in-home technology capability fully in-house. Together, these steps strengthen the alignment across technology, pharmacy and clinical care that is central to how Custom Health supports patients at home."

Jason Nalewany, Chief Financial Officer of Custom Health, commented, "Our second quarter shows the momentum building across this platform, revenue grew 70% to US$7.4 million and gross profit grew 43% to US$2.9 million, even as we absorbed the one-time costs of becoming a public company. That performance is what allows us to move on Evergreen Pharmacy and Spencer Health Solutions from a position of strength. Together, these acquisitions are expected to extend our reach in specialty pharmacy and bring core in-home technology fully in-house, two capabilities that compound rather than simply add to what we've already built. Upon closing and integration of both acquisitions, we expect to exceed US$130 million in annualized revenue run-rate by end of this year and achieve positive EBITDA in 2027 as we continue to execute on our business plan of accretive acquisitions."

Custom Health – Fiscal Second Quarter 2026 Financial Highlights

Significant financial highlights for the Company's continuing operations during the three months ended June 30, 2026 included:

• Custom Health achieved quarterly revenue from continuing operations of US$7.4 million in Q2-2026, a 70% increase compared to revenue of US$4.3 million generated in Q2-2025.

• Custom Health achieved Gross Profit(1) of US$2.9 million during Q2-2026, a 43% increase compared to US$2.0 million in Q2-2025.

• Custom Health achieved Gross Margin(1) of 39.3% during Q2-2026, compared to 46.7% in Q2-2025.

• During Q2-2026, Custom Health reported an Adjusted EBITDA(1) loss of US$3.3 million, compared to an Adjusted EBITDA(1) loss of US$3.0 million in Q2-2025.

• During Q2-2026, the Company's IFRS net loss from continuing operations was US$33.4 million compared to a net loss of US$5.3 million for the previous year. The net loss was driven primarily by a US$22.4 million one-time, largely non-cash listing expense recognized under IFRS 2 in connection with the reverse takeover transaction, rather than by ordinary operating costs.

Business Highlights – Second Quarter 2026

Significant business and operational highlights for the Company during the three months ended June 30, 2026 included:

• Appointment of Executive Leadership: On May 14, 2026, Custom Health announced the strategic appointment of Jason Nalewany as Chief Financial Officer to oversee the Company's financial strategy, capital allocation, and capital markets activities as a public issuer.

• Strategic Acquisition of InnovativeRx Operating Subsidiaries: On June 3, 2026, immediately prior to the completion of its plan of arrangement transaction (the "Arrangement") with Custom Health, Inc. ("Custom Delaware"), Custom Delaware completed its acquisition of substantially all operating assets of InnovativeRx US Holdings, Inc. ("InnovativeRx") for a total transaction value of approximately US$16.55 million in cash and equity, expanding Custom Health's operational footprint across Indiana and Ohio.

• Completion of Plan of Arrangement and Name Change: On June 5, 2026, Custom Health announced the successful completion of the Arrangement. Under the terms of the Arrangement, the Company acquired 100% of the issued and outstanding common stock of Custom Delaware. In connection with the closing of the Arrangement, the Company officially changed its name from "Queue Ventures Ltd." to "Custom Health Holdings Inc."

• Commencement of Trading on the Toronto Stock Exchange: On market open on June 24, 2026, Custom Health commenced trading on the TSX under the symbol "CHLT."

• Execution of Comprehensive Corporate Financing Arrangements: In connection with its public listing, Custom Health announced on June 22, 2026, that it entered into several strategic financing agreements, including senior secured and unsecured convertible notes for a combined total of up to US$50 million, along with a secured credit facility of up to C$10 million.

Events Subsequent to June 30, 2026

Significant business and operational highlights for the Company subsequent to June 30, 2026, included:

• Binding Letter of Intent to Acquire Evergreen Pharmacy: On July 22, 2026, Custom Health announced a binding letter of intent (the "LOI") to acquire Evergreen Pharmacy LLC ("Evergreen"), a specialty pharmacy in West Allis, Wisconsin managing complex therapies for chronic disease states, licensed in Wisconsin, Illinois, and Michigan with room to expand into Minnesota. Evergreen generated unaudited Revenue of approximately US$78.8 million and Normalized EBITDA(1) of US$0.6 million for fiscal 2025, and was profitable on both an EBITDA and Net Income basis based on internal management prepared figures; the acquisition is expected to be immediately accretive. The proposed purchase price is US$3,500,000 in cash, subject to a US$175,000 indemnity holdback. Closing is subject to completion or waiver of customary conditions precedent including, without limitation, execution of a definitive agreement, satisfactory completion due diligence, and customary approvals, and is expected in Q3-2026.

• Agreement to Acquire Spencer Health Solutions: On August 5, 2026, Custom Health announced the execution of a binding agreement to acquire Spencer Health Solutions, Inc. ("Spencer"), developer of the spencer® smart medication dispenser, an FDA-listed Class I, cloud-connected in-home device already deployed as part of Custom Health's model to support Remote Patient Monitoring and Remote Therapeutic Monitoring. Bringing the device in-house is expected to align its product roadmap with Custom Health's operations while reducing device costs and third-party fees. Consideration consists of up to US$1,500,000 in cash and pre-funded warrants worth approximately US$23,500,000, with closing expected on or about September 1, 2026. Closing of the Spencer transaction is subject to completion or waiver of customary conditions precedent including, without limitation, receipt of all requisite regulatory and other approvals.

Selected Financial Information

(1)Non-IFRS Financial Measures

The terms Annualized Revenue Run-Rate, EBITDA, Adjusted EBITDA, Gross Profit, Gross Margin and Proforma Revenue used in this document are non-GAAP financial measures and do not have any standardized meaning under IFRS. These measures may not be comparable to similar financial measures disclosed by other companies and should not be considered in isolation or as a substitute for, or superior to, IFRS financial measures. Readers are advised to review the section entitled "Non-IFRS Financial Measures" in the Company's management discussion and analysis for the quarter ended June 30, 2026, available on the Company's SEDAR+ page at www.sedarplus.ca, for a detailed explanation of the composition of these measures and their uses.

The following table reconciles EBITDA, Adjusted EBITDA to net income (loss) for the three months ended June 30, 2026 and June 30, 2025 in respect of the Company and InnovativeRx:

The Company calculated Proforma Revenue for June 30, 2025 by including full quarter earnings for both Custom Health and IRX from April 1, 2026 to June 30, 2026.

The Company calculated Annualized Revenue Run-Rate by multiplying the anticipated pro forma consolidated revenue of the Company, Evergreen Pharmacy, Spencer Health Solutions, and InnovativeRx for the fourth quarter ended December 31, 2026 by four.

Shane Bishop
Chief Executive Officer
Custom Health Holdings Inc.

About Custom Health

Custom Health is an AI-enabled healthcare technology company building the infrastructure for medication management at home. The Company connects in-home technology, pharmacy, and pharmacist-led clinicians to create continuous visibility into a patient's medication use and support timely clinical action. Powered by its proprietary AdhereNet® platform, Custom Health operates an integrated pharmacy network across Canada and the U.S. as part of its broader infrastructure, supporting medication delivery, medication-use insights, and pharmacist-led care to enable earlier intervention and better medication management at home. To learn more, visit customhealth.com.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Custom Health. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes, without limitation, information regarding: future financial or operating results, availability of funds from the Company's strategic financing agreements, the anticipated terms, timing and completion of the proposed acquisitions of Evergreen and Spencer, future results associated with the InnovativeRx, Evergreen and Spencer acquisitions including any business, operational or financial synergies or results that may be derived by the Company therefrom, and future business plans.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflect Custom Health's management estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Custom Health believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. The reader should not place undue reliance on these forward-looking statements, as there can be no assurances that the plans, initiatives or expectations upon which they are based will occur. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are, without limitation, the following: results from business operations not matching management expectations; risks related to operating in a regulated environment; competition; inability to realize operational synergies or results as expected from acquisitions or other business transactions, including the proposed Evergreen and Spencer transactions; the risk that the proposed acquisitions of Evergreen and Spencer Health Solutions may not be completed on the terms proposed or at all; the risk that the conditions precedent to the Spencer and Evergreen acquisitions may not be satisfied as expected; risks associated with being a newly listed issuer including diversion of management time and attention and additional costs associated with being a public company; risks related to the Company's indebtedness; risks relating to the Company's ability to access capital on acceptable terms or at all; risks associated with business relationships and partnerships; supply chain risks; operations in multiple markets; exchange rate fluctuations; valuation of intangible assets; risks relating to litigation and administrative proceedings including tax disputes, intellectual property disputes and other potential proceedings; interests of significant shareholders; health and safety risks including with respect to the outbreak of infectious diseases or viruses; reliance on key personnel; ability to attract and retain highly skilled personnel; internal controls; counterparty and concentration risks; the ability of Custom Health to meet its obligations under its material agreements; business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the other risks disclosed in the Company's management's discussion and analysis for the three months ended June 30, 2026, a copy of which is available under the Company's profile on SEDAR+ at www.sedarplus.ca. This forward-looking information may be affected by risks and uncertainties in the business of Custom Health and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Custom Health has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Custom Health does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310104

Source: Custom Health Holdings Inc.

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