Indiana-based healthcare technology company Syra Health reported a significant increase in its revenue for 2024, reflecting strong performance in its core business units and strategic shifts toward more profitable segments.
Full-Year Financial Performance
Syra Health generated $8 million in total revenue for 2024, a 45% increase from the $5.5 million reported in 2023. The growth was driven by strong demand for Syra Health’s healthcare technology and population health business unit.
Revenue from Syra Health’s healthcare workforce division, which includes healthcare staffing and workforce management solutions, accounted for $5.9 million in 2024, a 38% increase from 2023. However, the company’s strongest growth came from its population health business unit, which brought in $1.7 million in revenue for 2024 — more than double the $715,000 reported in 2023.
Excluding the healthcare workforce segment, Syra Health’s revenue from other business units grew by 66% year-over-year and accounted for 26% of total revenue in 2024, up from 23% in 2023.
Fourth Quarter 2024 Performance
In the fourth quarter of 2024, Syra Health reported a 285% year-over-year increase in population health revenue. At the same time, operating expenses fell by 39% year-over-year.
The company’s net loss dropped to $504,000, compared to $995,000 in the fourth quarter of 2023, reflecting improved cost control and more profitable revenue streams.
Profit Margins and Operating Expenses
Syra Health reported a gross profit margin of 20.7% for 2024, down from 25.6% in 2023. The company attributed the decline to the impact of lower-margin contracts in the healthcare workforce business, although this was partially offset by higher-margin contracts in the population health unit.
Operating expenses for 2024 increased by 26% to $5.4 million — a gradual increase compared to the 36% rise in 2023. A major factor behind the increase was Syra Health’s investment in launching Syrenity, its new mental health platform introduced in 2024. The company expects Syrenity to drive future cost efficiencies and revenue growth.
Despite increased spending, Syra Health improved its financial position by reducing its net loss for the year to $3.8 million, compared to a $2.9 million loss in 2023. The higher net loss was primarily linked to one-time expenses related to the launch of Syrenity, which the company expects will not recur in 2025.
As of December 2024, Syra Health reported $2.4 million in cash and no long-term debt, providing a stable financial base for future growth.
Strategic Growth and Contract Wins
Syra Health has focused on shifting toward more profitable business segments. According to Deepika Vuppalanchi, chair and chief executive officer of Syra Health, the company’s strategy of targeting higher-margin revenue streams and reducing costs is beginning to show results.
Vuppalanchi stated, “Since our initial public offering and listing on the Nasdaq nearly 18 months ago, we have accelerated the delivery of innovative healthcare solutions for our customers throughout the country. Our focus on more profitable contracts and cost control is helping us deliver better financial results.”
Syra Health’s contract pipeline remains strong. The company secured a major contract with the Health Care Authority in Washington state in 2024, marking the 20th state where Syra Health has established a presence.
In Virginia, Syra Health signed a contract with Fairfax County to provide licensed nurses for 24-hour care and support in filling temporary healthcare positions.
Syra Health also secured a $480,000 contract with the Indiana Department of Health to evaluate risks to Indiana’s public health infrastructure and behavioral health system.
The Bigger Picture
Syra Health’s strategic focus on population health and mental health services seems to be paying off. While healthcare workforce contracts remain a significant part of the business, Syra Health is increasing its focus on higher-margin services like population health and mental health solutions.
With a stable balance sheet, a growing contract base, and improved profitability in the fourth quarter, Syra Health is positioning itself for long-term growth in the healthcare technology market. However, the company will need to maintain its momentum in cost control and new contract acquisitions to sustain this growth trajectory in 2025 and beyond.