VSEE Health, Inc. Delivers Robust Q3 2025 Revenue Growth Amid Telehealth Expansion: Total Revenues Reach $3.98 Million, Up 19% Year-Over-Year

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VSEE Health, Inc. Delivers Robust Q3 2025 Revenue Growth Amid Telehealth Expansion: Total Revenues Reach $3.98 Million, Up 19% Year-Over-Year

BOULEVARD 17.11.2025

SAN JOSE, CALIFORNIA / ACCESS Newswire / November 17, 2025 / VSee Health, Inc. (Nasdaq:VSEE), a pioneering provider of AI-powered telehealth solutions and high-acuity virtual care services, today announced its financial results for the third quarter ended September 30, 2025, as detailed in its Form 10-Q filed with the SEC on November 14, 2025.

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In Q3 2025, VSee achieved total revenues of $3.98 million, a 19% increase from $3.35 million in the prior-year period, fueled by heightened demand for its integrated telehealth and professional services. Year-to-date through nine months, revenues climbed to $10.69 million, up 60% from $6.69 million in the comparable 2024 period, reflecting the full impact of the iDoc acquisition and expanded hospital partnerships. Gross margins remained resilient at 52%, supporting scalable growth as the company advances its pipeline of multi-year contracts projected to add millions in annualized recurring revenue.

Key Financial and Operational Highlights for Q3 2025:

Revenue Growth: telehealth fees surged 196% YoY to $1.44 million and patient fees rose 42% to $0.88 million, driven by expanded ICU and neurocritical care deployments across 25+ hospitals.
Cash Flow Optimization: Net cash used in operations for the nine months ended at $1.52 million, a 46% improvement from $2.82 million in 2024, bolstered by disciplined cost management and $1.69 million in financing inflows.
Balance Sheet Strength: Cash position grew to $0.47 million, with total assets at $18.71 million. Accounts receivable expanded to $2.58 million, signaling robust billing momentum from new contracts.
Strategic Milestones: Full activation of the $10M+ Level 1 hospital teleradiology deal, contributing to over 100,000 radiology reads; AI innovations like SOAP Notes reducing documentation time by 93%; and FedRAMP High status opening doors to billions in federal opportunities through 2030.

Pro Forma Financial Results

The unaudited pro forma financial information in the tables below summarizes the combined results of VSee Health's operations and iDoc's operations through September 30, 2025

For The Three Months Ended September 30,						For the Nine Months Ended September 30,
2025		2024		2025		2024
Total Revenues	$	3,980,655	$	3,354,437	$	10,692,259	$	6,686,998
Net Loss	$	(289,745	)	$	(53,922,561	)	$	(6,862,468	)	$	(54,493,913	)
Weighted average shares:
Basic and diluted	16,549,357	15,077,548	16,429,551	8,351,249
Net Loss per Share:
Basic and diluted	(0.02	)	(3.58	)	(0.42	)	(6.53	)

Management Summary

"Q3 2025 marks a critical milestone in VSEE's ascent as a telehealth leader, with revenue growth validating our focus on high-margin, AI-enhanced solutions that address clinician burnout and care access gaps," said Dr. Milton Chen and Dr. Imo Aisiku, Co-Chief Executive Officers of VSEE Health. "Our platform's seamless integrations with EHR systems and remote monitoring tools are empowering hospitals to optimize workflows, while our telehealth care expertise is capturing a larger share of the $455 billion federal telehealth opportunity. Despite macroeconomic headwinds, our 70% reduction in operating cash use year-to-date demonstrates prudent execution. With a robust pipeline and FedRAMP unlocking government deals, we're poised for profitability and exponential upside for our investors.

VSEE's dual-segment model-Healthcare Technology and Telehealth Services-continues to thrive, with the Technology segment generating $6.12 million YTD (up 11% YoY) from subscriptions and engineering fees, and Telehealth contributing $4.57 million from patient and institutional services. As the telehealth sector grows at a 23.84% CAGR through 2034, VSEE is uniquely positioned with its white-label platform, clinician staffing solutions, and remote diagnostics, targeting 3-5% reductions in hospital nursing costs and enhanced patient outcomes. Management reaffirms its commitment to value creation through innovation and execution.

VSEE HEALTH, INC.
(FKA DIGITAL HEALTH ACQUISITION CORP.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025, AND 2024 (UNAUDITED)

For the Three Months Ended						For the Nine Months Ended
September 30,						September 30,
2025		2024		2025		2024
(Restated)		(Restated)
Revenues
Subscription fees	$	894,514	$	1,037,457	$	2,602,186	$	3,080,085
Professional services and other fees	603,696	396,455	2,524,853	1,145,930
Technical engineering fees	163,523	806,456	993,493	1,284,345
Patient fees	882,529	623,198	2,069,565	654,718
Telehealth fees	1,436,393	485,971	2,499,662	516,540
Institutional fees	-	4,900	2,500	5,380
Total revenues	3,980,655	3,354,437	10,692,259	6,686,998
Cost of revenues	1,907,359	569,734	5,170,500	1,890,557
Gross margin	2,073,296	2,784,703	5,521,759	4,796,441
Operating expenses
Compensation and related benefits	1,213,678	1,730,369	4,543,136	3,536,689
Goodwill impairment charges	-	56,675,210	-	56,675,210
General and administrative	2,917,139	2,218,289	7,122,202	2,997,525
Transaction expenses	-	455,834	-	710,479
Total operating expenses	4,130,817	61,079,702	11,665,338	63,919,903
Net operating loss	(2,057,521	)	(58,294,999	)	(6,143,579	)	(59,123,462	)
Other income (expense)
Interest expense	(755,866	)	(115,385	)	(1,727,110	)	(466,530	)
Other (expense) income, net	(5	)	(2	)	183,004	-
Change in fair value of financial instruments	2,828,647	5,737,606	1,412,351	6,285,706
Loss on extinguishment of loan	-	(645,979	)	(126,125	)	(645,979	)
Loss on issuance of financial instruments	(305,000	)	(595,000	)	(443,020	)	(2,213,234	)
Total other income (expense), net	1,767,776	4,381,240	(700,900	)	2,959,963
Loss before (provision for) benefit from income taxes	(289,745	)	(53,913,759	)	(6,844,479	)	(56,163,499	)
(Provision for) benefit from income taxes	-	(8,802	)	(17,989	)	1,669,586
Net loss	(289,745	)	(53,922,561	)	(6,862,468	)	(54,493,913	)
Basic and diluted loss per common share	$	(0.02	)	$	(3.58	)	$	(0.42	)	$	(6.53	)
Weighted average number of common shares outstanding, basic and diluted	16,549,357	15,077,548	16,429,551	8,351,249

VSEE HEALTH, INC.
(FKA DIGITAL HEALTH ACQUISITION CORP.)
CONDENSED CONSOLIDATED BALANCE SHEETS

September 30,		December 31,
2025		2024
(Unaudited)
ASSETS
Current assets
Cash	472,759	326,115
Accounts receivable, net of allowance for credit losses of $2,834,974 and $2,393,033 as of September 30, 2025, and December 31, 2024, respectively	2,578,490	1,716,370
Due from related party	284,614	531,656
Prepaids and other current assets	382,522	446,826
Total current assets	$	3,718,385	$	3,020,967
Right-of-use assets, net	315,679	379,585
Intangible assets, net	9,337,504	10,995,000
Goodwill	4,916,694	4,916,694
Fixed assets, net	418,860	680,242
Total assets	$	18,707,122	$	19,992,488
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	11,716,584	9,343,659
Deferred revenue	1,150,093	417,815
Due to related parties	51,900	51,900
Operating lease liabilities	85,575	72,836
Finance lease liabilities	184,106	328,833
Factoring payable	122,220	179,007
Encompass Purchase Liability	265,578	263,918
Equity Line of Credit	42,394	80,000
Quantum convertible note, related party at fair value	3,828,125	3,248,000
September 2024 Convertible Note, at fair value	2,043,760	2,094,000
Loan payable, related party	471,651	471,651
Line of credit	456,097	456,097
Notes payable, net of discount	1,944,710	433,983
Exchange Note, at fair value	1,028,158	1,499,000
Common stock issuance obligation	31,227	69,621
Total current liabilities	$	23,422,178	$	19,010,320
Notes payable, less current portion, net of discount	589,374	593,941
Operating lease liabilities, less current portion	203,689	269,338
Deferred revenue, net of current portion	-	69,999
Deferred tax liabilities, net	67,379	67,378
Total liabilities	$	24,282,620	$	20,010,976
Commitments, Contingencies, and Concentration Risk (Note 10)
STOCKHOLDERS' DEFICIT
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 6,158 and 0 shares issued and outstanding as of September 30, 2025, and December 31, 2024, respectively	1	1
Common stock, $0.0001 par value; 100,000,000 shares authorized; 17,022,690 and 16,297,190 shares issued and outstanding as of September 30, 2025, and December 31, 2024, respectively	1,703	1,630
Additional paid-in capital	68,989,139	67,683,754
Accumulated deficit	(74,566,341	)	(67,703,873	)
Total stockholders' deficit	(5,575,498	)	(18,488	)
Total liabilities and stockholders' deficit	$	18,707,122	$	19,992,488

The full Form 10-Q is available on the SEC's website and VSEE's investor relations page at www.vseehealth.com/investors.

About VSee Health

VSee Health (NASDAQ:VSEE) is a telehealth technology and services company delivering high-acuity virtual care solutions through its scalable, API-driven platform. The Company's offerings integrate secure video, device data, and EHR connectivity to power hospital systems, health networks, and employers across the United States.

For more information, please visit www.vseehealth.com.

Forward-Looking Statements

Matters discussed in this news release that are not statements of historical or current facts, including but not limited to those relating to VSee Health's ability to improve healthcare access and provider efficiencies, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause performance or achievements to be materially different from historical results or from any future performance or achievements expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. More information on risk factors relating to VSee Health and its technology and billing services is included from time to time in the "Cautionary Note Regarding Forward-Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of VSee Health's periodic and current filings with the SEC, which are also made available on VSee Health's website at www.vseehealth.com. Forward-looking statements speak only as of the date they are made, and VSee Health undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, or otherwise. Readers are cautioned not to put undue reliance on forward-looking statements.

Contact:

VSee Health
Anne Chang
[email protected]

VSee Investor Contact:
Milton Chen
VSee Health
[email protected]

SOURCE: VSee Health, Inc.

View the original press release on ACCESS Newswire

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