Shares of Vaso Corporation (VASO Quick QuoteVASO - Free Report) have gained 20.9% since the company reported results for the quarter ended March 31, 2026, outperforming the S&P 500 Index, which declined 1.1% over the same period. Over the past month, Vaso shares have rallied 20% compared with the S&P 500’s 4.7% rise.

VASO’s Earnings Snapshot

Vaso reported first-quarter 2026 revenues of $19.4 million, down 0.5% from $19.5 million in the prior-year quarter. Net loss narrowed to $0.9 million from $1.1 million a year earlier, while loss per share remained at $0.01. Gross profit increased 1.9% year over year to $11.6 million from $11.4 million.

Operating loss widened slightly to $1.3 million from $1.2 million in the prior-year period, primarily because of higher selling, general and administrative (SG&A) expenses. SG&A expenses rose 2.6% year over year to $12.7 million from $12.4 million, driven by increased personnel, travel, consulting and accounting costs, partially offset by savings tied to the healthcare IT business divestiture. Research and development expense edged up 2.8% to $183,000 from $178,000.

Segment-wise, professional sales service revenue rose 6.1% to $9.2 million from $8.7 million, driven by higher imaging product deliveries and improved commission rates. Equipment segment revenue climbed 26.7% to $0.6 million from $0.4 million on stronger China operations deliveries, while IT segment revenue declined 7.3% to $9.6 million from $10.3 million following the divestiture of the healthcare IT business in November 2025.

Vaso’s Segment Performance and Margins

The professional sales service business remained Vaso’s largest contributor to profitability. Gross profit in the segment increased 4.8% year over year to $7.2 million from $6.9 million, although operating income swung to a loss of $39,000 from operating income of $347,000 in the year-earlier quarter due to higher personnel and travel expenses. VASO noted that increased deliveries of GE HealthCare diagnostic imaging products and a higher blended commission rate supported revenue growth, partially offset by weaker ultrasound product deliveries and lower related commission rates.

The IT segment continued to feel the impact of the VasoHealthcare IT divestiture completed in the fourth quarter of 2025. Segment revenue declined 7.3% year over year to $9.6 million, reflecting the loss of software sales and support revenue from the divested business. However, managed network services revenue improved, aided by higher recurring managed-service sales. Monthly recurring revenue represented 88% of IT segment revenue during the quarter. Despite lower revenue, the operating loss in the segment improved to $0.3 million from $0.8 million a year earlier, helped by lower SG&A expenses following the divestiture.

The equipment segment posted a 26.7% revenue increase to $0.6 million, supported by higher product deliveries in China. However, gross profit declined 8.3% to $299,000 from $326,000 due to higher ARCS-cloud software costs in the U.S. market and increased product obsolescence costs in China operations. Operating loss in the segment widened to $360,000 from $246,000 in the prior-year quarter.

Vaso Corporation Price, Consensus and EPS Surprise

Vaso Corporation price-consensus-eps-surprise-chart | Vaso Corporation Quote

VASO’s Cash Flow and Deferred Revenue Trends

Operating cash flow deteriorated during the quarter, with net cash used in operating activities totaling $12.6 million compared with $0.6 million used in the year-ago period. Management attributed the decline primarily to timing differences, noting that some customer payments expected in March were received in April 2026. Cash and cash equivalents stood at approximately $38.5 million as of May 8, 2026.

Deferred revenue continued to grow, reaching $39.5 million at the end of the first quarter, up 11.6% year over year from $35.4 million. Management said the increase reflected higher values of new orders booked relative to orders delivered during the past 12 months. Remaining performance obligations totaled approximately $103 million as of March 31, 2026, with $36.9 million expected to be recognized during the remainder of 2026.

Adjusted EBITDA improved modestly to a loss of $1.07 million from $1.12 million in the prior-year period. The improvement stemmed from the narrower net loss and higher depreciation and amortization expenses. Other income increased 39.3% to $0.3 million from $0.2 million, aided by transition services provided to Nano-X following the VHC-IT divestiture and a smaller loss related to EECP Global.

Vaso’s Management Commentary and Outlook

President and Chief Executive Officer Dr. Jun Ma said VASO remained “cautiously optimistic” about 2026 despite macroeconomic uncertainty. Ma highlighted that revenue would have increased 4.8% year over year, excluding the healthcare IT services business that was divested in November 2025. He also emphasized the seasonal nature of Vaso’s operations, noting that profitability has historically improved in later quarters of the year.

Vaso did not provide formal financial guidance for the remainder of 2026.

VASO’s Other Developments

During the quarter, Vaso continued integrating operations after the November 2025 divestiture of its VasoHealthcare IT business to Nano-X Imaging.

VASO also disclosed that its amended sales representation agreement with GE HealthCare was extended through Dec. 31, 2030, subject to certain termination conditions. GE HealthCare accounted for 48% of total revenues in the first quarter and represented 84% of accounts and other receivables at quarter-end, underscoring the importance of the partnership to Vaso’s business.