Better Choice Company Inc. (BTTR): Business Model Canvas [Dec-2025 Updated]

You're looking at the new reality for Better Choice Company Inc. after that big SRx merger, a strategic move that defintely changes the game from just premium pet food to integrated family wellness. Honestly, mapping out this combined model is key, especially when you see the projection: over $270 million in combined revenue for 2025, plus they are banking on $1.7 million in expected annual cost synergies post-merger. If you want to see exactly how they plan to manage high-touch specialty pharmacy alongside the established Halo brand-and where the real value lies in this dual focus-you need to break down the nine blocks below.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Key Partnerships

You're looking at the key relationships that underpin the newly structured entity, which as of late 2025 is legally SRx Health Solutions Inc. following the April 2025 combination with SRx Health Solutions, Inc. This shift fundamentally changed the partnership landscape, blending pet wellness distribution with specialty healthcare infrastructure.

SRx Health Solutions Inc. (now merged)

The business combination with SRx Health Solutions, Inc. closed on April 25, 2025, for approximately US$125 million in an all-stock transaction. This merger brought significant operational assets into the partnership structure. A strategic partner of the acquired entity converted debt to equity, resulting in a debt reduction of CAD$4 million just before the closing. The pro forma revenue projection for the combined entity for the 2025 fiscal year is over USD$270 million, with an expected EBITDA of over $10 million.

The operational footprint gained from SRx Health Solutions is substantial, providing a national-scale specialty pharmacy network in Canada, which is a high-barrier-to-entry business.

Pharmaceutical manufacturers for specialty drugs

The partnership with pharmaceutical manufacturers is now primarily facilitated through the infrastructure inherited from SRx Health Solutions, which has established relationships in the healthcare sector. This is critical as the combined company launched the 'Better Pet Rx' initiative in 2025, expanding into animal pharmaceuticals. The veterinary supplement market, which this initiative taps into, reported gross margins of 52.4% in 2023, which is significantly higher than traditional kibble.

Strategic distribution partners for capital and reach

Distribution reach is now leveraged across the existing pet product lines and the new healthcare services. The legacy pet business, under the Halo brand, saw its gross sales reach around $49 million in 2023. The company has been actively managing its distribution footprint, notably divesting its Asian operations to focus on core markets.

The sale of the Halo subsidiary's Asian business generated specific financial outcomes:

• Total Gross Proceeds: $8.1 million
• Upfront Cash Component: $6.5 million
• Upfront Cash Per Share (based on 2,422,005 shares as of March 25, 2025): $3.34
• Minimum Total Royalty Payment over 5 years: $1.65 million
• Minimum Annual Royalty Payment: $330,000

The SRx network itself provides extensive reach, covering all ten Canadian provinces.

Veterinary and nutrition experts for Halo product formulation

Partnerships with experts underpin the premium nature of the Halo product line. The brand demonstrated strong consumer trust, evidenced by a 33.5% increase in online sales during 2023. The focus on nutrition-based products is a core value proposition. The strategic move into veterinary medicine in 2025 is intended to capture a slice of the global pet care market, which was expected to reach $269 billion by 2025.

Major e-commerce platforms like Chewy and Amazon

Digital platforms remain a crucial distribution channel for the pet segment. In the fourth quarter of 2024, the company achieved a 26% year-over-year sales growth, reaching $7.2 million in revenue for that quarter. A significant driver of this growth was the performance on major e-commerce sites.

Platform-specific performance highlights from Q4 2024:

• Sales growth across Chewy and Amazon platforms: 32% year-over-year
• Q4 2024 Gross Margin: 36%
• Full Year 2024 Gross Margin: 37%

The company also expanded its presence by launching Halo on Chewy Canada in November 2024.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Key Activities

You're looking at the core engine of the newly combined entity, which as of late 2025, is operating as SRx Health Solutions Inc. This involves managing two very distinct, yet strategically linked, operational pillars: specialty healthcare services and premium pet nutrition.

Specialty pharmacy operations and clinical care services

This activity centers on the inherited SRx Health platform, which focuses on specialty pharmacy and integrated healthcare delivery across Canada. The goal is to manage the patient journey for acute, chronic, and rare disease management, often involving specialty drugs.

The operational footprint supporting this includes:

• 35 specialty pharmacy locations across Canada.
• 40 specialty health/infusion clinics.
• 4 clinical trial sites.
• 2 wholesale distribution facilities.

Furthermore, the company is executing on a strategy to build out its U.S. presence by acquiring Choice Specialty Pharmacy Group, a deal based on 6X of that group's FY2024 Adjusted EBITDA of approximately $4.68 million. This U.S. expansion includes the addition of a sterile compounding facility.

Manufacturing and distribution of premium pet nutrition products

This is the legacy core of Better Choice Company Inc. (BTTR), primarily focused on the Halo brand portfolio. Key activities here involve formulating and distributing natural, high-quality nutrition for pets.

The scale of this segment is illustrated by the performance of the flagship brand:

Distribution relies heavily on digital channels, as evidenced by a 32% increase in sales across Chewy and Amazon platforms in the fourth quarter of 2024 year-over-year.

Research and development for new pet and human health products

The combined entity is actively pursuing expansion into new verticals, specifically veterinary medicine via the Better Pet Rx initiative, slated for 2025. This R&D and strategic development effort leverages the pharmaceutical relationships and infrastructure gained from the SRx Health acquisition to complement the existing Halo pet food line.

Integration of the pet and human health business segments

A critical ongoing activity is realizing the projected synergies from the April 2025 merger with SRx Health Solutions Inc.. This involves merging operational infrastructure and distribution networks to drive efficiency across both the pet and human health segments.

The expected financial benefit from this integration includes:

• Projected combined EBITDA for 2025: Over $10 million.
• Anticipated annual cost savings post-integration: Approximately $1.7 million.

The combined trailing twelve-month revenue leading up to the merger announcement was $235 million, showing a 25% quarter-over-quarter increase.

Managing a Canadian network of 35 pharmacies and 40 clinics

This activity is the day-to-day management and optimization of the extensive Canadian footprint inherited from SRx Health. The network spans all ten Canadian provinces. The original SRx Health generated CAD$180 million in revenue in 2023, with a pro forma Adjusted EBITDA of C$11.4 million in the same year. This network is key to the human health revenue stream, which is less cyclical due to its government-reimbursed nature.

Finance: draft 13-week cash view by Friday.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Key Resources

You're looking at the core assets that power the combined entity following the April 2025 merger, which is now trading as SRx Health Solutions Inc. (SRXH). These resources bridge the gap between pet wellness and healthcare services.

Specialty pharmacy licenses and Canadian network infrastructure

The infrastructure inherited from the SRx Health Solutions acquisition provides a significant foothold in the North American healthcare services sector. This includes a substantial physical network, which is a critical barrier to entry for competitors.

The Canadian network infrastructure includes:

• 35 specialty pharmacy locations.
• 40 specialty health/infusion clinics.
• 4 clinical trial sites.
• 2 wholesale distribution facilities in Canada.

Furthermore, the planned acquisition of Choice Specialty Pharmacy Group adds U.S. licensing and a sterile compounding facility, with the purchase price based on 6X of the Seller's FY2024 Adjusted EBITDA, estimated at approximately USD $4.68 million. That's a concrete valuation metric for that specific asset.

Halo brand's multi-decade track record in pet wellness

The Halo brand represents the established consumer packaged goods (CPG) asset, built on a foundation that spans multiple decades. This track record supports consumer trust in their nutrition-based pet products.

Key figures related to the Halo brand include:

The brand focuses on sustainably sourced kibble and canned food derived from real whole meat, plus minimally processed raw-diet dog food and treats.

Intellectual property (IP) in nutrition-based pet products

The core IP centers on the alternative, nutrition-based approach to pet health, differentiating the Halo portfolio from conventional offerings. This intellectual foundation supports the development of their freeze-dried raw food, nutritional supplements, and CBD-infused products.

The focus areas for this IP include:

• Formulations based on real whole meat and minimally processed raw-diet ingredients.
• Technology platform for managing the operational and administrative workflow of manufacturing pet health products.

$8.8 million raised from a private placement in 2025

Capital infusion in 2025 provided immediate financial backing for the combined entity. This was completed in April 2025, concurrent with the merger closing.

The private placement details are:

• Aggregate Gross Proceeds: $8.8 million.
• Price per Unit: $2.18 per share.
• Securities Sold: A combination of common stock and pre-funded warrants.
• Shares Sold: 4,036,697 shares of common stock and pre-funded warrants sold.

Management team expertise in both CPG and healthcare

The leadership structure post-merger reflects the dual focus on CPG (Halo) and healthcare services (SRx). The team's combined experience is intended to drive the projected financial performance for the year.

Key leadership roles and projections:

The combined entity projects for the 2025 fiscal year:

• Projected Combined Revenue: Over USD$270 million.
• Projected EBITDA: Over USD$10 million.

Finance: draft 13-week cash view by Friday.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Value Propositions

You're looking at the value propositions for Better Choice Company Inc. as of late 2025. Honestly, the story here is one of significant strategic pivot, moving away from the integrated healthcare vision to focus almost entirely on the pet nutrition segment following major operational changes.

The core value proposition remains centered on premium, science-based pet nutrition under the Halo brand. This brand promises high-quality, natural nutrition for dogs and cats, primarily delivered through e-commerce and specialty retail channels in North America. The focus is on delivering products that help pets live healthier, longer lives. The Halo brand itself generated gross sales of around $49 million in 2023.

However, the current financial reality for continuing operations is much leaner. For the year ended September 30, 2025, continuing operations-which are now centered on the Halo brand-generated net sales of approximately $6.5 million. This contrasts sharply with the aspirational figures from the planned merger with SRx Health Solutions.

The value proposition of integrated health and wellness solutions for the entire family (pets and people) was tied to the now-discontinued SRx Health platform. Before the winding down of those operations, the combined entity projected a 2025 combined revenue of over USD$270 million and an EBITDA exceeding USD$10 million.

The human health component, which included access to specialty drugs for chronic and rare diseases, was delivered via the SRx platform. This network was described as a comprehensive Canadian specialty pharmacy and clinical service network. This network included:

• 35 specialty pharmacy locations.
• 40 specialty health/infusion clinics.
• 4 clinical trial sites.
• 2 wholesale distribution facilities.

SRx Health generated approximately CAD$180 million in revenue in 2023. The specialty pharmacy operations are now classified as discontinued following bankruptcy.

A residual value proposition tied to the Halo brand is the shareholder royalty structure. The Board approved a plan to distribute up to 55% of annual royalties generated by the Halo brand to stockholders of record as of December 31 each year. Furthermore, the sale of the Asian business secured a minimum total royalty payment of $1.65 million over five years, with a minimum annual payment of $330,000.

Here's a quick look at the Halo brand's financial footprint, contrasting historical performance with the current operational sales figures:

The company is now highly dependent on a narrow vendor base for its continuing operations, with about 85% of inventory purchases sourced from three suppliers. Finance: review the Q4 2025 cash burn rate against the expected funding runway into Q4 2025.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Customer Relationships

You're looking at the customer relationships for the entity that, as of late 2025, is operating as SRx Health Solutions Inc. following the April 30, 2025, business combination. The relationships are now bifurcated across the specialty health services and the premium pet nutrition segments.

High-touch, specialized care for specialty pharmacy patients

The specialty pharmacy component, anchored by the acquired SRx network, is built on deep, direct relationships with patients requiring complex therapies. This high-touch model is supported by a significant physical footprint across Canada, which is key to managing patient adherence and outcomes.

• SRx network operates 35 specialty pharmacy locations.
• The network includes 40 specialty health/infusion clinics.
• The infrastructure also includes 2 wholesale distribution facilities.

Furthermore, the strategic intent to expand into the U.S. market via the Choice Specialty Pharmacy Group acquisition, which was based on a purchase price multiple of 6X their FY2024 Adjusted EBITDA of approximately $4.68 million, indicates a push to scale this specialized patient relationship model into new geographies.

Automated and personalized e-commerce engagement for pet owners

For the pet owner segment, customer engagement leans heavily on digital channels, using automation to drive repeat purchases and personalization to foster loyalty to the Halo brand. The success of this approach is evident in the recent growth figures from the largest online retailers.

Here's the quick math on recent digital channel performance:

The focus here is on driving high-frequency, high-value transactions through digital touchpoints, aiming to convert pet parents into long-term subscribers or frequent buyers.

Community building around pet humanization and wellness trends

Customer relationship building in the pet space is tied to the broader trend of pet humanization. The company is leveraging its brand narrative to create a community, supported by the planned expansion into veterinary medicine with the Better Pet Rx initiative, which is slated to start in 2025.

Direct relationships with prescribers and payors in the SRx network

The SRx Health side of the business relies on established, direct relationships with healthcare providers and payers, which is critical for formulary inclusion and patient access to specialty medications. The integration aims to leverage SRx Health's pre-existing relationships in pharma to support the new pet health services expansion.

• SRx Health generated CAD$180 million in revenue in 2023.
• The combined entity projects an Adjusted EBITDA exceeding $10 million for 2025.

Customer service focused on product education and health outcomes

Customer service across both segments is framed around education, whether it's explaining the nutritional science behind the pet food or ensuring proper administration of specialty pharmaceuticals. The goal is to tie service interactions directly to measurable health outcomes for the patient or pet.

Finance: draft 13-week cash view by Friday.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Channels

You're mapping out the distribution footprint for the combined entity, which, as of late 2025, reflects the integration of the former Better Choice Company Inc. pet wellness focus with the SRx Health Solutions Inc. healthcare services infrastructure.

Specialty pharmacy locations and infusion clinics in Canada

The network resulting from the SRx Health integration provides broad coverage across Canada for specialty healthcare services. SRx Health Solutions Inc. is an integrated Canadian healthcare services provider operating within the specialty healthcare industry. The SRx network extends across all ten Canadian provinces. This infrastructure supports the delivery of customized specialty healthcare services.

Major e-commerce platforms (Chewy, Amazon) for pet products

E-commerce remains a primary channel for the Halo brand pet products. For the fourth quarter of 2024, sales growth on these platforms was significant. The increase across Chewy and Amazon platforms was 32% year-over-year in Q4 2024. Looking at the full year 2024 performance, digital channels were responsible for approximately $23.2 million in gross sales and $16.5 million in net sales.

Specialty retail and pet stores for Halo brand distribution

The physical retail presence for the Halo brand is captured under the Brick & Mortar segment. For the full year 2024, Brick & Mortar sales accounted for around $2.8 million in gross sales and $2.3 million in net sales. The company continues to leverage its established digital footprint alongside these specialty retail placements.

Wholesale distribution facilities for specialty pharmaceuticals

The expansion into veterinary medicine, particularly following the acquisition of Choice Specialty Pharmacy Group in March 2025, brings specific infrastructure into the channel mix. This acquisition included the benefit of a sterile compounding facility in the U.S. The overall infrastructure from the SRx Health side supports relationships with pharmaceutical companies.

Here's a quick look at the reported net sales contribution by channel for the full year 2024, which informs the current channel strategy:

Planned Better Pet Rx initiative for veterinary medicine

The Better Pet Rx initiative is the designated vehicle for the expansion into veterinary medicine, following the acquisition of SRx Health. This move positions the company to capture growth in the animal pharmaceuticals market starting in 2025. Furthermore, the Halo brand's royalty structure is a key financial channel component, with the Board approving a plan to distribute up to 55% of annual Halo brand royalties to shareholders. The sale of the Asian business, completed in April 2025, included a royalty agreement guaranteeing a minimum of $1.65 million over five years from that specific segment.

The company's distribution strategy now spans:

• Canadian specialty pharmacy and infusion clinic network.
• U.S. sterile compounding facility access.
• Direct-to-consumer via major e-commerce platforms.
• Distribution through specialty retail partners.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Customer Segments

You're looking at the customer segments for the entity now known as SRx Health Solutions Inc., following the April 2025 business combination. The customer base has fundamentally shifted from being almost entirely pet-focused to a dual focus spanning premium pet nutrition and specialty healthcare services.

The core customer groups driving the projected 2025 combined revenue of over $270 million are:

• Pet owners seeking premium, natural, and science-based nutrition, historically served by the Halo brand.
• Patients with complex, chronic conditions requiring high-touch specialty drug fulfillment and infusion services.
• Canadian healthcare system entities and payors contracting for SRx Health's integrated services.

The pet segment, while seeing strong digital growth, is now a smaller piece of the overall revenue picture compared to the healthcare segment. For context, the standalone Better Choice Company Inc.'s full-year 2024 net revenues were only about $35 million, while SRx Health generated approximately CAD$180 million in revenue in 2023.

Here's a breakdown mapping the original segments to the current operational focus, using the latest available figures and projections:

The pet nutrition customer base is heavily reliant on digital channels. You can see the strength in that specific group:

• Online sales growth on Chewy and Amazon in Q4 2024: 32%.
• Halo brand online sales increase in 2023: 33.5%.
• Standalone 2024 Gross Margin for pet segment: 37%.

The specialty drug segment, which now forms the bulk of the projected 2025 revenue exceeding $270 million, targets patients needing complex care. This segment is expected to maintain over 20% year-over-year growth in 2025, which is the main driver for the combined entity's financial outlook.

Better Choice Company Inc. (BTTR) - Canvas Business Model: Cost Structure

You're looking at the cost base of the newly combined entity, which is a mix of the legacy pet product operations and the acquired Canadian healthcare services network. Honestly, the cost structure is now dual-faceted, blending physical product costs with service delivery overhead.

Here are the concrete figures we have on record, primarily from the last reported full-year data before the April 2025 closing of the SRx Health Solutions merger, and the stated synergy target.

The cost of goods sold (COGS) for the pet food and pharmaceutical products segment is implicitly represented by the gross margin figures for the legacy Better Choice Company Inc. (BTTR) business, which was 37% for the full year 2024.

For the health services side, the operational footprint dictates a significant portion of the overhead.

• Number of specialty health/infusion clinics: 40
• SRx Health 2023 Revenue: C$161.5 million or CAD $180 million (reported figures vary slightly)
• SRx Health 2023 Pro Forma Adjusted EBITDA: C$11.4 million

Distribution and logistics costs for the two distinct product lines-pet products and specialty pharmacy/infusion services-are not explicitly broken out in the latest public filings, but the combined entity anticipates leveraging infrastructure and distribution for cost improvements.

The expected annual cost synergies post-merger are a key component of the forward-looking cost structure.

• Expected annual cost synergies post-integration: In excess of $1.7 million

Better Choice Company Inc. (BTTR) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of the combined Better Choice Company Inc. (BTTR) and SRx Health Solutions, Inc. entity, which is now operating as SRx Health Solutions, Inc. as of April 2025. The financial outlook for 2025 is built on merging the pet wellness segment with the specialty pharmacy operations. The projected 2025 combined revenue is over $270 million. This growth is targeted to deliver an expected 2025 combined Adjusted EBITDA over $10 million.

The revenue streams are clearly bifurcated now, moving beyond just the pet side. For the legacy pet business, the sales of premium pet food, treats, and supplements (Halo brand) contributed significantly, with gross sales totaling approximately USD $49 million in 2023. The specialty pharmacy side, driven by the SRx Health acquisition, brings substantial new revenue. SRx Health generated C$161.5 million in revenue in 2023.

The specialty pharmacy segment contributes through multiple avenues, which you can see clearly when mapping out the components. This includes direct revenue from specialty pharmacy dispensing and clinical services across their extensive Canadian network of specialty pharmacy locations and health/infusion clinics. Also key are the fees from wholesale distribution of specialty pharmaceuticals, supported by SRx Health's 2 wholesale distribution facilities. Here's a quick look at the key figures driving that 2025 projection.

To be fair, the combined entity is also looking at operational synergies, which directly impact the bottom line, with anticipated annual cost savings of about USD $1.7 million post-integration. The revenue generation is supported by the established omni-channel distribution model for the pet products and the national specialty pharmacy network for healthcare services. The revenue streams can be broken down like this:

• Sales of premium pet food, treats, and supplements (Halo brand).
• Revenue from specialty pharmacy dispensing.
• Revenue from clinical services and trial sites.
• Fees from wholesale distribution of specialty pharmaceuticals.

The combined trailing twelve-month revenue leading up to the merger announcement was already reported at $235 million USD, showing strong existing momentum. Finance: draft 13-week cash view by Friday.