NEXGEL (NXGL) investor relations material

Executive summary

• Q3 2025 revenue was $2.93 million, flat year-over-year and slightly higher sequentially, with improved gross profit margins and a narrowing adjusted EBITDA loss trend over the past three quarters.

• Net revenue for the nine months ended September 30, 2025, increased 52.7% year-over-year to $8.6 million, driven by growth in branded consumer products and the Silly George acquisition.

• Gross profit margin improved to 42.8% for the nine months and 42.4% for Q3, reflecting higher sales of branded products.

• Net loss attributable to stockholders narrowed to $0.65 million in Q3 and $2.0 million for the nine months, both improved from prior periods.

• Operational efficiencies and consistent performance in both contract manufacturing and consumer-branded products contributed to results.

Financial highlights

• Q3 2025 revenue was $2.93 million, nearly flat year-over-year; nine-month revenue rose to $8.63 million from $5.65 million.

• Gross profit for Q3 was $1.24 million (42.4% margin), up from $1.16 million (39.3% margin) last year.

• Adjusted EBITDA loss narrowed to $354,000 in Q3, improving sequentially each quarter in 2025.

• Cash and restricted cash totaled $1.86 million at quarter-end, with $938,000 in cash and $920,000 in restricted cash.

• Working capital was $2.3 million as of September 30, 2025.

Outlook and guidance

• Q4 2025 is expected to be a record quarter, with sequential revenue growth anticipated and full-year revenue guidance of $12 million–$12.5 million, dependent on holiday season consumer product sales.

• Adjusted EBITDA is expected to approach break-even in Q4, contingent on strong consumer product performance.

• Management expects continued near-term losses but is focused on expanding sales channels in cosmetics, athletic products, and medical devices.

• Additional capital raises through debt or equity may be necessary to support growth and acquisitions.