NEXGEL (NXGL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $2.81 million, up 121% year-over-year, driven by growth in contract manufacturing and branded consumer products, especially Silly George.

• Gross margin improved to 42.4% from 12.6% in Q1 2024, rebounding from Q4 2024 and driven by increased consumer-branded product sales.

• Net loss for Q1 2025 was $0.71 million, an improvement from $0.85 million in Q1 2024.

• EBITDA and adjusted EBITDA losses narrowed significantly year-over-year, reflecting improved operational efficiency.

• Management continues to focus on expanding product lines, sales channels, and strategic acquisitions.

Financial highlights

• Revenue increased to $2.81 million from $1.27 million in Q1 2024, with significant growth in both contract manufacturing and branded consumer products.

• Gross profit rose to $1.19 million, with gross margin at 42.4% versus 12.6% a year ago.

• EBITDA loss improved to negative $0.54 million, and adjusted EBITDA loss to negative $0.47 million, both better than prior year.

• Cash balance as of March 31, 2025, was $1.19 million.

• Net cash used in operating activities was $0.40 million, a reduction from $1.1 million in Q1 2024.

Outlook and guidance

• Revenue guidance for 2025 remains at $13 million, with expectations to achieve positive EBITDA and cash flow positivity.

• Management expects continued near-term losses but is focused on expanding product offerings and customer base for long-term profitability.

• Anticipated launches of new products in Metagel, Cankoderm, and Silly George brands, as well as expansion of the STADA partnership.

• AbbVie-related revenue was not a significant part of guidance, so delays are not expected to impact projections.

• Growth anticipated from both contract manufacturing (notably with Cintas) and new consumer product launches through 2026.