NEXGEL (NXGL) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue doubled year-over-year to $2.88 million, driven by growth in both contract manufacturing and branded consumer products, including contributions from recent acquisitions.

• Gross margin improved to 43.6% from 20.3% in Q2 2024, reflecting higher sales of consumer branded products and operational leverage.

• Net loss attributable to stockholders narrowed to $670,000 from $890,000 year-over-year, with sequential improvement from Q1 2025.

• Cash balance as of June 30, 2025, was $0.73 million, with additional $1 million from STADA and $1.05 million from a direct offering post-quarter.

• Management is focused on expanding branded consumer products, contract manufacturing, and strategic partnerships, while exploring new product channels.

Financial highlights

• Q2 2025 revenue: $2.88 million, up 100.3% year-over-year; gross profit: $1.26 million (43.6% margin).

• EBITDA loss narrowed to $530,000 from $760,000, and adjusted EBITDA loss to $420,000 from $790,000 year-over-year.

• Operating expenses for Q2 2025 increased to $1.89 million, mainly due to higher compensation, advertising, and professional fees.

• Cash used in operations for the first half of 2025 was $0.81 million, down from $1.79 million in the prior year.

• Working capital at June 30, 2025, was $1.77 million.

Outlook and guidance

• Management reaffirmed 2025 guidance of $13 million in revenue and expects to achieve positive EBITDA during the year.

• Anticipates a seasonally strong second half, with new product launches and expanded partnerships expected to drive growth.

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