NEXGEL (NXGL) Q4 2024 earnings summary

Executive summary

• Achieved record revenue growth in Q4 2024 ($3.04M, up 181% YoY) and FY 2024 ($8.69M, up 112% YoY), marking the third consecutive year of over 100% growth.

• Growth driven by branded consumer products and contract manufacturing, with new partnerships, product launches, and acquisitions fueling expansion.

• Strategic focus on innovation, expanding product lines, and entering new markets, including beauty and medical device segments.

• Acquired Silly George, expanding its sales from $2M to over $5M annual run rate.

• Announced supply agreement with Cintas and partnership with STADA for new product launches.

Financial highlights

• Q4 2024 revenue reached $3.04M, up 181% YoY; FY 2024 revenue was $8.69M, up 112%.

• Q4 gross margin was 37.2% (down from 43.6% in Q3 due to reclassification of Amazon commissions); FY 2024 gross margin was 31.6%.

• Q4 net loss was $0.85M (improved from $1.1M in Q4 2023); FY 2024 net loss was $3.28M.

• Q4 EBITDA loss was $0.73M; adjusted EBITDA loss was $0.62M.

• Two one-time inventory write-offs totaling $243K impacted Q4 results.

Outlook and guidance

• Q1 2025 revenue expected to be at least $2.75M, despite seasonality.

• 2025 revenue guidance of at least $13M, with positive EBITDA targeted during the year.

• Anticipates improved adjusted EBITDA in Q1 2025 and expects new customer ramp-up in Q2.

• Pipeline of new customers for 2025 described as healthy and robust.