Synergy CHC (SNYR) Q4 2024 earnings summary

Executive summary

• Achieved eighth consecutive profitable quarter and full-year profitability for 2024, demonstrating ongoing business strength despite revenue and net income declines year-over-year.

• Completed NASDAQ listing/IPO in October 2024, raising over $6.2 million in net proceeds and began trading as SNYR.

• Finalized rebranding of Focus Factor/FOCUSfactor, first since 2015.

• Expanded retail distribution to 267 BJ's Wholesale Clubs and 1,200 Publix supermarkets.

• Appointed Jaime Fickett as permanent CFO.

Financial highlights

• Q4 2024 net revenue was $10.3M, down 22% year-over-year; excluding a one-time $875K return, revenue would have been $11.2M.

• Q4 2024 gross margin was 63.3% (vs. 82.3% prior year, which included a $2.2M one-time gain); full-year gross margin was 67.9% (vs. 75%).

• Q4 2024 net income was $105,700 ($0.01/share), down from $2.6M ($0.35/share) prior year; full-year net income was $2.1M ($0.28/share), down from $6.3M ($0.86/share).

• Adjusted EBITDA for Q4 2024 was $2.8M, up 1,033% year-over-year; full-year adjusted EBITDA was $7.4M, up 21%.

• Q4 2024 EBITDA was $1.7M (down from $4.5M); full-year EBITDA was $6.5M (down from $10.8M).

Outlook and guidance

• Expecting return to top-line and bottom-line growth in 2025 as retailer de-inventorying and packaging transition are complete.

• Launched seven new Flat Tummy products in Q1 2025 targeting GLP-1 support.

• Expanding RTD beverage distribution and entering three new international markets in 2025.

• Management expresses confidence in long-term value creation and growth opportunities.