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.

• Gross margin improved to 42.4% from 12.6% in Q1 2024, rebounding from Q4 2024 and aligning with historical averages.

• Net loss narrowed to $0.71 million from $0.85 million in Q1 2024, with EBITDA and adjusted EBITDA losses also significantly reduced.

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

• Working capital at March 31, 2025 was $2.2 million, down from $2.6 million at year-end 2024.

Financial highlights

• Revenue: $2.81 million in Q1 2025 vs. $1.27 million in Q1 2024 (121% increase).

• Gross profit: $1.19 million in Q1 2025 vs. $0.16 million in Q1 2024; gross margin 42.4% vs. 12.6%.

• SG&A expenses: $1.96 million in Q1 2025 vs. $1.03 million in Q1 2024, driven by higher compensation, marketing, and fees.

• EBITDA: negative $0.54 million; adjusted EBITDA: negative $0.47 million, both improved from prior year.

• Cash balance at March 31, 2025: $1.19 million.

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.

• AbbVie revenue contribution for 2025 is expected to be minor due to launch delays, not impacting guidance.

• Anticipated launches of new products and expanded partnerships, including with STADA and Health Canada approval for Silverseal.