NEXGEL (NXGL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $2.65 million, down from $2.81 million year-over-year, mainly due to lower branded consumer product sales, partially offset by growth in contract manufacturing, MEDAGEL, and Medical Device/Other revenue.

• Net loss attributable to stockholders was $927 thousand for Q1 2026, compared to $712 thousand in Q1 2025.

• Integration of the BioNX (Celularity) acquisition, closed in mid-April, is underway, with revenue to be recognized for about half of Q2 2026.

• Strategic partnership with Sequence LifeScience, which invested $5.5 million, replaced a short-term lender with a long-term partner and added two experienced board members.

• Leadership team strengthened with new CFO and VP of Sales for BioNX Surgical, aiming to drive integration and commercial growth.

Financial highlights

• Cash and restricted cash as of March 31, 2026, was $2.1 million; current cash on hand is $1.8 million.

• $13.8 million raised for the BioNX acquisition and working capital, including $8.8 million in cash and $5 million in convertible notes.

• SG&A and operating expenses increased due to acquisition-related costs, legal settlement, and higher professional fees.

• Operating overhead is expected to run at approximately $500,000 per month post-acquisition.

• Working capital improved to $2.32 million at March 31, 2026, up from $1.38 million at year-end 2025.

Outlook and guidance

• BioNX acquisition expected to triple annual revenue to approximately $35 million and be immediately accretive to profitability.

• Management expects continued near-term losses but anticipates improved liquidity and positive operating cash flows from the Celularity acquisition.

• Modest growth projected for legacy business, with some recovery already seen in Silly George and continued growth in contract manufacturing and MEDAGEL.

• Three 510(k) devices in development, targeted for commercialization in 2026, 2027, and 2028.

• Strategic focus includes expanding product channels in cosmetics, athletic products, proprietary medical devices, and potential further acquisitions.