Solesence (SLSN) Q1 2026 earnings summary

Executive summary

• Achieved over 50% compounded annual growth rate and more than 5x increase in market capitalization over the past six years, transforming into a leading SPF-infused beauty product developer and uplisting to Nasdaq.

• Launched the multi-year Transform & Transcend initiative to drive operational excellence, strategic innovation, and commercialization of new platform technologies.

• Uplisted to Nasdaq and expanded global patent portfolio for consumer-preferred products.

• Appointed Marc James as a new independent Director to strengthen financial oversight.

• Three major customers accounted for 67% of total revenue in Q1 2026, up from 42% in Q1 2025.

Financial highlights

• Q1 2026 revenue was $13 million, down from $14.6 million in Q1 2025, primarily due to shipment delays and lower consumer product sales.

• Gross margin improved to 26% from 23% year-over-year, driven by labor efficiency and reduced waste.

• Net loss was approximately $0.8 million, compared to net income of $0.08 million in Q1 2025.

• Adjusted EBITDA was a loss of $107,000, versus positive $609,000 in Q1 2025.

• Operating expenses increased, with selling, general and administrative expense rising to $2.80 million from $2.11 million year-over-year.

Outlook and guidance

• Reiterated guidance for 2026, maintaining a 30% floor for gross profit margins and anticipating improved operational and financial results as efficiency gains take hold.

• On track to return to double-digit EBITDA margins by year-end, supported by labor efficiency and facility consolidation savings.

• Ships and open orders total $47 million, indicating a healthy demand pipeline.

• Capital expenditures for 2026 are expected to range from $0.5 million to $1.5 million, funded by operations, existing loans, and possible new debt.

• Inflation and supplier price increases are anticipated to impact costs in 2026 and beyond, with efforts to pass these on to customers.