Solesence (SLSN) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 grew 56% year-over-year to $20.4 million, driven by strong commercial execution, demand for consumer products, and new partnerships.

• Net income rose to $2.7 million, including a $1.2 million Employee Retention Credit, up from $0.9 million in Q2 2024.

• Successfully managed increased seasonal volume, with shipment and production volumes up 102% and 127% year-over-year, solidifying customer relationships.

• Uplisted to NASDAQ and included in Russell 3000 and 2000 indices, enhancing visibility and marketability.

• The company rebranded as Solésence, Inc. in March 2025.

Financial highlights

• Q2 2025 revenue reached $20.4 million, a 56% increase year-over-year; product revenue was $20.3 million, with other revenue at $98,000.

• Gross profit was $5.9 million, up from $3.7 million in Q2 2024; gross margin held steady at 29% year-over-year, improving 6 points sequentially.

• EBITDA increased to $3.5 million from $1.4 million in the prior year, with adjusted EBITDA margin reflecting operational leverage and one-time credits.

• Operating income for Q2 2025 was $1.9 million, up from $1.0 million in Q2 2024.

• EPS was $0.04 basic and diluted, compared to $0.02 and $0.01 in Q2 2024.

Outlook and guidance

• Management expects continued growth in consumer products, with capacity expansion, cost efficiency, and innovation as key focuses.

• Anticipates moderating demand in the second half of 2025 due to seasonality, longer purchasing cycles, and tariff-related uncertainties.

• Still projects a record revenue year despite expected headwinds.

• Capital spending for 2025 is projected between $1 million and $3 million, funded by operations, loans, and possible new debt.

• Expects further gross margin and EBITDA improvements as operational efficiencies and automation take effect.