Solesence (SLSN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $15.3M, down from $20.4M in Q2 2025, mainly due to the absence of a major prior-year product launch.

• Net loss of $158K in Q2 2026 compared to net income of $3.2M in Q2 2025; six-month net loss was $1.1M versus net income of $3.6M prior year.

• Adjusted EBITDA was $523K, down from $3.7M in Q2 2025, reflecting lower revenue and one-time events.

• Addressed legacy inventory costing issues, leading to restatements but not impacting cash flow or operations.

• Management focused on operational efficiency, financial discipline, and expanding partnerships in high-growth markets.

Financial highlights

• Gross profit for Q2 2026 was $4.7M (31% margin), down from $6.4M (32% margin) in Q2 2025.

• Operating expenses increased to $4.6M from $4.0M year-over-year, driven by higher SG&A.

• Operating loss for Q2 2026 was $947K, compared to operating income of $955K in Q2 2025.

• Cash at June 30, 2026 was $1.0M, down from $4.1M at June 30, 2025.

• Net cash provided by operating activities was $1.7M for H1 2026, compared to net cash used of $7.9M prior year.

Outlook and guidance

• Full-year 2026 revenue is projected to surpass 2025, with sequential improvement in Q3 2026.

• As of August 17, 2026, shipped and on-hand orders totaled $64.9M, up from $60M year-over-year.

• Forecast second half 2026 revenue of ~$35M, the strongest in company history.

• Capital spending for 2026 expected to be $0.5M–$1.5M, funded by operations, loans, and possible new debt.

• Inflationary pressures on labor and materials may impact margins if not passed through to customers.