Solesence (SLSN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 38% YoY to $20.163M; net income was $3.670M versus a $1.016M loss in Q3 2025.

• The primary operational-excellence investment and implementation phase was completed, supporting capacity, efficiency, and scalable growth.

Financial highlights

• Q3 gross profit was $7.928M versus $3.474M; operating income was $4.036M versus an operating loss of $0.677M.

• Q3 gross margin increased 1,550 bps YoY to 39.3% from 23.8%, primarily on improved overall equipment effectiveness.

• Nine-month revenue was $48.453M versus $49.581M, down 2.3% as reported; nine-month net income was $2.478M versus $2.536M.

• Nine-month cost of revenue fell to $32.708M from $36.043M as production efficiency improved; YTD direct labor costs fell by over $2M and indirect labor by over $400K YoY.

Outlook and guidance

• Year-end shipped and on-hand orders are expected to be at least $65M; 2026 is expected to deliver a third consecutive record in revenue and profitability.

• Full-year gross profit guidance remains at a 30% floor; EBITDA margin is expected slightly below the previously communicated double-digit target, with Q4 well above H1 levels.

• Management expects growth in 2027 and greater growth in 2028, but described this as a forward view, not official guidance; EBITDA above 20% is a longer-term ambition.

• 2026 capital spending for known needs is expected at $0.5M–$1.5M, depending on project progress and market conditions; actual spend may fall outside the range.