Solesence (SLSN) Q4 2025 earnings summary

Executive summary

• Full year 2025 revenue reached a record $62.1 million, up 18.6–19% year-over-year, driven by a major product launch and 20 new brand partners, doubling the consumer product line in two years.

• The Transform and Transcend initiative was launched to address operational challenges, align operations with rapid growth, and drive sustainable profitability.

• Net income for Q4 2025 was $163,000–$0.2 million, reversing a net loss of $558,000–$0.6 million in Q4 2024.

• Appointed a new VP of Brand Partnerships and acquired 20 new brand partners in facial skincare and color cosmetics.

• Expanded patent portfolio by 16 new U.S. and foreign patents, now exceeding 120 patents, including for Kleair™ technology and plant-based innovations.

Financial highlights

• Q4 2025 revenue was $12.5 million, nearly flat year-over-year, with gross profit rising to $3.4 million from $2.8 million and gross margin improving to 27% from 22%.

• Full year gross profit was $16.1 million, slightly down from $16.2 million in 2024 despite higher revenue, due to margin compression; gross margin declined to 26% from 31%.

• Adjusted EBITDA for 2025 was $4.2 million, less than 7% of revenue and down from $6.6 million in 2024.

• Full-year net income was $1.8 million, down from $4.2 million in 2024.

• Operating expenses in Q4 2025 were $3.2 million, up from $2.8 million in Q4 2024, including relocation charges.

Outlook and guidance

• 2026 guidance sets a 30% gross margin floor, with expectations for EBITDA to return to double digits.

• Six-figure annual savings anticipated from facility consolidation and operational improvements.

• Free cash flow targeted for improvement via reduced safety stock and better procurement.

• Q1 2026 will be impacted by restructuring and training investments, as well as changes in customer order patterns.

• Management expressed confidence in meeting 2026 objectives, citing strong momentum from organizational changes and strategic initiatives.