NexGel, Inc. (NASDAQ: NXGL) Q2 2025 Earnings | 08/13/2025

7 days ago

37:06

Inside Ticker

Earnings Calls

AI Summary

Key Highlights:

Financial Results:
- Revenue: $2.88M (up 100% YoY) driven by growth in contract manufacturing and consumer-branded products.
- Gross Margin: 43.6% (vs. 20.3% in Q2 2024) due to improved efficiencies and higher-margin sales.
- Adjusted EBITDA Loss: $(420K) (improved from $(790K) YoY).
- Cash Position: $0.73M (as of June 30), bolstered by $1M non-dilutive funding from Stata and $1.05M capital raise.
Business Updates:
- Contract Manufacturing:
  - Revenue up 103% YoY ($863K) led by Cintas (wound care kits) and new partnerships (e.g., iRhythm for ECG hydrogel adhesives).
  - FDA clinical trial completed (hydrogels for laser hair removal plume reduction).
- Consumer Brands:
  - Revenue up 95% YoY, with Silly George (beauty) launching new lash kits, lip glosses, and hydrogel under-eye patches.
  - Kenco Derm expanding into eczema treatments.
  - MetaGel launching SilverSeal Wound & Burn Kits (approved in Canada).
- Stata Partnership Expansion:
  - $1M non-dilutive funding to support new digestive enzymes and skincare launches (Q4 2025–H1 2026).
Growth Outlook:
- 2025 Guidance Reaffirmed: $13M revenue and positive EBITDA.
- Upcoming Catalysts:
  - New product launches (Silly George, Kenco Derm, Stata health products).
  - Retail discussions (private-label opportunities, particularly for SilverSeal).
  - Potential large partnerships (e.g., AbbVie delayed to 2026 but still active).
Operational Efficiency:
- Low plant utilization (~20%) leaves room for scaling without major capex.
- Tariff impacts minimal due to high-margin products.
Leadership Update:
- Steve Cardiello (Shutterstock CFO) joined the board to support financial strategy.

Q&A Highlights:

AbbVie Delay: Device console issues pushed launch to 2026, but partnership remains intact.
Retail Strategy: Focus on private-label deals (8–10 months lead time).
Manufacturing Capacity: Ample room for growth; expansion plans ready if demand surges.
Stata Opportunity: New enzymes target larger markets (gluten/dairy sensitivity) vs. Histosol (3% population).

About this video

NexGel, Inc. (NASDAQ: NXGL), a leading provider of healthcare, beauty, and over-the-counter hydrogel products, reported strong financial results for the second quarter of 2025. The company’s revenue doubled year-over-year to $2.88 million, up 100.3% from $1.44 million in Q2 2024, driven by substantial growth in both contract manufacturing and consumer branded product segments. Gross profit and margins improved significantly, with gross profit margin rising to 43.6% from 20.3% a year earlier, reflecting enhanced product mix and higher utilization. Despite the revenue surge, NexGel reported a net loss of $0.67 million, narrowing from a $0.89 million loss in the prior year, with earnings per share of -$0.09. Adjusted EBITDA loss also improved to -$0.42 million from -$0.79 million in Q2 2024, showing progress toward profitability. The company reaffirmed its 2025 revenue guidance of $13 million and aims to achieve positive EBITDA during the year, expecting stronger performance in the second half thanks to new product launches and expanded contract manufacturing partnerships. Notably, NexGel expanded its partnership with STADA, securing a $1 million advanced non-dilutive capital to support marketing and product launches, while also closing financings totaling $1.05 million to back growth initiatives. The company ended the quarter with a cash balance of approximately $0.73 million. Key growth drivers include robust demand for branded products such as Silly George and contract manufacturing revenue growth. The strategic focus on diversifying revenue streams and enhancing margins positions NexGel well for scaling operations despite ongoing net losses. Risks include continued net losses and the need for accelerating revenue growth to meet full-year targets, alongside ongoing investments in marketing and product development. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. Hashtags: #NexGel #NXGL #Q22025 #Earnings #FinancialResults #RevenueGrowth #GrossMargin #NetLoss #EBITDA #ContractManufacturing #ConsumerProducts #Hydrogel #BeautyProducts #HealthcareProducts #SillyGeorge #STADA #NonDilutiveCapital #ProductLaunches #Marketing #CashPosition #Financings #OperationalGrowth #businessexpansion #investing #stockmarket #nasdaq #quarterlyresults #innovation #manufacturing #supplychain #investorrelations #growthstrategy #AdjustedEBITDA #LossNarrowing #financialhealth #2025Guidance #marketexpansion #industryleadership

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