NexGel 2025 Q2 Earnings Losses Narrow with Strong Revenue Growth

NexGel (NXGL) reported its fiscal 2025 Q2 earnings on August 12, 2025, delivering a revenue performance that significantly exceeded expectations. The company’s total revenue surged by 100.3% year-over-year to $2.88 million and reaffirmed its full-year 2025 guidance of $13 million in revenue.

Revenue
NexGel’s revenue expansion was driven by robust performance across multiple business segments. Contract manufacturing accounted for $863,000 of the total, while the custom and white label finished goods manufacturing segment contributed $27,000. The consumer branded products segment led the way with $1.88 million in revenue, reflecting heightened demand. Additional revenue of $110,000 came from other segments, completing the total revenue of $2.88 million for the quarter.

Earnings/Net Income
The company reported a significant improvement in profitability, narrowing its net loss to $640,000 in Q2 2025 from $979,000 in the same period the previous year, representing a 34.6% reduction. On a per-share basis, the loss decreased to $0.09 from $0.14, marking a 35.7% improvement. Despite these positive trends, NexGel has reported losses for six consecutive years, indicating ongoing financial challenges.

Price Action
Following the earnings release, NexGel’s stock price saw a 4.23% increase on the most recent trading day. However, it slightly declined by 0.73% for the week, and ended the month with a modest 0.75% gain.

Post-Earnings Price Action Review
A historical analysis of the company’s stock performance reveals that buying shares following a strong revenue quarter and holding for 30 days has delivered a cumulative return of 63.86% over the past three years, outperforming the benchmark by 17.54%. The strategy exhibited a 18.59% CAGR with no maximum drawdown, and a Sharpe ratio of 0.21. Despite the volatility of 86.73%, the performance suggests favorable risk-adjusted returns for the strategy.

CEO Commentary
Adam Levy, NexGel’s CEO, highlighted strong revenue and gross margin performance, alongside a steady decline in Adjusted EBITDA losses. He credited the year-over-year growth to increased consumer demand and new contract manufacturing agreements. Post-quarter, NexGel secured a $1 million non-dilutive capital advance from STADA and raised $1.05 million in gross proceeds, supporting upcoming initiatives. Levy expressed confidence in the company’s strategic momentum and remained optimistic about future growth.

Guidance
NexGel reiterated its full-year 2025 guidance of $13 million in revenue and anticipates achieving positive EBITDA for the year, based on current growth trajectories, new product launches, and expanded contract manufacturing opportunities.

Additional News
In recent weeks, NexGel has taken significant strategic steps to strengthen its capital position and expand operations. The company finalized a non-dilutive $1 million capital advance from STADA, a major contract manufacturing partner, providing crucial support without issuing additional shares. Simultaneously, NexGel successfully raised $1.05 million in gross proceeds through a financing round, further solidifying its financial foundation for upcoming initiatives. Additionally, the firm has expanded its partnership with STADA, opening new avenues for growth in contract manufacturing. These developments reflect NexGel’s proactive approach to securing resources and deepening key business relationships to drive long-term value.