NexGel's Q2 2025: Key Contradictions on Growth, Capacity, and Partnerships Unveiled

Product growth and sales trends, future expansion and manufacturing capacity, profitability and cash reserves, AbbVie partnership timeline, and surgical drapes development status are the key contradictions discussed in NEXGEL's latest 2025Q2 earnings call.



Revenue and Gross Margin Growth:
- NEXGEL reported revenue of $2.9 million for Q2 2025, an increase of 100% year-over-year and slightly up sequentially.
- Gross margins for the quarter came in at 43.6%, more than double the 20.3% reported in Q2 2024.
- The growth was driven by increased demand in both consumer brands and new contract manufacturing agreements.

Contract Manufacturing Expansion:
- Contract manufacturing revenue increased to $863,000 from approximately $425,000 in Q2 2024, a 103% year-over-year increase.
- Partnerships with companies like Cintas and iRhythm contributed to this growth.
- The segment played a significant role in the company's overall growth, with plans to expand further.

Consumer Product Success:
- Consumer product revenue increased 95% year-over-year for Q2 2025, driven by growth across the entire brand portfolio.
- New product launches, including Silly George and expanded beauty lines, contributed to this success.
- Strong performance in the beauty and skin care markets supported these results.

Financial Position and Partnerships:
- The company raised $1.05 million in a registered direct offering and received $1 million in non-dilutive funding from STADA.
- The funding will support upcoming product launches and marketing efforts, enhancing financial stability.
- The STADA partnership was expanded to introduce new digestive enzyme and skin care solutions, showcasing strategic alignment.