Solesence 2025 Q3 Earnings Sharp Net Loss Amid 14% Revenue Decline

Solesence (SLSN) reported Q3 2025 earnings that missed expectations, marked by a net loss of $1.12 million (136.8% deterioration from 2024) and a 14% revenue drop to $14.5 million. The company acknowledged operational inefficiencies and inventory challenges as key drivers of underperformance. While open orders reached $64 million, reflecting sustained demand, the absence of detailed 2026 guidance left uncertainty. Leadership emphasized restructuring and margin recovery targets but deferred specific forecasts.

Revenue

Solesence’s total revenue declined 13.4% year-over-year to $14.53 million in Q3 2025, with its core Consumer Products segment accounting for the vast majority at $13.94 million. Smaller contributors included Personal Care Ingredients ($384,000) and Advanced Materials ($270,000). The drop reflected customer inventory normalization and broader industry softness, as noted in the earnings call.

Earnings/Net Income

The company swung to a net loss of $1.12 million, or $0.02 per share, compared to a $3.04 million profit in 2024 Q3. This 136.8% decline underscored operational pressures, including facility consolidation costs and manufacturing inefficiencies. The EPS deterioration highlights a challenging operating environment, with no immediate relief in sight.

Post-Earnings Price Action Review

Following the earnings release, Solesence’s stock plummeted 13.68% in a single trading day, 46.75% over the subsequent full week, and 56.27% month-to-date. The sharp sell-off mirrored the market’s reaction to the net loss and revenue decline, with investors signaling skepticism about management’s ability to reverse the trend despite restructuring efforts.

CEO Commentary

Kevin Cureton, newly appointed President and CEO, emphasized strategic transformations aimed at enhancing operational efficiency and product innovation. He highlighted labor efficiency gains (25% reduction in labor per unit) and facility consolidation as steps toward long-term profitability. Cureton also reiterated confidence in the company’s mineral-based beauty market leadership, despite current challenges.

Guidance

Solesence did not provide specific 2026 financial guidance, citing market uncertainty. However, management expressed intent to outpace industry growth, with a stated gross margin floor of 30% and a long-term target to return to 40%+ margins.

Additional News

Recent developments include key leadership appointments: Kevin Cureton as CEO, Laura Riffner as CFO, and Yoana Dvorzsak as Vice President of Innovation. The company also announced facility consolidation and automation initiatives to reduce operating costs. Additionally, Solesence expanded its debt facilities, increasing borrowing capacity to $23 million to support growth and operational flexibility.