Synergy CHC 2025 Q3 Earnings Sharp Net Income Drop of 84% Despite 12.4% Revenue Growth

Synergy CHC (SNYR) reported fiscal 2025 Q3 earnings on Nov 14, 2025, with revenue rising 12.4% to $8.01 million, driven by the Nutraceuticals segment. However, net income plummeted 84% to $125,327, and EPS fell 90.9% to $0.01, reflecting operational pressures. The stock underperformed the market, with a 15.17% month-to-date decline.

Revenue

The total revenue of $8.01 million was entirely driven by the Nutraceuticals segment, which reported the same figure, indicating no additional segments contributed to the growth.

Earnings/Net Income

Despite sustained profitability, the 90.9% EPS decline and 84% net income drop signal significant challenges in maintaining earnings momentum.

Price Action

Following the earnings release, Synergy CHC’s stock experienced a sharp decline, with a 6.81% drop on the latest trading day, a 9.57% weekly tumble, and a 15.17% monthly slump. A historical backtest of buying shares on the earnings announcement date and holding for 30 days revealed poor performance over the past three years, with an average return of -15.57% and a maximum drawdown of -30.76%. This strategy underperformed the market, as the 2-year and 3-year total returns of -15.57% lagged significantly behind the S&P 500’s 16.5% returns.

CEO Commentary

CEO Jack Ross highlighted the company’s 11th consecutive quarter of profitability, driven by double-digit revenue growth and 300 basis points of gross margin expansion. He emphasized strategic progress, including expanded retail authorizations with Kroger and Wakefern, and a $4.4 million public offering in August to fund growth. Ross expressed optimism about fourth-quarter momentum and long-term value creation for shareholders.

Guidance

The company provided forward-looking guidance, including revenue of $8.01 million and EPS of $0.01 for Q3 2025. Adjusted EBITDA was $1.52 million, up 13.4% year-over-year, reflecting operational improvements.

Additional News

1. Synergy CHC secured new retail and distribution partnerships with Kroger, Wakefern, and regional distributors like EG America and Atlantic Importing, expanding FOCUSfactor’s U.S. and international reach.

2. The company completed a $4.4 million public offering in August 2025 to support production, retail rollouts, and marketing initiatives.

3. CEO Jack Ross highlighted the 11th consecutive quarter of profitability, underscoring strategic expansions in functional beverages and supplements.

The company’s focus on expanding its functional beverage and supplement portfolio positions it for growth in 2026, despite near-term earnings challenges. Investors are advised to monitor distribution progress and operational efficiency improvements.