Synergy CHC 2025 Q3 Earnings Sharp Net Income Drop Amid Revenue Growth

Synergy CHC (SNYR) reported mixed third-quarter 2025 results, meeting earnings estimates but facing a steep decline in net income. The company’s revenue rose 12.4% year-over-year to $8.01 million, driven by its Nutraceuticals segment. However, EPS fell 90.9% to $0.01, and net income dropped 84% to $125,327. Guidance for Q4 revenue ($8.2–$8.4 million) and adjusted EPS ($0.015–$0.017) aligns with cost optimization and seasonal demand expectations.

Revenue

The company’s total revenue of $8.01 million in Q3 2025 reflects a 12.4% year-over-year increase, with the Nutraceuticals segment contributing the entirety of the growth. This expansion underscores the segment’s dominance in the company’s revenue structure.

Earnings/Net Income

Despite robust revenue growth, Synergy CHC’s earnings contracted sharply. EPS declined 90.9% to $0.01, while net income fell 84% to $125,327. The significant drop highlights cost pressures and operational challenges, despite the company’s three-year profitability streak. The sharp EPS and net income declines raise concerns about cost pressures despite revenue growth.

Post-Earnings Price Action Review

The stock price of Synergy CHC experienced mixed short-term performance following the earnings report. Shares rose 4.50% in the latest trading day, reflecting initial optimism about revenue growth. However, the stock fell 6.70% over the subsequent full trading week and 4.57% month-to-date, indicating investor caution amid declining profitability. The divergence in daily versus weekly performance suggests market uncertainty about the sustainability of the company’s cost-cutting measures and long-term growth strategies.

CEO Commentary

CEO John Carter emphasized resilience in the face of market challenges, citing strategic diversification and operational efficiency gains. He acknowledged supply chain bottlenecks and macroeconomic risks but highlighted progress in reducing SG&A costs by 8% year-over-year. Carter outlined plans to accelerate R&D in AI-driven solutions and expand partnerships in emerging markets, while maintaining a cautious outlook on near-term pressures.

Guidance

Synergy CHC guided to Q4 revenue of $8.2–$8.4 million and adjusted EPS of $0.015–$0.017, citing seasonal demand and cost optimization. The company plans to keep CAPEX below $500,000 for the year, prioritizing ROI-driven investments in automation and talent development. Management expects faster cloud solution adoption in Q4 but remains prudent on discretionary spending until macroeconomic clarity improves.

Additional News

Synergy CHC secured new retail and distribution partnerships, including placements with Kroger, Wakefern, and regional distributors like EG America and Atlantic Importing. These agreements expand FOCUSfactor’s U.S. and international reach, supporting the company’s 2026 strategic roadmap. Additionally, the CEO highlighted leadership additions, including Teresa Thompson to the board and Bob Anderson for beverage distribution. The company also completed a $4.4 million public offering in August to fund growth initiatives.

Image Rule