What factors drove the changes in NexGel's revenue and profit?

What does NexGel do and what are its main business segments?

What were the key takeaways from NexGel's earnings call?

What is NexGel's gross profit margin?

What is the market's earnings forecast for NexGel next quarter?

Did NexGel beat or miss consensus estimates last quarter?

What guidance did NexGel's management provide for the next earnings period?

What is the revenue and EPS growth rate for NexGel year over year?

- **Revenue Stability with Margin Improvement**: Q3 revenue flat at $2.9 million, but gross margin rose to 42.4%, narrowing EBITDA loss to $354,000.
- **Contract Manufacturing Momentum**: New partnerships with iRhythm and Cintas drive $907,000 in Q3 revenue, with Q4 orders expected to boost growth.
- **Consumer Product Recovery**: Logistical delays resolved; Q4 launches of lip gloss, Kenkoderm eczema line, and STADA's Glutacin aim for holiday sales surge.
- **STADA Financing Boost**: $1 million from STADA supports product launches, with Q4 soft launch of Glutacin and full 2026 rollout.
- **Uncertainty with AbbVie**: Concerns over AbbVie's device launch amid impairment charges, highlighting external risks.
- **Q4 Outlook**: Record quarter expected, with full year guidance of $12-12.5 million and EBITDA near breakeven.

**【CEO Summary Section】**
- **Revenue Performance**: Q3 2025 revenue of $2.9 million, flat year-over-year and sequentially, with gross profit margin improving to 42.4% (up from 39.3% in Q3 2024).
- **Contract Manufacturing Growth**: Revenue of $907,000, driven by partnerships with Cintas (SilverSeal wound care kits) and iRhythm (Zio heart monitor integration), with new orders expected this quarter.
- **Consumer Products Expansion**: Despite logistical delays delaying lip gloss launch to late September, Q4 is expected to be strong with new product launches, including Glutacin (STADA partnership) and Kenkoderm's eczema line.
- **STADA Partnership**: $1 million non-dilutive financing secured for product launches, with Q4 soft launch of Glutacin and full launch in January 2026.
- **Financial Outlook**: Full year 2025 guidance of $12-12.5 million revenue, with Q4 expected to be a record quarter and adjusted EBITDA nearing breakeven.

**【CFO Financial Commentary】**
- **Revenue and Costs**: Q3 2025 revenue $2.9 million (flat YoY), cost of revenues $1.7 million (down 5.2% YoY), gross profit $1.24 million (up 6.9% YoY).
- **Profitability Metrics**: Adjusted EBITDA loss narrowed to $354,000 (from $500,000 in Q1 2025), net loss $653,000, and cash balance of $938,000 (plus $920,000 restricted cash from STADA).
- **Expense Management**: Selling, general, and administrative expenses $1.96 million (slight increase YoY due to compensation and consulting fees).

**【Q&A Key Highlights】**
- **Logistical Delays**: Impact of $100-200,000 on Q3 sales resolved, with strong Q4 consumer product performance expected.
- **Guidance Confidence**: Q4 growth driven by new contract manufacturing customers (e.g., iRhythm) and holiday consumer sales, despite potential economic uncertainty.
- **AbbVie Uncertainty**: Concerns over AbbVie's impairment charge and unclear launch timeline for the RESONIC device.
- **Cash Position**: Sufficient liquidity to fulfill orders, with inventory built for Q4 shipments.
- **EBITDA Breakeven**: Potential for adjusted EBITDA breakeven in Q4, contingent on consumer product performance.


NEXGEL, Inc. (NXGL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NXGL

NXGL fundamentals

You can ask Aime