NEXGEL Sees Impressive Revenue Growth in Q1 2025 Earnings

NEXGEL Reports Remarkable Growth in First Quarter 2025

NEXGEL, Inc. (NASDAQ: NXGL), known for its ultra-gentle, high-water-content hydrogel products, has announced its financial results for the first quarter of 2025. Achieving remarkable revenue figures of $2.81 million, this marked a 121% increase year-over-year compared to the same period last year when revenues reached $1.27 million.

The first quarter of 2025 demonstrated not only growth in revenue but also a considerable improvement in gross profit margins. The gross profit margin for NEXGEL stood at an impressive 42.4%, up from 12.6% in Q1 2024, reflecting the company’s robust operational strategies and effective cost management.

Financial Highlights from Q1 2025

NEXGEL's financial results reveal several critical metrics that underscore its growth trajectory:

• Net revenue reached $2.81 million, significantly higher than $1.27 million in Q1 2024 and $3.04 million in Q4 2024.
• Gross profit totaled $1.19 million, up from just $0.16 million compared to Q1 2024.
• Gross profit margin improved to 42.4%, reflecting a solid increase compared to prior quarters.
• The company reported a net loss of $0.71 million, an improvement from $0.85 million lost in Q1 2024.
• EBITDA for the quarter, a critical measure for ongoing profitability, found itself at a loss of $0.54 million, improving from a loss of $0.84 million in the same quarter last year.
• Adjusted EBITDA also indicated progress, improving to a loss of $0.47 million from a loss of $0.73 million in Q1 2024.

CEO Insights and Future Outlook

CEO Adam Levy commented on the results, emphasizing their slight exceedance of previous guidance and the return to gross margins in the low to mid-40s. He expressed optimism regarding the future prospects, particularly in contract manufacturing relations with established clients such as Cintas. Levy noted, “We have several growth levers in our consumer branded products with new product launches throughout the remainder of this year, heading into 2026.”

The company is maintaining a bullish outlook, reiterating its anticipation for 2025 to achieve a revenue target of $13 million and to attain positive EBITDA. With a robust pipeline of upcoming products, NEXGEL demonstrates confidence in its continued growth and market positioning.

Understanding NEXGEL's Financial Structure

As of March 31, 2025, the company reported a cash balance of approximately $1.19 million, providing it with a solid foundation for operational activities. The report also indicated that NEXGEL had a total of 7,654,537 shares of common stock outstanding.

Examining their expenditures, selling, general and administrative expenses expanded to $1.96 million in Q1 2025, primarily attributable to increased compensation, marketing costs, and professional services. However, these efforts are seen as investments into infrastructure that will support the anticipated growth.

Conclusion and Investor Contacts

NEXGEL is poised for further growth, as reflected in its first quarter results. Their commitment to innovation within healthcare and consumer products appears unwavering, positioning them well within its competitive landscape.

For more information or inquiries, interested parties can reach out to:

Valter Pinto, Managing Director
KCSA Strategic Communications
212.896.1254
Nexgel@kcsa.com

Frequently Asked Questions

1. What were NEXGEL's total revenues for Q1 2025?

NEXGEL reported total revenues of $2.81 million for the first quarter of 2025.

2. How did NEXGEL's gross profit margin change from the previous year?

The gross profit margin improved to 42.4% in Q1 2025, up from 12.6% in Q1 2024.

3. Who is NEXGEL's CEO and what did he say about future expectations?

Adam Levy is the CEO, and he expressed optimism regarding the company's revenue guidance and product launches in 2025.

4. What was the net loss for NEXGEL in Q1 2025?

The net loss for NEXGEL in the first quarter of 2025 was $0.71 million.

5. How can investors contact NEXGEL for inquiries?

Investors can contact Valter Pinto at KCSA Strategic Communications via phone or email at Nexgel@kcsa.com.

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