Executive Summary

Q1 2025 revenue was $2.81M, up 121% YoY and slightly above prior guidance (“at least $2.75M”), with gross margin rebounding to 42.4% from 37.2% in Q4 and 12.6% in Q1’24 .
Both contract manufacturing and consumer brands contributed; Cintas orders continued with a Q2 reorder, while AbbVie’s RESONIC launch was delayed again but was not material to guidance .
Results modestly beat S&P Global consensus: revenue $2.806M vs $2.725M estimate and EPS ($0.09) vs ($0.10) estimate; Q4 2024 also beat revenue and EPS consensus* .
Management reaffirmed 2025 guidance: at least $13M revenue and a transition to positive EBITDA/cash flow during the year; Q1 margins benefited from classification changes and non-recurring Q4 write-offs not repeating .

What Went Well and What Went Wrong

What Went Well
- Gross margin normalization: “Gross margins returned to the low to mid-40’s” (42.4% in Q1 vs 37.2% in Q4’24; 43.6% in Q3’24) .
- Pipeline and customer traction: Continued Cintas shipments and a Q2 reorder; expanding interest in U.S.-made gels amid tariff dynamics .
- Reaffirmed full-year outlook: “We remain confident in…$13 million in revenue and…positive EBITDA during the year” .
What Went Wrong
- AbbVie delay: RESONIC machine launch was pushed again (now targeted to late 2025/early 2026), though guidance assumed only minor 2025 contribution .
- Tariff uncertainty: While manageable at ~35%, management outlined contingencies (inventory build, potential Texas assembly) if rates were to spike materially .
- SG&A intensity: Q1 SG&A increased YoY due to compensation, stock-based comp, marketing/Amazon fees, and professional services, partially offset by lower franchise taxes and insurance .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$2.94	$3.04	$2.806
Gross Margin (%)	43.6%	37.2%	42.4%
Net Loss ($USD Millions)	$(0.754)	$(0.85)	$(0.712)
Net Loss per Share ($)	$(0.11)	$(0.096)*	$(0.09)
EBITDA ($USD Millions)	$(0.489)	$(0.726)	$(0.543)
Adjusted EBITDA ($USD Millions)	$(0.347)	$(0.621)	$(0.468)
Cash & Equivalents ($USD Millions)	$1.059	$1.807	$1.192

Values with * are from S&P Global and may not have document citations. Values retrieved from S&P Global.

Performance vs S&P Global Consensus

Period	Revenue Actual ($M)	Revenue Estimate ($M)*	EPS Actual ($)	EPS Estimate ($)*
Q4 2024	3.041	2.992*	(0.096)*	(0.13)*
Q1 2025	2.806	2.725*	(0.09)	(0.10)*

Values with * are from S&P Global and may not have document citations. Values retrieved from S&P Global.

Select Segment Trends (qualitative KPIs)

Segment	Q1 2025 YoY Growth	Notes
Contract Manufacturing	+58% YoY	Cintas shipments continued; Q2 reorder received .
Consumer Branded Products	+189% YoY	Silly George growth, broader line extensions planned .

Growth Context

Period	Revenue YoY %	Commentary
Q3 2024	+141%	Broad growth in branded products and contract manufacturing .
Q4 2024	+181%	First Cintas shipments; margin impacted by one-time write-offs .
Q1 2025	+121%	Margin normalization; continued broad-based growth .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q1 2025	≥$2.75M (3/24/25)	Actual $2.81M	Beat prior guidance
Revenue	FY 2025	≥$13M (1/22/25; 3/24/25)	Reaffirmed ≥$13M (5/13/25)	Maintained
EBITDA/Cash Flow	FY 2025	Positive EBITDA and cash flow from ops in 2025	Reaffirmed path to positive EBITDA/cash flow in 2025	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2025)	Trend
Contract manufacturing (Cintas)	First shipments in Q4’24; pipeline “healthy and robust”	Cintas orders continued; first Q2 reorder received	Positive momentum
AbbVie RESONIC	Anticipated contribution; timing subject to partner timelines	Launch delayed again; NXGL still exclusive gel pad supplier; minor 2025 impact assumed	Timing risk persists
Gross margin drivers	Q3’24 43.6%; Q4’24 37.2% with one-time write-offs	Q1’25 42.4%; reclassifying Amazon commissions into COGS for stability	Margin normalization
Consumer brands (Silly George, Kenkoderm)	Silly George scaled to >$5M run-rate; portfolio expansion planned	New beauty SKUs (lip gloss, lip mask, under-eye hydrogel patches); Kenkoderm doubling portfolio in Q3’25	Portfolio expansion
STADA partnership	Histasolv launched in NA; additional launches planned H2’25	Contract amendment signed; next enzyme in Q4’25; third in Q1’26	Deepening partnership
R&D/Regulatory	IRB study initiated re: laser “plume”	30-patient trial complete; awaiting publication; initial orders from Innovative Optics	Commercialization set-up
Tariffs & supply chain	Not highlighted previously	Manageable at ~35%; inventory built; Texas clean room as contingency	Risk monitored
Capital & liquidity	Cash $1.81M at 12/31/24	Cash $1.19M at 3/31/25; avoid debt until EBITDA positive	Disciplined financing stance

Management Commentary

“Revenue for the first quarter came in slightly higher than our previously issued guidance, totaling $2.81 million, an increase of 121% year-over-year.”
“Gross margins returned to the low to mid-40’s… [and] our EBITDA loss continued to narrow.”
“We have already received our first reorder [from Cintas] for deliveries in Q2.”
“Regarding AbbVie… launch… pushed again… unrelated to NEXGEL… revenue we had for AbbVie was relatively minor” .
“We do not see a need to change our guidance of $13 million in revenue and achieving cash flow positivity in 2025.” .
“At a 34–35% [tariff] rate, the impact is minimal… we are exploring… Texas [assembly] if [tariffs] return to… abnormally high.” .

Q&A Highlights

Guidance sensitivity to AbbVie: Management assumed only a minor AbbVie contribution in 2025; delay should not affect $13M outlook .
STADA pipeline: Additional digestive enzyme launches planned in Q4’25 and Q1’26; exploring synergistic products aligned with Medagel .
Consumer brand optimization: Despite seasonal softness, Q1 was the most profitable quarter for Silly George due to marketing optimization .
Tariffs/inventory/capacity: Inventory built to buffer tariff volatility; Texas clean room provides assembly contingency; manageable at ~35% tariffs .
Financing: Preference to avoid debt or convertibles until EBITDA positive; expect achieving quarterly EBITDA positivity to be durable once reached .

Estimates Context

Q1 2025: Revenue $2.806M vs $2.725M estimate (beat); EPS ($0.09) vs ($0.10) estimate (beat)* .
Q4 2024: Revenue $3.041M vs $2.992M estimate (beat); EPS (~$0.096) vs ($0.13) estimate (beat)* .
Consensus depth remains thin (one estimate), so revisions may be limited; reaffirmed FY outlook could support incremental estimate lifts if margins sustain low-to-mid 40s* .
Values with * are from S&P Global and may not have document citations. Values retrieved from S&P Global.

Key Takeaways for Investors

Trajectory intact: NXGL delivered another quarter of triple-digit YoY growth with margins reverting to mid-40s, and modestly beat revenue/EPS consensus* .
Mix and pipelines de-risk: Cintas reorder, STADA contract expansion, and ongoing new product launches underpin the $13M FY revenue target .
AbbVie optionality, not reliance: Launch timing pushed, but 2025 guide assumes minimal contribution, limiting downside risk .
Margin stability: Amazon commission reclassification and absence of Q4’s one-time write-offs aid comparability and support sustained 40%+ gross margin .
Tariff risk manageable: Inventory build and Texas clean room contingency mitigate adverse scenarios; U.S.-made hydrogels could gain share under higher tariff regimes .
Liquidity discipline: Cash was $1.19M at Q1-end; management prefers to avoid leverage until EBITDA positive, with potential non-dilutive options improving thereafter .
Near-term catalysts: Publication of laser “plume” study, additional Cintas orders, STADA product cadence, and visibility on AbbVie timeline .

Notes and Sources:

Q1 2025 8-K and press release: revenue, margins, EBITDA/Adj. EBITDA, net loss, cash, and guidance reaffirmation .
Q1 2025 earnings call: segment growth, Cintas reorder, AbbVie timing, tariffs, STADA pipeline, financing stance .
Prior quarters for trend: Q4 2024 8-K/press (record quarter, guidance, one-time write-offs), Q3 2024 8-K (record quarter, margin uptick) .
Consensus estimates/actuals comparison from S&P Global*: Q4 2024 and Q1 2025 revenue/EPS [GetEstimates]. Values with * are from S&P Global and may not have document citations. Values retrieved from S&P Global.

NEXGEL, INC. (NXGL)·Q1 2025 Earnings Summary