Executive Summary

Q3 2025 revenue was $2.93M, flat year-over-year and up modestly sequentially; gross margin improved to 42.4% while adjusted EBITDA loss narrowed to $0.35M .
Management lowered full-year revenue guidance to $12.0–$12.5M (from $13.0M) and expects Q4 to be a record quarter with adjusted EBITDA near break-even; sequential growth to come from contract manufacturing and holiday consumer demand .
Contract manufacturing revenue rose to $0.91M, led by recurring Cintas orders and first iRhythm direct orders anticipated in Q4; consumer branded launches (Silly George lip gloss, Kenkoderm eczema solutions) were delayed late in Q3 but set up Q4 strength .
Cash was $0.94M with $0.92M restricted (STADA advance) at quarter-end; shares outstanding were 8,143,133 as of Nov 11, 2025 .
Key catalyst path: contract manufacturing growth (iRhythm, Cintas), STADA product soft launch in December (glutathione) and broader consumer portfolio, plus potential resolution of AbbVie ReSonic timing (currently uncertain) .

What Went Well and What Went Wrong

What Went Well

Gross margin expansion to 42.4% from 39.3% YoY; gross profit rose to $1.24M despite flat sales, reflecting cost discipline and mix benefits .
Contract manufacturing revenue increased to $0.91M, supported by strong Cintas reorders and onboarding of new global customers; iRhythm first direct orders expected in Q4 .
Adjusted EBITDA loss narrowed sequentially to $0.35M from $0.42M in Q2 and ~$0.50M in Q1, as operational efficiencies improved across segments .

Management quote: “Our Adjusted EBITDA loss continued to narrow sequentially as a result of consistent performance in contract manufacturing and consumer branded products and maintaining discipline in our operational efficiencies” — Adam Levy, CEO .

What Went Wrong

Logistical/customs delays pushed consumer product launches to late September, impacting Q3 revenue by an estimated $100,000–$200,000 .
EBITDA remained negative and net loss persisted; Q3 EBITDA loss of ~$0.55M and net loss attributable to stockholders of $0.65M .
AbbVie’s ReSonic device timing remains unclear; management cited conflicting signals and expressed concern after reports of an impairment charge at AbbVie .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$2.94	$2.88	$2.93
Diluted EPS ($USD)	$(0.11)	$(0.09)*	$(0.08)
Gross Profit ($USD Millions)	$1.16	$1.26	$1.24
Gross Margin (%)	39.3%	43.6%	42.4%
Net Loss Attributable to Stockholders ($USD Millions)	$(0.69)	$(0.67)	$(0.65)
EBITDA ($USD Millions, non-GAAP)	$(0.49)	$(0.53)	$(0.55)
Adjusted EBITDA ($USD Millions, non-GAAP)	$(0.35)	$(0.42)	$(0.35)

Notes: *Values retrieved from S&P Global.

Segment breakdown (available disclosures):

Segment Revenue ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Contract Manufacturing	—	$0.86	$0.91

KPIs:

KPI	Q3 2024	Q2 2025	Q3 2025
Cash & Equivalents ($USD Millions)	$1.06	$0.73	$0.94
Restricted Cash ($USD Millions)	—	—	$0.92
Shares Outstanding (end-date)	—	8,067,580 (Aug 12)	8,143,133 (Nov 11)

Non-GAAP adjustments: Adjusted EBITDA excludes non-cash warrant liability changes and share-based compensation; Q3 adjustments included $0.01M warrant liability change and $0.21M share-based comp .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2025	$13.0	$12.0–$12.5	Bold: lowered
Adjusted EBITDA	Q4 2025	Positive EBITDA in 2025 (company target)	“Very close to adjusted EBITDA break-even”	Narrowed loss; effectively lowered ambition
Quarterly Revenue	Q4 2025	Not provided	“Q4 will be a record quarter”	New qualitative guidance

Earnings Call Themes & Trends

Topic	Q1 2025 (Prior)	Q2 2025 (Prior)	Q3 2025 (Current)	Trend
Contract Manufacturing (Cintas, pipeline)	Initial Cintas reorders; pipeline robust	Cintas reorders; 103% YoY CM growth; onboarding new customers	CM revenue $0.91M; iRhythm first orders expected; strong order book	Strengthening, recurring growth
Consumer Product Launches (Silly George, Kenkoderm)	Beauty line planned; hydrogel under-eye patches; Kenkoderm expansion	Launches started; lip gloss, masks, under-eye patches planned	Late-Sept launch; strong Q4 expected; Kenkoderm eczema coming	Temporary delay; setup for Q4
Tariffs/Macro	Monitoring; manageable at ~34%; contingency to assemble in Texas	Mild negative on margins; domestic interest rising; onboarding lag	Customs/regulatory delays impacted Q3 timing	Mixed headwind; operationally managed
Regulatory/Clinical (IRB study)	IRB study complete; awaiting publication	Study complete; awaiting data publication	Expect publication before year-end	Nearing catalyst
AbbVie ReSonic	Delays; timeline pushed; large potential	Delays persist; 2026 timing discussed	Conflicting signals; impairment noted; uncertainty remains	Negative uncertainty
STADA partnership	Histosolve growth; expanded agreement; future launches	$1M non-dilutive advance; product pipeline	Soft launch (glutathione) Dec; broader 2026 portfolio	Expanding scope

Management Commentary

“Growth in our contract manufacturing segment, driven by strong partnerships like Cintas, and the successful onboarding of new global customers, continues to demonstrate the market’s confidence in our advanced hydrogel technology.” — Adam Levy, CEO .
“For the fourth quarter, we do expect revenues to increase sequentially, and Q4 will be a record quarter for the company... I expect full year 2025 revenues of between $12 million and $12.5 million.” — Adam Levy .
“Adjusted EBITDA loss… totaled negative $354,000 compared to negative $419,000 for the second quarter of 2025 and negative $500,000 for the first quarter of 2025.” — Joe McGuire, CFO .

Q&A Highlights

Logistics/customs delays: Launches slipped to late September impacting Q3 by $100k–$200k; issues now resolved, setting up a strong Q4 .
Order book & cash: Contract manufacturing pipeline remains robust; inventory build in Q3 supports Q4 shipments and cash conversion; Q4 typically strong cash seasonality .
Path to profitability: Management aims for Q4 adjusted EBITDA near break-even, contingent on consumer demand strength; positive EBITDA remains a near-term goal .
AbbVie ReSonic: Mixed signals (RFQ vs. impairment); management concerned and seeking clarity; timing uncertain .
Guidance rationale: Q3 flatness reflects prior-year onboarding replaced by smaller repeat orders; sequential growth expected from new customers (e.g., iRhythm) and holiday seasonality .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 revenue and EPS was unavailable; only actuals were returned, so a beat/miss analysis versus estimates cannot be provided at this time. Values retrieved from S&P Global.
Actuals: Revenue $2.93M and diluted EPS $(0.08) , consistent with S&P’s recorded actuals for the period.

Key Takeaways for Investors

Bold: Guidance cut to $12.0–$12.5M for FY 2025 (from $13.0M) shifts focus to execution of Q4 record-quarter plan and near break-even adjusted EBITDA; monitor holiday sell-through and iRhythm order timing .
Contract manufacturing is the growth engine; recurring Cintas orders and iRhythm onboarding support sequential revenue expansion into Q4 .
Consumer brands are poised for Q4 with new SKUs; the late Q3 launch timing created a setup for strong seasonality and margin leverage .
Gross margin durability in the low-40% range suggests improving unit economics; watch mix and tariff impacts on consumer margins .
Liquidity: $0.94M cash plus $0.92M restricted (STADA) and cleaner Q4 cash conversion support near-term operations; equity raises earlier in 2025 bolstered flexibility .
AbbVie remains a longer-dated, high-upside option value with execution uncertainty; do not anchor near-term forecasts here .
Near-term trading: Stock likely sensitive to Q4 order visibility (iRhythm/Cintas), consumer holiday performance, and any publication of IRB study (laser plume) that could open new adoption vectors .

Citations: Press release and financial statements ; Q3 2025 earnings call transcript ; Q2 2025 earnings call transcript ; Q1 2025 8-K .

NEXGEL, INC. (NXGL)·Q3 2025 Earnings Summary