NextPlat Corp (NXPL)·Q2 2025 Earnings Summary

Executive Summary

• Q2 revenue was $13.24M with diluted EPS of $(0.07); revenue declined versus both Q1 2025 ($14.53M) and Q2 2024 ($16.99M), driven by Healthcare softness, while e-Commerce continued to grow recurring airtime and saw improving hardware demand .
• Gross margin compressed to 21.8% (from 23.8% in Q1 and 34.5% YoY) on lower Healthcare prescription volume and 340B revenue and reimbursement pressure; OpEx fell to $4.71M as cost reductions took hold .
• Management flagged >$1M in anticipated annual expense savings and announced a Healthcare leadership expansion post-quarter to accelerate process improvements, 340B/LTC growth, and technology upgrades .
• No quantitative guidance was issued; management expects to be “active” on the share repurchase program in the coming quarter and is pursuing actions to regain Nasdaq compliance, while China tariff headwinds continue to delay Florida Sunshine (shift to UK/EU) and OPKO pet health products remain targeted for Q4 approval in China .

What Went Well and What Went Wrong

What Went Well

• e-Commerce momentum: “sale of satellite and connectivity products and services continues to see steady growth… record levels” of high-margin recurring airtime; hardware sales picked up with strength in IoT .
• Expense discipline: Operating expenses fell to ~$4.7M (from ~$4.9M in Q1 and ~$16.8M YoY) as stock comp rolled off and headcount/executive comp was reduced; annualized savings expected to exceed ~$1.0M .
• Loss narrowing YoY: Net loss attributable to common shareholders improved to $(1.789)M or $(0.07) per share vs $(5.311)M or $(0.28) YoY; cash ended the quarter at ~$16.6M .

What Went Wrong

• Healthcare contraction: Pharmacy Rx and other revenue fell to ~$8.2M (from ~$10.5M YoY), and 340B contract revenue fell to ~$1.0M (from ~$3.0M YoY) on relationship transitions, covered entities opening in-house pharmacies, and one ending 340B participation .
• Margin pressure: Consolidated gross margin slid to 21.8% (from 34.5% YoY); Healthcare margin fell to ~19.9% (from 35.2% YoY), with drug price inflation outpacing reimbursement adjustments .
• Tariff/regulatory friction: Florida Sunshine’s China launch is paused due to tariffs (shift to UK/EU); OPKO pet products still awaiting China regulatory approval (expected Q4; sales ~12 weeks post-approval) .

Financial Results

Segment details (where disclosed):

• Healthcare drivers: Rx and other revenue net of PBM fees ~$8.2M vs ~$10.5M YoY; 340B contract revenue ~$1.0M vs ~$3.0M YoY .
• e-Commerce margin impact: Segment gross margin down on new airtime costs after a contract expired 12/31/24 and temporary customer rate reductions .

Quarterly segment margins:

Liquidity trend:

Guidance Changes

No formal quantitative revenue/EPS/tax/OpEx guidance was provided for Q3/Q4/FY -.

Earnings Call Themes & Trends

Management Commentary

• “Record levels” of high-margin airtime contracts and improving IoT-driven hardware demand in e-Commerce; healthcare remains the largest focus area for operational improvements and growth initiatives .
• “Gross profit [Healthcare] decreased… primarily attributable to the decrease in prescription volume and changes in 340B revenue, as well as the continued industry-wide impact of drug price increases outpacing reimbursement rate adjustments” (CFO) .
• On operational improvement: “Personnel changes… improving standard operating procedures… late stage negotiations on opening our first in-house pharmacy… attempting to obtain specialty pharmacy accreditation” (Interim CEO) .
• On capital allocation: “We have not yet repurchased any shares… expect to be active in the coming quarter” (Interim CEO) .

Q&A Highlights

• Share repurchase: No buybacks to date; expect activity in the coming quarter, balanced against other critical investments .
• Nasdaq minimum bid compliance: Management expects execution and communication of strategic developments to be central; will use the additional grace period if needed .
• China program durability: Despite tariff challenges for U.S.-made products (Florida Sunshine), OPKO-branded products made outside the U.S. continue; pet product launch remains tied to Q4 approval .

Estimates Context

S&P Global consensus figures for NXPL Q2 2025 were unavailable or not aggregated at the time of analysis; therefore, we cannot assess a beat/miss versus Street for revenue or EPS. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Mixed quarter: continued top-line pressure from Healthcare offset by resilient, recurring e-Commerce airtime growth; margin compression reflects industry reimbursement dynamics and 340B attrition .
• Expense actions are working: OpEx reduced sequentially and sharply YoY, with further savings (>~$1M annualized) expected to fund growth initiatives in higher-margin services (340B/LTC, specialty) .
• Execution roadmap: near-term Healthcare leadership upgrades, tech investments, in-house 340B pharmacy, and specialty accreditation could stabilize revenue mix and support margin repair into 2026 if delivered .
• China strategy recalibration: Florida Sunshine paused in China (moved to UK/EU); OPKO human products continue with potential pet category unlock in 2026 if approvals arrive in Q4 2025 and supply ramps ~12 weeks after .
• Capital allocation watch: management signaled buyback activity in Q3 and a path to Nasdaq compliance centered on operational improvements and investor outreach—potential stock catalysts if milestones are met .
• Data caveat: lack of S&P Global consensus estimates limits near-term “beat/miss” framing; monitor coverage expansion and any forthcoming formal guidance to recalibrate expectations. Values retrieved from S&P Global.*

Supporting detail and source references:

• Q2 2025 8-K press release and financial statements -.
• Q2 2025 earnings call transcript -.
• Q1 2025 8-K press release and financial statements -; Q1 2025 call transcript -.
• Year-end 2024 8-K press release and financial statements -.
• Tariff and China program updates -; Q2 follow-up PR on Healthcare leadership and investments -.