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NextPlat Corp (NXPL)·Q4 2024 Earnings Summary

Executive Summary

  • FY24 revenue reached $65.5M, up 73% YoY, modestly above the company’s updated December guidance (“over $63M”), driven by full-year consolidation of Healthcare and expansion in e-commerce; however, full-year gross margin compressed to 24.8% on U.S. retail pharmacy reimbursement pressure and hardware pricing pressure in e-commerce .
  • Implied Q4 revenue was ~$15.63M with implied gross margin ~13.4%, reflecting a sharp sequential margin step-down versus Q2–Q3 as pharmacy reimbursement and mix weighed on profitability .
  • Management emphasized mix shift within Healthcare toward higher-margin 340B and long-term care contracts in 2025, and highlighted strong recurring airtime growth and China e-commerce expansion (JD.com, OPKO program extension) as 2025 catalysts .
  • A $2.0M share repurchase authorization was approved in December; as of the Q4 call, no buybacks had been executed due to blackout/capital allocation timing, but management expects to be active post-10-K filing .

What Went Well and What Went Wrong

  • What Went Well

    • Full-year revenue beat updated guidance, reaching $65.5M (vs. “over $63M” pre-announced), supported by outperformance in Healthcare prescription fulfillment and expanding e-commerce reach .
    • Recurring airtime momentum: management cited significant increases in high-margin recurring airtime revenue (company-level commentary of +115% YoY in 2024; Q3 +94% YoY) and broadening contract wins (government, media, humanitarian) .
    • China growth vectors: OPKO program extended four years and expanded to Japan; approval to sell on JD.com materially expands addressable audience for 2025 .

  • What Went Wrong

    • Margin compression: FY24 gross margin fell to 24.8% (e-commerce 24.9%, healthcare 24.8%) and implied Q4 margin was ~13.4% as U.S. drug reimbursement failed to keep pace with medication cost increases; e-commerce saw pricing pressure and higher hardware costs .
    • Elevated operating expense burden: FY24 operating expenses were $39.9M, including non-cash impairment and merger-related costs; Q3 and Q2 each included sizable impairment charges tied to Progressive Care intangibles .
    • GAAP net loss expanded: FY24 net loss attributable to NextPlat was $(14.0)M vs. $(3.8)M in FY23; implied Q4 loss of ~$3.0M, reflecting the above margin headwinds and non-recurring items .

Financial Results

Quarterly and FY performance (USD millions, except per-share and percentages)

MetricQ1 2024Q2 2024Q3 2024Q4 2024 (Implied)FY 2024
Revenue ($M)17.49 16.99 15.37 15.63 (65.48 FY − 49.85 9M) 65.48
Gross Profit ($M)4.81 5.81 3.52 2.09 (16.23 FY − Q1–Q3) 16.23
Gross Margin (%)27.5% 34.2% 22.9% ~13.4% (2.09/15.63) 24.8%
Net Loss Attr. to NextPlat ($M)(1.48) (5.31) (4.22) (3.02) (14.03 FY − 11.01 Q1–Q3) (14.03)
Diluted EPS ($)(0.08) (0.28) (0.22) N/A(0.68)

Operating expenses and cash

MetricQ1 2024Q2 2024Q3 2024Q4 2024 (Implied)FY 2024
Total Operating Expenses ($M)6.65 16.70 11.52 4.98 (39.85 FY − 34.87 Q1–Q3) 39.85
Cash & Equivalents ($M, period end)23.53 24.88 20.36 19.96 19.96

Segment revenue mix (reported)

MetricQ1 2024Q2 2024Q3 2024Q4 2024
e-Commerce Revenue ($M)2.9 3.5 3.8 N/A
Healthcare Revenue ($M)14.6 13.5 11.5 N/A

KPIs and operating drivers

KPIValuePeriod
Prescriptions filled (Healthcare)~514,000 in 2024 FY 2024
Prescriptions filled (Healthcare)128,000 (+5% YoY) Q3 2024
Recurring airtime revenue growth+115% YoY (company commentary) FY 2024
Recurring airtime revenue growth+94% YoY Q3 2024
Countries sold (devices/services)>140 countries (2024) FY 2024
Countries sold (Q3)95 countries Q3 2024

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/Updated GuidanceChange
RevenueFY 2024~$70M (Aug 14, 2024) $60–$65M (Nov 14, 2024) Lowered
RevenueFY 2024$60–$65M (Nov 14, 2024) “Over $63M” (Dec 9, 2024) Narrowed/Raised vs low end
Revenue (Actual)FY 2024N/A$65.5M (reported Mar 24, 2025) Above “over $63M”
Share repurchaseOpen authorizationN/A$2.0M buyback approved Dec 17, 2024 New capital return

No 2025 top-line or margin guidance was issued in the Q4 materials; management aims to reduce operating losses in Healthcare in 2025 and reach breakeven by 2026 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q2’24 PR; Q-1: Q3’24 PR)Current Period (Q4’24 Call)Trend
Healthcare reimbursement pressure / mix shiftQ2: strong 340B growth (+41%); Q3: reimbursement pressure driving GM to 21.2% in Healthcare Focus on expanding 340B and long-term care contracts; target breakeven by 2026 Stabilization via mix improvement
Recurring airtime & connectivityQ2: record margins; Outfitter contribution; Starlink reseller JV Significant recurring airtime revenue increases; new contract wins; continued partnership expansion Positive momentum
China e-commerce (OPKO, JD.com)Q2: initial Tmall launch; Q3: OPKO program extended 4 years; plan JD.com launch Regulatory and logistics hurdles easing; active sales on Tmall; JD.com ramp expected; tariffs not a current headwind Gradual ramp, improving execution
Cost structure / integrationQ2–Q3: non-cash impairments; merger costs; plan public company cost reductions Efficiency measures (delivery, software automation); striving for cash-neutral ops by 2026 Cost discipline ongoing
Capital allocation / IR—$2M buyback authorized; expect post-10K repurchases; increasing investor outreach Shareholder-focus increasing

Management Commentary

  • CEO (press release): “Results for 2024 reflect progress against our strategic growth initiatives… expanding e-Commerce in the US and China, and in healthcare where we are supporting a growing number of 340B covered entities and long-term care facilities.”
  • CFO: “Gross profit from our Healthcare segment decreased from 32% in 2023 to 25% in 2024… reimbursement rates not keeping pace with price increases… We ended the year with approximately $20M in cash… striving to attain a cash neutral position for operating activities by 2026.”
  • President/Global Ops: “We made significant progress… attracting customers from more than 140 countries… record revenue and gross margins… 66% increase in revenue from the sale of recurring revenue airtime contracts… securing major long-term contracts (state governments, military, media, humanitarian).”
  • CEO on Healthcare strategy: “Contracts with 340B covered entities and long-term care provide a greater profit margin than traditional retail… we have added several new 340B pharmacy service contracts which will come online in Q2’25.”

Q&A Highlights

  • Buyback execution: No repurchases yet due to blackout/capital allocation timing; management expects to be active post-10-K and to update investors on the Q1 call .
  • Stock price and visibility: Management acknowledged underperformance and plans heightened investor engagement; expects lower cash burn as non-recurring charges subside .
  • China ramp and tariffs: Ramp slowed by regulatory/customs complexities and import limits; improving with local partners. Tariffs not materially impacting current product set .
  • Florida Sunshine brand: Initial batch ready; prioritizing international launch (China, Europe) ahead of U.S. due to competitive dynamics; exploring OTC opportunities through pharmacies .
  • M&A vs. organic: Focused on organic growth; not pursuing additional acquisitions currently .
  • Litigation: Management believes suits are without merit; seeking dismissals .

Estimates Context

  • Wall Street consensus: S&P Global consensus estimates for Q4’24 revenue and EPS were not available for NXPL at the time of this analysis; therefore, no beat/miss vs. consensus can be determined.*
  • Actuals for context: Implied Q4’24 revenue ~$15.63M; EPS not separately disclosed for Q4; FY24 diluted EPS was $(0.68) .
Q4 2024 vs. ConsensusRevenueEPS
ConsensusN/A*N/A*
Actual/Implied$15.63M N/A (FY EPS $(0.68))

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • 2024 top-line execution solid with $65.5M reported vs. “over $63M” guide; however, implied Q4 margin compression (~13%) and continued Healthcare reimbursement headwinds weighed on profitability .
  • Mix shift to 340B/long-term care in Healthcare is the core lever to stabilize margins in 2025–2026; several new 340B contracts go live in Q2’25 .
  • E-commerce connectivity momentum (recurring airtime growth, government/media contracts) and JD.com expansion for OPKO products create tangible 2025 growth catalysts beyond Healthcare .
  • Operating discipline underway (delivery/logistics optimization, software automation, reduced duplicative public-company costs); objective is cash-neutral operations by 2026 .
  • $2M buyback provides a near-term capital return catalyst; management expects to be active following 10-K filing, potentially supporting shares while execution improves .
  • Near-term watch items: (1) China sell-through/approvals and JD.com scale, (2) recurring airtime growth sustainability and contract wins, (3) Healthcare gross margin trajectory as mix shifts, (4) cadence of non-recurring legal/professional costs falling away .
  • With limited Street coverage and no consensus, price discovery may hinge on visible catalysts (JD.com listings, 340B wins, buyback execution) and evidence of margin stabilization into mid-2025 .