Solesence (NasdaqCM:SLSN) Q4 2025 Earnings call March 31, 2026 08:30 AM ET Company ParticipantsKevin Cureton - President and CEOLaura Riffner - CFOStefano Bolas - ShareholderTony Rubin - ShareholderWayne Ruin - ShareholderConference Call ParticipantsJames Liberman - AnalystOperatorGood day. Thank you for standing by. Welcome to the Solésence fourth quarter and full year 2025 conference call. Today's call is being recorded. During this call, management will make statements that include forward-looking statem ...

Solesence (NasdaqCM:SLSN) Q4 2025 Earnings call March 31, 2026 08:30 AM ET Company ParticipantsKevin Cureton - President and CEOLaura Riffner - CFOStefano Bolis - ShareholderTony Rubin - ShareholderWayne Ruin - ShareholderConference Call ParticipantsJames Liberman - AnalystOperatorGood day. Thank you for standing by. Welcome to the Solésence fourth quarter and full year 2025 conference call. Today's call is being recorded. During this call, management will make statements that include forward-looking statem ...

Solesence (NasdaqCM:SLSN) Q4 2025 Earnings call March 31, 2026 08:30 AM ET Speaker3Good day. Thank you for standing by. Welcome to the Solésence fourth quarter and full year 2025 conference call. Today's call is being recorded. During this call, management will make statements that include forward-looking statements within the meaning of the federal securities laws, which are pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This conference call may contain stat ...

EXHIBIT 99.1 Solésence Reports Fourth Quarter and Full-Year 2025 Financial Results Full Year 2025 record revenue of $62.1 million ROMEOVILLE, Ill., March 31, 2026 (GLOBE NEWSWIRE) -- Solésence, Inc. (Nasdaq: SLSN), a leader in scientifically-driven health care solutions across beauty and life science categories, today announced financial results for the fourth quarter and year ended December 31, 2025. "In 2025, we achieved record revenue of $62.1 million, effectively doubling our line of consumer products i ...

Full Year 2025 record revenue of $62.1 million ROMEOVILLE, Ill., March 31, 2026 (GLOBE NEWSWIRE) -- Solésence, Inc. (Nasdaq: SLSN), a leader in scientifically-driven health care solutions across beauty and life science categories, today announced financial results for the fourth quarter and year ended December 31, 2025. “In 2025, we achieved record revenue of $62.1 million, effectively doubling our line of consumer products in just two years. This affirmed both the value we bring to the industry, and our ab ...

ROMEOVILLE, Ill., March 19, 2026 (GLOBE NEWSWIRE) -- Solésence, Inc. (Nasdaq: SLSN), a leader in scientifically-driven health care solutions across beauty and life science categories, today announced that the Company will report results for the fourth quarter and full year 2025 before the market opens on Tuesday, March 31, 2026, and host a conference call and webcast on the same date. Fourth Quarter 2025 Conference Call DetailsDate / Time: Tuesday, March 31, 2026 – 7:30 a.m. CT, 8:30 a.m. ET Speakers: Kevin ...

Core Insights - Solésence, Inc. has appointed Yoolie Park as Vice President of Brand Partnerships to enhance strategic relationships with beauty brands and improve market delivery [2][3] Company Overview - Solésence, Inc. is a leader in scientifically-driven health care solutions within the beauty and life science sectors, focusing on innovation, inclusivity, and effective skin care [5] - The company aims to redefine mineral-based sun protection by maximizing transparency, effectiveness, aesthetics, and wearability [5] Leadership Changes - Yoolie Park brings extensive experience from Paklab, where she was Executive Vice President, and has held leadership roles in other beauty packaging companies [3] - Park's expertise in packaging and relationships with indie beauty brands is expected to drive innovation within Solésence's product offerings [3][4] Strategic Focus - The appointment of Park is seen as a strategic move to accelerate the company's ability to deliver integrated products that resonate with diverse consumer needs [4] - Solésence's commitment to innovation positions it as a key partner for brands aiming to push boundaries while maintaining their identity [4]

Financial Performance - Revenue for Q3 2025 was $14.5 million, a decrease of 14.5% compared to $16.9 million in Q3 2024[9] - Net loss for Q3 2025 was $1.1 million, compared to a net income of $3.0 million in Q3 2024[9] - Gross profit for Q3 2025 was $3.4 million, a decline from $6.1 million in Q3 2024[9] - Product revenue for Q3 2025 was $14,533,000, a decrease of 13.4% from $16,785,000 in Q3 2024[22] - The company reported a net loss of $1,120,000 for Q3 2025, compared to a net income of $3,045,000 in Q3 2024[22] - Adjusted EBITDA for the nine months ended September 30, 2025, was $3,275,000, down 49.8% from $6,532,000 in the same period of 2024[22] Margins and Expenses - Gross margin in Q3 2025 was 23%, down from 36% in the same period last year[9] - Research and development expenses for Q3 2025 were $1.1 million, compared to $970,000 in Q3 2024[21] - Selling, general and administrative expenses increased to $3.1 million in Q3 2025 from $1.9 million in Q3 2024[21] - Research and development expenses for Q3 2025 totaled $1,082,000, an increase of 11.5% from $970,000 in Q3 2024[22] - Selling, general and administrative expenses for Q3 2025 were $3,069,000, up 58.7% from $1,934,000 in Q3 2024[22] - Interest expense increased to $339,000 in Q3 2025 from $153,000 in Q3 2024[22] Assets and Liabilities - Total current assets increased to $32.8 million as of September 30, 2025, from $29.3 million at the end of 2024[17] - Total liabilities decreased to $36.8 million as of September 30, 2025, from $35.1 million at the end of 2024[17] Strategic Focus - The company is focused on expanding its product offerings in skin care, sun care, and color cosmetics despite a challenging market environment[3] Other Income and Tax Provisions - The company recorded other income of $1,234,000 for the nine months ended September 30, 2025, compared to no other income in the same period of 2024[22] - The provision for income taxes for the nine months ended September 30, 2025, was $390,000, while there was no provision in the same period of 2024[22]

Revenue Performance - Total revenue decreased to $14,597 for the three months ended September 30, 2025, compared to $16,866 for the same period in 2024, but increased to $49,581 for the nine months ended September 30, 2025, compared to $39,780 for the same period in 2024[63] - Product revenue decreased to $14,533 for the three months ended September 30, 2025, compared to $16,785 during the same period of 2024, while it increased to $49,369 for the nine months ended September 30, 2025, compared to $39,479 during the same period of 2024[63] Expenses - Research and development expense increased to $1,082 for the three months ended September 30, 2025, compared to $970 for the same period in 2024, and to $3,055 for the nine months ended September 30, 2025, compared to $2,746 for the same period in 2024[68] - Selling, general and administrative expense increased to $3,069 for the three months ended September 30, 2025, compared to $1,934 for the same period in 2024, and to $8,188 for the nine months ended September 30, 2025, compared to $5,321 for the same period in 2024[70] - Cost of revenue increased to $11,227 for the three months ended September 30, 2025, compared to $10,764 for the same period in 2024, and to $36,952 for the nine months ended September 30, 2025, compared to $26,358 for the same period in 2024[65] Cash Flow and Capital Expenditure - The net cash used in operating activities during the nine months ended September 30, 2025, was $(10,386), primarily due to increased accounts receivable and decreased accounts payable[73] - Total cash decreased to $429 for the nine months ended September 30, 2025, compared to $2,925 for the same period in 2024[73] - The company expects capital spending for 2025 to be between $0.1 million and $1 million, funded by profit from operations and existing loans[74] Tax and Financial Position - The company has federal net operating loss carryforwards for tax purposes of approximately $42 million as of December 31, 2024[75] Market and Operational Risks - Inflation has had an incremental impact on the company's costs of operations, with potential material effects in 2025 if price increases cannot be passed through[72] - The company has incurred losses since its incorporation but aims to achieve consistent profitability in the future[78] - There is a dependence on a limited number of key customers, which poses a risk of order cancellations[78] - The company faces challenges in obtaining working capital on acceptable terms[78] - Demand for Solésence products and advanced materials remains uncertain, impacting future sales[78] - The company has limited marketing experience with its Solésence product suite, which could affect market penetration[78] - Potential new governmental regulations regarding nanomaterials could increase compliance costs[78] - Business interruptions due to unexpected events, including public health crises, are a risk factor[78] - The company is subject to competitive pressures from other products and technologies in the market[78] - The ability to maintain an appropriate electronic trading venue for its securities is crucial for investor confidence[78] - Forward-looking statements are subject to various risks and uncertainties that could materially affect future results[78]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $14.5 million, a decrease of 14% year-over-year, attributed to a general softening in the industry and inventory adjustments by customers [18][19] - Gross profit was $3.4 million, down from $6.1 million in Q3 2024, with a gross margin of 23% compared to 36% for the same period last year [18][19] - The company reported a net loss of $1.1 million compared to net income of $3 million in Q3 2024, with adjusted EBITDA showing a loss of $435,000 compared to a profit of $3.6 million in the previous year [20] Business Line Data and Key Metrics Changes - The company has seen a shift in open orders, which represent the total value of customer orders, increasing to $64 million in Q3 2025 from $34 million in Q3 2024 [18] - The complexity of product design and manufacturing has been highlighted as a challenge, impacting profitability and operational efficiency [11][12] Market Data and Key Metrics Changes - The beauty industry is experiencing a slowdown, with consumer sentiment affecting inventory levels and lead times from brand partners [27][75] - Despite the overall market softness, the segment for SPF-infused beauty products is growing faster than the industry average, indicating a potential area for growth [75] Company Strategy and Development Direction - The company aims to maintain its leadership in the mineral-based beauty industry, focusing on scientific excellence and innovation [6][7] - Recent organizational changes have been made to improve product design, labor efficiency, and inventory control, which are expected to enhance profitability [11][14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow at a multiple of the industry's growth rate, despite the current challenges [10][27] - The leadership transition is seen as a positive step towards addressing operational issues and improving overall performance [4][9] Other Important Information - The company has established over 90 globally issued patents and has won multiple awards for product and technology innovation [6] - Significant improvements in labor efficiency have been noted, with a reduction in average labor cost per unit by close to 25% year-over-year [14] Q&A Session Summary Question: Concerns about repeated mistakes and sales outlook - Management acknowledged the need to address inventory management issues and expressed confidence in future revenue growth despite current challenges [26][27] Question: Delay in Q3 earnings release - The delay was attributed to the new leadership team wanting to ensure accuracy in reporting [30] Question: Expectations for Q4 sales and margins - Management expects an improvement in sales for the full year compared to 2024, with a positive outlook for Q4 [35] Question: Indirect costs and SG&A expenses - Management indicated that the current SG&A expenses reflect ongoing investments in leadership and operations, with some one-time costs not expected to recur [58] Question: Future margin expectations - Management refrained from providing specific guidance for 2026 but indicated a target of 30% as a floor for margins, with aspirations for higher levels in the future [64][65]