Solesence Inc(SLSN) - 2025 Q2 - Quarterly Results

Solésence Second Quarter 2025 Earnings Release Financial & Operational Highlights Solésence reported record Q2 2025 revenue of $20.4 million (+56% YoY) and strong net income, enhancing financial flexibility Key Accomplishments Strong commercial execution, Russell Index inclusion, and enhanced financial flexibility marked key accomplishments - Joined the broad-market Russell 3000® and small-cap Russell 2000® Indexes[7] - Management highlighted effective commercial execution and consistent on-time delivery to partners as key drivers for the quarter's performance[2] - Amended loan agreements to fuel growth initiatives, enhancing financial flexibility by increasing borrowing capacity[5][7] Q2 2025 Financial Performance Q2 2025 revenue grew 56% to $20.4 million, with net income of $2.7 million aided by ERC Q2 2025 vs Q2 2024 Financials | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $20.4M | $13.0M | +56% | | Gross Profit | $5.9M | $3.7M | +59% | | Gross Margin | 29% | 29% | Stable | | Net Income | $2.7M | $0.9M | +200% | - Net income for Q2 2025 included an Employee Retention Credit (ERC) net receipt of approximately $1.2 million plus related interest[8] Q2 2025 Operational Performance Record operational volumes (+102% shipment) supported by expanded debt facilities to $23.0 million Year-over-Year Operational Volume Growth | Metric | YoY Change | | :--- | :--- | | Shipment Volume | +102% | | Production Volume | +127% | - Expanded debt facilities from $14.2 million to a maximum borrowing capacity of $23.0 million and extended the maturity date to April 30, 2027[8] Financial Statements Unaudited consolidated financial statements detail Q2 2025 performance, including Balance Sheet, Income Statement, and Adjusted EBITDA Consolidated Balance Sheets Total assets reached $60.0 million and equity $18.2 million as of June 30, 2025, with increased liabilities Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $38,770 | $29,348 | | Total Assets | $59,956 | $50,002 | | Total Current Liabilities | $33,036 | $25,773 | | Total Liabilities | $41,768 | $35,056 | | Total Stockholders' Equity | $18,188 | $14,946 | Consolidated Statements of Operations (GAAP) Q2 2025 net revenue was $20.4 million with net income of $2.7 million ($0.04 EPS), significantly up YoY Q2 Statement of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Revenue | $20,359 | $13,046 | | Gross Profit | $5,877 | $3,740 | | Income from Operations | $1,910 | $1,047 | | Net Income | $2,667 | $856 | | Diluted EPS | $0.04 | $0.01 | Non-GAAP Reconciliation (Adjusted EBITDA) Q2 2025 Adjusted EBITDA significantly increased to $3.5 million, including $1.2 million from the Employee Retention Credit Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $2,667 | $856 | | Add: Interest, net | $87 | $191 | | Add: Depreciation/Amortization | $225 | $234 | | Add: Non-Cash Equity Comp. | $120 | $157 | | Add: Provision for Income Taxes | $390 | $0 | | Adjusted EBITDA | $3,489 | $1,438 | - The Q2 2025 Adjusted EBITDA calculation includes $1,234 thousand in other cash income from the Employee Retention Credit (ERC)[21] Conference Call Information A conference call on July 31, 2025, will discuss results, featuring CEO and COO, with webcast and dial-in access - The conference call is scheduled for Thursday, July 31, 2025, at 4:00 p.m. CDT / 5:00 p.m. EDT[6] - Participants include President and CEO Jess Jankowski and COO Kevin Cureton[6] - Access details, including webcast and dial-in registration links, are provided in the release[6][9] Company Information & Disclosures This section details Solésence's business, non-GAAP measure usage, and forward-looking statements disclaimer - Solésence defines itself as a leader in scientifically-driven health care solutions, specializing in mineral-based sun protection[11] - The company explains its use of non-GAAP financial measures to provide supplemental information for evaluating performance across reporting periods[10] - The release contains forward-looking statements subject to risks and uncertainties, as detailed in the company's Form 10-K[12]