NextPlat(NXPL) - 2025 Q2 - Quarterly Results

Executive Summary NextPlat's Q2 revenue declined to $13.2 million, primarily from Healthcare Operations, but net loss decreased 66% due to expense reductions and strategic efficiency initiatives Q2 2025 Performance Overview NextPlat reported $13.2 million in Q2 revenue, a decrease from the prior year, primarily due to challenges in Healthcare Operations, while achieving a significant reduction in operating expenses and net loss Q2 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | | :------------------------------------------------ | :------ | :------ | | Consolidated Revenue | $13.2M | $17.0M | | Net Loss Attributable to NextPlat Corp | ($1.8M) | ($5.3M) | | Diluted EPS | ($0.07) | ($0.28) | - Net loss attributable to NextPlat Corp common shareholders decreased 66% year-over-year[6] Strategic Focus and Outlook The company is implementing cost reduction and efficiency improvements, particularly in Healthcare Operations, to support growth and improve profitability, guided by a strategic review identifying key objectives - Company continues cost reduction and efficiency improvements to support growth[2] - Implementing initiatives in Healthcare Operations to positively transform business, attract and retain customers, and move into higher margin/growth segments[3] - Identified three primary objectives: continued operational process efficiency and cost reduction, ensuring necessary talent, and renewing commitment to prudently invest for opportunities, cashflow, and long-term profitability[7] Second Quarter 2025 Financial Highlights Q2 2025 consolidated revenue declined to $13.2 million with reduced gross profit margins, yet operating expenses significantly decreased to $4.7 million, leading to a substantial net loss improvement Consolidated Revenue and Gross Profit Consolidated revenue for Q2 2025 decreased to $13.2 million from $17.0 million in Q2 2024, primarily due to declines in Healthcare Operations, with overall gross profit margin also significantly declining to 21.8% Consolidated Revenue and Gross Profit Margins | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Consolidated Revenue | $13.2M | $17.0M | -$3.8M | | Overall Gross Profit Margin | 21.8% | 34.5% | -12.7% | | Healthcare Gross Profit Margin | 19.9% | 35.2% | -15.3% | | e-Commerce Gross Profit Margin | 25.9% | 31.6% | -5.7% | - Decrease in consolidated revenue primarily driven by a $2.3 million decrease in pharmacy prescription revenue and a $2.0 million decrease in pharmacy 340B contract revenue within Healthcare Operations[6] - Healthcare gross profit margin decreased due to lower prescription fills, 340B revenue, and drug price increases outpacing reimbursement rates; e-Commerce gross profit margin decreased due to new airtime costs and temporary rate reductions[6] Operating Expenses and Net Loss Operating expenses significantly decreased to $4.7 million in Q2 2025 from $16.8 million in Q2 2024, largely due to the absence of a $9.7 million non-recurring impairment loss and other reductions, leading to a substantial reduction in net loss Operating Expenses and Net Loss Summary | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------------ | :------ | :------ | :----- | | Operating Expenses | $4.7M | $16.8M | -$12.1M | | Net Loss Attributable to NextPlat Corp | ($1.8M) | ($5.3M) | $3.5M improvement | | Basic and Diluted Loss Per Share | ($0.07) | ($0.28) | $0.21 improvement | - Operating expenses decreased primarily due to the absence of a $9.7 million non-recurring impairment loss in the prior year, and ongoing reductions in stock-based compensation, executive compensation, and headcount[6] - Company anticipates annual expense savings in excess of $1.0 million from operational process efficiency improvements and staff adjustments[6] Cash Position The company ended the second quarter of 2025 with approximately $16.6 million in cash Cash Position | Metric | June 30, 2025 (M USD) | December 31, 2024 (M USD) | | :----- | :-------------------- | :------------------------ | | Cash | $16.6M | $19.96M | Organizational Highlights and Recent Business Developments NextPlat implements Healthcare cost-reductions, expands e-Commerce, pursues product market expansion for OPKO and Florida Sunshine, and defined strategic objectives following a post-CEO strategic review Healthcare Operations Initiatives NextPlat is actively implementing cost-reduction and business process improvements in its Healthcare Operations, including technology upgrades and recruiting dedicated sales professionals, with positive impacts expected through 2025 and 2026 - Continued efforts to implement cost-reduction and business process improvements in Healthcare Operations, such as technology upgrades and recruitment of sales professionals for 340B and Long-Term Care segments[5] - Positive impact of these efforts expected to contribute to operational results throughout remainder of 2025 and into 2026[5] e-Commerce Operations Growth The e-Commerce segment continues to grow, driven by record levels of recurring airtime contracts and elevated hardware sales, with near-term opportunities in new connectivity contracts and mission-critical communications expansion in Europe - e-Commerce revenue for connectivity products and services continues to grow, driven by record-levels of recurring airtime contracts and elevated hardware sales[7] - Securing new connectivity contracts and expanding mission-critical communications capabilities for enterprise, government, and humanitarian organizations across Europe[7] Product and Market Expansion Sales of OPKO Healthcare products on Alibaba's Tmall Global in China continue despite inventory limitations, with regulatory approval for OPKO pet health products anticipated in Q4, and Florida Sunshine vitamins launching in the UK and EU - Growth in sales of OPKO Healthcare products on Alibaba's Tmall Global in China, with efforts to secure increased inventory volumes[7] - Anticipates regulatory approval for OPKO pet health products in Q4, with sales to commence approximately 12 weeks after receipt[7] - Florida Sunshine-branded US-produced vitamins launch in China temporarily on hold due to evolving trade conditions, but now launching in the UK and EU[7] Post-CEO Strategic Review Following the passing of the former CEO, the company conducted an extensive business review, particularly of Healthcare Operations, identifying three key objectives: operational efficiency, talent empowerment, and prudent investment for growth and profitability - Completed extensive business review, focusing on Healthcare Operations, identifying three primary objectives: operational process efficiency and cost reduction for maximum ROI, talent empowerment for growth, and prudent investment for opportunities, cashflow, and long-term profitability[7] - Significant developments against these objectives expected over the next 60 days[7] Financial Statements Financial statements show a reduced Q2 2025 net loss due to lower operating expenses, alongside decreased total assets, liabilities, and cash position Condensed Consolidated Statements of Comprehensive Loss The condensed consolidated statements of comprehensive loss show a significant reduction in net loss for both the three and six months ended June 30, 2025, compared to the prior year periods, primarily driven by lower operating expenses Condensed Consolidated Statements of Comprehensive Loss | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues, net | $13,240 | $16,989 | $27,765 | $34,482 | | Gross profit | $2,883 | $5,858 | $6,346 | $10,720 | | Total operating expenses | $4,712 | $16,754 | $9,660 | $23,457 | | Net loss attributable to NextPlat Corp | ($1,789) | ($5,311) | ($3,132) | ($6,791) | | Basic and diluted loss per share | ($0.07) | ($0.28) | ($0.12) | ($0.36) | Condensed Consolidated Balance Sheets The condensed consolidated balance sheets show a decrease in total assets from $36.478 million at December 31, 2024, to $31.033 million at June 30, 2025, with corresponding decreases in total liabilities and cash Condensed Consolidated Balance Sheets | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $31,033 | $36,478 | | Total Liabilities | $7,425 | $9,680 | | Total Equity | $23,608 | $26,798 | | Cash | $16,635 | $19,960 | | Accounts receivable, net | $3,153 | $4,895 | | Inventory, net | $5,215 | $4,881 | Additional Information This section details the Q2 2025 conference call, company overview, forward-looking statement disclaimers, and media/investor contact information Conference Call Notification NextPlat will host a conference call on August 14, 2025, at 8:30 a.m. Eastern time to discuss Q2 2025 results and recent developments, with dial-in and webcast details provided Conference Call Details | Detail | Information | | :------------------------ | :-------------------------- | | Date | Thursday, August 14, 2025 | | Time | 8:30 a.m. Eastern time | | Toll-free dial-in number | 1-800-836-8184 | | International dial-in number | 1-646-357-8785 | | Conference webcast link | https://app.webinar.net/okKXG80G0MA | About NextPlat Corp NextPlat Corp is a global consumer products and services company offering healthcare and technology solutions through e-Commerce and retail channels, operating an e-Commerce communications division and pharmacy/healthcare data management services - NextPlat is a global consumer products and services company providing healthcare and technology solutions through e-Commerce and retail channels worldwide[12] - Operates an e-Commerce communications division (voice, data, tracking, IoT) and pharmacy and healthcare data management services in the US through Progressive Care[12] Forward-Looking Statements The release contains forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially, and the company disclaims any obligation to update these statements - Statements in this release are forward-looking and involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ[13] - Company disclaims any obligation to update forward-looking statements[13] Media and Investor Contact Contact information for media and investor inquiries is provided - Media and Investor Contact: Michael Glickman, MWGCO, Inc., 917-397-2272, mike@mwgco.net[14]