Synergy CHC Corp. Reports Third Quarter 2025 Financial Results and its Eleventh Consecutive Quarter of Profitability

Core Insights - Synergy CHC Corp. reported its financial results for Q3 2025, marking its 11th consecutive quarter of profitability and achieving double-digit revenue growth alongside significant gross margin expansion [2][5]. Financial Performance - Revenue for Q3 2025 was $8.0 million, representing a 12.4% increase from $7.1 million in Q3 2024 [5][8]. - Gross margin improved to 70.9% in Q3 2025, up from 67.2% in Q3 2024, primarily due to a favorable product mix [5][8]. - Operating expenses rose to $4.4 million, a 17.7% increase compared to $3.7 million in Q3 2024, driven by costs associated with being a public company and launching the beverage division [6][8]. - Income from operations increased to $1.28 million, up 21.8% from $1.05 million in Q3 2024, attributed to improved gross margins [6][8]. - Net income for Q3 2025 was $125.3 thousand, down from $783.6 thousand in Q3 2024, with earnings per share at $0.01 compared to $0.11 in the prior year [7][8]. Business Developments - The company expanded its retail authorizations and distribution partnerships, notably with Kroger and Wakefern, enhancing its market reach across North America [2][8]. - A public offering completed in August 2025 raised $4.4 million, providing additional working capital for growth and brand expansion [2][8]. - Synergy appointed Teresa Thompson, a former Costco executive, to its Board of Directors, enhancing its expertise in retail and consumer health [8]. - FOCUSfactor was recognized as the 1 Pharmacist Recommended OTC Memory Supplement for 2025-2026 by Pharmacy Times, highlighting its market leadership [8]. Balance Sheet and Cash Flow - As of September 30, 2025, the company had approximately $1.0 million in cash and cash equivalents, up from $687.9 thousand at the end of 2024 [10][20]. - Working capital surplus increased to $16.68 million from a deficit of $1.12 million at the end of 2024 [10][20]. - Inventory stood at $2.1 million, compared to $1.7 million at the end of 2024 [10][20]. - Cash used in operating activities for the nine months ended September 30, 2025, was $3.21 million, compared to $1.38 million for the same period in 2024 [11][25].