NEXGEL (NasdaqCM:NXGL) Conference Summary Company Overview - NEXGEL has transitioned into a consumer products company, generating approximately $8 million annually from direct-to-consumer products [1] - The company operates a 16,500 square foot facility in Langhorne, Pennsylvania, housing an electron beam accelerator, one of only two such facilities globally [2] Industry Position - NEXGEL produces hydrogels for both consumer and medical applications, with a focus on biocompatible products for sensitive skin [6] - The company has established a joint venture with CG, addressing bottlenecks in converting and packaging processes, which previously limited production capacity [4] Product Development and Innovations - NEXGEL is developing a drug delivery pipeline, including a diclofenac patch that delivers medication faster than traditional creams [7] - The company is exploring a patch for Apremilast delivery, targeting patients with stubborn lesions who cannot tolerate systemic treatments [9] - SilverSeal, a flagship product, is a 94% water wound dressing with antimicrobial properties, showing promise in reducing scarring [13] Strategic Partnerships - A significant partnership with Cintas Corporation involves distributing SilverSeal products, with strong reorder patterns observed [20][21] - NEXGEL has a joint venture with Stada, a major European consumer healthcare company, to market products in the U.S., with plans for multiple product launches [22][23] Financial Performance - The company reported over 100% revenue growth in Q2, driven by consumer product sales and contract manufacturing [34] - NEXGEL received $1 million in non-dilutive funding from Stada to support its joint venture and product launches [23][36] Future Outlook - The company anticipates significant revenue opportunities from partnerships, particularly with AbbVie regarding the Resonic cellulite treatment [26][28] - NEXGEL is actively pursuing additional partnerships and has a robust pipeline of research and development projects [29][36] Key Challenges - The medical device side of the business has longer lead times for revenue recognition compared to consumer products, which can delay financial performance [35] - The company is managing capacity issues and production bottlenecks as it scales operations [4][6] Additional Insights - NEXGEL's hydrogel technology is being explored for aesthetic applications, including laser hair removal, which could open new market opportunities [30][32] - The company is focused on maintaining a strong cash position to support ongoing marketing and product development initiatives [36]

LANGHORNE, Pa., Oct. 09, 2025 (GLOBE NEWSWIRE) -- NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”), a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, today announced that Adam Levy, Chief Executive Officer, will present at the LD Micro Main Event XIX Conference being held at the Hotel Del Coronado in San Diego, California, on October 19-21, 2025. LD Micro Main Event XIX ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was approximately $2.9 million, a 100% increase year over year and a slight sequential increase [5][17] - Gross margins improved to 43.6%, more than double the 20.3% reported in Q2 2024, and increased from 42.4% sequentially [5][18] - Adjusted EBITDA loss narrowed to negative $420,000 compared to negative $790,000 for the same period last year [6][20] - Net loss attributable to stockholders was $670,000, down from $890,000 in Q2 2024 [20] Business Line Data and Key Metrics Changes - Contract manufacturing revenue increased to $863,000, a 103% year over year increase from approximately $425,000 in 2024 [6] - Consumer products revenue increased by 95% year over year, driven by growth across the brand portfolio [12] Market Data and Key Metrics Changes - The company is seeing increased demand from domestic companies due to tariffs, although the impact on margins has been mild [35][36] - The partnership with Cintas remains strong, with ongoing sales of the SilverSeal product included in their wound care kits [7][75] Company Strategy and Development Direction - The company aims to continue expanding its contract manufacturing and white label business as a major driver of growth [11] - New product launches are planned, including an expanded beauty line and additional skincare solutions, reflecting the commitment to innovative, high-quality products [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive EBITDA by the end of the year and maintaining guidance for $13 million in revenue [15][81] - The company is preparing for potential economic downturns by focusing on high-margin consumer products and evaluating cost structures [66] Other Important Information - The company received $1 million in non-dilutive funding from STATA to support upcoming product launches and marketing initiatives [15][21] - The company has sufficient cash on hand, including recent capital raises, to support growth initiatives [21] Q&A Session Summary Question: Market opportunities for upcoming launches - Management discussed the potential for new digestive enzyme products, which target larger markets compared to existing products [22][23] Question: Retail strategy and brand consolidation - Management clarified that brands will maintain their unique identities and are currently exploring private label opportunities [25][27] Question: Manufacturing capacity and onboarding new customers - Current manufacturing capacity is underutilized, allowing for onboarding of new customers without immediate expansion [29][30] Question: Impact of tariffs on the business - Management noted a mild negative impact on margins but increased interest from domestic companies [35][36] Question: Status of AbbVie partnership - Management confirmed delays in the AbbVie project but remains optimistic about future developments [40][44] Question: New product details from Silly George - Management highlighted successful new product launches and strong sales performance [48][51] Question: Cash position and recession preparedness - Management is considering strategies for potential economic downturns while maintaining a focus on high-margin products [66] Question: Ranking of partnerships - Management identified key partnerships, including Cintas and AbbVie, as significant opportunities for growth [75]

Financial Performance - Second quarter 2025 revenue totaled $2.88 million, an increase of 100.3% compared to $1.44 million for the same period in 2024 [1][4] - Gross profit for the quarter was $1.26 million, with a gross profit margin of 43.6%, compared to a gross profit of $0.29 million and a margin of 20.3% for the same period in 2024 [6][8] - The net loss attributable to NEXGEL stockholders was $0.67 million, an improvement from a net loss of $0.89 million in Q2 2024 [9][8] Business Growth and Strategy - The year-over-year revenue growth was driven by increased consumer demand for branded products and new agreements in contract manufacturing [3] - The company expects significant growth opportunities in the second half of 2025 due to new consumer product launches and onboarding new contract manufacturing customers [3] - A partnership with STADA was expanded, including a $1 million advance in non-dilutive capital to support product launches and marketing efforts [10][3] Cost and Expenses - Cost of revenues for the second quarter of 2025 was $1.63 million, up from $1.15 million in Q2 2024, primarily due to sales growth in branded consumer products [5] - Selling, general and administrative expenses totaled $1.89 million for the second quarter of 2025, compared to $1.27 million for the same period in 2024, driven by increases in compensation, advertising, and professional fees [7] Future Outlook - The company is reiterating its revenue guidance for 2025 of $13 million and aims to achieve positive EBITDA during the year [1][3] - As of June 30, 2025, the company had a cash balance of approximately $0.73 million, with additional financing of $1.05 million secured to support growth initiatives [10]

Company Overview - NEXGEL, Inc. is a leading provider of healthcare, beauty, and over-the-counter (OTC) products, specializing in ultra-gentle, high-water-content hydrogels [3] - The company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades [3] - NEXGEL's product brands include SilverSeal, Hexagels, Turfguard, Kenkoderm, and Silly George [3] - The company has established strategic contract manufacturing relationships with leading consumer healthcare companies [3] Event Participation - Adam Levy, the Chief Executive Officer of NEXGEL, will participate in the 6th Annual CEO Networking Event hosted by Semco Capital in Chicago on June 2, 2025 [1] - The event will feature a fireside chat with Scott Weis of Semco Capital [1] - The Annual CEO Networking Event aims to bring together leading microcap companies with unique business models and strong management teams [2]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 totaled $2,810,000, representing a 121% increase year over year compared to $1,270,000 in Q1 2024 [4][20] - Gross margins normalized to 42.4%, compared to 37% in Q4 2024 and 43.6% in Q3 2024 [4][21] - EBITDA loss narrowed to negative $540,000 from negative $840,000 in the same period last year [5][22] - Net loss for Q1 2025 was $710,000, down from a net loss of $850,000 in Q1 2024 [22] Business Line Data and Key Metrics Changes - Contract manufacturing revenue increased by 58% year over year, driven by demand from existing customers and new partnerships [4][5] - Consumer branded products revenue surged by 189% year over year, significantly boosted by the addition of Silly George [4] - The entire consumer products portfolio saw strong expansion, with new product launches planned for 2025 [11][12] Market Data and Key Metrics Changes - The company is experiencing increased interest in U.S.-made gels due to potential tariff impacts, which may enhance competitiveness against imported products [17][18] - There is a robust pipeline of new and potential customers for 2025, indicating strong market demand [8][19] Company Strategy and Development Direction - The company aims to expand its product lines, including new offerings for MetaGel and Cancoderm, and is transitioning Silly George into a broader beauty brand [12][13] - Strategic partnerships, such as with Stata, are expected to drive growth, with plans for additional product launches in 2025 and 2026 [14][30] - The company is monitoring tariff situations closely and is prepared to adjust manufacturing strategies if necessary [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product launch with AbbVie, despite delays, and sees it as a substantial opportunity [8][51] - The company does not foresee any weakness in consumer product sales and maintains guidance of $13,000,000 in revenue for 2025 [19][58] - Management is optimistic about achieving cash flow positivity in 2025, supported by ongoing innovation and growth [19][22] Other Important Information - The company has a cash balance of approximately $1,190,000 as of March 31, 2025 [22] - The company is exploring various financing options but prefers to avoid debt until achieving EBITDA positivity [48][64] Q&A Session Summary Question: How much revenue was expected from AbbVie, and does the delay affect guidance? - Management indicated that not much revenue was baked in from AbbVie, so the delay should not impact the projection of $13,000,000 [25] Question: Can you provide details on the product launching with Stata? - The first product is Histosol, a digestive enzyme, with plans for additional digestive enzymes in the future [30] Question: Is there a seasonal decline in Silly George sales? - Management noted a slight decline but emphasized that it was the most profitable quarter despite being smaller than previous quarters [57] Question: Will transitioning manufacturing to Texas impact other business lines? - Management confirmed that there is enough capacity in the new clean room to accommodate potential shifts in manufacturing [35] Question: Will the company survive on current cash reserves until EBITDA positive? - Management believes they can manage with current cash reserves until reaching EBITDA positivity [64]

Core Insights - NEXGEL, Inc. reported a significant revenue increase of 121% year-over-year for Q1 2025, totaling $2.81 million compared to $1.27 million in Q1 2024 [1][4][10] - The gross profit margin improved to 42.4% in Q1 2025, up from 12.6% in Q1 2024, indicating enhanced profitability [6][10] - The company aims to achieve $13 million in revenue for 2025 and expects to reach positive EBITDA during the year [3][10] Financial Performance - Revenue for Q1 2025 was $2.81 million, a 121% increase from $1.27 million in Q1 2024, driven by growth in both contract manufacturing and branded products [4][10] - Gross profit for the quarter was $1.19 million, compared to $0.16 million in Q1 2024, with a gross profit margin of 42.4% [6][10] - Cost of revenues increased to $1.62 million in Q1 2025 from $1.11 million in Q1 2024, aligning with revenue growth [5][10] Operating Expenses - Selling, general and administrative expenses rose to $1.96 million in Q1 2025 from $1.03 million in Q1 2024, attributed to higher compensation, marketing, and consulting fees [7][10] - EBITDA loss narrowed to ($0.54) million in Q1 2025 from ($0.84) million in Q1 2024, while adjusted EBITDA improved to ($0.47) million from ($0.73) million [8][10] Net Loss and Cash Position - The net loss for Q1 2025 was $0.71 million, an improvement from a net loss of $0.85 million in Q1 2024 [8][10] - As of March 31, 2025, the company had a cash balance of approximately $1.19 million [9][10] Future Outlook - The CEO highlighted multiple growth opportunities in contract manufacturing with existing customers and new product launches in consumer branded products [3][10] - The company remains confident in achieving its revenue guidance for 2025 and expects to improve its EBITDA performance [3][10]

Financial Data and Key Metrics Changes - For Q4 2024, revenue totaled $3.04 million, an increase of 181% compared to $1.08 million in Q4 2023 [26] - Full year 2024 revenue reached $8.69 million, up 112% from $4.09 million in 2023 [26] - Gross profit for Q4 2024 was $1.13 million, compared to $0.09 million in Q4 2023, with a gross profit margin of 37.2% versus 8.7% [28] - Net loss for Q4 2024 was $0.85 million, an improvement from a net loss of $1.1 million in Q4 2023 [31] Business Line Data and Key Metrics Changes - Contract manufacturing significantly contributed to growth in 2024, driven by demand from existing customers and new partnerships, including with Cintas and Owens & Minor [12] - The consumer products segment saw strong expansion, with brands like Medagel, Kenkoderm, and Silly George contributing to growth [18] - The acquisition of Silly George led to an increase in annual revenue run rate from $2 million to over $5 million [20] Market Data and Key Metrics Changes - The partnership with Cintas began shipping SilverSeal in Q4 2024, with additional orders expected in Q1 and Q2 2025 [13] - The company anticipates a healthy pipeline of potential new customers for 2025, particularly in the laser hair removal market [16] Company Strategy and Development Direction - The company aims to continue driving innovation and growth across key business segments, focusing on long-term value for shareholders [24] - Plans for 2025 include launching new products in the consumer segment and expanding partnerships, particularly with STADA [21][22] - The company is strategically managing R&D exploration to ensure high ROI and alignment with its vision [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive adjusted EBITDA in 2025, with expectations for revenue growth to at least $13 million [23] - The company views Q1 2025 as traditionally weak but expects improvement in adjusted EBITDA compared to previous quarters [37] - Management highlighted the importance of partnerships and new product launches in driving future growth [24][17] Other Important Information - The company had a cash balance of approximately $1.81 million as of December 31, 2024 [33] - The fourth quarter net loss included one-time inventory write-offs totaling $243,000, which are not expected to recur [11][32] Q&A Session Summary Question: Guidance on adjusted EBITDA and timeline to reach positive cash flow - Management indicated that they expect to improve adjusted EBITDA in Q1 2025 and anticipate significant growth in Q2 as new customers come on board [37] Question: Details on the pipeline of new customers and industry applications - Management mentioned having four large opportunities in the pipeline, with varying timelines for development and market entry [39] Question: Market opportunity for laser hair removal and promotional strategy - The company is partnering with Innovative Optics to leverage their relationships in the laser hair removal market, with plans to start selling products around mid-2025 [44][47] Question: Update on AbbVie Acoustic device launch - Management confirmed that they are on schedule to ship products to AbbVie in Q2 2025, with initial orders expected in Q1 [49]