Solesence, Inc. Reports 48.2% Revenue Growth to $14.625 Million in Q1 2025

Solesence, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $14.625 million, up from $9.868 million in the same period of 2024. This 48.2% increase was primarily driven by a rise in product revenue, which climbed to $14.575 million from $9.772 million year-over-year. However, the company experienced a decline in net income, which fell to $80,000 compared to $893,000 in the prior year, reflecting increased operating expenses and costs associated with revenue generation.

The company's operating expenses rose to $14.545 million for the three months ended March 31, 2025, compared to $8.975 million in the same period last year. This increase was attributed to higher costs of revenue, which surged to $11.243 million from $6.288 million, driven by increased production volume and operational inefficiencies. Research and development expenses also increased to $1.018 million from $910,000, as the company focused on developing new product formulations and enhancing manufacturing processes. Selling, general, and administrative expenses rose to $2.108 million from $1.559 million, reflecting higher legal costs and increased employee-related expenses.

Solesence has made strategic moves to enhance its market position, including a rebranding from Nanophase Technologies Corporation to Solesence, Inc. on March 7, 2025. The company’s stock began trading on Nasdaq under the symbol SLSN on April 8, 2025, after previously trading on the OTCQB marketplace. This rebranding aligns with the company's focus on innovation in skin health and beauty products, leveraging its proprietary technologies to meet growing consumer demands for clean and inclusive beauty solutions.

Operationally, Solesence reported an increase in trade accounts receivable, which rose to $10.084 million from $5.655 million, indicating higher sales volume. The company also saw its inventory increase to $21.912 million from $20.267 million, reflecting its efforts to meet growing demand. The number of significant customers remained stable, with three major clients accounting for 42% of total revenue in the first quarter of 2025, down from 61% in the previous year. This diversification may help mitigate risks associated with reliance on a limited customer base.

Looking ahead, Solesence anticipates continued growth driven by its consumer products segment, which is expected to be the primary focus of its growth strategy. The company plans to invest between $2 million and $4 million in capital expenditures in 2025, funded by operational profits and existing credit facilities. Management remains optimistic about the demand for its innovative products and is committed to enhancing its manufacturing capabilities to support future growth. However, the company acknowledges potential challenges, including inflationary pressures and the need to manage operational costs effectively.