NexGel Reports 100.3% Revenue Growth to $2.884 Million in Latest Quarter

NexGel, Inc. reported significant financial growth in its latest quarterly filing, with revenues for the three months ended June 30, 2025, reaching $2.884 million, a 100.3% increase from $1.440 million in the same period last year. For the six months ending June 30, 2025, revenues totaled $5.690 million, up 110.3% from $2.706 million in the prior year. The company attributed this growth primarily to increased sales in its branded consumer products and contract manufacturing segments. Gross profit for the second quarter was $1.258 million, compared to $293,000 in the previous year, reflecting a gross margin improvement from 20.3% to 43.6%.

Despite the revenue increase, NexGel reported a net loss of $665,000 for the second quarter, an improvement from a loss of $885,000 in the same quarter of 2024. For the first half of 2025, the net loss attributable to NexGel stockholders was $1.377 million, compared to a loss of $1.738 million in the prior year. The company’s operating expenses rose to $1.894 million for the second quarter, up from $1.271 million, driven by higher selling, general, and administrative costs, particularly in advertising and marketing related to its consumer products.

NexGel has been actively expanding its product offerings and market presence. The company completed two significant acquisitions in the past year: the Silly George brand, which focuses on beauty products, and the Kenkoderm skincare line, aimed at treating psoriasis. These acquisitions are expected to enhance NexGel's portfolio and drive future revenue growth. Additionally, the company formed a joint venture with CG Laboratories, which is anticipated to bolster its converting and packaging capabilities.

Operationally, NexGel reported a decrease in cash reserves, with $725,000 as of June 30, 2025, down from $1.807 million at the end of 2024. The company’s current liabilities slightly decreased to $2.396 million from $2.470 million, resulting in a working capital of $1.766 million. Management is exploring new sales channels in adjacent industries, including cosmetics and medical devices, to enhance financial stability and shareholder value. However, the company acknowledged the ongoing challenge of achieving profitability and indicated that it may need to raise additional capital to support its strategic initiatives.