NexGel Reports 27.8% Revenue Growth but Incurred $3.635 Million Net Loss in Q2 2026

NexGel, Inc. reported its financial results for the second quarter of 2026, revealing a net revenue of $3.686 million, a 27.8% increase from $2.884 million in the same period of 2025. For the first half of 2026, revenues reached $6.336 million, up 11.4% from $5.690 million year-over-year. The growth in revenue was primarily driven by the introduction of new biomaterial products, which contributed $814,000 to the total revenue. However, the company experienced a decline in gross profit, which fell to $1.109 million in Q2 2026 from $1.258 million in Q2 2025, attributed to lower margins on initial biomaterial product sales and increased costs related to inventory write-offs and freight.

Operating expenses surged significantly, with selling, general, and administrative expenses rising to $3.594 million in Q2 2026, compared to $1.894 million in Q2 2025, marking an increase of 89.8%. This increase was largely due to costs associated with establishing the BioNX Surgical division and amortization expenses related to the Celularity license agreement. The company reported a net loss of $3.635 million for Q2 2026, compared to a loss of $665,000 in Q2 2025, reflecting the impact of increased operational costs and lower gross margins.

NexGel's balance sheet as of June 30, 2026, showed total assets of $26.447 million, a significant increase from $10.461 million at the end of 2025. This growth was primarily due to the acquisition of an exclusive license and related assets from Celularity, which added $13.3 million in intangible assets. Current liabilities also rose sharply to $14.440 million from $2.956 million, driven by increased accounts payable and the recognition of a derivative liability related to convertible notes. The company's working capital turned negative, amounting to $(8.270) million, compared to a positive working capital of $1.382 million at the end of 2025.

In terms of strategic developments, NexGel completed the acquisition of Celularity's portfolio of commercial-stage regenerative biomaterials in April 2026, which is expected to enhance its product offerings and market position. The company also raised approximately $8.6 million through private placements in April and May 2026 to fund this acquisition. As of June 30, 2026, NexGel had a cash balance of $1.706 million, up from $1.058 million at the end of 2025, indicating improved liquidity despite ongoing operational losses.

Looking ahead, NexGel anticipates continued losses in the near term as it invests in product development and market expansion. The company is focused on managing its current product lines and achieving profitable operations, while also exploring options for raising additional capital to support its growth initiatives. However, there are significant uncertainties regarding its ability to secure sufficient funding and maintain operations as a going concern, as highlighted in its financial disclosures.