NexGel Reports $2.65 Million Revenue in Q1 2026, Faces Increased Losses

NexGel, Inc. reported a net revenue of $2.65 million for the first quarter of 2026, a decrease of 5.6% from $2.81 million in the same period of 2025. The decline in revenue was primarily attributed to a drop in sales of branded consumer products, which was partially offset by an increase in revenues from medical devices and other categories. The company's gross profit for the quarter was $1.06 million, reflecting a gross margin of 40%, down from 42.3% in the prior year. The cost of revenues also decreased slightly to $1.59 million from $1.62 million, aligning with the overall reduction in sales.

Operating expenses for the quarter increased to $2.02 million from $1.96 million year-over-year, driven mainly by higher professional and consulting fees. The company reported a loss from operations of $958,000, compared to a loss of $777,000 in the first quarter of 2025. The net loss attributable to NexGel stockholders was $927,000, or $0.11 per share, compared to a net loss of $712,000, or $0.09 per share, in the previous year. The increase in net loss was influenced by the overall decline in revenue and rising operational costs.

In terms of strategic developments, NexGel entered into a significant asset purchase and exclusive license agreement with Celularity Inc. in March 2026, acquiring a portfolio of commercial-stage regenerative biomaterials. The total consideration for this transaction was approximately $13.3 million, which included an $8.3 million cash payment and a $5 million convertible promissory note. This acquisition is expected to enhance NexGel's product offerings and market position. Additionally, the company raised $7.37 million through a private placement of convertible notes and warrants in April 2026, which will support its ongoing operations and strategic initiatives.

Operationally, NexGel's total assets increased to $11.6 million as of March 31, 2026, up from $10.5 million at the end of 2025. Current assets also rose to $5.64 million, compared to $4.34 million in the previous quarter. The company reported a working capital of $2.32 million, an increase from $1.38 million at the end of 2025. However, the company continues to face challenges, including a net cash usage of $504,000 in operating activities for the quarter, raising concerns about its ability to sustain operations without additional capital.

Looking ahead, NexGel's management is focused on expanding its customer base and exploring new product channels in adjacent industries, such as cosmetics and proprietary medical devices. The company plans to maintain its existing contract manufacturing business while developing its catalog of consumer products. However, management has indicated that it expects to continue incurring losses in the near term and may need to pursue additional capital raises to support its growth objectives. The company's ability to achieve profitable operations remains uncertain, contingent on successful execution of its strategic plans and market conditions.