NexGel, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a slight decrease in quarterly revenues but a significant increase in year-to-date revenues compared to the same period in 2024. For the three months ended September 30, 2025, the company generated revenues of $2.934 million, a decrease of 0.2% from $2.940 million in the prior year. However, for the nine months ended September 30, 2025, revenues increased by 52.7% to $8.625 million, up from $5.647 million in the same period last year. The increase in year-to-date revenues was primarily driven by growth in branded consumer products, particularly following the acquisition of the Silly George brand in May 2024.
The company's gross profit for the third quarter rose to $1.243 million, compared to $1.155 million in the same quarter of 2024, reflecting a gross margin of 42.4%, up from 39.2% year-over-year. For the nine-month period, gross profit increased to $3.690 million from $1.674 million, resulting in a gross margin of approximately 42.8%. The overall increase in gross profit was attributed to improved sales in branded consumer products and a reduction in depreciation and amortization expenses.
NexGel's operating expenses for the third quarter were $1.968 million, slightly higher than $1.943 million in the same quarter of 2024. The increase was driven by higher compensation and benefits, as well as increased share-based compensation. The company reported a net loss of $653,000 for the third quarter, a reduction from a net loss of $693,000 in the same period last year. For the nine months ended September 30, 2025, the net loss attributable to NexGel stockholders was $2.030 million, compared to a loss of $2.431 million in the prior year.
Operationally, NexGel has been expanding its product offerings and market reach. The company has focused on increasing its sales pipeline and exploring new product channels in adjacent industries, including cosmetics and proprietary medical devices. As of September 30, 2025, the company had a cash balance of $938,000, down from $1.807 million at the end of 2024, and reported working capital of $2.294 million. The company is actively seeking to raise additional capital to support its growth initiatives and maintain operations, as it anticipates continued losses in the near term.
Looking ahead, NexGel plans to continue developing its catalog of consumer products and enhancing its contract manufacturing business. The company is also evaluating strategic initiatives, including potential acquisitions, to bolster its market position. Management has indicated that while the company expects to incur losses in the near future, it is committed to achieving profitable operations and creating long-term shareholder value.
About NEXGEL, INC.
NexGel, Inc. manufactures high water content, electron beam cross-linked hydrogels used in wound care, drug delivery, diagnostics, and cosmetics. The company supplies contract manufacturing services, develops consumer health and skincare products, and explores medical device innovations. Its proprietary technology emphasizes gentle, customizable gels for medical and consumer markets, leveraging strategic partnerships and white label opportunities to expand its reach in healthcare, beauty, and medical device sectors.
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