NextPlat Corp Reports $1.34 Million Net Loss and 17% Revenue Decline in Q1 2025

NextPlat Corp reported a net loss of $1.34 million for the first quarter of 2025, a decrease from a net loss of $1.70 million in the same period last year. The company's revenue for the quarter was approximately $14.53 million, down 17% from $17.49 million in the first quarter of 2024. This decline was primarily driven by a significant drop in revenue from the Healthcare Operations segment, which fell by approximately $3.1 million, partially offset by a slight increase in e-Commerce revenue. Gross profit margins also decreased from 27.8% to 23.8%, attributed to reduced 340B contract revenue and increased costs in e-Commerce operations.

In terms of operational changes, NextPlat completed the acquisition of Outfitter Satellite, Inc. on April 1, 2024, which is expected to enhance its satellite-based connectivity services. The company operates two main e-commerce websites and 25 third-party storefronts, serving a diverse customer base that includes consumers, enterprises, and governments. The e-Commerce segment saw a slight revenue increase to $3.01 million, driven by recurring airtime revenue, although hardware sales declined. The Healthcare segment generated $11.52 million, with a notable decrease in pharmacy prescription revenues and 340B contract revenues.

NextPlat's total operating expenses for the quarter were approximately $4.95 million, a reduction of 26% compared to $6.71 million in the prior year. This decrease was largely due to lower salaries and professional fees, as well as a significant reduction in intangible asset amortization. The company reported a cash balance of $17.74 million as of March 31, 2025, down from $19.96 million at the end of 2024, reflecting a net cash outflow of $2.22 million during the quarter.

Looking ahead, NextPlat is focused on improving operational efficiency and preserving liquidity through cost reduction measures. The company is exploring strategic alternatives, including potential mergers or sales of parts of its business, to diversify its operations. Management believes that existing cash resources are sufficient to support operations for at least the next 12 months, while also prioritizing financial discipline to navigate ongoing market challenges, including the impact of U.S.-China tariffs on its e-Commerce initiatives.