Solésence, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenue of $15.3 million, down from $20.4 million in the same period of 2025. For the first half of 2026, revenue totaled $28.3 million, compared to $35.0 million in the prior year. The decrease in revenue was primarily attributed to a new customer launch in 2025 that resulted in higher sales during that period, which were not replicated in 2026. Product revenue specifically fell to $15.3 million for the three months ended June 30, 2026, from $20.3 million in the same quarter of 2025.
The company's operating expenses also reflected changes, with cost of revenue decreasing to $10.6 million for the second quarter of 2026, down from $13.9 million in the same quarter of 2025. This reduction was attributed to lower sales and improved production efficiency. However, net loss for the quarter was $158,000, contrasting with a net income of $3.2 million in the prior year. For the first half of 2026, the net loss was $1.1 million, compared to a net income of $3.6 million in the same period of 2025.
In terms of operational developments, Solésence's customer base remains concentrated, with three significant customers accounting for approximately 66% of total revenue in the second quarter of 2026. The company has also been focusing on expanding its product offerings and enhancing its technology suite, which includes proprietary technologies aimed at improving skin health and beauty products. The company is actively pursuing geographic expansion, particularly in international markets, although the majority of its sales continue to be generated in North America.
The company’s cash position at the end of June 2026 was $1.0 million, a decrease from $4.1 million at the end of June 2025. Cash provided by operating activities was $1.7 million for the first half of 2026, a significant improvement compared to cash used in operations of $7.9 million in the same period of 2025. This positive cash flow was primarily driven by profitable operations and prepayments for future orders. However, the company also reported a significant increase in current liabilities, which rose to $26.0 million from $13.9 million at the end of 2025, largely due to the current portion of a line of credit.
Looking ahead, Solésence is focused on addressing its operational challenges and enhancing its financial performance. The company is implementing remediation measures to address identified weaknesses in its internal controls over financial reporting, particularly related to inventory accounting. Additionally, the company is exploring new product development opportunities, including a potential new SPF product in collaboration with Refy Beauty Ltd, which could provide a pathway for future revenue growth. The company anticipates that its capital expenditures for 2026 will range between $0.5 million and $1.5 million, funded through operational profits and existing credit facilities.
About SOLESENCE, INC.
Solesence, Inc. (formerly Nanophase Technologies) specializes in scientifically-driven skin health and beauty solutions, including proprietary active pharmaceutical ingredients (APIs) and fully formulated consumer products. The company develops mineral-based UV protection, environmental defense, and aesthetic skincare products for prestige and mass markets. Its core value lies in innovative nanotechnology, formulation expertise, and a vertically integrated business model serving global brand partners.
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