Synergy CHC Corp. Reports Significant Revenue Decline and Net Loss in Q1 2026

Synergy CHC Corp. reported a significant decline in financial performance for the first quarter of 2026, with total revenue of $5.49 million, down from $8.17 million in the same period last year. The decrease in revenue was primarily attributed to a drop in sales of its nutraceutical products, which fell to $4.82 million from $6.64 million, alongside a notable absence of license revenue, which had contributed $1.5 million in the previous year. The company's gross profit also decreased to $3.97 million, representing a gross margin of 72%, compared to 75% in the prior year.

The company's operating expenses increased to $4.54 million from $4.22 million year-over-year, driven by higher general and administrative costs, which rose to $2.05 million from $1.31 million. This increase was largely due to elevated salaries, stock-based compensation, and professional fees. As a result, Synergy reported a net loss of $2.57 million for the quarter, a stark contrast to the net income of $876,264 recorded in the first quarter of 2025. The loss per share was $(0.23), compared to earnings of $0.10 per share in the prior year.

Operationally, Synergy faced challenges with cash flow, ending the quarter with $292,115 in cash and $100,000 in restricted cash, a significant decrease from $2.62 million in cash at the end of 2025. The company also reported a working capital deficit of $503,862. In response to these financial pressures, Synergy laid off 13 employees to reduce overhead costs and entered into a second amendment with its lender to adjust various covenants and payment terms. Additionally, the company has initiated an at-the-market equity offering program, raising $2.67 million in gross proceeds shortly after the quarter ended.

Geographically, the company continues to focus on its North American market, with the majority of its sales derived from the U.S. For the three months ended March 31, 2026, U.S. sales accounted for approximately $5.22 million, while Canadian sales were $227,580, and Mexican sales were $42,831. The company is also pursuing growth through product development and potential acquisitions, aiming to expand its portfolio of consumer health products. Despite the current financial challenges, management remains optimistic about future opportunities and is actively working to stabilize and grow the business.