Synergy CHC Corp. Reports Q2 2025 Revenue of $8.1 Million, Net Income Increases to $1.5 Million

Synergy CHC Corp. reported its financial results for the second quarter and first half of 2025, revealing a total revenue of $8.1 million for the three months ended June 30, 2025, a slight increase from $8.0 million in the same period of 2024. The revenue for the first half of 2025 was $16.3 million, down from $17.4 million in the prior year. The company attributed the decline in revenue primarily to a lack of repeat sales from a significant customer that occurred in 2024, although it did benefit from $1.4 million in license revenue during the second quarter.

The company's gross profit for the second quarter increased to $6.2 million, or 77% of revenue, compared to $5.6 million, or 69% of revenue, in the same quarter of 2024. This improvement was largely driven by the additional license revenue. Operating expenses rose to $4.6 million in the second quarter, up from $4.0 million a year earlier, primarily due to increased general and administrative costs associated with public market activities. Despite these rising costs, Synergy reported a net income of $1.5 million for the second quarter, significantly higher than the $655,186 recorded in the same period last year.

In terms of operational developments, Synergy's cash and cash equivalents increased to $1.5 million as of June 30, 2025, compared to $687,920 at the end of 2024. The company also reported a working capital surplus of $12.4 million, which it believes will support its ongoing operations and potential growth initiatives. The total liabilities decreased slightly to $32.1 million from $32.9 million at the end of 2024, reflecting a reduction in short-term loans payable.

Strategically, Synergy has been focusing on expanding its product offerings and market reach. The company launched its ready-to-drink beverage under the FOCUSfactor brand and is exploring further acquisitions to enhance its portfolio. Additionally, Synergy's recent establishment of Synergy CHC Mexico aims to facilitate geographic expansion into the Mexican market. The company continues to evaluate opportunities that align with its growth strategy, which includes both organic growth and acquisitions.

Looking ahead, Synergy management expressed optimism about the company's ability to generate sufficient cash flow to meet its obligations over the next twelve months. The company plans to continue developing its existing brands and expanding into new markets while managing costs effectively. The outlook remains cautiously positive, with a focus on leveraging its recent product launches and strategic initiatives to drive future growth.