LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL) announced substantial financial gains for the first quarter ending March 31, 2025, with revenue reaching $2.81 million. This marks a 121% increase year-over-year from $1.27 million in Q1 2024 and reflects significant growth in both contract manufacturing and branded product segments.
Gross profit for the quarter surged to $1.19 million, compared to $0.16 million in the same period last year, driving a gross profit margin of 42.4% versus 12.6% in Q1 2024. The company also reduced its net loss to $0.71 million from $0.85 million a year prior, reflecting improving operational efficiencies. EBITDA loss narrowed to ($0.54) million from ($0.84) million in Q1 2024, while adjusted EBITDA improved to ($0.47) million compared to ($0.73) million for the same period last year.
“Revenue for the first quarter came in slightly higher than our previously issued guidance, totaling $2.81 million, an increase of 121% year-over-year. Gross margins returned to the low to mid-40’s, while our EBITDA loss continued to narrow,” stated Adam Levy, NEXGEL’s Chief Executive Officer. “Looking forward, in contract manufacturing we have multiple shots on goal with large existing customers such as Cintas and new potential customers in our robust pipeline. Similarly, we have several growth levers in our consumer branded products with new product launches throughout the remainder of this year, heading into 2026. We remain confident in our previously issued guidance for 2025 of $13 million in revenue and to achieve positive EBITDA during the year.”
The company attributed its revenue growth primarily to strong performance in contract manufacturing and increased demand for its consumer-branded products. Cost of revenues rose to $1.62 million, aligned with the increase in sales, while selling, general, and administrative expenses increased to $1.96 million due to higher investments in personnel, marketing, and shareholder services.
With a cash balance of $1.19 million as of March 31, 2025, NEXGEL remains well-positioned to execute its growth strategy. The company’s outlook for 2025 includes continued expansion in contract manufacturing partnerships, strategic product launches in branded categories, and achieving its guidance of $13 million in annual revenue, alongside positive EBITDA.
NEXGEL’s focus on driving innovation and operational efficiency reinforces its commitment to delivering shareholder value and expanding its footprint in the health and wellness markets.
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