NextPlat secures new healthcare contracts, implements cost reductions

HALLANDALE BEACH, Fla. - NextPlat Corp (NASDAQ:NXPL), a $21 million market cap technology company currently trading below its InvestingPro Fair Value, announced on Wednesday that it has secured several new healthcare contracts and implemented additional cost reduction measures expected to save up to $1 million annually, building on approximately $1 million in previously identified savings.

The company reported that a prescription management and fulfillment services subcontract on behalf of a government contractor has been expanded to a second facility, which is expected to increase prescription volumes. NextPlat also stated it has re-engaged a major client in its 340B clinic services business, anticipating a significant increase in prescription volumes beginning this quarter. With current annual revenue of $59 million and a gross profit margin of 20%, these expansions could help improve the company’s financial metrics, which InvestingPro analysis indicates are currently showing weak profitability.

Under the leadership of Birute Norkute, who was appointed as Vice President of Healthcare Operations in August, the company has been working to improve daily operations while supporting new business development and customer retention activities.

NextPlat said it has commenced a technology upgrade for its ClearMetrX healthcare data analytics platform to incorporate artificial intelligence capabilities, with internal deployment planned for late 2025 before making it available to customers in 2026.

The company also reported growth in its satellite communications business, citing increased transaction volumes through partnerships with satellite network operators including Iridium, Starlink, and Globalstar. NextPlat noted that its distribution agreement with EVERYWHERE Communications has resulted in a year-on-year increase of 170% in related services.

Additionally, the company mentioned it has launched its Florida Sunshine brand of vitamins and supplements in domestic and international markets, with plans to enter the Chinese market through Alibaba’s Tmall Global platform in late 2025.

NextPlat stated it has been actively repurchasing shares under its current buyback program and expects to provide an update when it releases third-quarter results, anticipated by November 14, 2025.

The information in this article is based on a press release statement from NextPlat Corp.

In other recent news, NextPlat Corp reported its Q2 2025 financial results, showing a decline in revenue to $13.2 million from $17 million the previous year. The company also posted an earnings per share of -$0.07, which has raised concerns among investors. In a separate development, NextPlat announced the appointment of Rodney Barreto as the permanent Chairman of the Board and David Phipps as the permanent Chief Executive Officer. These appointments are part of the company’s ongoing business refocusing efforts following the passing of its previous chairman and CEO earlier this year. Furthermore, NextPlat’s ClearMetrX subsidiary is in the late stages of developing ClearMetrX 4.0, an AI-powered healthcare analytics software. The company plans to implement this software internally by the fourth quarter of 2025, with a commercial rollout expected in the first half of 2026. These recent developments reflect NextPlat’s strategic initiatives and challenges as it navigates through a period of transition.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.