Gold is 2025’s best performer. UBS sees more upside
Nextplat Corp (NXPL), a small-cap technology company with a market capitalization of $20.36 million, reported its Q2 2025 earnings on August 14, revealing a challenging quarter with revenue falling to $13.2 million, down from $17 million the previous year. The company posted an earnings per share (EPS) of -$0.07. Following the earnings release, Nextplat’s stock dropped by 12.76% in premarket trading, reflecting investor concerns over the financial results and future prospects. According to InvestingPro analysis, the stock appears undervalued at current levels, with 11 additional key insights available to subscribers.
Key Takeaways
- Revenue decreased to $13.2 million, a significant drop from $17 million last year.
- EPS was reported at -$0.07, indicating a loss for the quarter.
- Gross profit margins declined notably in both healthcare and e-commerce segments.
- Stock price fell by 12.76% in premarket trading.
- The company is focusing on cost reduction and strategic market expansion.
Company Performance
Nextplat’s performance in Q2 2025 was marked by a decline in revenue and profitability. The company faced a challenging environment, particularly in its healthcare segment, where gross profit margins fell from 35% to 20%. The e-commerce segment also saw a margin decline from 32% to 26%. InvestingPro data shows the company’s overall gross profit margin has settled at 23.72% in the last twelve months, while maintaining a healthy current ratio of 3.62, indicating strong short-term liquidity. Despite these setbacks, Nextplat continues to invest in growth areas such as satellite and connectivity products, and the Chinese market for pet products.
Financial Highlights
- Revenue: $13.2 million, down from $17 million year-over-year.
- Year-to-Date Revenue: $27.8 million, compared to $34.5 million in the previous year.
- Gross Profit Margins: Healthcare at 20%, E-commerce at 26%.
Earnings vs. Forecast
Nextplat’s EPS of -$0.07 fell short of market expectations. The revenue also missed forecasts, contributing to the negative market reaction. The surprise percentage was significant, highlighting a larger-than-expected gap compared to previous quarters.
Market Reaction
Nextplat’s stock experienced a sharp decline of 12.76% in premarket trading following the earnings announcement. This movement places the stock closer to its 52-week low of $0.43, indicating a bearish sentiment among investors. However, InvestingPro data reveals the stock has shown resilience with a notable 10.88% gain over the past week. The company’s overall Financial Health Score stands at FAIR, based on comprehensive analysis of growth, profitability, and momentum factors. The decline contrasts with broader market trends, suggesting specific concerns about the company’s performance and outlook.
Outlook & Guidance
Looking forward, Nextplat is pursuing specialty pharmacy accreditation by Q4 2025 and exploring opportunities to expand its in-house pharmacy capabilities. The company is also considering a share buyback program, although no shares have been repurchased yet. Revenue forecasts for FY 2025 and FY 2026 are set at $88.4 million and $106.08 million, respectively.
Executive Commentary
CEO David expressed confidence in the company’s existing business value, stating, "We are confident that there is value in our existing business." CFO Cecile Munnick emphasized the company’s commitment to cost reductions, saying, "Our commitment to driving cost reductions and improving operational efficiency remains steadfast."
Risks and Challenges
- Declining prescription volumes in the healthcare segment.
- Shifts in provider relationships and insurance network adjustments.
- Regulatory constraints and tariffs in the Chinese market.
- The necessity for ongoing cost optimization to maintain competitiveness.
Q&A
During the earnings call, analysts inquired about the planned share buyback and NASDAQ compliance. The management confirmed no shares have been repurchased yet but plans to deploy capital prudently. They also assured that the company is monitoring its NASDAQ compliance closely and is prepared to utilize additional grace periods if necessary.
Full transcript - Nextplat Corp (NXPL) Q2 2025:
Conference Operator: Day, ladies and gentlemen, and welcome to the NexPLAT Corp. Second Quarter twenty twenty five Earnings Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we’ll start a question and answer session. This call is being recorded on Thursday, 08/14/2025.
I would now like to turn the conference over to management. Please go ahead.
David, CEO, NexPLAT Corp: Good morning and welcome to Nexblatt’s second quarter twenty twenty five earnings call. Thank you for joining us. Before I begin, I would like to acknowledge Charlie’s passing in late May and again offer our condolences to his family. While we will briefly discuss the results of the second quarter, our objective today is to highlight many of the things we’re doing now to build on the platform Charlie created. As we said at the June, our team has been very busy conducting a top to bottom review of the business.
In particular, our healthcare operations that reflects the majority of the business and we believe has a large potential to contribute positively to Next Platts growth and profitability. After I briefly recap the developments in the second quarter, Cecil Munnick, our CFO will review our financial results and discuss activities in our healthcare segment. We will conclude the call with a high level discussion of our near term objectives and developments which we believe will positively drive the business forward. I will then conclude the conference call by responding to questions that were submitted by our shareholders. Trends from the first quarter have continued in regards to both challenges and positive progress in each of the businesses.
In terms of e commerce, here are some highlights. The sale of satellite and connectivity products and services continues to see steady growth in terms of both recurring high margin airtime contracts, which are running at record levels and a pickup in hardware sales with particular strength in IoT sales. Our sales of OpCo products in China continues to show steady progress, primarily limited by our ability to import increasing levels of inventory as allowed by Tmall. Nonetheless, we’re still very excited about the prospects here, especially for pet products, a fast growing market for which we hope to get regulatory approval in the fourth quarter of the year. Turning to Florida sunshine, as you know, the tariff situation remains very volatile and as such, while we are slowly advancing our efforts in The United States and in Europe, we continue to monitor the situation along with our Chinese partner with a view to resuming launch plans there when conditions improve.
In terms of healthcare, we are continuing to make positive progress in the face of several challenges such as drug pricing and payer reimbursements. We are seeing the early positive impact of cost reductions and operational efficiencies with reductions in salaries and related costs and other general and administrative costs. We’re continuing to implement cost reduction and business process improvements such as technology upgrades and the recruitment of dedicated sales professionals who are focused on opportunities in the 340B and long term care segment. I will discuss some of the other things we are doing here after Cecile provides the financial highlights. At this point, I will turn the call over to Cecile to discuss our financial results for the three and six months ended 06/30/2025.
Over to you, Cecile.
Cecile Munnick, CFO, NexPLAT Corp: Thank you, David. Good morning, everyone. I will now provide a summary of our results of operations for the three and six months ended 06/30/2025, and our financial and cash position as of 06/30/2025. Overall, revenue for the 2025 was approximately $13,200,000 compared to approximately $17,000,000 in the same period last year. Our year to date overall revenue was approximately $27,800,000 compared to approximately $34,500,000 for the same period last year.
During 2025, the overall decrease in revenue was mainly due to the decline in our healthcare operations segment, which was partially offset by an increase in e commerce operations revenue. The decrease in healthcare operations revenue for both the 2025 and year to date period reflects a combination of factors. First, the decrease in pharmacy prescription volume was influenced in part by the continued changes in provider relationships and shifts in patient flow due to the insurance network adjustments or provider decisions to align with different pharmacy partners. And second, we experienced changes in our 340B pharma service agreements where a couple of relationships transitioned to other pharmacy partners, some covered entities opened in house pharmacies, and another covered entity no longer participates in the 340B program. Our e commerce operations experienced an increase in revenue for both the 2025 and the year to date period, which was driven by growth in recurring airtime revenue, hardware sales, and favorable foreign currency impact.
Gross profits from our healthcare segment decreased to approximately 20% in the 2025 from 35% in the 2024, and was primarily attributable to the decrease in prescription volume and changes in 340B revenue, as well as the continued industry wide impact of drug price increases outpacing reimbursement rate adjustments. Gross profits from our e commerce segment decreased to approximately 26% in the 2025 from 32% when compared to the same period of 2024 due to a service provider airtime contract that expired on 12/31/2024, which introduced new airtime costs beginning 01/01/2025, and temporary rate reductions for some customers affected by ongoing service interruptions. As expected, overall operational costs decreased due to the elimination of several nonrecurring expenses such as impairment losses associated with goodwill and other intangible assets and legal and consulting fees as it related to the merger of Progressive Care. We also experienced a reduction in salaries and wages. This was mainly a result of the decrease in stock based compensation for non recurring grants fully vested and a reduction in total headcount.
During the second quarter, we remained focused on refining our expense structure. We are continuing to work towards achieving cost savings through initiatives such as optimizing our delivery process and renegotiating vendor contracts. Our commitment to driving cost reductions and improving operational efficiency remains steadfast as we move forward. We ended the second quarter with approximately $16,600,000 in cash. I encourage you to review our financial statements as contained in our quarterly report on Form 10 Q that was filed with the Securities and Exchange Commission.
That concludes my remarks on financial results of the business. Back to you, David.
David, CEO, NexPLAT Corp: Thank you, Cecile. At this point, I’d like to highlight some of the near term strategic developments we are working on, which we believe will positively impact the business over the next few weeks and months. As a result of our comprehensive business review as outlined in our update letter, we have been very focused on our healthcare operations. This includes the review of our operations, processes and protocols and staffing, all of which needs to be properly aligned and funded if we are to deliver the results we are capable of. In the shorter term, our efforts include starting at the top and currently making personnel changes at managerial and supervisory levels to improve operating effectiveness and efficiency with an emphasis on improving standard operating procedures that we expect will translate to cost savings.
Our new hires include pharmacy operations managers with significant experience with long term growth and strategic planning in community pharmacies in the South Florida region. We expect to announce developments on this very soon. Although we see continued progress in our 340B and long term care business development efforts with new contracts coming online during the quarter, we see opportunities for improvement here. This includes an increased focus on customer care as well as the addition of dedicated sales and marketing professionals, some of which we have already hired with others planned for later in the year. In fact, our initial hires have already attended two Florida healthcare conferences and identified sales prospects which they are pursuing.
We are currently in late stage negotiations and opening our first in house pharmacy further supporting a current 340B customer. This represents a valuable new extension of our business. One we are looking to replicate with both new and existing customers. We hope to have more on this development in a few weeks. Finally, we are attempting to obtain specialty pharmacy accreditation which will provide us with access to new sources of revenue derived from specialty pharmacy contracts with payers and healthcare providers.
This could include expanding offerings for specialties in areas such as infusion therapies for the treatment of HIV to the delivery of chemotherapy. Developments here are expected during the fourth quarter. Now before I respond to shareholder questions, I’d like to make some closing remarks. After conducting our review, we are confident that there is value in our existing business and there are opportunities for each of them which can support both growth and future value creation. Our team and board are aligned about the steps needed to proactively address the challenges we see and importantly the need to invest if we were to succeed over the longer term.
As we stated previously, we are committed to transparency and to sharing with our investors the various steps we are taking as stewards of the company and look forward to sharing our process with you each step of the way on our journey to push NextGLAT forward. That concludes our formal remarks. We can now conduct the Q and A portion of today’s call. We have again asked investors and shareholders to submit their questions in advance and we would like to thank all of you who did. Question number one, What is the status of the buyback?
Has the company repurchased any shares? We have not yet repurchased any shares under our repurchase program so we expect to be active in the coming quarter. We intend to be prudent in terms of deploying available cash for the repurchase of shares as we do have other critical investments we intend to make as outlined earlier on this call. Going forward, we only intend to provide updates regarding any repurchases on a quarterly basis. Question number two.
The company is nearing the end of its initial one hundred and eighty day minimum bid deficiency. What is the plan to regain compliance? We are monitoring the situation closely as we continue working to improve the financial results of the company. We believe our ability to execute and communicate the value of the strategic developments we outlined earlier and their positive contributions to our financial results will be central to how we address regaining compliance. The other elements here include continued communication with investors and raising our profile within our industries, such as through new marketing campaigns and events as you may have already seen from our PharmCo Rx team.
If we need to utilize the additional one hundred and eighty day grace period afforded to us by NASDAQ, we will certainly pursue it. Question number three, given the uncertainties of doing business in China, should the company consider closing that part of the business if it isn’t going to be able to generate the significant growth and profitability that the company anticipated? There are clearly tariff related challenges for US made products like our Florida Sunshine, but for products like OpCo made internationally the situation is different. Although progress with OpCo has been slower than we’d like due to regulatory and inventory challenges, our early successes indicate a significant and potentially profitable opportunity. Additionally, we plan to launch a range of OpCo animal health products as soon as regulatory approval is secured enabling us to enter a high growth market in China.
Since we launched the sales of OpCo products in China, we have added valuable partners and in market expertise, which gives us confidence in the long term viability of this program. This combination of resources provides a platform that we can and will seek to continue to leverage as we move ahead. That was the final question that we received from investors. Thank you all again for submitting them. Please remember that you can submit your questions at our Investor Relations email which is investorsmexplat dot com or with our IR contact listed on our press releases, MichaelGlickman@mikemwgco.net.
That concludes our earnings conference call. We look forward to continuing to share with you our progress in the weeks and months ahead. Have a nice rest of your day. Thank you.
Conference Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
David, CEO, NexPLAT Corp: Thank you.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.