Revenue growth has stalled, evidenced by a 5.6% year-over-year contraction in 2026Q1, while operating margins remain deeply negative at -36.2%.
| Sales/Revenue | 11.26M | 11.42M | 8.69M | 4.09M | 2.05M | 1.55M | 674K | 717K | 2.21M | 1.99M | 2.15M |
| Revenue Growth % | 10.14% | 31.46% | 112.47% | 99.66% | 32.04% | 130.12% | -6% | -67.6% | 11.09% | -7.43% | - |
| Cost of Goods Sold | 6.88M | 6.91M | 5.94M | 3.71M | 1.79M | 1.54M | 965K | 854K | 1.7M | 1.84M | 2.27M |
| COGS % of Revenue | - | 60.52% | 68.37% | 90.85% | 87.5% | 99.48% | 143.18% | 119.11% | 76.77% | 92.62% | 105.3% |
| Gross Profit | 4.38M | 4.51M | 2.75M | 374K | 256K | 8K | -291K | -137K | 514K | 147K | -114K |
| Gross Margin % | 38.89% | 39.48% | 31.63% | 9.15% | 12.5% | 0.52% | -43.18% | -19.11% | 23.23% | 7.38% | -5.3% |
| Gross Profit Growth % | - | 64.08% | 634.76% | 46.09% | 3100% | 102.75% | -112.41% | -126.65% | 249.66% | 228.95% | - |
| Operating Expenses | 7.91M | 7.86M | 6.3M | 3.85M | 3.6M | 2.58M | 1.97M | 1.79M | 2.4M | 1.12M | 1.75M |
| OpEx % of Revenue | - | 68.83% | 72.54% | 94.18% | 175.98% | 166.22% | 292.14% | 249.23% | 108.54% | 56.02% | 81.32% |
| Selling, General & Admin | 7.75M | 7.86M | 5.91M | 3.4M | 2.82M | 2.4M | 1.97M | 0 | 2.4M | 1.12M | 1.75M |
| SG&A % of Revenue | - | 68.81% | 68.04% | 83.1% | 137.5% | 155.06% | 292.14% | - | 108.54% | 56.02% | 81.32% |
| Research & Development | 7K | 2K | 78K | 103K | 367K | 31K | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.02% | 0.9% | 2.52% | 17.92% | 2% | - | - | - | - | - |
| Other Operating Expenses | 157K | 0 | 313K | 350K | 421K | 142K | 0 | 1.79M | 0 | 0 | 0 |
| Operating Income | -3.53M | -3.35M | -3.55M | -3.48M | -3.35M | -2.57M | -2.26M | -1.92M | -1.89M | -969K | -1.86M |
| Operating Margin % | -31.37% | -29.35% | -40.91% | -85.03% | -163.48% | -165.7% | -335.31% | -268.34% | -85.31% | -48.64% | -86.62% |
| Operating Income Growth % | - | 5.68% | -2.21% | -3.85% | -30.27% | -13.72% | -17.46% | -1.91% | -94.84% | 48.02% | - |
| EBITDA | -2.92M | -2.61M | -3.07M | -3.03M | -3.05M | -2.43M | -2.21M | -1.86M | -1.57M | -653K | -1.54M |
| EBITDA Margin % | -25.91% | -22.87% | -35.38% | -74.2% | -148.78% | -156.8% | -327.89% | -259% | -70.76% | -32.78% | -71.56% |
| EBITDA Growth % | -0.17% | 15.03% | -1.32% | 0.43% | -25.29% | -10.05% | -19.01% | -18.58% | -139.82% | 57.6% | - |
| D&A (Non-Cash Add-back) | 614K | 740K | 480K | 443K | 301K | 138K | 50K | 67K | 322K | 316K | 324K |
| EBIT | -3.52M | -3.35M | -3.38M | -3.17M | -3.41M | -2.31M | -2.25M | -1.92M | -1.89M | -969K | -1.86M |
| Net Interest Income | 29K | -34K | -81K | -15K | -1.34M | -2M | -10K | 0 | 0 | 0 | 0 |
| Interest Income | 10K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | -19K | 34K | 81K | 15K | 1.34M | 2M | 10K | 0 | 0 | 0 | 0 |
| Other Income/Expense | 447K | 459K | 91K | 289K | -1.4M | -1.74M | -4K | 1K | 0 | 0 | 25K |
| Pretax Income | -3.09M | -2.89M | -3.46M | -3.19M | -4.75M | -4.31M | -2.26M | -1.92M | -1.89M | -969K | -1.84M |
| Pretax Margin % | -27.4% | -25.33% | -39.86% | -77.97% | -231.74% | -277.89% | -335.9% | -268.2% | -85.31% | -48.64% | -85.46% |
| Income Tax | 56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -16K | -63K |
| Effective Tax Rate % | -1.81% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 1.65% | 3.43% |
| Net Income | -3.21M | -3M | -3.28M | -3.16M | -4.75M | -4.31M | -2.26M | -1.92M | -1.89M | -953K | -1.78M |
| Net Margin % | -28.54% | -26.27% | -37.76% | -77.21% | -231.74% | -277.89% | -335.9% | -268.2% | -85.31% | -47.84% | -82.53% |
| Net Income Growth % | -2.39% | 8.56% | -3.93% | 33.48% | -10.12% | -90.37% | -17.73% | -1.85% | -98.11% | 46.34% | - |
| Net Income (Continuing) | -3.14M | -2.89M | -3.46M | -3.19M | -4.75M | -4.31M | -2.26M | -1.92M | -1.89M | -953K | -1.78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 488K | 432K | 325K | 469K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.39 | -0.38 | -0.50 | -0.56 | -0.85 | -0.77 | -0.41 | -0.35 | -0.34 | -0.17 | -0.32 |
| EPS Growth % | 14.29% | 24% | 10.71% | 34.12% | -10.39% | -87.8% | -17.14% | -2.94% | -100% | 46.88% | - |
| EPS (Basic) | - | -0.38 | -0.50 | -0.56 | -0.85 | -0.77 | -0.41 | -0.35 | -0.34 | -0.17 | -0.32 |
| Diluted Shares Outstanding | 8.2M | 7.85M | 6.51M | 5.67M | 5.57M | 5.57M | 5.57M | 5.57M | 5.57M | 5.57M | 5.57M |
| Basic Shares Outstanding | 8.2M | 7.85M | 6.51M | 5.67M | 5.57M | 5.57M | 5.57M | 5.57M | 5.57M | 5.57M | 5.57M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and capital exhaustion
As indicated by the most recent quarterly data, NEXGEL's revenue growth has decelerated significantly, with the 2026Q1 figure of $2.6 million representing a 5.6% contraction compared to the prior year, highlighting the difficulty in maintaining the triple-digit growth rates observed in early 2024.
The transition from high-growth expansion to recent contraction suggests that the initial momentum from new product launches or contract wins may be fading. Investors should monitor whether this trend reflects a saturation in current retail channels or a broader slowdown in demand for the company's hydrogel-based offerings.
Financial statements reveal significant fluctuations in gross margins, which peaked at 43.6% in 2025Q2 before compressing to 40.0% in 2026Q1, suggesting that the company struggles to maintain consistent pricing power or cost efficiency amidst its ongoing shift toward branded consumer products.
The inability to stabilize gross margins above the 40% threshold indicates that the company remains vulnerable to input cost volatility and potential under-absorption of fixed manufacturing overhead. This inconsistency complicates the path to profitability, as the firm lacks the margin cushion required to absorb operational shocks.
Based on reported figures, NEXGEL continues to operate with a significant disconnect between revenue and profitability, as evidenced by a 2026Q1 operating margin of -36.2%, which demonstrates that SG&A expenses remain disproportionately high relative to the company's current revenue-generating capacity.
The persistent negative operating income suggests that the company has not yet achieved the necessary scale to leverage its fixed cost base effectively. Without a substantial increase in top-line volume or a drastic reduction in overhead, the current operating structure appears unsustainable for long-term value creation.
According to recent financial disclosures, the company's cash position of $317,000 against consistent quarterly operating losses creates a precarious liquidity profile that may necessitate dilutive financing, potentially undermining shareholder value despite the underlying proprietary E-beam technology and its theoretical advantages in the medical device market.
Short-sellers would likely focus on the company's inability to reach cash-flow break-even, which forces a reliance on external capital markets in an unfavorable interest rate environment. This dependency creates a binary risk scenario where the company's survival is contingent upon its ability to secure funding rather than its operational performance.
Quick answers to the most common questions about buying NXGL stock.
For fiscal year 2025, NEXGEL, Inc. (NXGL) reported total revenue of $11.4M. This represents a 430.7% increase compared to $2.2M in 2016.
NEXGEL, Inc. (NXGL) reported a net loss of $3.0M for the fiscal year ending 2025.
NEXGEL, Inc. (NXGL) reported an operating income of $-3.4M, resulting in an operating profit margin of -29.3%. This margin reflects the operational efficiency of the business before interest and taxes.
NEXGEL, Inc. (NXGL) generated $4.5M in gross profit for the year, representing a gross profit margin of 39.5%. This demonstrates the company's core pricing power and production efficiency.