Revenue remains highly inconsistent, with quarterly growth figures fluctuating wildly and gross margins swinging from a negative 1346.3% in 2022Q1 to a positive 55.1% in 2024Q2.
| Sales/Revenue | 6.56M | 19.39M | 11.54M | 1.55M | 3.88M | 31.27M | 8.77M | 22.9M | 129K | 174K | 0 | 0 | 0 |
| Revenue Growth % | 282.9% | 68.04% | 642.47% | -59.98% | -87.58% | 256.54% | -61.71% | 17655.04% | -25.86% | - | - | - | - |
| Cost of Goods Sold | 16.63M | 109K | 233K | 342K | 12.68M | 20.38M | 27.91M | 40.58M | 28.15M | 300K | 359K | 300K | 0 |
| COGS % of Revenue | - | 0.56% | 2.02% | 22.01% | 326.6% | 65.17% | 318.24% | 177.17% | 21818.6% | 172.41% | - | - | - |
| Gross Profit | -10.07M | 19.39M | 11.3M | -21.99M | -8.8M | 10.89M | -19.14M | -17.67M | -28.02M | -126K | -359K | -300K | 0 |
| Gross Margin % | -153.48% | 100% | 97.98% | -1414.86% | -226.6% | 34.83% | -218.24% | -77.17% | -21718.6% | -72.41% | - | - | - |
| Gross Profit Growth % | - | 71.5% | 151.42% | -149.88% | -180.79% | 156.9% | -8.31% | 36.92% | -22135.71% | 64.9% | -19.67% | - | - |
| Operating Expenses | 421K | 26.93M | 23.32M | 7.32M | 7.45M | 7.93M | 11.09M | 48.85M | 33.65M | 31.81M | 20.76M | 9.65M | 4.81M |
| OpEx % of Revenue | - | 138.88% | 202.11% | 470.91% | 191.73% | 25.35% | 126.45% | 213.3% | 26085.27% | 18279.89% | - | - | - |
| Selling, General & Admin | 6.79M | 4.18M | 5.75M | 7.37M | 7.45M | 8.45M | 11.09M | 8.28M | 5.5M | 6M | 3.73M | 2.46M | 1.88M |
| SG&A % of Revenue | - | 21.54% | 49.83% | 474.45% | 191.73% | 27.02% | 126.45% | 36.13% | 4266.67% | 3449.43% | - | - | - |
| Research & Development | 16.63M | 22.8M | 17.8M | 23.54M | 12.68M | 20.38M | 27.91M | 40.58M | 28.15M | 25.8M | 17.02M | 7.18M | 2.93M |
| R&D % of Revenue | - | 117.62% | 154.3% | 1514.86% | 326.6% | 65.17% | 318.24% | 177.17% | 21818.6% | 14830.46% | - | - | - |
| Other Operating Expenses | -2M | -54K | -233K | -23.6M | -12.68M | -20.91M | -27.91M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -16.8M | -7.54M | -12.01M | -29.3M | -16.24M | 2.96M | -30.23M | 25.95M | -33.52M | -31.63M | -20.76M | -9.65M | -4.81M |
| Operating Margin % | -256.17% | -38.88% | -104.13% | -1885.78% | -418.34% | 9.48% | -344.69% | 113.3% | -25985.27% | -18179.89% | - | - | - |
| Operating Income Growth % | - | 37.26% | 59% | -80.41% | -648.04% | 109.8% | -216.5% | 177.41% | -5.97% | -52.4% | -115.16% | -100.64% | - |
| EBITDA | -16.43M | -7.43M | -11.78M | -28.96M | -15.68M | 3.84M | -29.29M | 26.84M | -32.76M | -31.33M | -20.4M | -9.35M | -4.58M |
| EBITDA Margin % | -250.46% | -38.32% | -102.11% | -1863.77% | -403.86% | 12.29% | -333.91% | 117.17% | -25394.57% | -18007.47% | - | - | - |
| EBITDA Growth % | -218.46% | 36.94% | 59.32% | -84.69% | -507.96% | 113.13% | -209.13% | 181.92% | -4.55% | -53.62% | -118.22% | -103.95% | - |
| D&A (Non-Cash Add-back) | 374K | 109K | 233K | 342K | 562K | 880K | 946K | 887K | 762K | 300K | 359K | 300K | 225K |
| EBIT | -16.8M | -7.54M | -10.58M | -29.3M | -16.24M | 2.96M | -30.23M | -25.95M | -33.52M | -31.63M | -20.76M | -9.65M | -4.81M |
| Net Interest Income | 1.89M | 1.41M | 1.43M | 2.07M | 1.32M | 257K | 943K | 1.37M | 1.32M | 65K | 0 | 0 | 0 |
| Interest Income | 1.89M | 1.41M | 1.43M | 2.07M | 1.32M | 257K | 943K | 1.37M | 1.32M | 65K | 0 | 0 | 40K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.89M | 1.41M | 1.43M | 2.07M | 1.32M | 257K | 943K | 1.37M | 1.32M | 65K | -15K | -13K | -40K |
| Pretax Income | -14.91M | -6.13M | -10.58M | -27.24M | -14.92M | 3.22M | -29.29M | -24.58M | -32.2M | -31.57M | -20.77M | -9.66M | -4.85M |
| Pretax Margin % | -227.4% | -31.6% | -91.7% | -1752.77% | -384.32% | 10.3% | -333.94% | -107.3% | -24963.57% | -18142.53% | - | - | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33K | 0 | -65K | 15K | 13K | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -0.13% | 0% | 0.21% | -0.07% | -0.13% | 0% |
| Net Income | -14.91M | -6.13M | -10.58M | -27.24M | -14.92M | 3.22M | -29.29M | -24.61M | -32.2M | -31.57M | -20.77M | -9.66M | -4.85M |
| Net Margin % | -227.4% | -31.6% | -91.7% | -1752.77% | -384.32% | 10.3% | -333.94% | -107.44% | -24963.57% | -18142.53% | - | - | - |
| Net Income Growth % | 66.87% | 42.09% | 61.16% | -82.52% | -563.3% | 111% | -19.02% | 23.58% | -2.01% | -51.98% | -115.02% | -99.26% | - |
| Net Income (Continuing) | -14.91M | -6.13M | -10.58M | -27.24M | -14.92M | 3.22M | -29.29M | -24.61M | -32.2M | -31.57M | -20.77M | -9.66M | -4.85M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.54 | -2.20 | -0.38 | -1.01 | -0.65 | 0.14 | -1.30 | -1.26 | -1.80 | -1.76 | -1.77 | -0.82 | -1.81 |
| EPS Growth % | 70.22% | -478.95% | 62.38% | -55.38% | -564.29% | 110.77% | -3.17% | 30% | -2.27% | 0.56% | -115.85% | 54.7% | - |
| EPS (Basic) | - | -2.20 | -0.38 | -1.01 | -0.65 | 1.40 | -1.30 | -1.26 | -1.80 | -1.76 | -1.77 | -0.82 | -1.81 |
| Diluted Shares Outstanding | 27.86M | 2.79M | 27.86M | 27.09M | 23.13M | 23.57M | 22.57M | 19.53M | 17.87M | 17.99M | 11.74M | 11.74M | 2.68M |
| Basic Shares Outstanding | 27.86M | 2.79M | 27.86M | 27.09M | 23.13M | 23.06M | 22.57M | 19.53M | 17.87M | 17.99M | 11.74M | 11.74M | 2.68M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and dilution risk
According to the provided quarterly income statements, Sol-Gel's revenue exhibits extreme volatility, with a 68.04% growth figure that appears heavily influenced by non-recurring milestone payments rather than consistent commercial pull-through, necessitating a cautious interpretation of the company's actual market share and long-term revenue durability.
The erratic nature of the top-line suggests that the business model remains in a transition phase where revenue is tied to event-driven milestones rather than steady-state royalty streams. Investors should monitor the conversion of prescription volume into recurring royalties to determine if the current growth trajectory is sustainable or merely a byproduct of lumpy contract recognition.
As reported in financial statements, the company's gross margin has fluctuated wildly, ranging from a positive 55.1% in 2024Q2 to a deeply negative -1346.3% in 2022Q1, indicating that the current cost structure is not yet optimized for a consistent, high-margin royalty-based business model.
The extreme variance in gross margins suggests that the company's cost of goods sold is not yet decoupled from its R&D-heavy operational footprint. This lack of margin stability implies that the firm has yet to achieve the operating leverage required to translate its proprietary technology into reliable, scalable profitability.
Based on reported figures, Sol-Gel's operating expenses are dominated by R&D spending that frequently exceeds quarterly revenue, creating a persistent operating loss that underscores the company's reliance on external capital to fund its clinical pipeline and maintain its current research-heavy business model.
The high ratio of R&D to revenue indicates that the company is prioritizing long-term pipeline development over immediate operational efficiency. This cost structure warrants further investigation into whether the current clinical programs possess the commercial potential to eventually offset the significant overhead required to sustain them.
Data from recent filings suggests that the company's $11 million cash position is insufficient to cover ongoing operating losses, raising significant concerns regarding the sustainability of the current business model without further dilutive financing or a substantial, immediate increase in royalty-based revenue streams.
The disconnect between the company's technical success in FDA approvals and its precarious cash runway suggests that the market may be correctly pricing in the risk of future equity dilution. Investors should monitor the cash burn rate closely, as the current trajectory appears to be nearing a critical inflection point for capital requirements.
Quick answers to the most common questions about buying SLGL stock.
For fiscal year 2025, Sol-Gel Technologies Ltd. (SLGL) reported total revenue of $19.4M.
Sol-Gel Technologies Ltd. (SLGL) reported a net loss of $6.1M for the fiscal year ending 2025.
Sol-Gel Technologies Ltd. (SLGL) reported an operating income of $-7.5M, resulting in an operating profit margin of -38.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Sol-Gel Technologies Ltd. (SLGL) generated $19.4M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.