Gross margins have exhibited significant volatility, compressing from a peak of 36.3% in 2024Q1 to 25.7% in 2026Q1, reflecting limited pricing power and inconsistent manufacturing throughput.
| Sales/Revenue | 60.4M | 62.06M | 52.35M | 37.3M | 37.32M | 29.48M |
| Revenue Growth % | 5.76% | 18.56% | 40.35% | -0.05% | 26.61% | - |
| Cost of Goods Sold | 44.4M | 46.04M | 36.16M | 29.47M | 28.96M | 20.79M |
| COGS % of Revenue | - | 74.18% | 69.08% | 79.02% | 77.6% | 70.52% |
| Gross Profit | 16M | 16.03M | 16.19M | 7.83M | 8.36M | 8.69M |
| Gross Margin % | 26.49% | 25.82% | 30.92% | 20.98% | 22.4% | 29.48% |
| Gross Profit Growth % | - | -0.99% | 106.88% | -6.4% | -3.8% | - |
| Operating Expenses | 15.19M | 14.46M | 11.06M | 11.37M | 10.62M | 6.13M |
| OpEx % of Revenue | - | 23.29% | 21.12% | 30.49% | 28.45% | 20.8% |
| Selling, General & Admin | 11.08M | 10.38M | 7.22M | 7.53M | 7.58M | 3.9M |
| SG&A % of Revenue | - | 16.72% | 13.79% | 20.2% | 20.32% | 13.22% |
| Research & Development | 4.11M | 4.08M | 3.84M | 3.84M | 3.04M | 2.23M |
| R&D % of Revenue | - | 6.57% | 7.33% | 10.29% | 8.14% | 7.58% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 811K | 1.57M | 5.13M | -3.55M | -2.26M | 2.56M |
| Operating Margin % | 1.34% | 2.53% | 9.8% | -9.51% | -6.05% | 8.68% |
| Operating Income Growth % | - | -69.37% | 244.73% | -57.04% | -188.24% | - |
| EBITDA | 1.79M | 2.47M | 6.06M | -2.8M | -1.69M | 3.01M |
| EBITDA Margin % | 2.97% | 3.98% | 11.58% | -7.52% | -4.53% | 10.22% |
| EBITDA Growth % | -65.51% | -59.26% | 316.12% | -65.82% | -156.12% | - |
| D&A (Non-Cash Add-back) | 982K | 897K | 928K | 742K | 567K | 454K |
| EBIT | 811K | 1.57M | 5.13M | -3.55M | -2.26M | 3.51M |
| Net Interest Income | -1.02M | -931K | -670K | -838K | -382K | -1.15M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.02M | 931K | 670K | 838K | 382K | 1.15M |
| Other Income/Expense | 206K | 291K | -670K | -838K | -382K | -202K |
| Pretax Income | 1.02M | 1.86M | 4.46M | -4.38M | -2.64M | 2.36M |
| Pretax Margin % | 1.68% | 3% | 8.52% | -11.75% | -7.07% | 8% |
| Income Tax | 73K | 73K | 227K | 6K | -17K | 37K |
| Effective Tax Rate % | 7.18% | 3.92% | 5.09% | -0.14% | 0.64% | 1.57% |
| Net Income | 944K | 1.79M | 4.24M | -4.39M | -2.62M | 2.32M |
| Net Margin % | 1.56% | 2.88% | 8.09% | -11.77% | -7.03% | 7.87% |
| Net Income Growth % | -72.42% | -57.73% | 196.47% | -67.37% | -213.06% | - |
| Net Income (Continuing) | 944K | 1.79M | 4.24M | -4.39M | -2.62M | 2.32M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.01 | 0.02 | 0.07 | -0.09 | -0.05 | 0.05 |
| EPS Growth % | -68.13% | -71.43% | 179.01% | -65.92% | -206.8% | - |
| EPS (Basic) | - | 0.03 | 0.07 | -0.09 | -0.05 | 0.05 |
| Diluted Shares Outstanding | 70.63M | 72.58M | 65.03M | 49.56M | 49.12M | 47.04M |
| Basic Shares Outstanding | 70.63M | 70.34M | 62.35M | 49.56M | 49.12M | 45.02M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Liquidity and margin volatility
As reported in quarterly financial statements, Solesence's revenue trajectory exhibits significant inconsistency, with year-over-year growth rates fluctuating wildly between a 13.5% contraction in 2025Q3 and a 56.1% surge in 2025Q2, suggesting that the company's transactional business model remains highly sensitive to lumpy purchase order timing.
The lack of a stable growth cadence implies that the company has yet to achieve the recurring revenue profile typical of a mature ingredient supplier. Investors should monitor whether these fluctuations are driven by seasonal demand cycles or an inability to secure consistent, long-term volume commitments from its beauty brand partners.
According to the provided income statement data, gross margins have struggled to maintain consistency, peaking at 36.3% in 2024Q1 before compressing to 25.7% in 2026Q1, which highlights the company's limited pricing power and vulnerability to raw material cost volatility in its manufacturing operations.
The inability to sustain gross margins above 30% suggests that Solesence functions more like a high-cost contract manufacturer than a high-margin intellectual property owner. This margin profile warrants further investigation into whether the company can pass through inflationary pressures to its brand partners without sacrificing volume.
Based on the company's historical performance, operating income has failed to scale consistently with revenue, as evidenced by the swing from a 19% operating margin in 2024Q3 to a negative 3.9% in 2026Q1, indicating that fixed overhead costs continue to outpace top-line expansion.
The erratic nature of operating margins suggests that the company's cost structure is not yet optimized for scale, with R&D and SG&A expenses consuming the majority of gross profit during periods of revenue contraction. This lack of operating leverage implies that profitability remains highly dependent on achieving specific, high-volume production thresholds.
Financial filings indicate that Solesence maintains a rigid cost structure, with R&D and SG&A expenses frequently exceeding $3 million per quarter, which, when combined with variable COGS, leaves the company with minimal room for error during periods of lower-than-expected manufacturing throughput.
The company's expense discipline appears challenged by the need to maintain specialized manufacturing capabilities and R&D talent, which creates a high break-even point. Investors should monitor whether management can rationalize these fixed costs or if they are structurally necessary to support the company's proprietary mineral coating technology.
Quick answers to the most common questions about buying SLSN stock.
For fiscal year 2025, Solesence, Inc. Common Stock (SLSN) reported total revenue of $62.1M. This represents a 110.6% increase compared to $29.5M in 2021.
Solesence, Inc. Common Stock (SLSN) is profitable, generating $1.8M in net income for the fiscal year ending 2025 with a net profit margin of 2.9%.
Solesence, Inc. Common Stock (SLSN) reported an operating income of $1.6M, resulting in an operating profit margin of 2.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Solesence, Inc. Common Stock (SLSN) generated $16.0M in gross profit for the year, representing a gross profit margin of 25.8%. This demonstrates the company's core pricing power and production efficiency.