Strong commercial execution drove revenue growth of 56% to $20.4 million
ROMEOVILLE, Ill., July 31, 2025 (GLOBE NEWSWIRE) -- Solésence, Inc. (Nasdaq: SLSN), a leader in scientifically-driven health care solutions across beauty and life science categories, today announced financial results for the second quarter ended June 30, 2025.
Recent Highlights and Accomplishments
Joined broad-market Russell 3000® and small-cap Russell 2000® Indexes
Amended loan agreements to fuel growth initiatives
“During our seasonally highest-performing quarter, we’re pleased with the effectiveness of our commercial execution and the consistent, on-time delivery of products to our partners,” said Jess Jankowski, President and Chief Executive Officer of Solésence. “Innovation remains at the heart of our unique value proposition and is why leading brands continue to choose us. As the market continues to evolve, we are focused on equipping our partners with differentiated consumer products that enrich lives and promote well-being.”
Second Quarter 2025 Financial Results
Revenue for the second quarter increased 56% to a record $20.4 million, compared to $13.0 million for the same period in 2024.
Gross profit in the second quarter was $5.9 million, compared to $3.7 million for the same period in 2024.
Gross margin in the second quarter was 29%, similar to the second quarter in 2024.
Net income for the second quarter was $2.7 million, which includes an Employee Retention Credit net receipt of approximately $1.2 million plus related interest, compared to a net income of $0.9 million for the same period in 2024.
Second Quarter 2025 Operational Highlights
Expanded debt facilities to support executing the Company’s long-term growth initiatives. The new facility expands the Company’s three loan agreements to a maximum borrowing capacity from $14.2 million to $23.0 million and extends the maturity date under each respective loan agreement from October 1, 2025 to April 30, 2027.
Shipment volume increased 102% year-over-year.
Production volume increased 127% year-over-year.
“Operationally, we improved gross margin sequentially from the first quarter, while ramping up production during our peak demand season,” said Kevin Cureton, Chief Operating Officer. “We appreciate the committed efforts of our team that enabled us to deliver another record unit volume quarter. Now with additional borrowing capacity from our debt facilities that we amended in June, we have enhanced our financial flexibility to further invest in our future and scale for growth.”
Conference Call
Solésence will host its first quarter conference call on Thursday, July 31, 2025, at 4:00 p.m. CDT, 5:00 p.m. EDT, to discuss its financial results and provide a business and financial update. On the call will be Jess Jankowski, President and Chief Executive Officer, and Kevin Cureton, Chief Operating Officer.
Webcast Link: https://edge.media-server.com/mmc/p/7n5uumgk
Dial-In Link: https://register-conf.media-server.com/register/BI09c7b8c2d77f48ae92fcc4fbdbcd785a
To receive the dial-in number, as well as your personalized PIN, you must register at the above link. Once registered, you will also have the option to have the system dial-out to you once the conference call begins. If you forget your PIN prior to the conference call, you can simply re-register.
The call may also be accessed through the Company’s investor relations website, at https://ir.solesence.com/. Please join the conference call at least five minutes before prior to the start time.
FINANCIAL RESULTS AND NON-GAAP INFORMATION
Use of Non-GAAP Financial Information
Solésence believes that the presentation of results excluding certain items, such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, Generally Accepted Accounting Principles (“GAAP”) and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP.
About Solésence, Inc.
Solésence, Inc. (Nasdaq: SLSN), is a leader in scientifically-driven health care solutions across beauty and life science categories. With a mission to deliver joy through innovation, inclusivity and the science of beautiful skin, we have redefined mineral-based sun protection by maximizing transparency, effectiveness, aesthetics, and wearability — empowering individuals to embrace beauty on their own terms. Combining best-in-class skin health solutions with the celebration of self-care, we allow brands to deliver unique product claims and attributes by seamlessly integrating protection, prevention, and treatment technologies into daily use products. Learn more at solesence.com.
Forward-Looking Statements
This press release contains words such as “expects,” “shall,” “will,” “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance, and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s engineered materials, ingredients, and fully formulated products; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company’s Form 10-K filed March 31, 2025. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties, or other contingencies.
Media Contact:
media@solesence.com
Investor Relations Contact:
investors@solesence.com
SOLÉSENCE, INC | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited Consolidated Condensed) | |||||||||
(in thousands except share and per share data) | |||||||||
June 30, | December 31, | ||||||||
2025 | 2024 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash | $ | 4,108 | $ | 1,409 | |||||
Trade accounts receivable | 12,470 | 5,655 | |||||||
Allowance for credit losses | (1,421 | ) | (786 | ) | |||||
Trade accounts receivable, net | 11,049 | 4,869 | |||||||
Inventories, net | 19,832 | 20,267 | |||||||
Prepaid expenses and other current assets | 3,781 | 2,803 | |||||||
Total current assets | 38,770 | 29,348 | |||||||
Equipment and leasehold improvements, net | 13,559 | 12,734 | |||||||
Operating leases, right of use | 7,627 | 7,917 | |||||||
Other assets, net | - | 3 | |||||||
Total assets | $ | 59,956 | $ | 50,002 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Line of credit, accounts receivable, related party | $ | 6,099 | $ | - | |||||
Current portion of line of credit, inventory, related party | 9,500 | 4,000 | |||||||
Current portion of debt, related parties | 1,000 | 1,000 | |||||||
Current portion of operating lease obligations | 1,231 | 1,260 | |||||||
Accounts payable | 6,891 | 9,093 | |||||||
Current portion of deferred revenue | 2,169 | 5,571 | |||||||
Accrued expenses | 6,146 | 4,849 | |||||||
Total current liabilities | 33,036 | 25,773 | |||||||
Long-term portion of operating lease obligations | 8,482 | 9,037 | |||||||
Asset retirement obligations | 250 | 246 | |||||||
Total long-term liabilities | 8,732 | 9,283 | |||||||
Contingent liabilities | |||||||||
Stockholders' equity: | |||||||||
Preferred stock, $.01 par value, 24,088 shares authorized and | |||||||||
no shares issued and outstanding | - | - | |||||||
Common stock, $.01 par value, 95,000,000 shares authorized; | |||||||||
70,481,945 and 70,103,279 shares issued and outstanding on June 30, 2025 | |||||||||
and December 31, 2024, respectively | 704 | 700 | |||||||
Additional paid-in capital | 115,165 | 114,674 | |||||||
Accumulated deficit | (97,681 | ) | (100,428 | ) | |||||
Total stockholders' equity | 18,188 | 14,946 | |||||||
Total liabilities and shareholders' equity | $ | 59,956 | $ | 50,002 | |||||
SOLÉSENCE, INC | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited Consolidated Condensed) | ||||||||||||||||
(in thousands except share and per share data) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(in thousands except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Product revenue | $ | 20,261 | $ | 12,923 | $ | 34,836 | $ | 22,694 | ||||||||
Other revenue | 98 | 123 | 148 | 220 | ||||||||||||
Net revenue | 20,359 | 13,046 | 34,984 | 22,914 | ||||||||||||
Cost of revenue | 14,482 | 9,306 | 25,725 | 15,594 | ||||||||||||
Gross profit | 5,877 | 3,740 | 9,259 | 7,320 | ||||||||||||
Operating expense: | ||||||||||||||||
Research and development expense | 955 | 864 | 1,973 | 1,776 | ||||||||||||
Selling, general and administrative expense | 3,012 | 1,829 | 5,120 | 3,388 | ||||||||||||
Income from operations | 1,910 | 1,047 | 2,166 | 2,156 | ||||||||||||
Interest income | - | |||||||||||||||
Interest expense, net | 87 | 191 | 263 | 409 | ||||||||||||
Other income, net | 1,234 | - | 1,234 | - | ||||||||||||
Income before provision for income taxes | 3,057 | 856 | 3,137 | 1,747 | ||||||||||||
Provision for income taxes | 390 | - | 390 | - | ||||||||||||
Net income | $ | 2,667 | $ | 856 | $ | 2,747 | $ | 1,747 | ||||||||
Net income per share-basic | $ | 0.04 | $ | 0.02 | $ | 0.04 | $ | 0.03 | ||||||||
Weighted average number of basic shares outstanding | 70,200,039 | 56,674,170 | 70,151,928 | 54,675,011 | ||||||||||||
Net income per share-diluted | $ | 0.04 | $ | 0.01 | $ | 0.04 | $ | 0.03 | ||||||||
Weighted average number of diluted shares outstanding | 72,548,819 | 58,709,170 | 72,497,829 | 56,662,011 | ||||||||||||
SOLÉSENCE, INC | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE (non-GAAP) | ||||||||||||||||
(Unaudited Consolidated Condensed) | ||||||||||||||||
(in thousands except share and per share data) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(in thousands except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Product revenue, net | $ | 20,261 | $ | 12,923 | $ | 34,836 | $ | 22,694 | ||||||||
Other revenue | 98 | 123 | 148 | 220 | ||||||||||||
Net revenue | 20,359 | 13,046 | 34,984 | 22,914 | ||||||||||||
Operating expense: | ||||||||||||||||
Cost of revenue detail: | ||||||||||||||||
Depreciation | 216 | 222 | 428 | 444 | ||||||||||||
Non-Cash equity compensation | 28 | 28 | 54 | 54 | ||||||||||||
Other costs of revenue | 14,238 | 9,056 | 25,243 | 15,096 | ||||||||||||
Cost of revenue | 14,482 | 9,306 | 25,725 | 15,594 | ||||||||||||
Gross profit | 5,877 | 3,740 | 9,259 | 7,320 | ||||||||||||
Research and development expense detail: | ||||||||||||||||
Depreciation | 4 | 5 | 7 | 11 | ||||||||||||
Non-Cash equity compensation | 28 | 32 | 55 | 65 | ||||||||||||
Other research and development expense | 923 | 827 | 1,911 | 1,700 | ||||||||||||
Research and development expense | 955 | 864 | 1,973 | 1,776 | ||||||||||||
Selling, general and administrative expense detail: | ||||||||||||||||
Depreciation and amortization | 5 | 7 | 11 | 14 | ||||||||||||
Non-Cash equity compensation | 64 | 97 | 138 | 198 | ||||||||||||
Other selling, general and administrative expense | 2,943 | 1,725 | 4,971 | 3,176 | ||||||||||||
Selling, general and administrative expense | 3,012 | 1,829 | 5,120 | 3,388 | ||||||||||||
Income from operations | 1,910 | 1,047 | 2,166 | 2,156 | ||||||||||||
Interest expense, net | 87 | 191 | 263 | 409 | ||||||||||||
Other income, net | 1,234 | - | 1,234 | - | ||||||||||||
Income before provision for income taxes | 3,057 | 856 | 3,137 | 1,747 | ||||||||||||
Provision for income taxes | 390 | - | 390 | - | ||||||||||||
Net income | $ | 2,667 | $ | 856 | $ | 2,747 | $ | 1,747 | ||||||||
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures): | ||||||||||||||||
Addback Interest, net | 87 | 191 | 263 | 409 | ||||||||||||
Addback Depreciation/Amortization | 225 | 234 | 446 | 469 | ||||||||||||
Addback Non-Cash Equity Compensation | 120 | 157 | 247 | 317 | ||||||||||||
Addback Provision for Income Taxes | 390 | 390 | - | |||||||||||||
Adjusted EBITDA** | $ | 3,489 | $ | 1,438 | $ | 4,093 | $ | 2,942 | ||||||||
**Includes $1,234 in other (cash) income from ERC in 2025 | ||||||||||||||||