I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2026 Q1, the actual value is USD 5.493 M, missing the estimate of USD 8.334 M.
EPS: As of FY2026 Q1, the actual value is USD -0.23.
EBIT: As of FY2026 Q1, the actual value is USD 1.445 M.
Segment Revenue
- Product sales were $5,492,705 in Q1 2026 compared to $6,670,534 in Q1 2025, while license revenue was $0 in Q1 2026 compared to $1,500,000 in Q1 2025.
Gross Margin
- The gross margin for Q1 2026 was 72.3%, a decrease from 75.4% in Q1 2025.
- Excluding license revenue from Q1 2025, the normalized gross margin for that period was 70.0%, indicating a 2.3% improvement year-over-year for Q1 2026.
Operating Expenses
- Total operating expenses increased to $4.54 million in Q1 2026 from $4.22 million in Q1 2025.
- Selling and marketing expenses were $2,455,732 in Q1 2026 compared to $2,876,271 in Q1 2025.
- General and administrative expenses were $2,048,850 in Q1 2026 compared to $1,306,714 in Q1 2025.
Income (Loss) from Operations
- Synergy CHC Corp. reported an operating loss of - $0.57 million in Q1 2026, a significant decline from an operating income of $1.95 million in Q1 2025.
Net Income (Loss)
- The net loss for Q1 2026 was - $2.57 million, compared to a net income of $0.88 million in Q1 2025.
EBITDA (Non-GAAP)
- EBITDA loss was - $0.54 million in Q1 2026, down from an EBITDA of $1.98 million in Q1 2025.
Adjusted EBITDA (Non-GAAP)
- Adjusted EBITDA loss was - $0.35 million in Q1 2026, compared to an Adjusted EBITDA of $1.98 million in Q1 2025.
Cash and Cash Equivalents
- As of March 31, 2026, Synergy CHC Corp. had approximately $0.30 million in cash and cash equivalents, a decrease from $2.6 million as of December 31, 2025.
Working Capital
- The company reported a working capital deficit of - $0.50 million as of March 31, 2026, compared to a working capital surplus of $1.78 million as of December 31, 2025.
Inventory
- Inventory stood at $3.4 million as of March 31, 2026, down from $3.7 million as of December 31, 2025.
Cash Used in Operating Activities
- Cash used in operating activities for the three months ended March 31, 2026, was - $2.0 million, an increase from - $0.82 million for the same period in 2025.
Post-Quarter End Financing
- Subsequent to the quarter-end, Synergy CHC Corp. raised approximately $2.7 million in gross proceeds through its at-the-market (ATM) equity offering program.
Operational Metrics
- The company generated over $650,000 in functional beverage revenue in Q1 2026, surpassing its total beverage revenue for all of 2025.
- The beverage division is operating at an estimated annual run rate exceeding $4 million.
Outlook
- Synergy CHC Corp. expects 2026 to be a year of sustainable growth and value creation, supported by solid early-year momentum and a clear strategic path.
- The company believes it is well-positioned to capture significant growth opportunities within the functional beverage sector through continued expansion of its distribution footprint.