--- title: "Nexgel | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 2.65 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286472059.md" datetime: "2026-05-14T21:31:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286472059.md) - [en](https://longbridge.com/en/news/286472059.md) - [zh-HK](https://longbridge.com/zh-HK/news/286472059.md) --- # Nexgel | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 2.65 M Revenue: As of FY2026 Q1, the actual value is USD 2.65 M, missing the estimate of USD 3.909 M. EPS: As of FY2026 Q1, the actual value is USD -0.11, missing the estimate of USD -0.07. EBIT: As of FY2026 Q1, the actual value is USD -916 K. #### Segment Revenue - **Total Revenues, net** decreased by $156 thousand, or 5.6%, to $2,650 thousand for the three months ended March 31, 2026, compared to $2,806 thousand for the same period in 2025. This was primarily due to a decline in branded consumer products, partially offset by an increase in Medical Device/Other revenues. - **NexGel Segment Revenue** was $1,945 thousand for the three months ended March 31, 2026, compared to $1,998 thousand for the same period in 2025. - **CGN JV Segment Revenue** was $705 thousand for the three months ended March 31, 2026, compared to $808 thousand for the same period in 2025. - **Revenue by Sales Type (Three Months Ended March 31, in thousands)**: - Contract manufacturing: $916 in 2026 vs. $948 in 2025. - Custom and white label finished goods manufacturing: $0 in 2026 vs. $0 in 2025. - Consumer branded products: $1,621 in 2026 vs. $1,782 in 2025. - Medical devices/other: $113 in 2026 vs. $76 in 2025. #### Operational Metrics - **Cost of Revenues** decreased by $29 thousand, or 1.79%, to $1,589 thousand for the three months ended March 31, 2026, from $1,618 thousand for the same period in 2025, primarily aligning with the decrease in sales. - **NexGel Segment Cost of Revenues** was $1,154 thousand in 2026 vs. $1,043 thousand in 2025. - **CGN JV Segment Cost of Revenues** was $435 thousand in 2026 vs. $575 thousand in 2025. - **Gross Profit** was $1,061 thousand for the three months ended March 31, 2026, compared to $1,188 thousand for the same period in 2025, a decrease of $127 thousand. The gross profit margin was 40.0% in 2026, down from 42.3% in 2025. - **Operating Expenses**: - **Research and development expenses** decreased by $1 thousand to $0 for the three months ended March 31, 2026, from $1 thousand for the same period in 2025. - **Selling, general and administrative expenses** increased by $55 thousand, or 2.8%, to $2,019 thousand for the three months ended March 31, 2026, compared to $1,964 thousand for the same period in 2025. This increase was mainly due to a $59 thousand rise in professional and consulting fees, partially offset by a $6 thousand decrease in advertising and marketing expenses. - **NexGel Segment Selling, general and administrative** was $1,874 thousand in 2026 vs. $1,826 thousand in 2025. - **CGN JV Segment Selling, general and administrative** was $145 thousand in 2026 vs. $138 thousand in 2025. - **Loss from Operations**: - **Total Loss from Operations** was - $958 thousand for the three months ended March 31, 2026, compared to - $777 thousand for the same period in 2025. - **NexGel Segment Loss from Operations** was - $1,083 thousand in 2026 vs. - $872 thousand in 2025. - **CGN JV Segment Income from Operations** was $125 thousand in 2026 vs. $95 thousand in 2025. - **Net Loss attributable to NEXGEL, Inc. stockholders** was - $927 thousand for the three months ended March 31, 2026, compared to - $712 thousand for the same period in 2025. #### Cash Flow - **Net cash used in operating activities** was - $504 thousand for the three months ended March 31, 2026, compared to - $400 thousand for the same period in 2025. - **Net cash used in investing activities** was - $9 thousand for the three months ended March 31, 2026, compared to $0 for the same period in 2025. - **Net cash provided by (used in) financing activities** was $1,577 thousand for the three months ended March 31, 2026, primarily from proceeds of convertible notes payable, compared to - $215 thousand for the same period in 2025. #### Working Capital - Working capital increased to $2,324 thousand at March 31, 2026, from $1,382 thousand at December 31, 2025, primarily due to proceeds from the issuance of convertible debt. #### Unique Metrics - **Segment Assets (in thousands)**: - **NexGel Segment Total Assets** were $7,902 at March 31, 2026, vs. $6,777 at December 31, 2025. - **CG Labs Segment Total Assets** were $3,696 at March 31, 2026, vs. $3,684 at December 31, 2025. - **Customer Concentration**: For the three months ended March 31, 2026, NEXGEL, Inc. had no customer approximating 10% of total revenue, compared to one customer in the prior year. As of March 31, 2026, three customers accounted for 18%, 18%, and 38% of total accounts receivable, while as of March 31, 2025, two customers accounted for 26% and 49%. - **Partnership Advance**: NEXGEL, Inc. held $596 thousand and $731 thousand as current liabilities for partnership accrued advances as of March 31, 2026, and December 31, 2025, respectively, related to an advance from STADA Arzneimittel AG. - **Convertible Notes Payable**: The net carrying amount of Series A Convertible Notes was $1,312 thousand as of March 31, 2026. - **License Agreement Contingent Payments**: NEXGEL, Inc. may be required to make up to $17,500 thousand in contingent milestone payments to Celularity upon achieving specified commercial milestones under the License Agreement. #### Future Outlook and Strategy NEXGEL, Inc. expects the recently acquired Celularity business to contribute positive operating cash flows and improve liquidity, supporting ongoing operations. The company plans to explore new product channel sales in cosmetics, athletic products, and proprietary medical devices, while growing its existing contract manufacturing business and expanding its consumer product catalogue. Additionally, NEXGEL, Inc. intends to develop its own proprietary medical devices, explore drug delivery programs, and continues to evaluate strategic initiatives like acquisitions, with potential additional capital raises through debt or equity to achieve these objectives. ### Related Stocks - [NXGL.US](https://longbridge.com/en/quote/NXGL.US.md) ## Related News & Research - [NexGel Q1 2026 Earnings Call Transcript](https://longbridge.com/en/news/286593673.md) - [NexGel Raises $1.21 Million Via Convertible Notes and Warrants; $0.60 Conversion, $0.80 Exercise](https://longbridge.com/en/news/286613426.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Sangoma Announces Third Quarter Fiscal 2026 Results | SANG Stock News](https://longbridge.com/en/news/286317217.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md)