Solesence | 10-Q: FY2026 Q1 Revenue: USD 12.96 M

Revenue: As of FY2026 Q1, the actual value is USD 12.96 M.

EPS: As of FY2026 Q1, the actual value is USD -0.01.

EBIT: As of FY2026 Q1, the actual value is USD -241 K.

Solesence, Inc. operates as a single business segment, focusing on skin health, beauty, wellness, and legacy markets like medical diagnostics and architectural coatings .

Revenue

• Total Revenue: Solesence, Inc.’s total revenue decreased to $12,957 thousand for the three months ended March 31, 2026, from $14,625 thousand for the same period in 2025 .
• Product Revenue: Product revenue was $12,919 thousand in Q1 2026, down from $14,575 thousand in Q1 2025 .
• Other Revenue: Other revenue decreased to $38 thousand in Q1 2026 from $50 thousand in Q1 2025, primarily consisting of developmental fees .

Revenue by Product Category

• Consumer Products: Revenue from Consumer Products generated $10,027 thousand in Q1 2026, a decrease from $12,882 thousand in Q1 2025 .
• Personal Care Ingredients: Revenue from Personal Care Ingredients increased to $2,725 thousand in Q1 2026 from $1,373 thousand in Q1 2025 .
• Advanced Materials: Revenue from Advanced Materials decreased to $205 thousand in Q1 2026 from $370 thousand in Q1 2025 .

Customer Concentration

• Top Three Customers: Accounted for 67% of total revenue in Q1 2026, an increase from 42% in Q1 2025 . Customer #1 (Consumer Products) contributed 37% in Q1 2026 compared to 25% in Q1 2025 . Customer #2 (Personal Care Ingredients) contributed 21% in Q1 2026 compared to 9% in Q1 2025 . Customer #3 (Consumer Products) contributed 9% in Q1 2026 compared to 8% in Q1 2025 .

Operational Metrics

• Net (Loss) Income: Solesence, Inc. reported a net loss of - $766 thousand in Q1 2026, compared to a net income of $80 thousand in Q1 2025 .
• Cost of Revenue: Cost of revenue decreased to $9,620 thousand in Q1 2026 from $11,243 thousand in Q1 2025, driven by decreased volume .
• Gross Profit: Gross profit was $3,337 thousand in Q1 2026, slightly down from $3,382 thousand in Q1 2025 .
• Research and Development Expense: Research and development expense increased to $1,042 thousand in Q1 2026 from $1,018 thousand in Q1 2025, due to higher legal costs and salaries .
• Selling, General and Administrative Expense: Selling, general and administrative expense increased to $2,799 thousand in Q1 2026 from $2,108 thousand in Q1 2025, due to increased legal costs and employee-related expenses .
• Net (Loss) Income from Operations: Net loss from operations was - $504 thousand in Q1 2026, compared to an income of $256 thousand in Q1 2025 .
• Interest Expense: Interest expense increased to $263 thousand in Q1 2026 from $176 thousand in Q1 2025 .

Cash Flow

• Net Cash Provided by Operating Activities: Net cash provided by operating activities was $1,517 thousand in Q1 2026, a significant improvement from - $7,221 thousand used in Q1 2025 .
• Net Cash Used in Investing Activities: Net cash used in investing activities was - $528 thousand in Q1 2026, compared to $133 thousand provided in Q1 2025 .
• Net Cash Used for Financing Activities: Net cash used for financing activities was - $1,704 thousand in Q1 2026, compared to $7,496 thousand provided in Q1 2025 .
• Cash at End of Period: Cash at the end of the period was $573 thousand as of March 31, 2026, down from $1,817 thousand as of March 31, 2025 .
• Cash Paid for Interest: Cash paid for interest was $173 thousand in Q1 2026, up from $96 thousand in Q1 2025 .

Future Outlook and Strategy

Solesence, Inc.’s primary strategic focus remains on skin health products and ingredients, as well as diagnostic life sciences ingredients, leveraging its materials engineering expertise and proprietary Active Stress Defense™ Technology suite . The company anticipates capital spending for 2026 to be between $0.5 million and $1.5 million, to be funded by operating profit, existing loans, and potential new debt financing . Solesence, Inc. is actively working to reduce controllable variable product manufacturing costs, expecting increased product revenue volume to lead to more efficient absorption of fixed manufacturing costs and improved margins .