LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL) has reported a remarkable third quarter in 2024, achieving a record revenue of $2.94 million. This represents a 141% increase from the same quarter last year and a 104% rise from the previous quarter. The company’s impressive growth is largely attributed to significant sales increases in both branded consumer products and contract manufacturing.
“Our significant growth was driven by approximately 100% sequential growth in both branded consumer products and contract manufacturing,” remarked Adam Levy, NEXGEL’s CEO. The company reported a gross profit margin of 43.6%, a substantial improvement from 28.2% in the third quarter of 2023 and 28.5% in the second quarter of 2024.
Despite a net loss of $754,000 in the third quarter, this loss is an improvement from the $979,000 loss reported in the second quarter of 2024. The adjusted EBITDA loss also narrowed to $347,000, showing progress in the company’s financial management.
NEXGEL’s expenses rose significantly due to increased advertising, marketing, and Amazon fees, which collectively surged by $819,000. However, this investment aligns with their strategy to expand market reach and enhance brand presence, particularly for their Silly George and Kenkoderm products.
As the holiday season approaches, NEXGEL anticipates further revenue growth and expects to narrow its quarterly EBITDA loss. The company plans to fulfill its first orders of SilverSeal® to Cintas in the fourth quarter, supporting its positive outlook.
To meet growing demand, NEXGEL recently fortified its financial position with $2 million from a registered direct offering. This capital will support working capital needs and boost inventory and marketing efforts for Silly George products.
As of September 30, 2024, NEXGEL had a cash balance of $1.1 million, and the company remains well-positioned to capitalize on market opportunities in the coming months.
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