LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL) has announced its fourth-quarter and full-year 2024 financial results, highlighting unprecedented growth in revenue, gross profit, and operational milestones.
The company reported fourth-quarter revenue of $3.04 million, a remarkable increase of 181% compared to $1.08 million in the same period of 2023. Full-year revenue reached $8.69 million, up 112% from $4.09 million in 2023, marking the third consecutive year of over 100% annual revenue growth. Gross profit for 2024 surged to $2.75 million, significantly higher than $0.37 million in 2023, with gross profit margins improving from 9.2% to 31.6% year-over-year.
“The fourth quarter and full year 2024 were record periods for NEXGEL across all our key financial measures. We successfully grew full year and fourth quarter revenue over 100% year-over-year for the third consecutive year. Our growth and operational efficiency were driven by consistent performance each quarter in both branded consumer products and contract manufacturing,” said Adam Levy, Chief Executive Officer of NEXGEL.
During the fourth quarter, the company achieved several operational milestones, including its first shipments of SilverSeal® to Cintas, which are ongoing into the first quarter of 2025. Key product lines such as Medagel, Silly George®, Kenkoderm®, and Histasolv, developed in partnership with STADA, performed strongly. Additionally, NEXGEL made strides to optimize its product portfolio and enhance its marketing efforts while introducing new offerings tailored to customer needs.
Net loss for the fourth quarter narrowed to $0.85 million, compared to $1.10 million in the same period of 2023. Adjusted EBITDA for full-year 2024 improved to a loss of $2.43 million, compared to a loss of $2.80 million in 2023. Although the company accounted for one-time inventory write-offs of $243,000 in Q4 2024, management expects no similar challenges moving forward due to its joint venture with CG Converting and Packaging.
Looking ahead, NEXGEL is projecting revenue growth to $13 million for 2025 and expects to achieve positive EBITDA during the year. “As we look into the first quarter 2025, which is seasonally our weakest of the year, we expect revenue to be at least $2.75 million. We also expect to generate at least $13 million in revenue for 2025 and achieve positive EBITDA during the year. Our pipeline of potential new customers in 2025 remains healthy and robust,” Levy added.
NEXGEL’s strategic acquisitions, product launches, and partnerships, including the addition of the international beauty brand Silly George, were instrumental in driving its exceptional performance. The company expanded Silly George’s sales from an initial annual revenue run rate of $2 million to over $5 million in 2024.
With strong momentum and a solid roadmap for growth, NEXGEL is positioned to maintain its upward trajectory while continuing to deliver value for its stakeholders.
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