NextPlat Expects Q1 2026 Gross Margins to Jump to 34+%, Operating Expenses to Decline 8+% From Q4 2025 and Achieve Positive Operating Income in Q3

NextPlat (NASDAQ: NXPL) expects consolidated Q1 2026 gross margins >34%, driven by a shift to higher‑margin contracted healthcare services.

Rhea-AI Summary

NextPlat (NASDAQ: NXPL) expects consolidated Q1 2026 gross margins >34%, driven by a shift to higher‑margin contracted healthcare services. The company forecasts Q1 Healthcare Operations revenue of about $6.7M (down from $9.6M in Q4 2025), an ~9% reduction in operating expenses, and targets positive operating income in Q3 2026. Cash of approximately $11M and working capital of about $14.3M were reported as of March 31, 2026.

Positive

• Consolidated gross margin expected to exceed 34% in Q1 2026
• Healthcare Operations margin expected near 39% in Q1 2026
• Operating expenses expected to decline by approximately 9% QoQ in Q1 2026
• Company targets positive operating income in Q3 2026
• Reported liquidity: ~$11M cash and ~$14.3M working capital as of March 31, 2026

Negative

• Healthcare Operations revenue expected to decline to approximately $6.7M in Q1 2026 from $9.6M in Q4 2025
• Shift from retail pharmacy to contracted services may temporarily reduce top‑line revenue in early 2026

Argus Apr 29 session

-2.87% close to close Open Argus

Details

News Market Reaction – NXPL

On Apr 29, the day this news came out, NXPL closed 2.87% below the previous close.

Data tracked by StockTitan Argus for the Apr 29 session.

Key Figures

Q1 2026 gross margin: 34+% Gross profit growth: 40% Healthcare revenue Q1 2026: approximately $6.7 million +5 more

Q1 2026 gross margin

34+%

Expected consolidated gross margin vs ~20% for full year 2025

Gross profit growth

40%

Expected Q1 2026 consolidated gross profit increase vs Q4 2025

Healthcare revenue Q1 2026

approximately $6.7 million

Expected, down from $9.6 million in Q4 2025

Healthcare margin Q1 2026

nearly 39%

Expected segment margin, up from Q4 2025 and Q1 2025

Operating expense reduction

over $0.4 million (≈9%)

Expected sequential decline in Q1 2026 vs Q4 2025

Expected cash

approximately $11 million

As of March 31, 2026

Working capital

approximately $14.3 million

As of March 31, 2026

New 340B contracts

5 entities

Record number of 340B contracts signed, onboarding for July 2026

Historical Context

5 past events · Latest: Apr 27

5 events

1. Apr 27

   Nasdaq compliance

   24h Move

   +3.9%

   Regained compliance with Nasdaq minimum bid price rule after 10-day threshold.

2. Apr 16

   AI deployment

   24h Move

   +4.4%

   PharmcoRx implemented AI prescription processing to scale fulfillment for new clients.

3. Apr 14

   IoT contracts

   24h Move

   -3.1%

   GTC won new satellite IoT orders and grew government and military pipeline above $1.2M.

4. Apr 02

   Reverse stock split

   24h Move

   +9.4%

   Announced 1-for-10 reverse split to consolidate shares and support Nasdaq compliance.

5. Mar 31

   FY 2025 results

   24h Move

   -21.0%

   Reported revenue decline, lower gross margin and net loss while outlining 2026 turnaround.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

340b, form 10-q

2 terms

340b regulatory

"driven by direct engagement initiatives with existing 340B customers and the addition"

340B is a U.S. federal program that lets qualifying hospitals and clinics buy outpatient prescription drugs at steep, government-negotiated discounts so they can stretch limited budgets and serve low-income or uninsured patients. For investors, 340B affects how much drugmakers earn on certain sales and how safety-net providers generate margin—think of it like a factory discount card that changes both the seller’s revenue and the buyer’s ability to reinvest savings in operations.

form 10-q regulatory

"expects to file its quarterly report on Form 10-Q for the quarter ended"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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First Quarter 2026 Consolidated Gross Profit Expected to Increase by 40% vs. the Fourth Quarter 2025 as the Company Continues its Shift to Higher Margin Contracted Healthcare Revenue

Company Adds a Record Number of 340B Entities Supporting Expected Healthcare Services Revenue Growth and Margin Expansion Throughout 2026

HALLANDALE BEACH, Fla., April 29, 2026 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat" or the "Company"), a global consumer products and services company providing healthcare and technology solutions through e-commerce and retail channels worldwide, today announced its turnaround continues, highlighted by the expectation of substantially lower expenses and growth in operating margins driven by contracted healthcare services in Q1 2026. Continued sequential quarterly improvement in key financial metrics are expected throughout the remainder of 2026 and supports the Company's goal of achieving positive operating income in the third quarter.

Broad sequential operating improvements continue to be driven by management's strategic business refocusing and growth initiatives put into place starting in the third quarter of 2025 and are now delivering meaningful sequential and year-over-year progress against growth and profitability objectives. Key financial metrics expected in the first quarter of 2026 include:

• Healthcare Operations Revenue Improvement: Momentum in the Company's Healthcare Operations segment continues to build driven by direct engagement initiatives with existing 340B customers and the addition of medication fulfilment contracts secured late last year, highlighted by the recent signing of five 340B contracts, a new single quarter record. These new 340B entities are currently onboarding and are expected to commence activities in July 2026. As expected, total Q1 2026 Healthcare Operations revenue is anticipated to sequentially decline to approximately $6.7 million from $9.6 million in Q4 2025 as the Company's turnaround continues to prioritize contracted services which deliver improved profitability compared to the traditional retail pharmacy business.
• Gross Margin Improvement: Consolidated gross margins in the first quarter of 2026 are expected to exceed 34%, a dramatic improvement from approximately 20% reported for the full year ended December 31, 2025. As a result of the Company's focus on contracted services, despite lower overall Healthcare Operations revenue expected in Q1 2026, this operating segment's margin is anticipated to grow to nearly 39%, up approximately 115% sequentially from Q4 2025 and up approximately 99% from Q1 2025. Increasing levels of higher margin 340B and medication fulfilment contracted services revenue are expected to maintain elevated healthcare margins throughout the remainder of 2026.
• Operational Process Efficiency and Cost Reduction: The Company anticipates a sequential decrease of over $0.4 million or approximately 9% in total operating expenses in Q1 2026 vs. Q4 2025 reflecting success in the Company's turnaround efforts to streamline the business. Based upon continued growth in higher-margin contracted healthcare services revenue combined with prudent expense controls, the Company anticipates achieving positive operating income in Q3 2026.
• Solid Liquidity: The Company's operations continue to be supported by a solid balance sheet with expected cash of approximately $11 million, working capital of approximately $14.3 million, and zero unsecured debt as of March 31, 2026. Management expects second quarter cash balances will increase from Q1 levels due to the timing of certain payments received by the Company after the close of the first quarter.

"As expected, the positive impacts of our turnaround initiatives are now contributing to improved operating metrics, trends we believe will significantly drive both top and bottom-line results starting in the second quarter and continuing throughout the remainder of 2026," said David Phipps, CEO and President of NextPlat. "The strength we are seeing in our business is broad-based, reflecting improved healthcare operations and a steadily growing pipeline in our e-commerce communications division with international government and military customers. Looking ahead, we are committed to supporting our organic growth in healthcare services, our recently announced nationwide expansion, and capitalizing on opportunities that can quickly and profitably add scale to our business, all with the goal of delivering an improved bottom-line later this year."

The Company expects to file its quarterly report on Form 10-Q for the quarter ended March 31, 2026, with the Securities and Exchange Commission, on or before May 15, 2026, and host an earnings conference call with investors.

For more information about NextPlat, please visit www.NextPlat.com and connect with us on Facebook, LinkedIn and X.

About NextPlat Corp
NextPlat is a global consumer products and services company providing healthcare and technology solutions through e-commerce and retail channels worldwide. Through acquisitions, joint ventures, and collaborations, the Company seeks to provide access to high quality healthcare and pharmacy services and assist businesses in selling their goods online, domestically, and internationally, allowing them to optimize their e-commerce presence and revenue. Through its subsidiaries, NextPlat provides pharmacy and healthcare data management services and prescription fulfilment services in the United States and operates an e-commerce division offering voice, data, tracking, and IoT products and services worldwide.

Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "anticipate," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to reduce operational costs, secure additional contracted services business, increase e-commerce sales and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Media and Investor Contact for NextPlat Corp:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

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SOURCE NextPlat Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What gross margin did NextPlat (NXPL) expect for Q1 2026?

NextPlat expects consolidated Q1 2026 gross margins above 34%. According to the company, the improvement is driven by a shift toward higher‑margin contracted healthcare services and 340B medication fulfilment contracts.

Why did NextPlat (NXPL) forecast lower Healthcare Operations revenue in Q1 2026?

NextPlat expects Healthcare Operations revenue of about $6.7M in Q1 2026, down from $9.6M in Q4 2025. According to the company, the decline reflects prioritizing contracted services over traditional retail pharmacy revenue during the turnaround.

When does NextPlat (NXPL) expect to reach positive operating income?

The company targets positive operating income in Q3 2026. According to the company, this target relies on growing higher‑margin contracted healthcare revenue and sustained operating expense reductions beginning in Q1 2026.

What liquidity position did NextPlat (NXPL) report as of March 31, 2026?

NextPlat reported approximately $11M cash and about $14.3M working capital as of March 31, 2026. According to the company, second‑quarter cash balances are expected to increase due to timing of certain payments.