Solésence Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Solésence (NASDAQ:SLSN) reported strong financial results for Q2 2025, with revenue surging 56% to $20.4 million compared to Q2 2024. The company achieved a net income of $2.7 million, which includes a $1.2 million Employee Retention Credit.

Operational highlights include significant volume growth, with shipments up 102% and production volume increasing 127% year-over-year. The company expanded its debt facilities, increasing maximum borrowing capacity from $14.2 million to $23.0 million and extending loan maturity dates to April 2027.

The company maintained a stable gross margin of 29% and was added to the Russell 3000® and Russell 2000® indexes, marking significant institutional recognition.

Positive

• Revenue grew 56% year-over-year to record $20.4 million
• Net income tripled to $2.7 million from $0.9 million in Q2 2024
• Shipment volume increased 102% year-over-year
• Production volume grew 127% year-over-year
• Debt facility expanded from $14.2M to $23.0M with extended maturity
• Inclusion in Russell 3000® and Russell 2000® indexes

Negative

• Gross margin remained flat at 29% despite volume growth
• Net income includes one-time $1.2M Employee Retention Credit

Insights

Financial Analyst

Solésence delivered robust Q2 results with 56% revenue growth and significant production scaling, bolstered by expanded debt capacity for future growth.

Solésence has delivered impressive growth metrics in their Q2 2025 results. Revenue jumped 56% year-over-year to reach a record $20.4 million, demonstrating strong commercial execution during what they note is their seasonally highest-performing quarter. The company maintained a consistent gross margin of 29% while scaling operations significantly, with shipment volumes increasing by 102% and production volumes surging by 127% compared to Q2 2024.

The bottom line shows net income of $2.7 million, though this includes a one-time Employee Retention Credit receipt of approximately $1.2 million plus related interest. Even adjusting for this non-recurring item, the company still achieved substantial year-over-year profit growth compared to the $0.9 million in Q2 2024.

A particularly significant development is the expansion of Solésence's debt facilities, increasing maximum borrowing capacity from $14.2 million to $23.0 million while extending the maturity date by 18 months to April 2027. This enhanced financial flexibility positions the company to invest in scaling operations further to meet growing demand, as evidenced by the triple-digit growth in production and shipment volumes.

The company's inclusion in the Russell 3000® and Russell 2000® Indexes also represents a milestone that typically increases visibility to institutional investors and may improve stock liquidity. For a growing company like Solésence, this broader market exposure coupled with record financial results and operational scaling suggests they're effectively executing their growth strategy while maintaining stable margins despite rapid expansion.

Strong commercial execution drove revenue growth of 56% to $20.4 million

ROMEOVILLE, Ill., July 31, 2025 (GLOBE NEWSWIRE) -- Solésence, Inc. (Nasdaq: SLSN), a leader in scientifically-driven health care solutions across beauty and life science categories, today announced financial results for the second quarter ended June 30, 2025.   

Recent Highlights and Accomplishments

• Joined broad-market Russell 3000® and small-cap Russell 2000® Indexes
• Amended loan agreements to fuel growth initiatives

“During our seasonally highest-performing quarter, we’re pleased with the effectiveness of our commercial execution and the consistent, on-time delivery of products to our partners,” said Jess Jankowski, President and Chief Executive Officer of Solésence. “Innovation remains at the heart of our unique value proposition and is why leading brands continue to choose us. As the market continues to evolve, we are focused on equipping our partners with differentiated consumer products that enrich lives and promote well-being.”

Second Quarter 2025 Financial Results

• Revenue for the second quarter increased 56% to a record $20.4 million, compared to $13.0 million for the same period in 2024.
• Gross profit in the second quarter was $5.9 million, compared to $3.7 million for the same period in 2024.
• Gross margin in the second quarter was 29%, similar to the second quarter in 2024. 
• Net income for the second quarter was $2.7 million, which includes an Employee Retention Credit net receipt of approximately $1.2 million plus related interest, compared to a net income of $0.9 million for the same period in 2024.  

Second Quarter 2025 Operational Highlights

• Expanded debt facilities to support executing the Company’s long-term growth initiatives. The new facility expands the Company’s three loan agreements to a maximum borrowing capacity from $14.2 million to $23.0 million and extends the maturity date under each respective loan agreement from October 1, 2025 to April 30, 2027.
• Shipment volume increased 102% year-over-year.
• Production volume increased 127% year-over-year.
  

“Operationally, we improved gross margin sequentially from the first quarter, while ramping up production during our peak demand season,” said Kevin Cureton, Chief Operating Officer. “We appreciate the committed efforts of our team that enabled us to deliver another record unit volume quarter. Now with additional borrowing capacity from our debt facilities that we amended in June, we have enhanced our financial flexibility to further invest in our future and scale for growth.”

Conference Call

Solésence will host its first quarter conference call on Thursday, July 31, 2025, at 4:00 p.m. CDT, 5:00 p.m. EDT, to discuss its financial results and provide a business and financial update. On the call will be Jess Jankowski, President and Chief Executive Officer, and Kevin Cureton, Chief Operating Officer. 

Webcast Link: https://edge.media-server.com/mmc/p/7n5uumgk

Dial-In Link: https://register-conf.media-server.com/register/BI09c7b8c2d77f48ae92fcc4fbdbcd785a

To receive the dial-in number, as well as your personalized PIN, you must register at the above link. Once registered, you will also have the option to have the system dial-out to you once the conference call begins. If you forget your PIN prior to the conference call, you can simply re-register.

The call may also be accessed through the Company’s investor relations website, at https://ir.solesence.com/. Please join the conference call at least five minutes before prior to the start time.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

Use of Non-GAAP Financial Information

Solésence believes that the presentation of results excluding certain items, such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, Generally Accepted Accounting Principles (“GAAP”) and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP.

About Solésence, Inc.

Solésence, Inc. (Nasdaq: SLSN), is a leader in scientifically-driven health care solutions across beauty and life science categories. With a mission to deliver joy through innovation, inclusivity and the science of beautiful skin, we have redefined mineral-based sun protection by maximizing transparency, effectiveness, aesthetics, and wearability — empowering individuals to embrace beauty on their own terms. Combining best-in-class skin health solutions with the celebration of self-care, we allow brands to deliver unique product claims and attributes by seamlessly integrating protection, prevention, and treatment technologies into daily use products. Learn more at solesence.com.

Forward-Looking Statements

This press release contains words such as “expects,” “shall,” “will,” “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance, and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s engineered materials, ingredients, and fully formulated products; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company’s Form 10-K filed March 31, 2025. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties, or other contingencies.  

Media Contact:
media@solesence.com

Investor Relations Contact:
investors@solesence.com

SOLÉSENCE, INC
CONSOLIDATED BALANCE SHEETS
(Unaudited Consolidated Condensed)
(in thousands except share and per share data)
			June 30,				December 31,
			2025				2024
ASSETS
Current assets:
	Cash		$	4,108			$	1,409
	Trade accounts receivable			12,470				5,655
	Allowance for credit losses			(1,421	)			(786	)
		Trade accounts receivable, net		11,049				4,869
	Inventories, net			19,832				20,267
	Prepaid expenses and other current assets			3,781				2,803
		Total current assets		38,770				29,348
	Equipment and leasehold improvements, net			13,559				12,734
	Operating leases, right of use			7,627				7,917
	Other assets, net			-				3
	Total assets		$	59,956			$	50,002
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Line of credit, accounts receivable, related party		$	6,099			$	-
	Current portion of line of credit, inventory, related party			9,500				4,000
	Current portion of debt, related parties			1,000				1,000
	Current portion of operating lease obligations			1,231				1,260
	Accounts payable			6,891				9,093
	Current portion of deferred revenue			2,169				5,571
	Accrued expenses			6,146				4,849
	Total current liabilities			33,036				25,773
	Long-term portion of operating lease obligations			8,482				9,037
	Asset retirement obligations			250				246
	Total long-term liabilities			8,732				9,283
Contingent liabilities
Stockholders' equity:
	Preferred stock, $.01 par value, 24,088 shares authorized and
		no shares issued and outstanding		-				-
	Common stock, $.01 par value, 95,000,000 shares authorized;
		70,481,945 and 70,103,279 shares issued and outstanding on June 30, 2025
		and December 31, 2024, respectively		704				700
	Additional paid-in capital			115,165				114,674
	Accumulated deficit			(97,681	)			(100,428	)
	Total stockholders' equity			18,188				14,946
	Total liabilities and shareholders' equity		$	59,956			$	50,002

SOLÉSENCE, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited Consolidated Condensed)
(in thousands except share and per share data)
					Three months ended						Six months ended
					June 30,						June 30,
					2025			2024			2025			2024
					(in thousands except share and per share data)
Revenue:
Product revenue					$	20,261		$	12,923		$	34,836		$	22,694
Other revenue						98			123			148			220
	Net revenue					20,359			13,046			34,984			22,914
Cost of revenue						14,482			9,306			25,725			15,594
	Gross profit					5,877			3,740			9,259			7,320
Operating expense:
Research and development expense						955			864			1,973			1,776
Selling, general and administrative expense						3,012			1,829			5,120			3,388
Income from operations						1,910			1,047			2,166			2,156
Interest income															-
	Interest expense, net					87			191			263			409
	Other income, net					1,234			-			1,234			-
Income before provision for income taxes						3,057			856			3,137			1,747
Provision for income taxes						390			-			390			-
Net income					$	2,667		$	856		$	2,747		$	1,747
Net income per share-basic					$	0.04		$	0.02		$	0.04		$	0.03
Weighted average number of basic shares outstanding						70,200,039			56,674,170			70,151,928			54,675,011
Net income per share-diluted					$	0.04		$	0.01		$	0.04		$	0.03
Weighted average number of diluted shares outstanding						72,548,819			58,709,170			72,497,829			56,662,011
SOLÉSENCE, INC
CONSOLIDATED STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE (non-GAAP)
(Unaudited Consolidated Condensed)
(in thousands except share and per share data)
					Three months ended						Six months ended
					June 30,						June 30,
					2025			2024			2025			2024
					(in thousands except share and per share data)
Revenue:
Product revenue, net					$	20,261		$	12,923		$	34,836		$	22,694
Other revenue						98			123			148			220
	Net revenue					20,359			13,046			34,984			22,914
Operating expense:
Cost of revenue detail:
Depreciation						216			222			428			444
Non-Cash equity compensation						28			28			54			54
Other costs of revenue						14,238			9,056			25,243			15,096
	Cost of revenue					14,482			9,306			25,725			15,594
		Gross profit				5,877			3,740			9,259			7,320
Research and development expense detail:
Depreciation						4			5			7			11
Non-Cash equity compensation						28			32			55			65
Other research and development expense						923			827			1,911			1,700
	Research and development expense					955			864			1,973			1,776
Selling, general and administrative expense detail:
Depreciation and amortization						5			7			11			14
Non-Cash equity compensation						64			97			138			198
Other selling, general and administrative expense						2,943			1,725			4,971			3,176
	Selling, general and administrative expense					3,012			1,829			5,120			3,388
Income from operations						1,910			1,047			2,166			2,156
Interest expense, net						87			191			263			409
Other income, net						1,234			-			1,234			-
Income before provision for income taxes						3,057			856			3,137			1,747
Provision for income taxes						390			-			390			-
Net income					$	2,667		$	856		$	2,747		$	1,747
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures):
	Addback Interest, net					87			191			263			409
	Addback Depreciation/Amortization					225			234			446			469
	Addback Non-Cash Equity Compensation					120			157			247			317
	Addback Provision for Income Taxes					390						390			-
	Adjusted EBITDA**				$	3,489		$	1,438		$	4,093		$	2,942
	**Includes $1,234 in other (cash) income from ERC in 2025

FAQ

What were Solésence (SLSN) Q2 2025 earnings results?

Solésence reported Q2 2025 revenue of $20.4 million, up 56% year-over-year, with net income of $2.7 million. Gross margin was 29%, and shipment volume increased 102%.

How much did Solésence's production volume increase in Q2 2025?

Solésence's production volume increased by 127% year-over-year in Q2 2025, while shipment volume grew 102%.

What changes did Solésence make to its debt facilities in Q2 2025?

Solésence expanded its debt facilities from $14.2 million to $23.0 million and extended loan maturity dates from October 2025 to April 2027.

Which stock market indexes did Solésence (SLSN) join in Q2 2025?

Solésence joined both the Russell 3000® and small-cap Russell 2000® indexes during Q2 2025.

What was Solésence's gross margin in Q2 2025?

Solésence maintained a gross margin of 29% in Q2 2025, similar to the same period in 2024, despite significant volume growth.