Sales drop and product mix shifts at United-Guardian (NASDAQ: UG)

Rhea-AI Filing Summary

United-Guardian, Inc. reported weaker full-year 2025 results, with net sales falling 13% to $10,545,468 from $12,181,971 in 2024. Net income declined to $2,105,738, or $0.46 per share, compared with $3,250,875, or $0.71 per share, a year earlier.

Management attributed the decline mainly to lower cosmetic ingredient sales, driven by excess inventory at its largest distributor Ashland Specialty Ingredients, softer global demand, stronger local competition in China, and tariffs. Offsetting this, pharmaceutical sales grew 15% and medical lubricants 4%, helped by higher demand in China and U.S. drug wholesalers, while Renacidin® gained access to additional drug formularies through recent approvals from two major pharmacy benefit managers.

Positive

• None.

Negative

• Material decline in 2025 performance: Net sales fell 13% to $10,545,468 and net income declined from $3,250,875 to $2,105,738, indicating a significant downturn driven largely by weaker cosmetic ingredient demand.

Insights

Equity analyst

Revenue and earnings declined, with cosmetics weakness partly offset by pharma growth.

United-Guardian saw 2025 net sales drop 13% to $10,545,468, with net income down to $2,105,738. The core cosmetic ingredients line was pressured by excess distributor inventory, softer global demand, competition in China, and tariffs.

Pharmaceutical and medical lubricant sales were relative bright spots, rising 15% and 4%, supported by stronger orders from national drug wholesalers and Chinese contract manufacturers. Renacidin® gained placement on additional drug formularies after approvals from two major pharmacy benefit managers, which management believes supports long-term growth.

Overall, the year reflects a negative mix of lower high-margin cosmetic sales and modest growth elsewhere. Subsequent results will show whether new cosmetic marketing agreements and Renacidin’s broader formulary access can stabilize or rebuild revenue following the 2025 downturn.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  March 27, 2026

_______________________________

United-Guardian, Inc.

(Exact name of registrant as specified in its charter)

_______________________________

Delaware	001-10526	11-1719724
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

230 Marcus Boulevard

Hauppauge, New York 11788

(Address of Principal Executive Offices) (Zip Code)

(631) 273-0900

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 par value per share	UG	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On March 27, 2026, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Description
99.1		Press Release dated March 27, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	United-Guardian, Inc.
Date: March 27, 2026	By:	/s/ Donna Vigilante
		Donna Vigilante
		President

EXHIBIT 99.1

United-Guardian Reports 2025 Financial Results

HAUPPAUGE, N.Y., March 27, 2026 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) reported that net sales and net income for FY 2025 decreased compared to FY 2024. Net sales for the year decreased by 13% from $12,181,971 in 2024 to $10,545,468 in 2025, generating net income of $3,250,875 ($0.71 per share) in 2024 compared to $2,105,738 ($0.46 per share) in 2025.

Donna Vigilante, President of United-Guardian, stated, “Our financial performance in 2025 was primarily impacted by the decrease in sales of our cosmetic ingredients. One of the issues we faced was excess inventory held by our largest cosmetic ingredient distributor, Ashland Specialty Ingredients (“ASI”). The inventory overstock led to reduced order quantities from ASI throughout the year. The situation was further impacted by decreased global demand for our products, particularly in China, where heightened competition from local Asian producers, and the impact of global tariffs, negatively impacted sales. In response to these challenges, we have been collaborating closely with our distributor in China to regain lost market share, offering competitive pricing where feasible, differentiating our products from the competition, and exploring new markets where cost pressures are less pronounced.”

“On a positive note, sales of pharmaceuticals and medical lubricants increased in 2025 compared to 2024, by 15% and by 4%, respectively. The increase in medical lubricants was driven by greater demand from two of our large contract manufacturer customers in China. The increase in pharmaceutical sales resulted from an increase in sales to all three of our national drug wholesalers, combined with a decrease in Medicare rebates. In 2025 we initiated a new marketing strategy to expand the domestic sales of Renacidin^® by increasing awareness of Renacidin and seeking its inclusion on additional drug formularies. I am happy to report that we recently received approval from two major pharmacy benefit managers. We believe that having Renacidin available on additional drug formularies will enhance patient access and will support the product’s long-term commercial growth. We are optimistic that this initiative, along with the new marketing and distribution agreements we entered into in 2025 for our cosmetic ingredients, will result in increased sales in the coming years.”

United-Guardian is a manufacturer of cosmetic ingredients, sexual wellness ingredients, pharmaceuticals, and medical lubricants.

Contact:	Donna Vigilante
	(631) 273-0900
	dvigilante@u-g.com

NOTE: This press release contains both historical and "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company’s expectations or beliefs concerning future events, such as financial performance, business prospects, and similar matters, are being made in reliance upon the “safe harbor” provisions of that Act. Such statements are subject to a variety of factors that could cause our actual results or performance to differ materially from the anticipated results or performance expressed or implied by such forward-looking statements. For further information about the risks and uncertainties that may affect the company’s business please refer to the company's reports and filings with the Securities and Exchange Commission.

FINANCIAL RESULTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 STATEMENTS OF INCOME
		Years ended December 31,
		2025				2024
Net sales		$	10,545,468			$	12,181,971
Costs and expenses:
Cost of sales			5,404,328				5,721,584
Operating expenses			2,434,148				2,356,819
Research and development			463,644				456,779
Total costs and expenses			8,302,120				8,535,182
Income from operations			2,243,348				3,646,789
Other income:
Investment income			365,308				434,679
Net gain on marketable securities			34,359				26,989
Total other income			399,667				461,668
Income before provision for income taxes			2,643,015				4,108,457
Provision for income taxes			537,277				857,582
Net income		$	2,105,738			$	3,250,875
Earnings per common share (basic and diluted)		$	0.46			$	0.71
Weighted average shares (basic and diluted)			4,594,319				4,594,319

BALANCE SHEET DATA (condensed)
		December 31,
		2025			2024
Current assets:	$	12,201,397		$	12,665,551
Deferred tax asset, net		---			175,397
Property, plant, and equipment, net		907,182			956,387
Total assets		13,108,579			13,797,335
Current liabilities:		1,669,321			1,914,469
Deferred tax liability, net		207,246			---
Total liabilities		1,876,567			1,914,469
Stockholders’ equity		11,232,012			11,882,866
Total liabilities and stockholders’ equity	$	13,108,579		$	13,797,335

FAQ

How did United-Guardian (UG) perform financially in 2025?

United-Guardian’s 2025 results weakened, with net sales down 13% to $10,545,468 and net income falling to $2,105,738. Earnings per share declined to $0.46 from $0.71 in 2024, reflecting softer cosmetic ingredient demand and distributor inventory issues.

What drove United-Guardian’s revenue decline in 2025?

The revenue decline was mainly driven by lower cosmetic ingredient sales. Excess inventory at key distributor Ashland Specialty Ingredients reduced orders, while weaker global demand, increased competition from Asian producers, and global tariffs further pressured sales, particularly in China.

Which United-Guardian business lines grew in 2025?

Pharmaceutical and medical lubricant lines grew in 2025. Pharmaceutical sales increased 15%, and medical lubricants rose 4%, supported by higher demand from three national drug wholesalers and two large contract manufacturer customers in China, partly offsetting cosmetic ingredient weakness.

How did United-Guardian’s earnings per share change in 2025?

Earnings per share declined in 2025. United-Guardian reported $0.46 per share, down from $0.71 in 2024, based on 4,594,319 weighted average shares in both years, reflecting lower net income from reduced cosmetic ingredient sales and market headwinds.

What is United-Guardian’s strategy for Renacidin going forward?

United-Guardian launched a new marketing strategy to expand domestic Renacidin® sales by increasing awareness and targeting more drug formularies. The company recently gained approval from two major pharmacy benefit managers, which it believes will enhance patient access and support long-term commercial growth.

How did United-Guardian’s balance sheet change at December 31, 2025?

At December 31, 2025, total assets were $13,108,579 versus $13,797,335 in 2024, and stockholders’ equity was $11,232,012 compared with $11,882,866. Total liabilities decreased slightly to $1,876,567, indicating modest balance sheet contraction alongside weaker earnings.

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 PRESS RELEASE 29.1 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 3.3 KB
• EX-101 XBRL DEFINITION FILE 25.5 KB
• EX-101 XBRL LABEL FILE 35.1 KB
• EX-101 XBRL PRESENTATION FILE 24.1 KB