Solesence, Inc. Common Stock (SLSN) Market Cap
Solesence, Inc. Common Stock has a market capitalization of $77.7M.
Financials based on reported quarter end 2025-12-31
Price: $1.10
▼ -0.12 (-9.84%)
Market Cap: 77.70M
NASDAQ · time unavailable
CEO: Kevin Cureton
Sector: Consumer Defensive
Industry: Household & Personal Products
IPO Date: 2025-04-08
Website: https://solesence.com
Solesence, Inc. Common Stock (SLSN) - Company Information
Market Cap: 77.70M · Sector: Consumer Defensive
Solésence, Inc., formerly Nanophase Technologies Corporation, is a developer and manufacturer of clean, inclusive, mineral-based skincare and makeup products. The company partners with global and indie brands, leveraging its proprietary Active Stress Defense™ technology suite to bring environmental protection beauty products to market.
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"SLSN reported revenue of $12.48M and net income of $0.163M (EPS $0.0023) for the quarter ended 2025-12-31. Net margin was ~1.3%, reflecting modest profitability. Free cash flow (FCF) was $0.411M on operating cash flow of $1.82M, after $1.41M of capital spending. Growth context is limited in the dataset (no prior-year figures provided), but the cash flow profile suggests the business is generating near-term cash, though at a small absolute scale. Leverage is elevated: net debt is $17.27M versus equity of $17.63M (debt/equity is effectively ~1.0x), indicating limited balance-sheet cushion. Liabilities of $18.49M are substantial relative to assets ($50.06M), which can amplify sensitivity to operating performance swings. On valuation and market perspective, the share price has materially declined (down ~53.7% over 1Y and ~70.5% over 6M). With no dividends and no buyback data provided, shareholder returns are being driven primarily by capital depreciation rather than distributions. Analyst price targets and valuation multiples were not provided, limiting a full valuation view."
Revenue Growth
Revenue is provided ($12.48M) but YoY/sequence growth rates are not included, limiting assessment of momentum or drivers.
Profitability
Net income of $0.163M on $12.48M revenue implies ~1.3% net margin and very low EPS ($0.0023), indicating profitability is present but thin.
Cash Flow Quality
Operating cash flow of $1.82M converts to positive FCF of $0.41M after $1.41M capex; however, absolute FCF remains small and no dividend support is present.
Leverage & Balance Sheet
Net debt of $17.27M is nearly equal to equity of $17.63M, signaling meaningful leverage and less resilience if earnings/cash flow weaken.
Shareholder Returns
No dividends and no buyback data provided; market performance is strongly negative (about -53.7% over 1Y), implying total shareholder returns are currently weak.
Analyst Sentiment & Valuation
Key valuation inputs (P/E, FCF yield, ROE, price targets) are missing, so sentiment and valuation cannot be quantified from the provided data.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Solesence delivered record FY 2025 revenue of $62.1M (+18.6% YoY) and improved Q4 gross margin to 27% (+500 bps YoY) on $3.4M gross profit, alongside a swing to net income of $163K. However, the company’s profitability didn’t keep pace with revenue: FY gross profit was essentially flat ($16.1M vs $16.2M), adjusted EBITDA was only $4.2M (<7% of revenue), and management explicitly attributed margin pressure to labor inefficiencies, launch-related product design/start-up costs, and inventory/yield volatility. In response, Transform and Transcend targets a 30% gross margin floor and at least a +5% gross profit margin improvement by end-2026, with EBITDA expected to return to double-digit levels (no EPS guidance provided). Near-term, Q1 2026 faces restructuring/training investments and a normalization period as ship-in-open-orders fell to just under $33M from $38M a year ago, due to weak sell-through at an unnamed mass customer. Upside is supported by patent expansion (120+), Day Mode Hero Concealer award recognition, and co-marketing with Colorescience and Bloomeffects.
Growth Catalysts
- Large-scale product launch in 1H 2025 (named as primary driver of FY revenue growth)
- 20 new brand partners launched products in 2025
- Day Mode Hero Concealer (SPF-infused hybrid skin care + color cosmetics) showcased in Oct 2025; named finalist across 4 Cosmetics & Toiletries Awards categories
- 2026 rollout of new product categories leveraging technologies from Day Mode Hero Concealer
- Move into adjacent prestige segment scalp care using expanded formulation innovation tied to 120+ patents
Business Development
- Co-marketing activation kicked off ~2 weeks before call: Colorescience and Bloomeffects
- Retail dynamics issue: weak sell-through from one large mass market customer (no brand named); impacts order patterns in 1Q 2026
- Brand partnership/acknowledgement: BASF (no performance guidance provided; partnership described as close)
Financial Highlights
- Q4 2025 revenue: $12.5M, roughly flat YoY
- Q4 2025 gross profit: $3.4M vs $2.8M in Q4 2024
- Q4 2025 gross margin: 27% vs 22% in Q4 2024 (+500 bps)
- Q4 2025 net income: $163K vs net loss of $558K in Q4 2024
- Q4 2025 operating expenses: $3.2M vs $2.8M in Q4 2024 (included relocation charges for consolidating 3 facilities into 2)
- FY 2025 revenue: $62.1M, +18.6% from $51.9M
- FY 2025 gross profit: $16.1M vs $16.2M in 2024 (gross profit roughly flat despite revenue growth)
- FY 2025 gross margin headwinds cited: labor costs, product design/start-up & quality costs, and inventory control/yield volatility
- FY 2025 adjusted EBITDA: $4.2M (<7% of revenue)
- 2026 gross margin policy: establish 30% gross margin floor (intentionally conservative); target to increase gross profit margin by at least +5% by end of 2026 vs 2025
- 2026 EBITDA target: return to double-digit EBITDA (no specific EPS or EBITDA dollar guidance provided)
Capital Funding
- No buyback amounts disclosed
- No debt/cash runway figures disclosed
- Free cash flow priority in 2026: increase FCF via reducing safety stock and improving procurement operations
Strategy & Ops
- Facility consolidation completed: 3 facilities to 2; relocation charges in Q4
- Operational health initiative (Transform and Transcend): 4 pillars including lean management and modernized SIOP (sales/inventory/operations planning)
- Manufacturing/production execution emphasis: cycle counting and preproduction staging to improve production flow
- Sales/inventory planning improvements to address labor inefficiencies, inventory control issues, and yield losses seen in 2025
- Turnkey supply and collaborative marketing to capture more value/share of wallet vs traditional CDMO model
- Lean management principles began work in November 2025
Market Outlook
- Q1 2026 impacted by investments in training and restructuring tied to Transform and Transcend
- Customer order normalization expected in 2026 (due to retail dynamics and weak sell-through from one large mass market customer)
- Ship-in-open-orders at start of 2026: just under $33M vs $38M a year ago
- 2026 guideposts: 30% gross margin floor; EBITDA return to double-digit; free cash flow improvement focus
Risks & Headwinds
- Margin compression in 2025 from labor costs (extended process changeovers/downtime), product design/start-up & quality costs, and inventory control (yield volatility and associated losses)
- Inventory/capacity execution risk: simultaneously scaling production and installing new capability while maintaining cGMP quality and OTIF performance
- 1Q 2026 demand risk: order patterns affected by retail dynamics and weak sell-through from a large mass market customer (brand not named)
- No yield/OTIF deterioration from facility consolidation stated (but production struggles cited historically as execution challenge)
Sentiment: MIXED
Note: This summary was synthesized by AI from the SLSN Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.