NextPlat Corp — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the quarter ended September 30, 2026, was approximately $10.5 million, a decrease from $13.8 million in the third quarter of 2025.
• Gross profit improved nearly 35% year-over-year, with consolidated gross margins reaching approximately 35.0% compared to 19.9% in the prior-year period.
• Healthcare Operations gross margin was approximately 41%, a 23 percentage point improvement from 18% in the third quarter of 2025.
• E-commerce Operations gross margin remained stable at approximately 24% year-over-year.
• Total operating expenses decreased to approximately $4.5 million from $4.9 million in the prior year, driven by a $0.3 million reduction in salaries, wages, and payroll taxes and a $0.3 million reduction in litigation settlement losses, partially offset by a $0.1 million increase in professional fees.
• Net loss attributable to common stockholders decreased approximately 66% to $0.7 million ($0.28 per diluted share), compared to $2.2 million ($0.84 per diluted share) in the prior-year quarter.
• The company ended the quarter with approximately $11.2 million in cash and working capital of approximately $13.5 million.
• The company reported no material unsecured debt as of September 30, 2026.

Guidance and Future Outlook:

• The company expects retail prescription volumes to increase starting in the fourth quarter due to contributions from the recently acquired Pensacola area pharmacy and the new Jacksonville location.
• Management anticipates further progress on growth initiatives, including selective acquisitions, the introduction of new value-added services such as automated dispensing, and entry into new online healthcare and consumer markets.
• The company plans to launch a new nationwide medication fulfillment website during the fourth quarter to expand PharmcoRx's reach beyond Florida.
• The company expects to attract additional new customers by launching on more international marketplaces during the fourth quarter and beyond.

Business Segments and Product Lines:

• Healthcare contract revenue increased 300% to approximately $2.4 million from $0.6 million in the prior-year period, driven by a $1.6 million increase in 340B contract revenue.
• 340B prescription volumes grew nearly 72% year-over-year, driven by the addition of multiple new entities and three new 340B services contracts secured during the quarter.
• Pharmacy prescription revenue was approximately $4.3 million, down from $9.5 million in the prior-year period, reflecting lower reimbursement rates and lower retail prescription volumes.
• E-commerce revenue increased 3% to approximately $3.8 million from $3.7 million in the prior-year period, driven by record high-margin recurring airtime contract revenue.
• The company expanded international sales channels through a partnership with Decathlon, selling satellite connectivity products to online customers in 20 countries.
• The company completed the acquisition of Scott's pharmacy in the Pensacola area immediately after the quarter close and announced the opening of a new location in Jacksonville.

Market and Competitive Landscape:

• The company operates in a dynamic market, focusing on high-value, high-margin healthcare services to deliver consistent bottom-line results.
• Global demand for satellite connectivity hardware and airtime services remains strong, with sales to customers in more than 115 countries during the quarter.
• The company is exploring selective acquisitions to significantly increase the scale of its pharmacy network, including opportunities potentially beyond the state of Florida.

Risks and Challenges:

• Lower reimbursement rates and lower retail prescription volumes have reduced reported top-line revenue, though they have contributed to improved gross margins.
• Forward-looking statements involve risks and uncertainties, including the ability to launch additional e-commerce capabilities, grow and expand as intended, and achieve goals expressed in the release.
• The company notes that actual results could differ from forward-looking statements due to known and unknown risks, uncertainties, and other factors detailed in SEC filings.

Management Commentary and Tone:

• CEO David Phipps stated that third-quarter results reflect continued year-over-year improvement driven by refocusing healthcare operations on high-value services.
• Management emphasized a focus on growth and profitability through a differentiated, high-value healthcare service model and an expanding community pharmacy network.
• The tone indicates confidence in the potential of contracted 340B revenue to meaningfully contribute in coming quarters despite retail prescription reductions.

Other Key Points:

• The company added three new 340B services contracts during the quarter, with onboarding underway to contribute to increased revenue in early 2027.
• Gross margins at the newly acquired Scott's Pharmacy have improved, though results do not yet reflect anticipated contributions from new high-value healthcare services currently underway.
• The company has no preferred stock issued or outstanding.
• The company will host a conference call on November 12, 2026, at 8:30 a.m. Eastern time to discuss results.