Solésence — Second Quarter 2026 Earnings Summary

Financial Performance

• Second-quarter revenue was $15.3 million, a decrease from $20.4 million in the second quarter of 2025; the prior-year period benefited from a one-time revenue boost from a major product launch and initial inventory pipeline fill.
• Gross profit for the quarter was $4.7 million, compared to $6.4 million in the same period in 2025.
• Gross margin was 31% in the second quarter of 2026, down from 32% in the second quarter of 2025.
• The company reported a net loss of $158,000 for the quarter, compared to net income of $3.2 million in the second quarter of 2025.
• For the six months ended June 30, 2026, net revenue was $28.3 million compared to $35.0 million in the prior-year period.
• Adjusted EBITDA for the three months ended June 30, 2026, was $523,000, compared to $3.7 million in the same period in 2025.
• Cash and cash equivalents were $1.0 million as of June 30, 2026, down from $1.3 million as of December 31, 2025.
• Total current liabilities increased to $26.0 million as of June 30, 2026, from $13.9 million as of December 31, 2025, driven by increases in accounts payable, deferred revenue, and accrued expenses.
• Deferred revenue was $1.9 million as of June 30, 2026, up from $0.9 million as of December 31, 2025.
• Total debt and related party obligations included a line of credit of $3.8 million and current portion of debt of $1.0 million as of June 30, 2026.

Business Segments and Product Lines

• The company focuses on scientifically driven health care solutions across beauty and life science categories, specifically redefining mineral-based sun protection.
• The company leverages intellectual property to enter high-growth markets and expands co-marketing initiatives with premier brands.

Risks and Challenges

• The company faces risks related to dependence on a limited number of key customers, including potential cancellation of purchase orders or supply agreements.
• Uncertain demand and acceptance of engineered materials, ingredients, and fully formulated products pose a risk.
• Manufacturing capacity and product mix flexibility may be constrained by customer demand.
• The company cites limited marketing experience as a potential challenge.
• Risks include changes in development and distribution relationships, competitive products and technologies, and dependence on patents and proprietary information protection.
• Potential litigation, new government regulations, and the ability to maintain an appropriate electronic trading venue are identified as risks.

Management Commentary and Tone

• CEO Kevin Cureton stated the business focused on operational execution and financial discipline while implementing the "Transform and Transcend" strategy.
• Management emphasized efforts to ensure Solésence remains lean, agile, and structured for long-term value creation.

Other Key Points

• The Company filed a Form NT 10-Q regarding its quarterly report for the period ended June 30, 2026, and subsequently completed its evaluation regarding historical inventory costing allocation methodologies.
• The Quarterly Report on Form 10-Q for the second quarter ended June 30, 2026, has been filed with the SEC.
• A conference call was held on August 19, 2026, featuring CEO Kevin Cureton and CFO Laura Riffner.
• Total stockholders' equity decreased to $13.2 million as of June 30, 2026, from $14.1 million as of December 31, 2025, primarily due to the accumulated deficit increasing to $(103.3) million.