Solésence — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $20.2 million, a 38% increase compared to $14.6 million in the same period of 2025.
• Gross profit for the third quarter was $7.9 million, compared to $3.5 million in the prior year period.
• Gross margin expanded to 39.3% in the third quarter of 2026, up from 23.8% in the third quarter of 2025.
• Net income for the third quarter was $3.7 million, a turnaround from a net loss of $1.0 million in the same period of 2025.
• For the nine months ended September 30, 2026, net revenue was $48.5 million compared to $49.6 million for the same period in 2025.
• Nine-month 2026 net income was $2.5 million, compared to $2.5 million in the prior year period.
• Cash on hand was $1.27 million as of September 30, 2026, down from $1.29 million as of December 31, 2025.
• Trade accounts receivable, net, increased to $8.36 million as of September 30, 2026, from $6.84 million as of December 31, 2025.
• Inventories, net, decreased to $11.59 million as of September 30, 2026, from $14.88 million as of December 31, 2025.
• Deferred revenue increased to $2.15 million as of September 30, 2026, from $0.93 million as of December 31, 2025.
• Total debt (line of credit and long-term debt) decreased to $8.33 million as of September 30, 2026, from $15.27 million as of December 31, 2025.
• Adjusted EBITDA for the three months ended September 30, 2026, was $4.3 million, compared to a loss of $0.3 million in the same period of 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $4.5 million, compared to $4.2 million in the same period of 2025.

Guidance and Future Outlook:

• Management stated the company is positioned to deliver long-term, profitable growth and lead the market in meeting evolving consumer needs.
• The completion of the primary investment and implementation phase of the "operational excellence" pillar is expected to enable seamless scaling for future demand.
• CFO Laura Riffner noted that operational and financial improvements achieved throughout 2026 provide a strong foundation for 2027.

Business Segments and Product Lines:

• Solésence operates as a leader in scientifically-driven health care solutions across beauty and life science categories.
• The company highlighted continued innovation in novel formulations and an expanding global presence.
• The company redefined mineral-based sun protection by focusing on transparency, effectiveness, aesthetics, and wearability.

Market and Competitive Landscape:

• The company aims to lead the market in meeting evolving consumer needs through its "Transform and Transcend" framework.
• Solésence integrates protection, prevention, and treatment technologies into daily use products for brands.

Risks and Challenges:

• Risks include dependence on a limited number of key customers and the potential for customers to cancel purchase orders or supply agreements.
• Uncertainty regarding demand for and acceptance of engineered materials, ingredients, and fully formulated products.
• Manufacturing capacity and product mix flexibility may be challenged by customer demand.
• The company has limited marketing experience.
• Risks related to changes in development and distribution relationships, competitive products and technologies, and the protection of proprietary information.
• Potential impacts from new government regulations that could be costly to comply with.
• Litigation risks and the ability to maintain an appropriate electronic trading venue.

Management Commentary and Tone:

• CEO Kevin Cureton expressed pleasure with the solid top-line growth and steady operational progress driven by the "Transform and Transcend" framework.
• Management highlighted reaching a major turning point with the completion of the operational excellence pillar.
• CFO Laura Riffner emphasized that record revenue and net income paired with strong margin expansion position the company for sustained growth.

Other Key Points:

• The company hosted a conference call on November 12, 2026, featuring CEO Kevin Cureton and CFO Laura Riffner.
• Solésence is listed on Nasdaq under the ticker symbol SLSN.
• The press release includes a detailed reconciliation of Non-GAAP financial measures, including Adjusted EBITDA.