Solesence (SLSN) Q4 2025 earnings summary

Executive summary

• Full year 2025 revenue reached $62.1 million, up 19% year-over-year, driven by a major product launch and onboarding of 20 new brand partners, doubling the consumer product line in two years.

• The Transform and Transcend initiative was launched to address operational challenges, align operations with rapid growth, and drive sustainable profitability.

• Net income for Q4 2025 was $163,000, reversing a net loss of $558,000 in Q4 2024; full-year net income was $1.8 million, down from $4.2 million in 2024.

• Operational inefficiencies and transition costs from facility consolidation impacted margins.

• Appointed new C-suite executives and a VP of Brand Partnerships to strengthen leadership.

Financial highlights

• Q4 2025 revenue was $12.5 million, nearly flat year-over-year; gross profit rose to $3.4 million from $2.8 million, with gross margin improving to 27% from 22%.

• Full-year 2025 gross profit was $16.1 million, slightly down from $16.2 million in 2024; gross margin declined to 26% from 31%.

• Adjusted EBITDA for 2025 was $4.2 million, down from $6.6 million in 2024 and less than 7% of revenue.

• Operating expenses in Q4 2025 were $3.2 million, up from $2.8 million in Q4 2024, including relocation charges.

• Weighted average shares outstanding (diluted) for 2025 was 72.6 million.

Outlook and guidance

• 2026 guidance sets a 30% gross margin floor and targets double-digit EBITDA margin.

• Six-figure annual savings expected from facility consolidation and operational improvements.

• Free cash flow to be increased by reducing safety stock and improving procurement.

• Q1 2026 results will be impacted by restructuring and changes in customer order patterns.

• Management expressed confidence in meeting 2026 objectives, citing strong momentum from organizational changes and strategic initiatives.