SLSN

Shares of Solesence, Inc. SLSN have gained 6.5% since the company reported its earnings for the quarter ended June 30, 2026. This compares with the S&P 500 index’s 0.2% decline over the same time frame. Over the past month, the stock has gained 1.5% compared with the S&P 500’s 3.7% increase. Solesence reported second-quarter 2026 breakeven earnings per share, compared with earnings of 4 cents per share in the prior-year period. Revenues of $15.3 million denoted a 25% decline from $20.4 million in the year-ago quarter. The prior-year period benefited from a one-time revenue boost associated with a major Solesence product launch and initial inventory pipeline fill. The company posted a net loss of $0.2 million against a net income of $3.2 million a year earlier. Gross profit declined about 26% to $4.7 million from $6.4 million. Solesence, Inc. price-consensus-eps-surprise-chart | Solesence, Inc. Quote Gross margin was 31% in the second quarter compared with 32% a year earlier. Adjusted EBITDA declined to $0.5 million from $3.7 million in the prior-year quarter. Research and development expenses were relatively stable at $1 million, while selling, general and administrative expenses increased about 22% to $3.7 million from $3 million. Interest expense rose to $0.3 million from $0.1 million. At June 30, 2026, Solesence had cash of roughly $1 million, down from $1.3 million at Dec. 31, 2025. Total assets remained nearly unchanged at $46.4 million. Net trade accounts receivable increased to $9.3 million from $6.8 million, while inventories declined to $13 million from $15 million. Meanwhile, total stockholders’ equity declined to $13.2 million from $14.1 million at 2025-end. Management said the company remained focused on operational execution and financial discipline under its Transform and Transcend strategy. Solesence is leveraging its intellectual property to enter high-growth markets, expanding co-marketing initiatives and pursuing targeted operational efficiencies. Management highlighted progress in production efficiency, citing improvements in labor efficiency and lower production and manufacturing costs. The company has implemented Kaizen initiatives aimed at identifying inefficiencies and improving processes. Management also discussed expansion into scalp-care products, including shampoo and SPF offerings, as another avenue for growth. The year-over-year revenue decline largely reflected a difficult comparison with the second quarter of 2025, when results benefited from a major product launch and initial inventory pipeline fill. Management said revenues from that product were lower in the latest quarter because the 2025 launch resulted in initial orders and forecasts for the product line. Growth from other brand partners in the prestige beauty sector partially offset the decline. Profitability was also affected by the lower revenue base, higher SG&A expenses and increased interest expense. However, management pointed to continued improvements in labor efficiency as supportive of gross profit performance. Management expects third-quarter revenues and profitability to improve sequentially and projects the second half of 2026 to generate approximately $35 million in revenues, which it described as potentially the strongest second-half performance in the company’s history. As of Aug. 17, shipped and on-hand orders expected to ship in 2026 totaled $64.9 million, up from $60 million in the comparable prior-year period. Management also said it expects full-year revenues to exceed 2025 levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Solesence, Inc. (SLSN): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Solesence Inc (NASDAQ:SLSN) expects to outperform 2025 on a full-year revenue basis, with shipped and on-hand orders for 2026 totaling $64.9 million as of August 17, up from $60 million in the same period last year. The company projects second-half 2026 revenue of approximately $35 million, marking the strongest second-half performance in its history. Gross margin remained stable at 31% in Q2 2026 despite a 25% revenue decline, indicating improved labor efficiency and operational progress under the Transform and Transcend strategy. Solesence Inc (NASDAQ:SLSN) is expanding into the high-growth scalp care market with innovative products, including a first-of-its-kind dry shampoo with SPF and a treatment using Whisper technology, targeting a $3 billion addressable segment. The company sees the FDA approval of non-mineral sunscreen (BEMT) as a positive development, planning to launch combination products with its proprietary mineral technologies and boosters, which could expand its market opportunities. Solesence Inc (NASDAQ:SLSN) identified a historical inventory costing methodology issue, leading to a restatement and an NT 10-Q filing, which raises concerns about financial reporting integrity. Q2 2026 revenue declined to $15.3 million from $20.4 million in Q2 2025, primarily due to lower sales from a major product launch that had benefited the prior-year quarter. The company reported a net loss of $158,000 in Q2 2026, compared to net income of $3.2 million in the prior year, and adjusted EBITDA fell to $523,000 from $3.7 million. One-time events, including a $938,000 charge related to Refi and a $1.4 million ERC payment received in Q2 2025, negatively impacted year-over-year profitability comparisons. The accounting restatement and remediation efforts, including enhanced inventory costing processes and controls, may distract management and incur additional costs, potentially affecting near-term operations. Warning! GuruFocus has detected 8 Warning Signs with SLSN. Is SLSN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the company's revenue outlook and the strength of the order book for the second half of 2026? A: Laura Ruffin (CFO) stated that the company now confidently expects to outperform 2025 on a full-year revenue basis. As of August 17, shipped and on-hand orders for 2026 totaled $64.9 million, up from $60 million in the same period in 2025. The company projects the second half of 2026 will generate approximately $35 million in revenue, marking the strongest second-half performance in the company's history, with Q3 expected to show sequential improvement in both revenue and profitability. Q: What is the nature of the accounting issue that led to the NT 10-Q filing, and what is the company doing to remediate it? A: Laura Ruffin (CFO) explained that the company identified an issue with its historical inventory costing methodology regarding how indirect manufacturing costs were allocated to inventory. The restatement is related to the accounting for certain costs within inventory and does not affect underlying cash, day-to-day operations, or the ability to serve brand partners. As part of remediation, the company is enhancing inventory costing processes and controls, including additional formalized periodic reviews of overhead cost pools, allocation methodologies, and burden rates, along with strengthening documentation and oversight. Q: Can you discuss the new hair and scalp care products and the market opportunity they represent? A: Kevin Curriton (CEO) stated that the scalp care segment is a new segment for the company, launched in July 2026, representing an approximately $3 billion addressable market. The launch generated one of the best volumes in terms of lead generation and new opportunity generation. The products are differentiated by technology: one is a combination dry shampoo and SPF product, addressing the scalp as an area of increasing concern for melanoma, and the other is a treatment product utilizing the company's Whisper technology for delivering allantoin at higher levels to soothe irritation and provide keratolytic effects. Q: How is the company's production efficiency and inventory control progressing, and is there reason for optimism? A: Laura Ruffin (CFO) confirmed significant improvements in production efficiency over the last 9-10 months, including cost efficiency and OEE improvements, with Kaizen events implemented to improve manufacturing processes. Kevin Curriton (CEO) added that the gross margin performance of 31% in Q2 2026 on 25% lower revenue compared to last year is a clear sign of continued improvement in labor efficiency, reinforcing the success of the "Transform and Transcend" operational excellence strategy. Q: How are the new scalp products differentiated from competitors in the market? A: Kevin Curriton (CEO) highlighted two points of differentiation. The scalp protection product is the first of its kind combining a dry shampoo with SPF, addressing a growing concern for melanoma on the scalp. The scalp treatment product utilizes the company's proprietary Whisper technology, a delivery system for allantoin, which allows for higher levels of this proven ingredient to address erythema, irritation, and keratolytic effects. The company typically does not enter markets without patent protection or novelty. Q: Is the scalp care market larger than the company's current market? A: Kevin Curriton (CEO) clarified that the company sees scalp care as a nice adjacency rather than a larger market. The company's total addressable market is greater than $50 billion, and the scalp care segment offers a high-growth additional segment to leverage its technologies with brand partners. Q: How does the recent FDA approval of a non-mineral based sunscreen platform (BEMT) affect interest in the company's mineral-based sunscreen technology? A: Kevin Curriton (CEO) expressed excitement about the introduction of BEMT, noting it is good for the marketplace and has been used globally for over 20 years. The company sees its proprietary mineral technologies and booster technologies, like Chromalume, as complementary to BEMT. The company anticipates launching combination products with brand partners utilizing BEMT alongside its proprietary mineral technologies, and is not worried about its impact on the business, seeing an exciting growth path ahead. Q: Regarding the settlement with Refi, does the open window for agreeing on a new formulation mean the company is still actively working with them? A: Laura Ruffin (CFO) confirmed that the agreement provides an opportunity to work together on a possible development of a new SPF product, so that door remains open. Kevin Curriton (CEO) added that due to confidentiality policies, the company cannot say much more, but values its relationship with Refi. Q: What were the key drivers behind the decline in Q2 2026 revenue and profitability compared to Q2 2025? A: Laura Ruffin (CFO) explained that Q2 2026 revenue was $15.3 million versus $20.4 million in Q2 2025, which had benefited from a major new product launch and pipeline fill. The decline was partially offset by growth with other brand partners in the prestige beauty sector. The decline in net income and adjusted EBITDA was related to lower revenue, one-time events related to Refi that decreased net income by approximately $938,000, and an ERC payment received in Q2 2025 that positively increased net income by $1.4 million. Q: What is the company's strategic vision and how does the accounting matter affect its long-term growth plans? A: Kevin Curriton (CEO) emphasized that the accounting matter does not change the commercial reality of the business. The company's business strategy, growth prospects, and plans for growing enterprise value remain unchanged. The company recently uploaded a strategic vision document to its Investor Relations website to help stakeholders understand its long-term trajectory as it advances its "Transform and Transcend" initiatives, expecting to grow enterprise value at a rate significantly greater than the market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management identified a legacy accounting issue regarding indirect manufacturing cost allocations to inventory, necessitating a restatement to correct historical valuation methodologies. Revenue decline in Q2 2026 was primarily attributed to a difficult year-over-year comparison against a major 2025 product launch and pipeline fill. Despite lower revenue, gross margin remained resilient at 31%, which management cites as evidence of improved labor efficiency and operational excellence under the 'Transform and Transcend' strategy. Growth in the prestige beauty sector partially offset revenue declines in other product lines, demonstrating the portfolio's ability to capture market share in high-end segments. The company is transitioning from a legacy-managed business to a technology-driven enterprise by retooling internal controls and formalizing periodic overhead cost reviews. Operational momentum is accelerating through the implementation of Kaizen events and improved Overall Equipment Effectiveness (OEE) in manufacturing processes. Management projects the strongest second half in company history with approximately $35 million in revenue expected for the remainder of 2026. Full-year 2026 revenue is confidently expected to outperform 2025 based on $64.9 million in shipped and on-hand orders as of mid-August. The company is targeting the $3 billion scalp care segment as a key adjacency, leveraging new delivery system technologies to drive lead generation. Strategic focus is shifting toward globalization and domestic expansion following changes to commercial leadership at the beginning of the year. Future product development will focus on 'combo' formulations that integrate proprietary mineral technologies with newly approved non-mineral sunscreen actives like BEMT. The inventory costing restatement is a non-cash accounting adjustment and does not impact day-to-day operations or cash generation. Q2 net income was negatively impacted by approximately $938,000 in one-time events related to the REFY settlement. Year-over-year profitability comparisons were skewed by a $1.4 million Employee Retention Credit (ERC) payment received in the prior year period. Management flagged potential risks including customer order cancellations and the impact of competitive technologies on market acceptance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The scalp care market represents a $3 billion addressable segment where Solesence is utilizing its 'Whisper' delivery technology for high-level ingredient delivery. Management reported that the July launch generated some of the company's highest volumes for new opportunity generation. Efficiency gains are being driven by formalized burden rate reviews and manufacturing process improvements implemented over the last nine to ten months. Management expressed high confidence that the remediation of costing methodologies has placed the company in a 'very good place' for future reporting. Management views the introduction of BEMT technology as a positive catalyst that brings attention to the SPF market rather than a competitive threat. The company plans to launch hybrid products combining their proprietary mineral boosters with these new actives to enhance overall performance. The settlement agreement explicitly leaves a window open for the potential joint development of a new SPF product. Management declined to provide specific details on current active developments, citing standard confidentiality policies regarding brand partners.

Quarterly Report Filed on Form 10-Q Company to Host Conference Call at 5:00 p.m. ET Today ROMEOVILLE, Ill., Aug. 19, 2026 (GLOBE NEWSWIRE) -- Solésence, Inc. (Nasdaq: SLSN), a leader in scientifically driven health care solutions across beauty and life science categories, today reported its financial results for the second quarter ended June 30, 2026. “In the second quarter, our business focused on operational execution and financial discipline as we continue implementing our Transform and Transcend strategy,” said Kevin Cureton, President and Chief Executive Officer. “By leveraging our intellectual property to enter high-growth markets, and expanding our co-marketing initiatives, we are solidifying our position as a trusted partner to premier brands. Combined with our targeted operational efficiency initiatives, these efforts ensure Solésence remains lean, agile, and structured for long-term value creation.” Second Quarter 2026 Financial Highlights Second-quarter revenue was $15.3 million, compared to $20.4 million in the second quarter of 2025. Results in the prior-year period benefited from a one-time revenue boost driven by a major Solésence product launch and initial inventory pipeline fill. Gross profit in the second quarter was $4.7 million, compared to $6.4 million for the same period in 2025. Gross margin in the second quarter was 31%, compared to 32% for the same period in 2025. Net loss in the second quarter was $158,000, compared to net income of $3.2 million for the same period in 2025. Accounting Update As previously disclosed, the Company filed a Form NT 10-Q regarding its quarterly report for the period ended June 30, 2026. The Company has completed its evaluation regarding historical inventory costing allocation methodologies. The Company’s Quarterly Report on Form 10-Q for the second quarter ended June 30, 2026, has been filed with the U.S. Securities and Exchange Commission (SEC) and is accessible on the SEC’s website at www.sec.gov as well as in the Investor Relations section of the Company’s website at ir.solesence.com. Second Quarter 2026 Conference Call DetailsDate/Time: Wednesday, August 19, 2026 – 4:00 p.m. CT, 5:00 p.m. ET Speakers: Kevin Cureton, President & Chief Executive Officer and Laura Riffner, Chief Financial Officer Webcast Link: https://edge.media-server.com/mmc/p/ecgoveo8/ Dial-In Link: https://register-conf.media-server.com/register/BIb4a184933a544641a8f41396efd90a13 To receive the dial-in number, as well as your personalized PIN, you must register at the above link. Once registered, you will also have the option to have the system dial-out to you once the conference call begins. If you forget your PIN prior to the conference call, you can simply re-register. The call may also be accessed through the Company’s investor relations website, at https://ir.solesence.com/. Please join the conference call at least five minutes before the start time. About Solésence, Inc.Solésence, Inc. (Nasdaq: SLSN) is a leader in scientifically-driven health care solutions across beauty and life science categories. With a mission to deliver joy through innovation, inclusivity and the science of beautiful skin, we have redefined mineral-based sun protection by maximizing transparency, effectiveness, aesthetics, and wearability — empowering individuals to embrace beauty on their own terms. Combining best-in-class skin health solutions with the celebration of self-care, we allow brands to deliver unique product claims and attributes by seamlessly integrating protection, prevention, and treatment technologies into daily use products. Learn more at solesence.com. Forward-Looking StatementsThis press release contains words such as “expects,” “shall,” “will,” “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance, and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s engineered materials, ingredients, and fully formulated products; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company’s Form 10-K filed March 31, 2026. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties, or other contingencies. Media Contact:[email protected] Relations Contact:[email protected]

Image source: The Motley Fool. Tuesday, May 12, 2026 at 8:30 a.m. ET President and Chief Executive Officer — Kevin Cureton Chief Financial Officer — Laura Riffner Kevin Cureton: Thank you, operator, and thank you to our investors, brand partners and teammates who are joining us today. Today, we will provide more guidance on our 2026 plan and the strategy we initiated at the end of 2025, which aims to take our company forward to enhance consumer health and well-being while delivering outstanding results to our investors. This initiative is called Transform and Transcend. Before we delve into our plans, we will review our 2025 results. To walk you through how we wrapped up 2025, I'll turn the call over to our CFO, Laura Riffner. Laura? Laura Riffner: Thank you, Kevin. I will begin with a review of our fourth quarter 2025 results before moving to full year performance and our 2026 outlook. For the fourth quarter, revenue was $12.5 million, roughly even compared to the previous year. Fourth quarter 2025 gross profit was $3.4 million compared to $2.8 million for the same period in 2024. Gross margin was 27% in the fourth quarter of 2025 compared to 22% in the same period in 2024. Our results were affected by transition costs and operational inefficiencies in manufacturing resulting from our facility consolidation. Operating expenses in the fourth quarter of 2025 were $3.2 million compared to $2.8 million in the same period in 2024. This figure included relocation charges as we transitioned from 3 facilities to 2. Solesence reported net income for the quarter of $163,000 compared to a net loss of $558,000 the previous year. Turning to the full year 2025. Revenue reached a record $62.1 million, up 18.6% from $51.9 million in 2024. This was primarily driven by a large-scale launch in the first half of 2025 as well as 20 new brand partners who launched products in 2025. While revenue growth was substantial, full year gross profit was $16.1 million compared to $16.2 million in 2024. As Kevin noted in our third quarter call last November, our margins were compressed by 3 key areas. The first is labor costs. Elevated labor costs this period were primarily driven by extended process changeovers and related downtime as we scaled our production volume. The second is product design, which relates to start-up and quality costs associated with a complex launch in the first half of 2025. Third, inventory control, which represented the most substantial headwind to margins this period. Driven by our efforts to grow while scaling production, we experienced yield volatility and associated losses, which impacted our bottom line. We are now prioritizing cycle counting and preproduction staging to improve production flow as we continue to expand. With the above results, we delivered adjusted EBITDA of $4.2 million, less than 7% of revenue. As we look ahead, our 2026 guidance focuses on operational health. As a result, we are establishing a 30% gross margin floor as our target for the year. We expect EBITDA improvement in 2026, returning to double digits as we realize 6-figure annual savings from our facility consolidation and the elimination of 2025's operational inefficiencies. A critical goal in 2026 is to increase our free cash flow by reducing safety stock and improving procurement operations. We began 2026 with momentum from 2025, driven by organizational changes and the launch of the Transform and Transcend initiative. Still, our first quarter results will be impacted by investments in training and restructuring associated with Transform and Transcend as well as by changes in customer order patterns, largely due to retail dynamics and weak sell-through from one of our large mass market customers. Our current ship in open orders stand at just under $33 million as compared to a year ago when they were at $38 million. While we anticipate a period of revenue normalization, we plan to improve EBITDA relative to 2025 and remain confident in our ability to achieve our full year guidance. I'll turn it back over to Kevin to provide more details about our transform and Transcend initiative. Kevin? Kevin Cureton: Thank you, Laura. As we look back on 2025, it is important to reflect on our company's journey over the last 12 months, indeed, the past 2 years. During that period, our company nearly doubled its revenue. As I noted in our press release, this affirmed both the value we bring to the industry and our ability to establish ourselves as a leading innovator and manufacturer of SPF-infused beauty products. We increased our patent portfolio by 20%, which now numbers over 120 and through this expanded position, created a valuable picket fence that protects our market position and provides one-of-a-kind leverage for our brand partners as they grow. While we achieved these important business milestones, we invested in building our manufacturing infrastructure which both modernized our production capabilities and expanded capacity, which will enable us to generate over $200 million in revenue without further major investment. In October of 2025, we showcased a new product, Day Mode Hero Concealer. Day Mode is a hybrid product that combines skin care and color cosmetics with skin longevity claims, including UV protection and leverages 2 new technology platforms that we will bring to market in 2026. This prototype product was recently named a finalist across 4 categories of the Cosmetics & Toiletries Alle Awards. These categories are wellness, anti-aging and skin care, color cosmetics and UV protection. While the winners will not be announced until later in 2026, the cross-category recognition for this multifunctional concealer demonstrates the broad and enduring appeal of our innovations and affirms that our technology and product stories resonate with brands and industry experts alike. Through these developments, we have built a company on the cusp of changing the health and well-being of millions of people while dynamically growing our enterprise value, but there is still more work to be done. In our Q3 call, I spoke about 3 specific areas where our operating model needed changes that were revealed by our rapid growth. These areas are product design, labor efficiency and inventory control. While we achieved record-breaking revenue this year, our business processes were tested by the sheer volume and complexity of our success. As Laura highlighted, these challenges led to lower-than-planned income performance. As we face these challenges, we also saw that our opportunities to simultaneously increase profitability and growth were being limited by our execution. As a result, we launched the initiative that today we are formally introducing to our investors, Transform and Transcend. It is a framework we will use to ensure our financial performance aligns with our technological excellence in order to secure a path forward for sustainable profitability. This is a road map designed to fundamentally correct the operating challenges we have identified while amplifying the innovation platform we created, ultimately resulting in what we believe will be significantly increased enterprise value. The Transform and Transcend initiative is built on 4 core pillars. The first pillar is operational excellence through the implementation of lean management principles. We began work on this first and foundational pillar in November 2025. Through lean management principles, we are equipping our company with the processes and discipline to meet or exceed our brand partners' requirements while aggressively eliminating the inefficiencies we have identified across our business. A key tenet of this is a modernized sales inventory and operations planning process, or SIOP. These improvements will address the labor inefficiencies, inventory control issues and yield losses we saw in 2025. We plan to increase our gross profit margin by at least 5% by the end of this year compared to 2025. The second pillar is technology-driven expansion. Starting in late Q2 to early Q3 2026, we plan to expand our addressable market by introducing new product categories. These include bringing the technologies behind the prototype Day Mode Hero Concealer product to market. We are leveraging our 120 patents with new formulation innovations to move into adjacent prestige beauty segments like scalp care, where our technologies can provide an immediate competitive advantage. The third pillar is our shift toward a product development and supply model that enables us and our brand partners to capture more value and a greater share of wallet. This includes an emphasis on turnkey supply and collaborative marketing to drive sell-through and leverage increased consumer recognition of Solesence branded technologies. We kicked off our first major co-marketing activation 2 weeks ago with brand partners, Colorescience and Bloomeffects. The fourth and final pillar is collaborative globalization. Beginning in the first quarter of 2027, we plan to support select brand partners as they expand into international markets. Given the regulatory complexity of the global SPF market, this pillar represents an opportunity to modify our service model in those regions, increasing margins by 10% or more relative to our domestic benchmarks. The change in leadership, starting with my appointment as President and Chief Executive Officer, was made to achieve profitable growth for our company, including the development and implementation of the Transform and Transcend initiative. As you know, in support of our profitable growth objective, we also added a seasoned CFO, Laura Riffner, to our team in September of 2025. This represents the first time that we added a C-suite level of finance and accounting professionals to our team who has demonstrated success in our industry. We also recently added Yoolie Park as Vice President of Brand Partnerships. Yoolie brings over 20 years of experience in component supply and turnkey manufacturing. Her mandate is to institutionalize our new commercial strategy and help us further deepen and expand our relationships with existing and new brand partners. Looking ahead into 2026, beauty sectors remain resilient and consumers continue to view beauty as an affordable luxury with SPF-infused skin care at the intersection of essential and discretionary spending. Consumers are more critically examining how protecting their skin, their largest organ impacts their overall well-being. As a result, we believe SPF infused beauty will be a central aspect of the more than $500 billion global beauty and personal care market. We remain excited about how closely our products and technologies are aligned to consumer demand and the value our strategic brand partners see in our consumer products. Before we go to Q&A, please keep these thoughts in mind. Following 2 years of growth that significantly outpaced the industry average, 2026 will be a year focused on execution, which is at the heart of what the Transform and Transcend program will yield. It is this focus accompanied by the associated restructuring and investment that is a necessary step to transform our operational execution in order to transcend beyond the traditional CDMO model. Ultimately, this will turn Solesence into a strategic innovation partner that drives superior financial performance for both our brand partners and our company. Operator, we are now ready for the Q&A. Operator: [Operator Instructions] Our first question comes from Tony Rubin, who's an investor. Unknown Analyst: So I heard a lot of interesting words in the call, but I was hoping you could drill down to [ GrassTechs. ] In 2024, you had EPS of $0.07 per share. And Laura, you talked about increasing EBIT, but didn't really provide an EPS goal. So my question on that aspect is, will EPS in 2026 be at or above the 2024 levels? And kind of a related question is, Kevin, previously, you had suggested that gross margins would return to at least the mid-30s level. And on this call, Laura mentioned a floor of 30%. So I hope you would both agree that maximizing shareholder value is the purpose of a company. So with those goals in mind, could you address those 2 specific items? Kevin Cureton: Thank you, Tony, and thanks for joining. So what we'll do is have Laura address your first question and also can provide some color on the gross margin area, and then I may offer additional color to that. Laura? Laura Riffner: Thank you for joining us today. Regarding the EPS, we aren't prepared to provide guidance on that this morning. As I did mention, we are expecting and targeting an increase in EBITDA to return to double-digit numbers in 2026. Regarding the 30% gross margin floor. On that, Tony, our guidance is intentionally conservative. And while we are -- we have that as our guidepost, our intention is to leverage the Transform and Transcend initiative to improve that number. Kevin Cureton: I think Laura has answered both those questions very well. So there's nothing additional I can offer at this point other than, again, reaffirming our guidance is on an annual basis and that we are taking a conservative approach to that guidance, but expect to obviously focus on improving enterprise value, which ultimately will increase the value to our shareholders. Operator: Our next question comes from James Lieberman with American Trust Investment Services. James Lieberman: And I want to actually congratulate you for all the transitions that are going on. Most people don't fully appreciate what you've accomplished over the last couple of years. And in terms of consolidating manufacturing into your new facility, I'm sure that's a major step, and you have to be extremely careful about doing that transition so that you don't have real supply issues and manufacturing issues that could have been more difficult to meet your customers' goals. But can you address some of the questions of if you have an aspirational say that you could grow the company to be $200 million, is there sort of like a some sort of road map to get there in terms of the kind of new products you're coming out with, the relationships with your customers and how you see the market sort of, say, like a 2- to 3-year period? And also, can you give us an aspirational profit margin? So you're hitting on all cylinders. Could you reach as high as like a 40%? Can you address those areas? Kevin Cureton: Jim, thank you for your thoughts, and I appreciate your involvement in our company for as long as you have been. So thank you. There's a lot you offered there. We'll try and start by addressing, yes, the consolidation was successful. And in fact, through that consolidation, we did not have any impact or negative impact on OTIF. We actually continue to have a high performance on time and in full while we conducted that consolidation. So we're excited about that and excited about what contributions that consolidation will have in terms of improving our overall financial performance. When looking beyond the current state and being aspirational in a careful manner this morning, that is really at the heart of the Transform and Transcend plan. What we talked about in our prepared remarks was to really address some of our operational execution challenges so that we could amplify our innovation platform. We're really in a unique position based upon the type of IP that we've created, the type of protection that it builds around our brand partners and for us and uniquely addresses what's really the most important or really preferred area for consumers, which is mineral-based sunscreen is preferred by all consumers or at least at 70% of women as one of our resources say. So we're building a platform that really is targeting the areas that are growing the fastest. We're working with brands that are the fastest growing. We work with the middle market brands primarily, and those are the brands that are the fastest growing in the industry, and we're addressing a critical area that also is driving the change in the marketplace. So all of those things point to us resuming the type of growth that we've had in the past, which is growing at a multiple of the industry's growth rate. And so we anticipate that to happen. We also have talked in the past, Jim, about getting full value of the technology that we provide through the Transform and Transcend initiative, we also mentioned some of the changes that we're making relative to increasing our share of the value chain. And quite honestly, along with that, the share of the value chain that our brand partners have as well. Those initiatives or that specific initiative, along with the rest of what we've described in Transform and Transcend will help to significantly increase our gross profit margin performance and therefore, in the end, our EBITDA, so that we are targeting levels that you mentioned and maybe even greater. All of that takes time, as you know, and as you have appreciated over the many years you've been part of our investor community. And so we're excited about what's going to start, but we know that it will take some time for us to get to all of those objectives, but we're really excited about where we are and where it's headed. Operator: [Operator Instructions] Our next question comes from Stefano Bolis, an investor. Unknown Analyst: I have 2. The first is, are you still planning to have a dedicated investor call, as you mentioned last time? And the second is on the BASF volumes. In the last 3 years, they have been decreasing. So one would have expected after the lawsuit story that this is because they needed more, not because they needed less. So how do you see this trend moving forward on BASF? Kevin Cureton: Thank you, Stefano. I appreciate your call in today. So a couple of questions there. Let's take the last one first and just guide that as with many of our brand partners, even those that we are well known like BASF or publicly known, maybe a better way to state it, like BASF, we are very careful not to provide specific guidance on their performance. There -- we are permitted to acknowledge those brands, but not really provide specific guidance on their performance. So I'll not be able to provide more than that. We certainly continue to partner with them closely and have a good working relationship with BASF. Operator: Our next question comes from Wayne Rowan, who is an investor. Wayne Rowan: Yes. I'd like to thank you for your integrity and not trying to gloss over things. That's much appreciated. Nobody likes BS. Why have we struggled so much on production? Because it seems like we've been struggling with that for quite a while now. And then the other thing is, did we lose a brand partner, a place where we sold a lot of product? Or did I mishear that? I'm a little old and sometimes my hearing ain't so good. And then do you anticipate -- the other thing I'd like you to address is why it took so long to get this call this quarter. And then you anticipate an improvement in sales this year, and thank you for your hard work and tell Jeff hello too. Kevin Cureton: Thank you, Wayne, for continuing to be a committed investor in our company. We certainly are committed to providing as much transparency as we can. And I hope as you -- and Stefano, I did not address your first question, which was related to the investor call. It is our intent to provide improved communications to the investors. Now that we've communicated a little bit more relative to the Transform and Transcend program, we will be prepared to continue that process going forward. What we had talked about, again, I'll first finish up by addressing Stefano's question regarding the investor call. What we really talked about was an investor presentation. We do believe that is something that is important for us to present, and we will have further information and guidance that we'll provide in the months to come. So thank you again for that question, and we'll move on to some of Wayne's questions now. So Wayne, you had several questions, and thank you for our team helping me to track all of them. The first one is related to production. And I believe, as we mentioned in the script, one of our challenges has been that we've simultaneously grown at a multiple of the industry's growth rate and installed new capability. And what our emphasis has been over that time has been to make sure that we met the quality standards that are necessary for a cGMP production, which has its own unique challenges, but also to make sure that we're meeting the on-time and in full performance that's necessary to keep products on the shelves for our brand partners. So that simultaneous challenge certainly has been one that hasn't translated into the gross profit margins that we would like to see, but we've now reached a place through the plans that we have in front of us that we are confident in our ability to perform well in the future. I think the next question that you had, Wayne, was related to a brand partner. We did not mention in any of our guidance that there was any loss of any brand partner, just to be clear. What we guided was that there were some challenges that one of our brand partners was having in sell-through in the mass market. Laura Riffner: The next question, Wayne, I believe, was why it took so long to schedule the call. We prefer to schedule the call after our year-end audit is completed. And the scheduling of the audit gets done quite literally almost a year in advance. So by the time the audit was scheduled with our auditing firm and finalized, it's simply just how long it took to get it scheduled. Kevin Cureton: Yes. So the last question was related to the sales target. And again, thanks, Wayne, for all the questions. The sales targets, as we've guided, is that this year will be a period of normalization. And so that is on a full year basis, the guidance that we can provide at this point. We are excited about the future of our business. We continue to be excited about the addition of our new Vice President of Brand Partnerships, Yoolie Park, who brings over 20 years of experience in turnkey manufacturing. And that in and of itself has already helped us in terms of our ability to more effectively deepen the relationships that we have with some of our key brand partners and put new brand partners in front of us in a way that will materially improve and grow our company over the years to come. Operator: I'm not showing any further questions at this time. I'd like to turn the call back over to Kevin for any further remarks. Kevin Cureton: Thank you, Kevin. Before we sign off, I wanted to just give you a final thought on our future. Back in 2019, when our consumer products line was less than $2 million, we said the future of Sun Care is the future of beauty. Today, with over $50 million in revenue from our consumer products line and a global patent estate to support it, that vision has been validated. However, our 2025 results showed us that scale without operational excellence will not enable us to create a platform for our company to achieve our goal of dynamic growth in our enterprise value. That is why 2026 is our year of transformation. Through Transform and Transcend, we are removing inefficiencies from our operations, modernizing our supply chain and refining our partner base and ways of working with them to ensure mutual success at both the top and bottom lines. We are doing the hard work now to ensure that our proprietary technologies and consumer preferred products translate into the best-in-class financial returns our shareholders expect. We are confident by stabilizing our foundation this year, we are setting the stage for the next 5 years to be the most profitable in our company's history. Thank you for your continued support. Have a great day. Operator: Thank you. Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day. Before you buy stock in Solesence, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Solesence wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Solesence (SLSN) Q4 2025 Earnings Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Tuesday, May 12, 2026 at 8:30 a.m. ET Chief Executive Officer — Kevin Cureton Chief Financial Officer — Laura Riffner Need a quote from a Motley Fool analyst? Email [email protected] Kevin Cureton: Thank you, operator. Welcome, everyone, to our call today. I'd like to thank our investors for their dedication and belief and our team for their tireless effort in growing the world's most innovative skin health company. As many of you know, over the past 6 years, we have transformed from a small-scale materials company into a leading developer and manufacturer of SPF-infused beauty products in the United States. The evolution of our company resulted in growth at a compounded annual rate of over 50%, enabled us to uplift to the NASDAQ Exchange and contributed to an increase in our market capitalization of more than 5x. Our growth was not limited to our top line performance. Along with this top line growth, a global patent portfolio was created around consumer-preferred products and technologies. These changes in our business model bring new operating complexity as well as exciting new opportunities. The increased operating complexity requires us to significantly modify our business processes to fully capture the value we have created and build the foundation for our next phase of growth. The opportunities allow us to change our service model to increase our ability to capture a greater share of overall market and channel value to more completely gain both the operating margins and enterprise value typically enjoyed by technology-driven companies. In March, we introduced Transform and Transcend to our investor community, the strategic initiative we began at the end of 2025. Transform and Transcend is our structured multiyear initiative designed to transform our operational execution to transcend beyond the traditional CDMO model into a strategic supply side innovation partner that drives superior financial performance for both our brand partners and our company. It is focused on aligning our operational performance with the strength of our technology platforms and positioning the business for long-term sustainable profitability and growth. Our performance in the first quarter of 2026 reflects the early stages of our disciplined execution against our plan. It is a period of intentional investment, organizational realignment and implementation of new processes and procedures. This is work that we expect will position us for improved operational and financial results as we move through the year. With that context in mind, I'll turn it over to Laura to walk you through our first quarter financial results. Laura? Laura Riffner: Thank you, Kevin. For the first quarter of 2026, revenue was $13 million compared to $14.6 million in the first quarter of 2025. As we had guided in the annual earnings call, we had shipped and open orders that would have resulted in more comparable year-over-year revenue results, but soft OTIF performance resulted in some delays in shipments. Despite lower revenue, gross margin increased by 300 basis points to 26%. This small but impactful improvement was related to improved labor efficiency and the elimination of product quality-related waste that we experienced in Q1 of 2025. As Kevin mentioned, our first quarter results reflect the early-stage investments associated with Transform and Transcend, particularly within our operational infrastructure. In the first quarter, we implemented 2 key changes at the employee level. First, we introduced an updated shift structure. Through this reallocation of our personnel, we are addressing the extended process changeovers and related downtime that were one of the biggest contributors to the elevated labor costs we experienced as we scaled our production volume. To ensure that our personnel also have the knowledge necessary to be as productive as possible, we also invested in training them in this new lean manufacturing structure. While these investments resulted in some near-term pressure on profitability, they are aligned with a clearly defined road map to strengthen our operating model and improve our margin profile over time. As a result of these investments and our shipment performance, net income for the first quarter was a loss of $0.8 million compared to net income of $0.08 million in the prior year. Adjusted EBITDA for the first quarter was a loss of $107,000 compared to adjusted EBITDA of positive $609,000 for the first quarter of last year. From a demand perspective, our shipped and open orders now total $47 million. While booking trends remain encouraging, this remains aligned with our previously communicated expectations for a more normalized revenue environment in 2026. Our priorities for 2026 remain centered on executing our Transform and Transcend initiative, beginning with operational excellence. This includes improving inventory management through our SIOP implementation, improving efficiencies across our manufacturing and supply chain processes and enhancing procurement and working capital discipline. We are reiterating our previously communicated guidance for the year in which we established a 30% floor for gross profit margins and we remain on track to return to double-digit EBITDA margins by the end of the year as we realize improvements in labor efficiency and the 6-figure annual savings from our facility consolidation. I'll now turn it back to Kevin. Kevin Cureton: Thank you, Laura. As we prepare to open up for questions from analysts and investors, we should share a couple of additional progress points related to our initiative. First, we remain on track with our guidance and plan for implementation of the initiative. In fact, we have already made important progress within 3 of the 4 pillars. Laura has already shared the improvements we saw in Pillar 1, operational excellence, as shown by the improvement in our gross margin and reduced inventory levels. In parallel with this foundational work, we are continuing to advance the second pillar of Transform and Transcend, which focuses on leveraging our intellectual property to expand our addressable market. Yesterday, we announced the launch of 2 new proprietary technologies, Chromalum and WHSPR. These technologies build on our existing platform and enable us to develop SPF-infused hybrid products for our brand partners that combine UV protection, skin health benefits and the joyful user experience consumers desire. As we have mentioned, the continued convergence of health, wellness and beauty is reshaping consumers' expectations and creating a significant commercial opportunity for brands that can substantiate their claims. WHSPR and Chromalum open product categories and formats that were previously out of reach to brands and consumers prior to their launch. Consistent with our goals for our second pillar, these technologies also expand our ability to participate in adjacent categories in the future, including hair and scalp care. Importantly, these launches demonstrate that our innovation engine continues to move forward even as we invest in strengthening our operational foundation. We are also progressing in the third pillar of Transform and Transcend, which is focused on evolving our service model to capture a greater share of the value chain for ourselves and our brand partners. Our co-marketing activations, which we are evolving into a formal program have been well received by our brand partners. We have now completed 4 of these initiatives with brands that include Color Science, BloomAX and Seal, which has helped drive product level performance while deepening our strategic relationships. While there are many more miles to go on this Transform and Transcend journey, our early footsteps have reinforced that we are on the right track toward achieving our ultimate goal, maximizing enterprise value while delivering joy and enhancing human health and well-being. Operator, we are now ready for questions. Operator: [Operator Instructions]. Our first question comes from Wayne Rowan, Private Investor. Wayne Rowan: Yes. Laura, thank you for the timeliness of getting the report out like we're used to. Thank you very much. I appreciate it. I guess my #1 concern is, are we getting less interest in our product or the sales number is going down? Or do you anticipate ramping up our sales for the last 3 quarters of this year and thus achieving profitability and thank you for your time. Kevin Cureton: Thank you, Wayne, and it's always good to hear from you. As Laura mentioned, first quarter was primarily impacted by our OTIF performance, On-Time and In-Full performance, which was impacted by some of the changes in our processes during Q1 that we expect to really deliver on improved results through the remainder of the year. We had guided in Q4 that we thought this was a year and still believe this is a year of rationalized performance relative to revenue. That doesn't mean that there's less interest in what we do. It really is just a reflection of market conditions as we see it this year. There still continues to be quite a bit of excitement in the new technologies that we deliver and specifically in the SPF-infused beauty space. Operator: Our next question comes from James Lieberman with American Trust Investment Services. James Lieberman: I appreciate that it's a work-in-progress and the significant investments you've done to streamline and bring efficiency and expand your range of your products as well -- offerings as well. Did I hear correctly that there was some stocking and shipment delays that would have created larger revenues for the quarter? Did I hear that correctly? Kevin Cureton: That's correct, Jim. James Lieberman: Could you give a little bit more color to that? Kevin Cureton: Yes. I think the best way for us to reference it is keeping in mind that through the work that we do, we have to receive both just the raw materials that we use to make the formulations and the componentry that is needed to actually put the formulation into the package. It's important for both of those to be aligned and on time. What we can tell you is that, that wasn't the case consistently, particularly in the beginning of the quarter, and that has to do with some of the SIOP processes that we are working on now. We did see substantial improvements to that as we exited the quarter and entered into Q2. We're expecting, as we have indicated, continued improvement in terms of how we manage inventory, how we prepare ourselves for manufacturing and how we deliver on meeting or beating the On-Time In-Full performance expected by our brand partners. I think Laura had commented specifically that the OTIF in Q1 would have been -- with proper OTIF, we would have been in line with prior quarters. Is that accurate, Laura? Laura Riffner: Correct. Kevin Cureton: Yes. That is really just the point to hopefully address your question, Jim, relative to where revenue was and where we expect performance to be going forward. Operator: [Operator Instructions]. I would now like to turn the call back over to Kevin. We do have one follow-up. James Lieberman: It's Jim Lieberman, again. Getting a little bit more texture and color. It sounds like this $47 million number that you gave is how would you describe that? Is that orders almost like a backlog number or revenues in progress and including backlog? Is that how that -- how one might look at that? I have just a follow-on to this question. Kevin Cureton: Okay. Just to be clear, Jim, this number has been something we started a couple of years ago sharing, and we actually are looking at whether it's actually providing the guidance that we expected to provide to our investors. Basically, this number is a combination of the orders that have already been shipped within the year as of today and the open orders that we would have. That could be considered a backlog by some, but those really are orders that are forward-looking. They're not due for delivery yet, for example, but will be due for delivery within the year. That's the guidance that we were providing with that $47 million. That really should be compared to where we were at the same time last year, which is what we were usually providing. James Lieberman: That's what I thought, but I was just trying to get clarification because I sort of feel that, that does give a very healthy picture going forward anyway. As you're expanding and you have these good relationships in place, I'm inferring that you have a very healthy outlook for the year. I know you said this, but it does feel like that's actually happening. Then with your better profit margins, I am feeling more optimistic. I know there's a lot of moving parts. I'm optimistic about the progress you're making. I also went online and noticed a number of other products and companies you're actually doing business with, which I haven't noticed before. I like the fact that there are more products that I can look at and recommend to people. Thank you for your progress. Laura Riffner: Thank you, Jim. We're also very confident about where 2026 is going to land or results -- our results for 2026. Very confident about it. Operator: [Operator Instructions]. I would now like to turn the call back over to Kevin Cureton for any closing remarks. Kevin Cureton: Thank you. To everyone, thank you again for joining us today. As I'm sure you can tell, we remain confident in the long-term value creation opportunity ahead of us and in our ability to execute through our Transform and Transcend strategy. During the next week, more information will be available about our Transform and Transcend initiative as we will post a one pager on the Investor Relations section of our website. That one pager will provide details on our strategy and a general time line for each of our initiatives. We also look forward to providing further updates on our strategy and our business as the year progresses and as the impact of the different initiatives becomes more visible. Again, thank you for your continued support, and we look forward to updating you in the next quarter. Cheers. Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect. Before you buy stock in Solesence, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Solesence wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,826!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,285!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Solesence (SLSN) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $13 million for Q1 2026, down from $14.6 million in Q1 2025. Gross Margin: Increased by 300 basis points to 26%. Net Income: Loss of $0.8 million, compared to net income of $0.08 million in the prior year. Adjusted EBITDA: Loss of $107,000, compared to positive $609,000 in Q1 2025. Shift and Open Orders: Total $47 million. Guidance for Gross Profit Margins: 30% floor for the year. Warning! GuruFocus has detected 8 Warning Signs with SLSN. Is SLSN fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Solesence Inc (NASDAQ:SLSN) has experienced a compounded annual growth rate of over 50%, leading to an uplift to the NASDAQ Exchange and a significant increase in market capitalization. The company has developed a global patent portfolio around consumer-preferred products and technologies, enhancing its competitive edge. Gross margin improved by 300 basis points to 26% due to better labor efficiency and reduced product quality-related waste. The introduction of new proprietary technologies, Chromalume and Whisper, expands Solesence Inc (NASDAQ:SLSN)'s product offerings and market reach. The Transform and Transcend initiative aims to align operational performance with technology strengths, positioning the company for long-term sustainable profitability and growth. Revenue for the first quarter of 2026 decreased to $13 million from $14.6 million in the same period of 2025, impacted by shipment delays. Net income for the first quarter was a loss of $0.8 million, compared to a net income of $0.08 million in the prior year. Adjusted EBITDA for the first quarter was a loss of $107,000, compared to a positive $609,000 in the first quarter of the previous year. The company faced challenges with on-time and full performance (OTIF), affecting revenue and shipment schedules. The implementation of new processes and employee training resulted in near-term pressure on profitability. Q: Are we experiencing less interest in our products, or do you anticipate ramping up sales for the rest of the year to achieve profitability? A: Kevin Cureton, President and CEO: The first quarter was impacted by our OTIF (on-time and full) performance due to process changes. We expect improved results for the rest of the year. The interest in our products remains strong, particularly in the SPF-infused beauty space, despite the current market conditions. Q: Could you provide more details on the stocking and shipment delays that affected revenue? A: Kevin Cureton, President and CEO: The delays were due to misalignment in receiving raw materials and componentry needed for packaging. We have seen improvements as we entered Q2, and we expect better inventory management and manufacturing preparation moving forward. Q: Can you clarify the $47 million figure mentioned? Is it a backlog or revenue in progress? A: Kevin Cureton, President and CEO: The $47 million represents a combination of shipped orders and open orders due for delivery within the year. It should be compared to the same time last year to gauge our progress. Q: How do you view the company's outlook for the year, given the current progress and relationships? A: Kevin Cureton, President and CEO: We have a healthy outlook for the year, supported by strong relationships and expanding product offerings. We are optimistic about achieving better profit margins and overall progress. Q: Are you confident in achieving your 2026 targets? A: Laura Riffner, CFO: We are very confident in our results for 2026, supported by our Transform and Transcend initiative and operational improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is transitioning the business model from a traditional Contract Development and Manufacturing Organization (CDMO) to a strategic supply-side innovation partner to capture higher enterprise value. The 'Transform and Transcend' initiative was launched to align operational execution with the company's technology platforms following a period of rapid 50% compounded annual growth. First-quarter revenue decline was attributed to soft On-Time and In-Full (OTIF) performance caused by internal process changes and misaligned material/componentry arrivals. Gross margin expansion of 300 basis points was achieved through improved labor efficiency and the elimination of product quality-related waste seen in the prior year. The company implemented a new shift structure and lean manufacturing training to address extended process changeovers and downtime that previously inflated labor costs. Strategic positioning is being bolstered by the launch of proprietary technologies, Chromalum and WHSPR, aimed at the convergence of health, wellness, and beauty markets. A new service model is being piloted through co-marketing activations with brand partners like Color Science and BloomAX to capture a greater share of the value chain. Management reiterated a 30% floor for gross profit margins for the full year 2026 as operational improvements take hold. The company expects to return to double-digit EBITDA margins by the end of the year, driven by labor efficiencies and six-figure annual savings from facility consolidation. Revenue for 2026 is expected to reflect a 'normalized' environment following years of hyper-growth, with current shipped and open orders totaling $47 million. Operational priorities for the remainder of the year include the implementation of Sales, Inventory, and Operations Planning (SIOP) to improve procurement and working capital discipline. Future growth initiatives include leveraging new IP to expand into adjacent categories such as hair and scalp care. The shift to a net loss of $0.8 million reflects intentional near-term investment in organizational realignment and infrastructure. Inventory management remains a critical focus area as the company works to synchronize the receipt of raw materials with packaging componentry. Facility consolidation is cited as a key driver for upcoming cost reductions, though specific timing of the full realization was not detailed beyond 'by the end of the year'. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that lower Q1 revenue was an execution issue (OTIF performance) rather than a lack of market interest or demand. Kevin Cureton noted that with proper OTIF performance, Q1 revenue would have been in line with prior quarters. Delays occurred because raw material formulations and packaging components were not consistently arriving at the same time. Management reported substantial improvements in these processes as they exited Q1 and entered Q2. The $47 million figure represents a combination of year-to-date shipped orders and current open orders (backlog) due for delivery within the year. Management is currently evaluating whether this specific metric provides the most effective guidance for investors moving forward.

Advances implementation of Transform and Transcend strategic initiative across Operational Excellence and New Technology Commercialization ROMEOVILLE, Ill., May 12, 2026 (GLOBE NEWSWIRE) -- Solésence, Inc. (Nasdaq: SLSN), a leader in scientifically-driven health care solutions across beauty and life science categories, today announced financial results for the first quarter ended March 31, 2026. “In March, we introduced Transform and Transcend to our investor community, the strategic initiative that we began at the end of 2025,” commented Kevin Cureton, President and Chief Executive Officer. “Our first quarter results reflect our disciplined execution on this initiative, particularly on our first and foundational pillar, operational excellence. Combined with steady early progress in our efforts to further leverage our intellectual property, expand our addressable market, and evolve our service model to capture greater share of the value chain, Solésence is well positioned to drive long-term, sustainable profitability and growth.” Recent Highlights and Accomplishments Improved gross margin through disciplined execution of first pillar of Transform & Transcend Initiative: Operational Excellence. Expanded OTC claims with commercialization of new platform technologies: WHSPR™ and Chromalüm™. Added financial executive Marc James as new independent Director. Laura Riffner, Chief Financial Officer, added, “In the first quarter, Solésence’s investments focused on its operational infrastructure, including employee training and organizational restructuring which created near-term pressure on profitability but also resulted in improved efficiency and reduced labor costs across the business. We expect this will position us for improved operational and financial results as we move through the year.” First Quarter 2026 Financial Highlights Revenue for the first quarter was $13.0 million, compared to $14.6 million for the same period in 2025. Gross profit in the first quarter was $3.3 million, compared to $3.4 million for the same period in 2025. Gross margin in the first quarter was 26%, compared to 23% for the same period in 2025. Net loss for the first quarter was approximately $0.8 million, compared to net income of approximately $0.08 million for the same period in 2025. Conference Call Solésence will host its first quarter conference call on Tuesday, May 12, 2026, at 7:30 a.m. CT, 8:30 a.m. ET, to discuss its financial results and provide a business and financial update. On the call will be Kevin Cureton, President and Chief Executive Officer, and Laura Riffner, Chief Financial Officer. Webcast Link: https://edge.media-server.com/mmc/p/t9uyyvcs Dial-In Link: https://register-conf.media-server.com/register/BI8309d9a33aea468ab429e32ef4434b33 To receive the dial-in number, as well as your personalized PIN, you must register at the above link. Once registered, you will also have the option to have the system dial-out to you once the conference call begins. If you forget your PIN prior to the conference call, you can simply re-register. The call may also be accessed through the Company’s investor relations website, at https://ir.solesence.com/. Please join the conference call at least five minutes before the start time. FINANCIAL RESULTS AND NON-GAAP INFORMATION Use of Non-GAAP Financial Information Solésence believes that the presentation of results excluding certain items, such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, Generally Accepted Accounting Principles (“GAAP”) and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP. About Solésence, Inc. Solésence, Inc. (Nasdaq: SLSN) is a leader in scientifically-driven health care solutions across beauty and life science categories. With a mission to deliver joy through innovation, inclusivity and the science of beautiful skin, we have redefined mineral-based sun protection by maximizing transparency, effectiveness, aesthetics, and wearability — empowering individuals to embrace beauty on their own terms. Combining best-in-class skin health solutions with the celebration of self-care, we allow brands to deliver unique product claims and attributes by seamlessly integrating protection, prevention, and treatment technologies into daily use products. Learn more at solesence.com. Forward-Looking Statements This press release contains words such as “expects,” “shall,” “will,” “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance, and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s engineered materials, ingredients, and fully formulated products; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company’s Form 10-K filed March 31, 2026. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties, or other contingencies. Media Contact: [email protected] Investor Relations Contact: [email protected]