NextPlat expects sequential operating improvements to continue

NextPlat (NXPL) announced its turnaround continues, highlighted by the expectation of substantially lower expenses and growth in operating margins driven by contracted healthcare services in Q1. Broad sequential operating improvements continue to be driven by management’s strategic business refocusing and growth initiatives put into place starting in the Q3 of 2025 and are now delivering meaningful sequential and year-over-year progress against growth and profitability objectives. Key financial metrics expected in the Q1 of 2026 include: Momentum in the Company’s Healthcare Operations segment continues to build driven by direct engagement initiatives with existing 340B customers and the addition of medication fulfilment contracts secured late last year, highlighted by the recent signing of five 340B contracts, a new single quarter record. These new 340B entities are currently onboarding and are expected to commence activities in July 2026. As expected, total Q1 2026 Healthcare Operations revenue is anticipated to sequentially decline to approximately $6.7M-$9.6M in Q4 2025 as the Company’s turnaround continues to prioritize contracted services which deliver improved profitability compared to the traditional retail pharmacy business.Consolidated gross margins in the Q1 are expected to exceed 34%, a dramatic improvement from approximately 20% reported for the full year ended December 31, 2025. As a result of the Company’s focus on contracted services, despite lower overall Healthcare Operations revenue expected in Q1 2026, this operating segment’s margin is anticipated to grow to nearly 39%, up approximately 115% sequentially from Q4 2025 and up approximately 99% from Q1 2025. The Company’s operations continue to be supported by a solid balance sheet with expected cash of approximately $11M, working capital of approximately $14.3M, and zero unsecured debt as of March 31. Management expects second quarter cash balances will increase from Q1 levels due to the timing of certain payments received by the Company after the close of the Q1.