NexGel Inc (NXGL) AI Stock Analysis

• Market Cap: $23.44M
• Dividend Yield: N/A
• Average Volume (3M): 50.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 73.38%
• EPS Growth: 34.87%
• Country: US
• Employees: 19
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.08
• Shares Outstanding: 8,067,580
• 10 Day Avg. Volume: 60,354
• 30 Day Avg. Volume: 50,949
• PEG Ratio: 0.83
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 3.34
• P/FCF Ratio: -6.74
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: -9.87
• 1Y Price Target: $6.00
• Price Target Upside: 259.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.50 ▼(-10.18% Downside)

NexGel Inc's overall stock score is primarily impacted by its financial performance, which is hindered by persistent losses and negative cash flows. Technical analysis indicates bearish momentum, further weighing down the score. Valuation metrics are unattractive due to negative earnings. However, the earnings call and corporate events provide some optimism with strategic initiatives and potential revenue growth.

Positive Factors

Strategic Spin-Off

The spin-off allows NEXGEL to focus on core operations while unlocking value through a 5% royalty and 19.99% equity in NexGelRx, enhancing long-term growth prospects.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting the company's long-term business model and market position.

Improved Gross Profit Margins

Improved gross profit margins suggest better cost management and pricing power, enhancing profitability and financial health over time.

Negative Factors

Persistent Net Losses

Ongoing net losses undermine profitability and financial stability, posing a risk to long-term sustainability and investor confidence.

Negative Cash Flows

Negative cash flows indicate operational challenges and hinder the company's ability to self-fund growth, affecting long-term financial resilience.

Flat Revenue Growth

Flat revenue growth suggests potential market saturation or competitive pressures, challenging future expansion and revenue generation.

NexGel Inc Business Overview & Revenue Model

Company Description

NexGel Inc (NXGL) is a specialized healthcare company that focuses on the development and commercialization of innovative hydrogels and other products primarily for the medical and personal care markets. The company operates in the healthcare sector, providing solutions that cater to wound care, drug delivery, and personal care applications. NexGel's core products include hydrogel-based formulations that offer unique properties such as moisture retention and biocompatibility, making them suitable for a variety of therapeutic uses.

How the Company Makes Money

NexGel generates revenue through the sale of its proprietary hydrogel products to healthcare providers, distributors, and retail outlets. The company has established key partnerships with healthcare institutions and manufacturers that facilitate the distribution of its products, enhancing its market reach. Additionally, NexGel may also engage in contract manufacturing services, creating customized hydrogel solutions for clients, which adds another layer to its revenue model. The successful commercialization of new products and the expansion into emerging markets further contribute to the company's earnings.

NexGel Inc Financial Statement Overview

Summary

NexGel Inc shows strong revenue growth, reflecting potential in its core business operations. However, persistent net losses and negative cash flows indicate challenges in achieving profitability and financial stability. The balance sheet remains stable with a reasonable equity position, but the company must address profitability issues to improve its financial health. Continuous negative cash flow and net income are key risks that need to be managed.

Income Statement

NexGel Inc has experienced significant revenue growth over the years, with a notable increase from 2023 to 2024. However, the company continues to report negative net income, leading to a negative net profit margin. The gross profit margin has improved, but operating losses remain a concern, reflected in negative EBIT and EBITDA margins. The improvement in revenue is overshadowed by persistent losses, impacting overall profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio with an increasing stockholders' equity base, indicating a stable equity position. However, the return on equity remains negative due to ongoing net losses, which is concerning. The equity ratio is healthy, suggesting that the company is not overly reliant on debt financing. Despite these positive aspects, the inability to generate net income affects overall stability.

Cash Flow

NexGel Inc's cash flow statements show negative operating and free cash flows, indicating operational challenges. Despite this, the company has managed to secure financing, which has supported cash flow needs. However, the inability to generate positive free cash flow to net income ratio highlights the ongoing struggles in achieving cash flow profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.66M	8.69M	4.09M	2.05M	1.55M	674.00K
Gross Profit	4.47M	2.75M	374.00K	256.00K	8.00K	-291.00K
EBITDA	-2.23M	-2.90M	-2.73M	-3.11M	-2.17M	-2.20M
Net Income	-2.88M	-3.28M	-3.16M	-4.75M	-4.31M	-2.26M
Balance Sheet
Total Assets	11.62M	10.98M	9.96M	10.36M	16.98M	2.26M
Cash, Cash Equivalents and Short-Term Investments	938.00K	1.81M	2.70M	6.61M	13.35M	32.00K
Total Debt	3.09M	2.83M	2.80M	2.08M	4.26M	1.28M
Total Liabilities	6.04M	4.90M	4.79M	2.72M	4.90M	2.19M
Stockholders Equity	5.19M	5.75M	4.70M	7.64M	12.09M	71.00K
Cash Flow
Free Cash Flow	-2.55M	-4.31M	-3.93M	-3.09M	-3.02M	-2.11M
Operating Cash Flow	-2.45M	-3.87M	-3.24M	-2.99M	-2.75M	-1.80M
Investing Cash Flow	-91.00K	-775.00K	4.46M	-5.59M	-269.00K	-312.00K
Financing Cash Flow	3.34M	3.75M	379.00K	-3.66M	16.34M	1.88M

NexGel Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXGL, the sentiment is Neutral. The current price of 1.67 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 2.16, and below the 200-day MA of 2.44, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 39.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXGL.

NexGel Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POCI	52 Neutral	$32.40M	-4.94	-57.98%	―	13.67%	-37.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FEMY	51 Neutral	$53.80M	―	-376.23%	―	63.53%	12.49%
RVP	46 Neutral	$24.55M	-3.68	-8.05%	―	-0.95%	58.17%
NXGL	45 Neutral	$23.44M	-5.47	-58.34%	―	73.38%	34.87%
SMTI	42 Neutral	$215.35M	―	-27.19%	―	30.55%	-340.19%
MLSS	41 Neutral	$29.73M	-4.35	-136.47%	―	0.59%	-39.76%

NexGel Inc Corporate Events

NexGel Inc Announces Spin-Off of Drug Delivery Unit

On December 11, 2025, NEXGEL, Inc. announced the spin-off of its drug delivery program into a new entity, NexGelRx, which will focus on developing prescription drug delivery solutions using NEXGEL’s proprietary hydrogel technology. As part of the spin-off, NEXGEL shareholders will receive a 19.99% equity interest in NexGelRx and a 5% global royalty on products sold using its technology. This move allows NEXGEL to concentrate on its core business areas while potentially unlocking significant value for its shareholders.

NexGel Inc Cancels Special Stockholder Meeting

On November 21, 2025, NexGel Inc.’s Board of Directors decided to cancel a Special Meeting of Stockholders that was scheduled for November 26, 2025. The meeting was initially intended to vote on a proposal to significantly increase the company’s authorized shares from 25 million to 1 billion. This decision indicates that the company will not seek stockholder approval for this substantial increase in authorized shares, which could have implications for the company’s future capital structure and shareholder value.

NexGel Inc Reports Q3 2025 Financial Results

On November 11, 2025, NEXGEL, Inc. reported its third quarter 2025 financial results, showing a slight decrease in net revenue to $2.93 million compared to the previous year. Despite a flat revenue, the company improved its gross profit margin to 42.4% and narrowed its adjusted EBITDA loss, driven by strong performance in contract manufacturing and consumer branded products. The company continues to expand its reach with new product launches and strategic partnerships, reflecting confidence in its advanced hydrogel technology.