NexGel Inc (NXGL) AI Stock Analysis

• Market Cap: $27.70M
• Dividend Yield: N/A
• Average Volume (3M): 51.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 133.00%
• EPS Growth: 29.69%
• Country: US
• Employees: 19
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.09
• Shares Outstanding: 8,067,580
• 10 Day Avg. Volume: 55,037
• 30 Day Avg. Volume: 51,840
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: -8.84
• 1Y Price Target: $6.00
• Price Target Upside: 130.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $2.50 ▼(-3.85% Downside)

NexGel Inc's overall stock score reflects strong revenue growth and improved margins, as highlighted in the earnings call, which is a positive indicator of potential future performance. However, persistent financial challenges, including ongoing net losses and negative cash flows, weigh heavily on the score. The technical analysis suggests neutral momentum, and the negative valuation metrics further impact the overall attractiveness of the stock.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for NexGel's products, showcasing the company's ability to expand its market presence and capitalize on consumer and contract manufacturing opportunities.

Improved Gross Margins

Improved gross margins reflect better cost management and pricing strategies, enhancing profitability potential and providing a stronger financial foundation for future growth.

Strategic Partnerships

Strategic partnerships and funding support from companies like STADA bolster NexGel's financial position and facilitate product development and market expansion, aiding long-term growth.

Negative Factors

Ongoing EBITDA Losses

Continued EBITDA losses highlight persistent operational challenges, which may hinder profitability and necessitate further cost management and revenue enhancement strategies.

Dependence on Key Partnerships

Reliance on key partnerships for revenue growth introduces risk, as any delays or issues with these partners can significantly impact NexGel's financial performance and growth trajectory.

Rising Costs

Rising operational costs, driven by increased compensation, advertising, and fees, could pressure margins and necessitate efficiency improvements to maintain financial health.

NexGel Inc Business Overview & Revenue Model

Company Description

NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. NEXGEL, Inc. was founded in 1997 and is based in Langhorne, Pennsylvania.

How the Company Makes Money

NexGel Inc generates revenue through the sale of its advanced hydrogel products to healthcare providers, pharmaceutical companies, and consumer product manufacturers. The company leverages its proprietary hydrogel technology to create innovative solutions that meet the specific needs of its clients. Key revenue streams include direct sales of hydrogel materials to businesses for integration into medical and consumer products, as well as potential licensing agreements that allow other companies to utilize NexGel's patented technology. Strategic partnerships with entities in the medical and pharmaceutical industries also contribute to NexGel's earnings by expanding its market reach and application possibilities.

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	11.67M	8.69M	4.09M	2.05M	1.55M	674.00K
Gross Profit	4.46M	2.75M	619.00K	256.00K	9.00K	-291.00K
EBITDA	-2.50M	-2.90M	-2.73M	-3.11M	-2.20M	-2.20M
Net Income	-2.92M	-3.28M	-3.16M	-4.75M	-4.31M	-2.26M
Balance Sheet
Total Assets	9.71M	10.98M	9.96M	10.36M	16.98M	2.26M
Cash, Cash Equivalents and Short-Term Investments	725.00K	1.81M	2.70M	6.61M	13.35M	32.00K
Total Debt	2.65M	2.83M	2.80M	2.08M	4.26M	1.28M
Total Liabilities	4.66M	4.90M	4.79M	2.72M	4.90M	2.19M
Stockholders Equity	4.67M	5.75M	4.70M	7.64M	12.09M	71.00K
Cash Flow
Free Cash Flow	-2.98M	-4.31M	-3.93M	-3.09M	-3.02M	-2.11M
Operating Cash Flow	-2.88M	-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	2.63M	3.75M	379.00K	-3.66M	16.34M	1.88M

NexGel Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.43, and below the 200-day MA of 2.90, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXGL.

NexGel Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEPH	65 Neutral	44.31M	33.47	0.86%	―	21.16%	0.00%
HBIO	52 Neutral	20.87M	-0.36	-364.88%	―	-12.24%	-427.45%
NXGL	51 Neutral	$27.70M	―	-66.08%	―	133.00%	29.69%
RVP	51 Neutral	25.18M	-2.81	-11.43%	―	-0.24%	50.45%
FEMY	44 Neutral	15.05M	-0.41	-816.54%	―	98.61%	-1.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

NexGel Inc Corporate Events

NexGel Inc Reports Strong Q2 2025 Revenue Growth

On August 12, 2025, NEXGEL, Inc. announced its second quarter 2025 financial results, reporting a significant revenue increase of 100.3% to $2.88 million compared to the same period in 2024. The gross profit margin also improved to 43.6%, driven by growth in consumer demand for branded products and new contract manufacturing agreements. Despite a net loss of $0.67 million, NEXGEL expanded its partnership with STADA, securing a $1 million advance to support product launches and marketing. The company remains confident in achieving its 2025 revenue guidance of $13 million and positive EBITDA, highlighting substantial growth opportunities in the latter half of the year.

The most recent analyst rating on (NXGL) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on NexGel Inc stock, see the NXGL Stock Forecast page.

NexGel Inc Appoints Steven Ciardiello to Board

On July 31, 2025, NEXGEL, Inc. appointed Steven A. Ciardiello to its board of directors and as a member of the Audit Committee. Ciardiello, who is the Chief Accounting Officer for Shutterstock, brings over 25 years of financial leadership experience to NEXGEL. His appointment is seen as a strategic move to enhance the company’s financial governance and support its growth phase. Ciardiello was granted an option to purchase up to 30,000 shares of NEXGEL’s common stock, with vesting conditions tied to his continuous service. This appointment is expected to bolster NEXGEL’s strategic execution and corporate governance, potentially impacting its market positioning positively.

The most recent analyst rating on (NXGL) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on NexGel Inc stock, see the NXGL Stock Forecast page.

NexGel Inc Announces Direct Offering and Warrants Sale

On July 31, 2025, NEXGEL, Inc. entered into subscription agreements to sell 413,044 shares of common stock at $2.30 per share in a registered direct offering and issued unregistered warrants to purchase 206,522 shares at $4.25 per share in a concurrent private placement. The transactions are expected to generate approximately $950,000 in gross proceeds before expenses, with the offerings anticipated to close by August 5, 2025. This financing, along with a recent $1 million non-dilutive advance from STADA, is set to strengthen NEXGEL’s balance sheet and provide additional working capital as the company anticipates high growth in the latter half of the year.

The most recent analyst rating on (NXGL) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on NexGel Inc stock, see the NXGL Stock Forecast page.