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Solesence
(NASDAQ:SLSN)
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Rating:52Neutral
Price Target:
$1.00
▲(6.38% Upside)
Action:Reiterated
Date:08/05/26
Overall score reflects weak financial quality driven by thin margins and persistently negative free cash flow, partially offset by improving leverage. Technicals are moderately supportive in the short term (above 20/50DMA with mid-range RSI), but valuation is stretched (P/E ~54). The earnings call and recent settlement add some upside via margin-improvement targets and potential commercial collaboration, but execution and cash-flow risks remain the key overhang.
Positive Factors
Proprietary Product Innovation
New proprietary technologies broaden Solesence’s product portfolio and create differentiated degrees of technical entry barriers versus commoditized ingredients. Durable product IP and adjacencies (SPF, hair/scalp) can improve customer stickiness, mix and long-term margin potential.
Negative Factors
Weak and Negative Free Cash Flow
Persistently negative free cash flow constrains the company’s ability to self-fund working capital, capex and the Transform program. Continued cash outflows increase reliance on external financing or creditor flexibility and elevate liquidity risk over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary Product Innovation
New proprietary technologies broaden Solesence’s product portfolio and create differentiated degrees of technical entry barriers versus commoditized ingredients. Durable product IP and adjacencies (SPF, hair/scalp) can improve customer stickiness, mix and long-term margin potential.
Read all positive factors
Solesence (SLSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.65M
Dividend YieldN/A
Average Volume (3M)50.43K
Price to Earnings (P/E)54.3
Beta (1Y)1.59
Revenue Growth5.76%
EPS Growth-73.80%
CountryUS
Employees115
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.01
Shares Outstanding70,632,450
10 Day Avg. Volume39,901
30 Day Avg. Volume50,427
Financial Highlights & Ratios
PEG Ratio-0.93
Price to Book (P/B)6.38
Price to Sales (P/S)1.81
P/FCF Ratio-10.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Solesence Business Overview & Revenue Model
Company Description
Solesence, Inc., formerly known as Nanophase Technologies Corporation, specializes in the development and production of clean-label, inclusive, and mineral-based skincare and cosmetic products. The company collaborates with a diverse range of part...
How the Company Makes Money
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Solesence Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: near-term financial results were pressured by shipment delays and investments tied to the Transform and Transcend initiative (revenue down ~11%, net loss and negative adjusted EBITDA), but key positives include a 300-basis-point gross margin improvement to 26%, a $47M shipped + open orders book, new proprietary technology launches (Chromalum and WHSPR), completed co-marketing activations with brand partners, and a clear operational roadmap (SIOP, shift changes, facility consolidation) with reiterated guidance including a 30% gross profit floor and a plan to return to double-digit EBITDA margins by year-end. Given the balance of material execution risks and encouraging operational and commercial progress, the tone is cautiously optimistic but transitional.Positive Updates
Gross Margin Improvement
Gross margin increased by 300 basis points to 26% in Q1 2026 (up from ~23% a year ago), driven by improved labor efficiency and elimination of product quality-related waste.
Negative Updates
Revenue Decline Year-over-Year
Q1 2026 revenue was $13.0 million versus $14.6 million in Q1 2025, a decrease of $1.6 million or approximately -11% year-over-year, driven primarily by shipment delays.
Read all updates
Q1-2026 Updates
Positive
Negative
Gross Margin Improvement
Gross margin increased by 300 basis points to 26% in Q1 2026 (up from ~23% a year ago), driven by improved labor efficiency and elimination of product quality-related waste.
Read all positive updates
Company Guidance
Solesence reiterated its 2026 guidance under the Transform and Transcend plan, establishing a 30% gross profit margin floor for the year and targeting a return to double‑digit (≥10%) EBITDA margins by year‑end, funded by labor‑efficiency gains, SIOP/inventory improvements and a 6‑figure annual facility‑consolidation savings; Q1 2026 results included $13.0M revenue (vs. $14.6M Q1 2025), gross margin up 300 basis points to 26%, net loss of $0.8M (vs. net income $0.08M prior year) and adjusted EBITDA loss of $107k (vs. +$609k prior year), with shipped and open orders totaling $47M, continued >50% CAGR over the past six years, >5× market‑cap uplift since NASDAQ uplist, two new technology launches (Chromalum, WHSPR), four co‑marketing activations completed, and the company saying it is on track with implementation across 3 of 4 strategic pillars.Solesence Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
62
Positive
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 62.06M | 52.35M | 37.30M | 37.32M | 29.48M |
| Gross Profit | 16.03M | 16.19M | 7.83M | 8.36M | 8.69M |
| EBITDA | 3.69M | 6.06M | -2.80M | -1.69M | 3.96M |
| Net Income | 1.79M | 4.24M | -4.39M | -2.62M | 2.32M |
Balance Sheet | |||||
| Total Assets | 50.05M | 50.00M | 32.88M | 33.56M | 28.39M |
| Cash, Cash Equivalents and Short-Term Investments | 1.29M | 1.41M | 1.72M | 2.19M | 657.00K |
| Total Debt | 24.32M | 15.30M | 21.26M | 18.11M | 14.75M |
| Total Liabilities | 32.42M | 35.06M | 30.98M | 27.91M | 20.93M |
| Stockholders Equity | 17.63M | 14.95M | 1.90M | 5.65M | 7.46M |
Cash Flow | |||||
| Free Cash Flow | -10.71M | -2.59M | -3.06M | -4.47M | 447.00K |
| Operating Cash Flow | -8.57M | 1.97M | -2.01M | -1.65M | 2.32M |
| Investing Cash Flow | -2.14M | -4.56M | -1.05M | -2.82M | -1.87M |
| Financing Cash Flow | 10.59M | 2.27M | 2.59M | 6.00M | -747.00K |
Solesence Technical Analysis
Positive
0.94
Price Trends
1.01
Positive
1.09
Negative
1.53
Negative
Market Momentum
<0.01
Negative
59.57
Neutral
54.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLSN, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.83, below the 50-day MA of 1.01, and below the 200-day MA of 1.53, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 54.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLSN.
Solesence Risk Analysis
Solesence disclosed 27 risk factors in its most recent earnings report. Solesence reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Solesence Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.25B | -16.09 | -5.14% | 2.17% | -5.30% | -196.78% | |
58 Neutral | $251.98M | 4.64 | 6.84% | 4.72% | -14.17% | ― | |
54 Neutral | $643.56M | -1.54 | -48.24% | ― | -2.08% | -23.88% | |
52 Neutral | $58.65M | 54.27 | 5.39% | ― | 5.76% | -73.80% | |
47 Neutral | $88.84M | -12.35 | -9.41% | ― | -8.16% | 85.14% |
* Consumer Defensive Sector Average
SLSN
Solesence
1.06
-1.89
-64.07%
HELE
Helen Of Troy
28.24
5.49
24.13%
NUS
Nu Skin
5.33
-2.78
-34.28%
EPC
Edgewell Personal Care
28.53
8.83
44.79%
SKIN
Beauty Health
0.71
-0.95
-57.27%
Solesence Corporate Events
Business Operations and StrategyLegal Proceedings
Solesence Settles Dispute, Launches New SPF Collaboration
Positive
Jul 10, 2026
On July 6, 2026, Solésence, LLC entered into a Settlement Agreement with Refy Beauty Ltd to resolve disputes over certain consumer care products previously sold to Refy. Under the agreement, Solésence will pay Refy the British Pound Ster...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.