Solesence (SLSN) AI Stock Analysis

• Market Cap: $95.22M
• Dividend Yield: N/A
• Average Volume (3M): 50.43K
• Price to Earnings (P/E): 96.4
• Beta (1Y): 1.38
• Revenue Growth: 30.04%
• EPS Growth: -53.50%
• Country: US
• Employees: 98
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -0.02
• Shares Outstanding: 70,536,840
• 10 Day Avg. Volume: 39,901
• 30 Day Avg. Volume: 50,427
• PEG Ratio: -0.20
• Price to Book (P/B): 10.18
• Price to Sales (P/S): 2.91
• P/FCF Ratio: -58.81
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 7.79
• Enterprise Value/Ebitda: 36.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-30.88% Downside)

The score is held back primarily by weak technicals (price below key moving averages with negative MACD) and stretched valuation (P/E 94.285). Financial performance is mixed—profitability and improving leverage are positives, but declining revenue and negative operating/free cash flow are major risks. The latest earnings call adds cautious support via operational improvement plans and higher revenue targets, while the settlement payment is a small additional positive.

Positive Factors

High ROE & reduced leverage

Solesence's high ROE indicates effective use of shareholder capital to generate profits, while a reduced debt-to-equity ratio lowers interest burden and financial risk. Together these durable balance-sheet improvements increase capacity to fund R&D and partnerships and better absorb industry cyclical shocks.

Proprietary B2B model & partnerships

A B2B model focused on proprietary formulations and licensing builds recurring revenue from long-term contracts and deep client integration. Durable relationships with established brands create switching costs, steady order pipelines, and higher margin opportunities from customized, technical solutions.

Large patent portfolio & leadership legacy

Owning an extensive patent portfolio creates a sustainable competitive moat around formulations and delivery systems, enabling licensing and premium pricing. Combined with experienced leadership and retained founder consulting, intellectual property and institutional knowledge support long-term product differentiation.

Negative Factors

Revenue decline and recent quarter drop

Sustained revenue weakness reduces scale economics and heightens reliance on a few customers. A multi-quarter decline undermines margin leverage and raises questions about product-market fit and client inventory cycles, requiring meaningful commercial recovery to restore long-term growth trajectories.

Negative operating cash flow

Consistent negative operating cash flow constrains the company's ability to self-fund R&D, capex, and working capital, forcing dependence on external financing. Even with FCF growth metrics, a negative OCF coverage ratio signals structural cash-generation issues that can impair strategic flexibility.

Margin compression from manufacturing issues

A pronounced drop in gross margin driven by production inefficiencies and facility upgrades raises recurring cost risk and lengthens payback on operational fixes. If labor and OEE improvements don't fully restore prior margins, profitability and reinvestment capacity will remain constrained over the medium term.

Solesence Business Overview & Revenue Model

Company Description

Solesence (SLSN) is a biotechnology company focused on developing innovative solutions for the cosmetics and personal care industries. The company specializes in harnessing the power of natural ingredients to create advanced formulations that enhance the performance and sensory attributes of beauty products. With a strong emphasis on sustainability and efficacy, Solesence serves a diverse range of clients, including leading beauty brands and manufacturers, by providing proprietary technology and products that improve product stability, texture, and delivery of active ingredients.

How the Company Makes Money

Solesence generates revenue primarily through the sale of its proprietary formulations and technologies to cosmetics and personal care companies. The company operates on a business-to-business (B2B) model, where it partners with established brands to develop customized solutions tailored to their specific needs. Key revenue streams include direct sales of formulations, licensing agreements for the use of its proprietary technologies, and consulting services for product development and formulation optimization. Significant partnerships with major players in the beauty industry further enhance its market presence and contribute to its earnings, as these collaborations often result in long-term contracts and repeat business.

Solesence Financial Statement Overview

Summary

Financials are mixed: profitability margins are positive (net margin 8.13%, EBIT margin 9.90%) and leverage has improved (debt-to-equity 0.59, ROE 32.99%), but revenue is slightly declining (-3.52% TTM) and cash flow health is weak with negative operating and free cash flow.

Income Statement

Solesence shows a mixed performance in its income statement. The TTM data reveals a slight decline in revenue growth at -3.52%, indicating potential challenges in maintaining sales momentum. However, the company maintains a positive net profit margin of 8.13% and an EBIT margin of 9.90%, suggesting operational efficiency. The gross profit margin of 28.14% is moderate, reflecting stable cost management. Overall, while profitability metrics are positive, the declining revenue growth rate is a concern.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio has improved to 0.59 in the TTM period, indicating reduced leverage compared to previous years. Return on equity is strong at 32.99%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a comprehensive assessment of asset financing. The improvement in leverage is a positive sign, but historical high leverage remains a risk factor.

Cash Flow

Cash flow analysis highlights significant challenges. The TTM period shows negative operating cash flow and free cash flow, indicating cash management issues. Despite a high free cash flow to net income ratio of 3.69, the negative operating cash flow coverage ratio of -0.07 suggests difficulties in covering net income with operating cash. The substantial free cash flow growth of 71.20% is a positive development, but overall cash flow health remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.15M	52.35M	37.30M	37.32M	29.48M	17.12M
Gross Profit	15.39M	16.19M	7.83M	8.36M	8.69M	5.99M
EBITDA	3.30M	6.06M	-2.80M	-1.69M	3.96M	1.84M
Net Income	1.07M	4.24M	-4.39M	-2.62M	2.32M	493.33K
Balance Sheet
Total Assets	53.99M	50.00M	32.88M	33.56M	28.39M	13.54M
Cash, Cash Equivalents and Short-Term Investments	429.00K	1.41M	1.72M	2.19M	657.00K	956.75K
Total Debt	25.18M	15.30M	21.26M	18.11M	14.75M	7.57M
Total Liabilities	36.76M	35.06M	30.98M	27.91M	20.93M	10.81M
Stockholders Equity	17.23M	14.95M	1.90M	5.65M	7.46M	2.73M
Cash Flow
Free Cash Flow	-11.21M	-2.59M	-3.06M	-4.47M	447.00K	-2.94M
Operating Cash Flow	-8.20M	1.97M	-2.01M	-1.65M	2.32M	-2.06M
Investing Cash Flow	-4.29M	-4.56M	-1.05M	-2.82M	-1.87M	-878.00K
Financing Cash Flow	9.99M	2.27M	2.59M	6.00M	-747.00K	2.70M

Solesence Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLSN, the sentiment is Negative. The current price of 2.17 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.81, and below the 200-day MA of 3.12, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 33.69 is Neutral, neither overbought nor oversold. The STOCH value of 7.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLSN.

Solesence Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NUS	61 Neutral	$517.24M	4.88	14.55%	2.39%	-12.10%	―
EWCZ	61 Neutral	$213.64M	15.07	15.38%	―	-5.47%	13.42%
EPC	58 Neutral	$909.08M	36.47	1.62%	3.51%	-1.34%	-73.59%
SKIN	51 Neutral	$191.25M	-6.79	-18.73%	―	-13.14%	57.98%
SLSN	49 Neutral	$95.22M	96.43	6.60%	―	30.04%	-53.50%
HELE	46 Neutral	$382.07M	-0.48	-63.90%	―	-5.64%	-577.74%

Solesence Corporate Events

Solesence Appoints New Director After CEO Retirement

On November 22, 2025, Solesence, Inc. entered into a Consulting Agreement with Jess Jankowski, who retired from his roles as CEO and CFO on November 21, 2025. Jankowski will offer consulting services related to management and financial matters for a fee of $177 per hour. Following his retirement, Kevin Cureton, the current CEO and President, was appointed as a Class III Director on the Board, filling Jankowski’s position. The Board acknowledged Jankowski’s significant contributions to the company.

The most recent analyst rating on (SLSN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Solesence stock, see the SLSN Stock Forecast page.

Solesence Reaches Settlement Agreement with Solarium Brands

On October 31, 2025, Solésence, Inc. and its subsidiary Solésence, LLC reached a Confidential Settlement Agreement with Solarium Brands, LLC and A-Frame Brands, LLC regarding disputes over consumer care products previously sold by Solésence to Solarium. As part of the agreement, Solarium will make a one-time settlement payment of $675,000 to Solésence by January 15, 2026, potentially impacting Solésence’s financial standing positively.

The most recent analyst rating on (SLSN) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Solesence stock, see the SLSN Stock Forecast page.