Education
About Us
Working with TipRanks
Follow Us
Solesence (SLSN)
NASDAQ:SLSN
Top Page
Solesence
(NASDAQ:SLSN)
Rating:61Neutral
Price Target:
$4.00
▼(-9.91%Downside)
Solesence (SLSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$314.06M
Dividend YieldN/A
Average Volume (3M)235.67K
Price to Earnings (P/E)89.6
Beta (1Y)1.02
Revenue Growth51.43%
EPS GrowthN/A
CountryUS
Employees98
SectorBasic Materials
Sector Strength72
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)<0.01
Shares Outstanding70,103,280
10 Day Avg. Volume65,883
30 Day Avg. Volume235,671
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside35.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Solesence Business Overview & Revenue Model
Company DescriptionSolésence, Inc., formerly Nanophase Technologies Corporation, is a developer and manufacturer of clean, inclusive, mineral-based skincare and makeup products. The company partners with global and indie brands, leveraging its proprietary Active Stress Defense™ technology suite to bring environmental protection beauty products to market.
How the Company Makes MoneySolesence makes money primarily through the sale of its skincare and cosmetic formulations to beauty brands and manufacturers. The company's revenue model includes direct sales of its proprietary product lines, as well as custom formulation services where it partners with other brands to create tailored skincare solutions. Key revenue streams involve licensing agreements for proprietary technology, bulk product sales, and long-term collaboration contracts where Solesence provides ongoing formulation and development support. Strategic partnerships and collaborations with leading beauty brands play a significant role in expanding its market reach and driving revenue growth.
Solesence Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 43.69%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented strong revenue growth and strategic advancements, including a successful NASDAQ uplisting and new patent acquisitions, which highlight the company's positive trajectory. However, significant operational challenges and margin impacts due to start-up issues with new product launches raised concerns among stakeholders. While future growth prospects appear promising, consistent operational execution remains an area of concern.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Achieved record revenues of $14.6 million in Q1 2025, representing an increase of nearly 50% year-over-year, driven by strong demand from largest brand partners and new launches.
NASDAQ Uplisting
Started trading on NASDAQ under the ticker SLSN on April 8, 2025, expected to increase marketability, liquidity, and visibility within the financial community.
Strategic Partnerships and Product Launches
Successfully launched a multi-SKU product line for a key new brand partner, strengthening long-term relationships with private equity-backed beauty brands.
Patent Advancements
Secured three new patents for Kleair technology, plant-based antioxidant technology, and skin healing technology, enhancing the competitive position.
Strong Book-of-Business
Current shipped and open orders exceed $45 million, indicating continued top line growth and record revenues anticipated for Q2 2025.
Negative Updates
Operational Challenges Impacting Margins
Encountered start-up challenges related to a new product launch, resulting in gross profit of $3.3 million (23% of revenue) compared to $3.6 million (36% of revenue) in Q1 2024. One-time start-up costs adversely affected profitability.
Concerns Over Consistent Operational Failures
Repeated operational failures leading to significant costs and impacting margins, with stakeholders expressing disappointment over recurring issues.
Tariff and Supply Chain Concerns
Potential impact from tariffs on packaging components sourced from China, although anticipated to be manageable without affecting margins.
Company Guidance
During Solesence's first quarter 2025 conference call, management provided guidance on various financial metrics and strategic initiatives. The company reported record revenues of $14.6 million, marking a nearly 50% increase year-over-year. However, gross profit was $3.3 million, or 23% of revenue, down from $3.6 million, or 36% of revenue, in the same period in 2024, largely due to one-time production start-up costs linked to a new product line launch. Net income was breakeven compared to $0.9 million the previous year. Management anticipates margin improvements starting in the second quarter as they have resolved start-up challenges. Additionally, they highlighted the strategic impact of their recent NASDAQ uplisting, which they believe will enhance visibility and access to capital, and they noted that their current orders exceed $45 million, compared to $40 million in Q1 2024. The company is also focusing on reducing variable costs and expects higher gross margins due to increased production efficiency.Solesence Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown |
|---|
Income Statement |
| Total Revenue |
| Gross Profit |
| EBITDA |
| Net Income |
Balance Sheet |
| Total Assets |
| Cash, Cash Equivalents and Short-Term Investments |
| Total Debt |
| Total Liabilities |
| Stockholders Equity |
Cash Flow |
| Free Cash Flow |
| Operating Cash Flow |
| Investing Cash Flow |
| Financing Cash Flow |
Solesence Technical Analysis
Positive
4.44
Price Trends
4.04
Positive
3.26
Positive
2.80
Positive
Market Momentum
-0.05
Positive
54.74
Neutral
86.13
Negative
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 4.44 is above the 20-day moving average (MA) of 4.13, above the 50-day MA of 4.04, and above the 200-day MA of 2.80, indicating a bullish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 54.74 is Neutral, neither overbought nor oversold. The STOCH value of 86.13 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $155.11M | 12.93 | 8.01% | ― | -15.07% | -36.06% | |
69 Neutral | $75.13M | 26.39 | 4.18% | 3.66% | 3.46% | -34.80% | |
63 Neutral | $10.60B | 10.34 | 1.36% | 2.89% | 2.35% | -33.38% | |
61 Neutral | $314.06M | 89.60 | 26.22% | ― | 51.43% | ― | |
55 Neutral | $310.10M | ― | -62.70% | ― | 24.23% | 2.59% | |
52 Neutral | $95.74M | ― | -24.43% | ― | -17.27% | -112.62% | |
44 Neutral | $109.80M | ― | 103.25% | 1.27% | -5.28% | 51.91% |
* Basic Materials Sector Average
Performance Comparison
SLSN
Solesence
4.44
2.88
184.62%
CMT
Core Molding Technologies
17.42
-0.85
-4.65%
NTIC
Northern Technologies International
8.41
-4.81
-36.38%
ALTO
Alto Ingredients
1.24
-0.30
-19.48%
TSE
Trinseo
3.16
0.48
17.91%
LWLG
Lightwave Logic
2.48
-1.25
-33.51%
Solesence Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Solésence Expands Loan Agreement for Growth Flexibility
Positive
Jun 2, 2025
On May 27, 2025, Solésence, Inc. amended its existing loan agreements, increasing its borrowing capacity from $14.2 million to $23.0 million and extending the maturity date to April 30, 2027. This expansion provides Solésence with financial flexibility to support strategic objectives such as procurement of raw materials, improving packaging lead times, and empowering brand partners, thereby enhancing its operational capabilities and growth potential.
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.