Solesence (SLSN)
NASDAQ:SLSN
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Solesence
(NASDAQ:SLSN)
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Rating:48Neutral
Price Target:
$1.50
▼(-30.88% Downside)
Action:ReiteratedDate:04/04/26
The score is weighed down primarily by weak cash-flow quality and inconsistent profitability (2025 margin compression despite profitability), with additional pressure from a weak longer-term technical setup and a high P/E. Earnings-call guidance and operational initiatives provide some offset, but execution risk and near-term headwinds keep the overall score below average.
Positive Factors
Revenue Growth
Sustained top-line expansion to a $62.1M record in 2025 demonstrates commercial traction and successful customer acquisitions. Durable revenue scale supports investment in R&D and manufacturing leverage, improving the firm’s ability to convert new product wins into repeat B2B sales over the medium term.
Negative Factors
Weak Cash Generation
Persistent negative operating and free cash flow creates structural funding risk: the business cannot reliably self-fund growth or absorbe setbacks. Chronic cash conversion weakness raises probability of external financing, constrains strategic optionality, and magnifies execution risk over the coming 2–6 months and beyond.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line expansion to a $62.1M record in 2025 demonstrates commercial traction and successful customer acquisitions. Durable revenue scale supports investment in R&D and manufacturing leverage, improving the firm’s ability to convert new product wins into repeat B2B sales over the medium term.
Read all positive factors
Solesence (SLSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.87M
Dividend YieldN/A
Average Volume (3M)50.43K
Price to Earnings (P/E)62.9
Beta (1Y)1.75
Revenue Growth30.04%
EPS Growth-53.50%
CountryUS
Employees98
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-1.10
Price to Book (P/B)6.38
Price to Sales (P/S)1.81
P/FCF Ratio-10.51
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue1.67
Enterprise Value/Gross Profit6.47
Enterprise Value/Ebitda28.15
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 (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 enha...
How the Company Makes Money
Solesence makes money primarily by selling its formulated ingredients and specialty chemical products to business customers (B2B), including personal care and cosmetics brands and their contract manufacturers. Revenue is generated from product sal...
Solesence Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong commercial momentum with record revenue (+18.6%), expanded IP (patents +20%) and operational consolidation enabling future scale, but meaningful short-term profitability and operational execution issues constrained gross profit and adjusted EBITDA (~6.8%). Management has a clear corrective plan (Transform and Transcend) with concrete margin and EBITDA targets, yet near-term headwinds (inventory/yield losses, customer sell-through weakness, restructuring costs) temper the outlook.Positive Updates
Record Full-Year Revenue Growth
Revenue reached a record $62.1M in 2025, up 18.6% from $51.9M in 2024, driven by a large-scale launch and 20 new brand partners.
Negative Updates
Full-Year Gross Profit Essentially Flat
Full-year gross profit was $16.1M in 2025 versus $16.2M in 2024 (down ~0.6%), indicating revenue growth did not translate into higher gross profit dollars.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue Growth
Revenue reached a record $62.1M in 2025, up 18.6% from $51.9M in 2024, driven by a large-scale launch and 20 new brand partners.
Read all positive updates
Company Guidance
Solesence's 2026 guidance establishes a 30% gross‑margin floor and targets at least a 5‑percentage‑point increase in gross profit margin by year‑end versus 2025, with EBITDA expected to return to double digits (after 2025 adjusted EBITDA of $4.2 million, under 7% of revenue); management also expects to realize 6‑figure annual savings from facility consolidation and to increase free cash flow by reducing safety stock. For context, 2025 was a record year with $62.1 million revenue (+18.6% vs. $51.9M in 2024), full‑year gross profit of $16.1M (vs. $16.2M), Q4 revenue of $12.5M and Q4 gross profit of $3.4M (27% margin) with Q4 operating expenses of $3.2M and Q4 net income of $0.163M (vs. a $0.558M loss prior year). The company begins 2026 with just under $33M of ship‑in open orders (down from $38M a year ago), capacity to support over $200M in revenue without further major investment, a patent portfolio of more than 120 patents (+20%), plans to expand new product categories starting late Q2/early Q3 2026, and an expected international margin improvement of 10%+ beginning in 2027, while noting Q1 may be pressured by Transform and Transcend investments and weak sell‑through at one large mass‑market customer.Solesence Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
62
Positive
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 62.06M | 52.35M | 37.30M | 37.32M | 29.48M |
| Gross Profit | 16.06M | 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
2.17
Price Trends
1.18
Positive
1.51
Negative
2.57
Negative
Market Momentum
0.03
Negative
59.93
Neutral
74.35
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 2.17 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.18, and below the 200-day MA of 2.57, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 74.35 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $316.86M | 17.43 | 15.38% | ― | -5.47% | 13.42% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $367.21M | 2.96 | 20.36% | 2.39% | -12.10% | ― | |
52 Neutral | $1.04B | -3.02 | -2.50% | 3.51% | -1.34% | -73.59% | |
48 Neutral | $80.87M | 62.88 | 10.50% | ― | 30.04% | -53.50% | |
46 Neutral | $391.76M | -1.34 | -67.60% | ― | -5.64% | -577.74% | |
45 Neutral | $117.74M | -18.49 | -15.42% | ― | -13.14% | 57.98% |
* Consumer Defensive Sector Average
SLSN
Solesence
1.15
-0.53
-31.85%
HELE
Helen Of Troy
16.98
-18.21
-51.75%
NUS
Nu Skin
7.63
1.71
28.89%
EPC
Edgewell Personal Care
22.34
-6.25
-21.86%
SKIN
Beauty Health
0.92
-0.08
-7.90%
EWCZ
European Wax Center
5.81
2.16
59.18%
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.