Solesence (SLSN)
NASDAQ:SLSN
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Solesence
(NASDAQ:SLSN)
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Rating:51Neutral
Price Target:
$1.50
▼(-30.88% Downside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weak cash flow (negative free cash flow and volatile operating cash) and reduced profitability versus 2024 despite balance sheet stabilization. Technicals are neutral with modest near-term improvement but a weak longer-term trend, while valuation is hard to support with a negative P/E and no dividend. The earnings call adds some support via reiterated margin/EBITDA targets, improving gross margin, and a sizable order book, but near-term performance and execution risks remain meaningful.
Positive Factors
Proprietary product launches
Two new proprietary technologies (Chromalum, WHSPR) broaden Solesence's product set into SPF-infused hybrids and hair/scalp adjacencies. These offerings strengthen technical differentiation, support deeper B2B customer integrations, and can create durable pricing and share gains across cosmetics verticals.
Negative Factors
Weak cash generation
Very weak and volatile cash generation (near-zero operating cash, materially negative FCF) limits Solesence's ability to self-fund investment, absorb shocks, or accelerate growth without external capital. Persistent FCF deficits raise refinancing and liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary product launches
Two new proprietary technologies (Chromalum, WHSPR) broaden Solesence's product set into SPF-infused hybrids and hair/scalp adjacencies. These offerings strengthen technical differentiation, support deeper B2B customer integrations, and can create durable pricing and share gains across cosmetics verticals.
Read all positive factors
Solesence (SLSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$96.06M
Dividend YieldN/A
Average Volume (3M)50.43K
Price to Earnings (P/E)―
Beta (1Y)1.59
Revenue Growth5.76%
EPS Growth-73.80%
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 Cap1.23
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit7.36
Enterprise Value/Ebitda65.68
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:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 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 | 2.47M | 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
1.15
Positive
1.28
Positive
2.16
Negative
Market Momentum
0.02
Positive
54.92
Neutral
31.19
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 1.30, above the 50-day MA of 1.15, and above the 200-day MA of 2.16, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.19 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% | |
55 Neutral | $557.02M | -1.83 | -94.52% | ― | -5.93% | -823.81% | |
54 Neutral | $283.54M | 47.78 | 6.84% | 2.39% | -14.17% | ― | |
51 Neutral | $96.06M | -21.87 | 10.50% | ― | 5.76% | -73.80% | |
47 Neutral | $780.62M | -23.40 | -5.14% | 3.51% | -5.30% | -196.78% | |
45 Neutral | $87.80M | -4.31 | -9.41% | ― | -8.16% | 85.14% |
* Consumer Defensive Sector Average
SLSN
Solesence
1.36
-2.51
-64.86%
HELE
Helen Of Troy
23.95
-4.09
-14.57%
NUS
Nu Skin
5.84
-1.30
-18.20%
EPC
Edgewell Personal Care
16.94
-9.43
-35.76%
SKIN
Beauty Health
0.68
-1.05
-60.87%
Solesence Corporate Events
Business Operations and StrategyExecutive/Board Changes
Solesence appoints Marc James to strengthen board governance
Positive
Apr 29, 2026
On April 24, 2026, Solésence, Inc. appointed Marc James as a Class II independent director to its Board of Directors, with his term running through the 2026 annual meeting of shareholders. Effective immediately and announced on April 27, 2026...
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.