Education
About Us
Working with TipRanks
Follow Us
Synergy CHC (SNYR)
NASDAQ:SNYR
Top Page
Synergy CHC
(NASDAQ:SNYR)
Select Model
Select Model
Rating:50Neutral
Price Target:
$2.00
▲(22.70% Upside)
Action:ReiteratedDate:01/13/26
The score is held back primarily by balance sheet stress (negative equity) and negative recent cash generation, which elevate financing risk despite improved profitability. Technical indicators also point to weak momentum below major moving averages. These are partially offset by a low P/E valuation and an earnings call that showed revenue growth and margin improvement but weaker net income/EPS and higher operating cash usage.
Positive Factors
Sustained profitability
Eleven consecutive quarters of profitability indicate consistent operational execution and cost control across cycles. This persistent earnings track record supports long-term viability, aids stakeholder confidence, and reduces reliance on emergency financing over the next several quarters.
High gross margins
Sustained gross margins near 68%–75% reflect durable product-level economics and pricing power from supplement/beverage SKUs. High margins provide a structural buffer to absorb SG&A investments and support operating profitability as the company scales distribution.
Meaningful retail distribution expansion
Securing national retail and distributor placements in Canada is a structural growth catalyst: it validates product-market fit, broadens retail footprint, and should support multi-quarter revenue visibility as sell-through and reorders build across large channels.
Negative Factors
Negative shareholders' equity
Negative equity is a persistent solvency concern that reduces financial flexibility and raises refinancing and covenant risk. Even with current profitability, impaired equity limits access to cheaper capital and increases the likelihood of dilutive or costly financing needs over coming quarters.
Weak operating cash generation
Negative operating and free cash flow over recent periods indicates the business consumes cash to run and grow. That trend elevates dependence on external financing or equity raises, constraining sustainable inventory builds, marketing, and distribution investments without further capital.
Net income/EPS decline amid rising expenses
Declining net income and EPS alongside higher operating costs (beverage launch, public company expenses) show profitability is sensitive to SG&A growth. If opex continues rising as distribution and retail rollouts scale, net margins and cash conversion could remain pressured over the medium term.
Synergy CHC (SNYR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.75M
Dividend YieldN/A
Average Volume (3M)136.07K
Price to Earnings (P/E)4.8
Beta (1Y)1.29
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees21
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)0.01
Shares Outstanding11,251,853
10 Day Avg. Volume89,526
30 Day Avg. Volume136,069
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)-2.01
Price to Sales (P/S)0.96
P/FCF Ratio-6.95
Enterprise Value/Market Cap2.32
Enterprise Value/Revenue1.06
Enterprise Value/Gross Profit1.49
Enterprise Value/Ebitda4.16
Forecast
1Y Price Target
$5.00Price Target Upside206.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.31
Revenue Forecast (FY)$49.48M
Synergy CHC Business Overview & Revenue Model
Company DescriptionSynergy CHC Corp. provides consumer health care, beauty, and lifestyle products in the United States, Canada, and the United Kingdom. It offers brain health nutritional supplements under the FOCUSfactor brand name; lifestyle products and accessories, including tea, shakes, lollipops, supplements, apparel, and exercise accessories under the Flat Tummy brand name; anti-aging skincare products, such as serums and creams for exfoliating, skin repair, and rehydration, as well as hand soaps and hand sanitizers under the Hand MD brand name. The company sells its products through retailers and television advertising campaigns, as well as skincare products through online. The company was formerly known as Synergy Strips Corp. and changed its name to Synergy CHC Corp. in August 2015. Synergy CHC Corp. was incorporated in 2010 and is based in Westbrook, Maine.
How the Company Makes MoneySynergy CHC generates revenue primarily through the sale of its health and wellness products. The company markets and distributes these products through various retail channels, including online platforms and brick-and-mortar stores. Key revenue streams include direct sales to consumers and partnerships with retailers who stock and sell Synergy CHC's product lines. The company's earnings are significantly influenced by their marketing strategies, product innovation, and ability to establish strong brand recognition in the competitive consumer health care market.
Synergy CHC Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 06, 2026
Earnings Call Sentiment Neutral
The earnings call revealed a strong operational performance with continued profitability, revenue growth, and strategic expansions in beverage and supplement markets. However, there were notable declines in net income and earnings per share, along with increased operating expenses.Q3-2025 Updates
Positive Updates
11th Consecutive Quarter of Profitability
Synergy reported its 11th consecutive quarter of profitability, showcasing continued operational discipline and focused execution.
Revenue Growth and Expansion
Net revenue increased by 12.4% year-over-year, reaching $8 million compared to $7.1 million in the previous year. The company also expanded its retail footprint significantly.
Gross Margin Improvement
Gross margin increased to 70.9% from 67.2% in the same quarter last year, driven by a favorable shift in product mix.
Strategic Leadership Additions
New leadership additions, including Teresa Thompson and Bob Anderson, aim to support expanding operations and optimize distribution.
Functional Beverage and Supplement Expansion
Secured major distribution wins for functional beverages and expanded the FOCUSfactor supplement brand both domestically and internationally.
Equity Capital Raised
Raised $4.4 million of equity capital to support retail rollouts, inventory buildup, and marketing initiatives.
Negative Updates
Net Income Decline
Net income for the third quarter was $125,300, a significant decrease from $783,600 in the year-ago quarter.
Earnings Per Share Decrease
Earnings per share for the third quarter fell to $0.01 per diluted share from $0.11 per diluted share in the previous year.
Increased Operating Expenses
Operating expenses rose to $4.4 million from $3.7 million in the year-ago quarter, mainly due to incremental costs of being a public company and launching the beverage division.
Cash Used in Operating Activities
Cash used in operating activities increased to $3.21 million for the nine months ended September 30, 2025, compared to $1.38 million in the same period in 2024.
Company Guidance
During the recent conference call, Synergy CHC Corporation provided financial guidance for the third quarter of fiscal year 2025, highlighting several key metrics and strategic moves. The company reported a net revenue of $8 million, representing a 12.4% year-over-year increase. Gross margin improved to 70.9% from 67.2% in the prior year, driven by a favorable product mix shift. Operating expenses rose to $4.4 million, primarily due to costs associated with launching the beverage division and public company expenses. Income from operations increased by 21.8% to $1.28 million, while net income dropped to $125,300 from $783,600 due to higher expenses. Earnings per share were $0.01, down from $0.11 in the previous year. Adjusted EBITDA rose by 13.4% to $1.52 million, with a working capital surplus of $16.68 million as of September 30, 2025. Synergy also reported a beverage revenue of $159,000 and emphasized strategic expansions in distribution partnerships and leadership additions to support growth across its beverage and supplement divisions.Synergy CHC Financial Statement Overview
Summary
Income statement profitability has improved (return to positive earnings with strong gross margin and solid TTM operating margin), but this is outweighed by a highly stressed balance sheet (negative equity and sizable debt) and weak/negative recent operating and free cash flow, which increases funding and solvency risk.Income Statement
Profitability has rebounded meaningfully from 2022’s deep loss to positive earnings in 2023, 2024, and TTM (Trailing-Twelve-Months), with strong gross margins (about 68%–75% recently) and solid operating profitability in TTM (about 25% operating margin). However, revenue momentum is inconsistent: revenue fell in 2024 versus 2023 and is only modestly higher in TTM (Trailing-Twelve-Months) versus 2024, and net margins have compressed versus 2023 levels (TTM roughly mid-single digits).68
Positive
Balance Sheet
The balance sheet is the primary weakness: stockholders’ equity is negative across all periods shown, and total debt remains sizable (roughly $25M in TTM (Trailing-Twelve-Months)) relative to the company’s asset base. While total assets have increased versus 2023, negative equity limits financial flexibility and raises refinancing and solvency risk even with the return to profitability.22
Negative
Cash Flow
Cash generation is unstable and currently weak: operating cash flow and free cash flow are negative in 2024 and TTM (Trailing-Twelve-Months), after only a small positive level in 2023. The improvement in free cash flow growth in TTM (Trailing-Twelve-Months) is off a negative base and still leaves the company consuming cash, which adds funding pressure given the leveraged/negative-equity balance sheet.28
Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2020 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.59M | 34.83M | 42.78M | 38.41M | 40.23M | 29.36M |
| Gross Profit | 24.55M | 23.64M | 32.08M | 12.96M | 25.55M | 20.22M |
| EBITDA | 8.78M | 6.47M | 10.84M | -25.81M | 2.81M | -6.88M |
| Net Income | 2.58M | 2.12M | 6.34M | -32.63M | 1.41M | -9.21M |
Balance Sheet | ||||||
| Total Assets | 20.69M | 16.34M | 12.24M | 18.54M | 12.59M | 5.19M |
| Cash, Cash Equivalents and Short-Term Investments | 1.11M | 687.92K | 632.53K | 1.93M | 1.67M | 1.22M |
| Total Debt | 25.11M | 27.52M | 27.62M | 22.83M | 8.75M | 5.71M |
| Total Liabilities | 28.94M | 32.97M | 39.55M | 52.06M | 16.27M | 10.39M |
| Stockholders Equity | -8.25M | -16.63M | -27.31M | -33.52M | -3.68M | -5.20M |
Cash Flow | ||||||
| Free Cash Flow | -6.64M | -4.80M | 421.73K | -8.43M | -1.59M | 2.95M |
| Operating Cash Flow | -6.64M | -4.80M | 421.73K | -8.43M | -1.59M | 2.95M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 7.42M | 4.80M | -2.09M | 8.96M | 1.95M | -2.05M |
Synergy CHC Technical Analysis
Negative
1.63
Price Trends
1.76
Negative
1.97
Negative
2.35
Negative
Market Momentum
-0.13
Positive
36.08
Neutral
8.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNYR, the sentiment is Negative. The current price of 1.63 is above the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.76, and below the 200-day MA of 2.35, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.08 is Neutral, neither overbought nor oversold. The STOCH value of 8.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNYR.
Synergy CHC Peers Comparison
UnderperformOutperform
Sector (51)
SNYR
Synergy CHC
1.39
-2.14
-60.62%
RDGT
Ridgetech
1.65
0.13
8.55%
GEG
Great Elm Group
2.04
0.22
12.09%
WGRX
Wellgistics Health Inc
0.23
-2.47
-91.41%
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.