- NextPlat Corp (NXPL, Financial) reports Q1 2025 revenue of $14.5M, a decrease from $17.5M in Q1 2024.
- Operating expenses decreased 26.2% to $4.9M, and net loss improved by 9% to $1.3M.
- U.S.-China tariff concerns impact e-Commerce plans, potentially affecting future financial strategies.
NextPlat Corp (NXPL) reported its financial results for the first quarter of 2025, revealing a notable decline in revenue to $14.5 million, down from $17.5 million in the same quarter of the previous year. This 17.1% year-over-year decline is primarily attributed to challenges within the Healthcare Operations segment, including changes in 340B pharmacy service agreements and a reduction in prescription volume.
The company's gross profit margin fell to 23.8% from 27.8% year-on-year, with the e-Commerce Operations margin decreasing from 28.1% to 24.1%. Despite a 51% increase in recurring airtime revenue, gains were offset by decreased hardware sales and losses in the healthcare segment.
On a positive note, operating expenses reduced significantly by 26.2% to $4.9 million, which contributed to an improvement in the net loss position to $1.3 million, or ($0.05) per share, compared to a net loss of $1.5 million, or ($0.08) per share, in Q1 2024. The company maintains strong liquidity with a cash position of $17.7 million.
However, recent escalations in U.S.-China tariffs have led NextPlat to pause its e-Commerce development program for U.S.-produced products, potentially affecting the company's aim to achieve operational cash neutrality by 2026. Despite these setbacks, NextPlat continues to pursue strategic initiatives, including expanding its 340B pharmacy services and exploring joint ventures to diversify its revenue streams and improve operational efficiency.
