Turnaround Efforts Deliver 9% Reductions in Sequential Quarterly Expenses Creating Efficient Foundation for Expected Positive Income from Operations in Latter Half of 2026
HALLANDALE BEACH, Fla., May 14, 2026 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat" or the "Company"), a global consumer products and services company providing healthcare and technology solutions through e-commerce and retail channels worldwide, today announced improved operating results for its first quarter ended March 31, 2026 as it continues to execute against its ongoing turnaround efforts.
"We are pleased with the significant progress we have made in successfully refocusing our operations to deliver improved results as demonstrated in the first quarter. These results reflect the continuation of the positive trends established late in 2025 as we executed on our plans to improve the fundamentals of the business and create a sustainable foundation for growth throughout 2026," said David Phipps, Chief Executive Officer and President of NextPlat Corp. "Supported by a dramatically more efficient and effective cost structure, enhanced business development capabilities and a renewed commitment to customer service, we believe we are now positioned to capitalize on multiple opportunities ahead of us to drive more profitable growth in the months ahead and to deliver value to all of our stakeholders."
First Quarter 2026 Financial Highlights:
-- Consolidated revenue for the quarter ended March 31, 2026, was
approximately $9.9 million, compared to approximately $13.9 million for
the prior year period, an overall decrease of 29% which reflects the
expected decline in overall healthcare revenue.
-- First quarter 2026 Healthcare Operations pharmacy prescription
revenue decreased to approximately $4.8 million from approximately
$9.5 million in the prior year period. The year-over-year decrease
was primarily driven by lower reimbursement rates of approximately
$3.0 million and the anticipated contraction in prescription
volume of approximately $1.7 million, reflecting the changes in
payer reimbursement rates and overall payer mix. First quarter
2026 Healthcare Operations pharmacy contract revenue increased to
approximately $1.9 million from approximately $1.4 million in the
prior year period. This increase was attributable to the
medication fulfillment contract services secured late in 2025.
Sequentially, first quarter 2026 pharmacy contract revenue
increased approximately 19% versus the fourth quarter of 2025
driven by continued business development activity and customer
service enhancements focused on contract customers. These results
demonstrate that well-managed pharmacy operations, combined with
strong margin discipline, operational efficiency, and strategic
customer relationships can continue to generate attractive
profitability despite ongoing reimbursement pressures across the
industry.
-- First quarter 2026 e-Commerce revenues increased to approximately
$3.2 million from approximately $3.0 million in the prior year
period primarily due to an increase in airtime sales of
approximately $0.2 million. Through the first five months of 2026,
the Company continued to see strong global demand for
satellite-based connectivity and IoT products highlighted by new
and expanded orders in support of international government and
military customers for Iridium and Globalstar devices.
-- Overall gross margin for the quarter ended March 31, 2026, improved
dramatically to approximately 35%, a quarterly record, up from the prior
year quarter of approximately 21%, and up sequentially from approximately
20% recorded for the full year ended December 31, 2025.
-- Gross margin for Healthcare Operations nearly doubled to
approximately 39% in the first quarter of 2026 compared to
approximately 20% in the first quarter of 2025, and sequentially
up from approximately 18% in the fourth quarter of 2025. The
dramatic increase in gross margin was attributable to the addition
of new contracted medication fulfillment services as well as the
improved drug costing as a result of the Medicare Maximum Fair
Price program which began in January 2026. As a result of
increasing levels of higher margin 340B and medication fulfillment
contracted services revenue, this operating segment's gross margin
is anticipated to remain elevated throughout the remainder of
2026.
-- Gross margin for e-Commerce Operations increased slightly in the
first quarter of 2026 to approximately 25% from 24% when compared
to the first quarter of 2025.
-- Total operating expenses for the quarter ended March 31, 2026, decreased
to approximately $4.5 million from approximately $4.9 million in the
prior year quarter, a reduction of approximately $0.4 million, or 9%.
Overall operating expenses declined significantly due to the Company's
ongoing refocusing and streamlining efforts highlighted by decreases in
salaries and wages resulting from reductions in total headcount and
executive compensation as well as decreases in professional fees.
Management expects that the addition of higher margin contracted
healthcare services revenue combined with reduced levels of operating
expenses throughout 2026 will enable the Company to achieve positive
operating income in the latter half of 2026.
-- Net loss attributable to common stockholders for the quarter ended March
31, 2026 decreased 42% to approximately $1.1 million, or ($0.42) per
diluted share, compared to a net loss attributable to common stockholders
of approximately $1.9 million, or ($0.75) per diluted share for the three
months ended March 31, 2025. Based upon additional higher-margin
contracted healthcare services revenue combined with prudent expense
controls, the Company anticipates significant reduction of losses by the
fourth quarter of 2026.
-- The Company ended the quarter with approximately $11.0 million in cash,
working capital of approximately $14.2 million, and zero unsecured debt
as of March 31, 2026. The Company expects that a portion of the
outstanding receivables contributing to the timing-related decreases in
cash collections during the first quarter of 2026 will be collected
during the second quarter of 2026; however, the timing of such
collections may vary.
Organizational Highlights and Recent Business Developments:
-- In March 2026, NextPlat announced its latest healthcare growth initiative
through a nationwide fulfillment partnership which is expected to
significantly expand the Company's addressable market beyond Florida
where the Company's healthcare operations segment generated nearly $40
million in annual revenue last year. In addition to supporting NextPlat's
current healthcare clients with multi-state operations, the new
nationwide fulfillment capabilities will support the launch of the
Company's new healthcare e-commerce site. The new site will feature an
array of popular prescription medications and Over-the-Counter (OTC)
products including its Florida Sunshine brand of premium vitamins and
supplements and is expected to go live before the end of the second
quarter of 2026.
-- The Company continues to invest in its Healthcare Operations business
development and customer service improvement efforts to drive growth
initiatives across both pharmacy contracted services and long-term care
customers. At the end of the first quarter, the Company contracted five
new 340B entities, a single quarter record. These new 340B entities are
expected to commence activities in July 2026.
-- In the first quarter, the Company's e-commerce sales and distribution
platforms for satellite connectivity and communications continued to see
strong demand for products from leading providers including Globalstar
and Iridium, with significant new orders received from European
government and military customers. This demand was highlighted by the
Company's Global Telesat Communications Ltd (GTC) subsidiary being
awarded a contract from a U.K. government prime supplier for
satellite-enabled Internet of Things (IoT) hardware in support of a NATO
military customer valued at approximately $820,000. By the end of the
first quarter of 2026, GTC generated a government and military sales
pipeline valued at over $1.2 million with significant new sales secured
in April and May expected to contribute to additional pipeline growth in
the second quarter of 2026.
First Quarter 2026 Conference Call Notification
NextPlat's Chief Executive Officer and President, David Phipps, its Chief Financial Officer, Amanda Ferrio, and Vice President of Healthcare Operations, Birute Norkute, will host a conference call today, May 14(th) at 8:30 a.m. Eastern time to discuss the results for the quarter ended March 31, 2026, as well as other recent developments.
To access the call, please use the following information:
Date: Thursday, May 14, 2026 Time: 8:30 a.m. Eastern time Toll-free dial-in number: 1-800-836-8184 International dial-in number: 1-646-357-8785 Conference webcast link: https://app.webinar.net/aK21yzvyep9
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
The conference call will be broadcast live and available for replay at https://app.webinar.net/aK21yzvyep9 and via the investor relations section of the Company's website at https://ir.nextplat.com/news-events/ir-calendar/detail/20260514-q1-2026-results-conference-call. A replay of the conference call will be available after 12:00 p.m. Eastern time through May 21, 2026.
Toll-free replay number: 1-888-660-6345 International replay number: 1-646-517-4150 Replay entry code: 39044#
The financial information included in this press release should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, to be filed with the Securities and Exchange Commission.
About NextPlat Corp
NextPlat is a global consumer products and services company providing healthcare and technology solutions through e-Commerce and retail channels worldwide. Through acquisitions, joint ventures and collaborations, the Company seeks to assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-Commerce presence and revenue. NextPlat currently operates an e-Commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in the United States through its subsidiary, Progressive Care.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch additional e-commerce capabilities for consumer and healthcare products and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Media and Investor Contact for NextPlat Corp:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
NEXTPLAT CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
--------------------------------
2026 2025
----------------- -------------
Revenue, net $ 9,855 $ 13,926
Cost of revenue 6,443 11,062
Gross profit 3,412 2,864
------------- ------------
Operating expenses:
Selling, general and administrative 2,006 2,037
Salaries, wages and payroll taxes 2,419 2,715
Depreciation and amortization 65 170
Intangible asset amortization 25 26
------------- ------------
Total operating expenses 4,515 4,948
------------- ------------
Operating loss (1,103) (2,084)
Non-operating expense (income) 29 (151)
------------- ------------
Loss before income taxes (1,132) (1,933)
Income taxes -- (9)
------------- ------------
Net loss (1,132) (1,942)
Net loss attributable to non-controlling
interest 14 --
------------- ------------
Net loss attributable to common
stockholders $ (1,118) $ (1,942)
============= ============
Comprehensive loss:
Net loss $ (1,132) $ (1,942)
Foreign currency gain (loss) 23 (11)
------------- ------------
Comprehensive loss $ (1,109) $ (1,953)
============= ============
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ (1,118) $ (1,942)
------------- ------------
Weighted number of common shares
outstanding -- basic and diluted 2,693 2,596
============= ============
Basic and diluted loss per share $ (0.42) $ (0.75)
============= ============
NEXTPLAT CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and par value data)
March 31, 2026 December 31, 2025
(Unaudited) (Audited)
---------------- -------------------
ASSETS
Current Assets
Cash $ 11,008 $ 13,709
Receivables, net of allowances of $46
and $40 as of March 31, 2026 and
December 31, 2025, respectively 7,226 5,944
Inventory, net of inventory reserves of
$419 and $418 as of March 31, 2026 and
December 31, 2025, respectively 3,968 3,396
Other current assets 1,054 1,107
Total Current Assets 23,256 24,156
Property and equipment, net of
accumulated depreciation of $1,428 and
$3,527 as of March 31, 2026 and
December 31, 2025, respectively 2,438 2,505
Operating right-of-use assets, net 634 189
Other noncurrent assets 590 615
------------ ---------------
Total Assets $ 26,918 $ 27,465
============ ===============
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses $ 8,348 $ 8,265
Notes payable 305 416
Operating lease liabilities 231 158
Other current liabilities 204 287
Total Current Liabilities 9,088 9,126
------------ ---------------
Long Term Liabilities:
Notes payable, net of current portion 846 876
Operating lease liabilities, net of
current portion 410 41
Total Liabilities 10,344 10,043
------------ ---------------
Commitments and Contingencies -- --
Equity
Preferred stock ($0.0001 par value;
3,333,333 shares authorized; no shares
issued or outstanding) -- --
Common stock ($0.0001 par value;
50,000,000 shares authorized,
2,702,622 and 2,676,788 shares issued
and outstanding as of March 31, 2026
and December 31, 2025, respectively) 3 3
Additional paid-in capital 77,847 77,586
Accumulated deficit (61,181) (60,063)
Accumulated other comprehensive loss (95) (118)
Treasury stock (at cost; 13,054 shares
as of March 31, 2026 and December 31,
2025, respectively) (100) (100)
------------ ---------------
Equity attributable to common
stockholders 16,474 17,308
Equity attributable to non-controlling
interests 100 114
------------ ---------------
Total Equity 16,574 17,422
------------ ---------------
Total Liabilities and Equity $ 26,918 $ 27,465
============ ===============
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SOURCE NextPlat Corp.
(END) Dow Jones Newswires
May 14, 2026 08:01 ET (12:01 GMT)
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