NextPlat Q1 Earnings Call Highlights

NextPlat (NASDAQ:NXPL) reported lower first-quarter revenue but sharply improved margins and a reduced operating loss, as executives said the company’s turnaround efforts are beginning to show measurable results across its healthcare and e-commerce businesses.

Chief Executive Officer David Phipps said the company has largely completed its restructuring and is now focused on scaling the business, particularly in healthcare. He also noted that NextPlat regained compliance with Nasdaq’s minimum bid price requirement after completing a reverse stock split in April, a move he said was required to maintain the company’s listing.

“With that behind us, instead of looking back, we are now 100% focused on delivering on the promise we see of a bright future for our company,” Phipps said.

Revenue Declines, But Margins Improve

Chief Financial Officer Amanda Ferrio said total net revenue for the first quarter of 2026 was approximately $10 million, compared with approximately $14 million in the prior-year period and approximately $13 million in the fourth quarter of 2025.

Despite the revenue decline, profitability metrics improved. Consolidated gross profit rose to approximately $3.4 million, compared with approximately $2.9 million a year earlier and approximately $2.4 million in the fourth quarter. Gross margin increased to approximately 35%, up from approximately 21% in the first quarter of 2025 and approximately 18% in the fourth quarter of 2025.

Ferrio said the improvement reflected a shift toward higher-quality revenue, better pharmacy economics and tighter cost controls. Operating expenses fell to approximately $4.5 million from approximately $4.9 million in the prior-year period and $5.3 million in the fourth quarter. Salaries and wages declined to approximately $2.4 million from approximately $2.7 million a year earlier.

As a result, the company’s operating loss narrowed to approximately $1.1 million, compared with approximately $2.1 million in the prior-year period and approximately $2.8 million in the fourth quarter.

Healthcare Segment Turns Positive

NextPlat’s healthcare operations generated approximately $7 million in first-quarter revenue, down from approximately $10 million in the fourth quarter. The segment accounted for about 68% of total revenue during the quarter, according to Phipps.

Ferrio said healthcare operations generated positive segment operating income of approximately $24,000, compared with a segment operating loss of approximately $1.2 million in the fourth quarter and approximately $0.9 million in the prior-year period. She described the result as a “major milestone” in the repositioning of the healthcare business.

Birute Norkute, vice president of healthcare operations, said gross margin within the pharmacy business improved to 39%, compared with approximately 20% in the prior-year period. She attributed the increase to payer and product mix optimization, stronger gross profit per retail prescription and contributions from higher-margin 340B relationships and contracted medication fulfillment services.

Norkute also said the Medicare Maximum Fair Price program, implemented federally on Jan. 1, 2026, favorably affected margins on certain therapies that had previously generated lower profitability.

Phipps said NextPlat secured new 340B pharmacy service agreements with five new entities during the quarter, which he described as a single-quarter record. Those entities are in the onboarding process, which typically takes about 90 days, and are expected to begin contributing revenue during the third quarter.

The company also filled an average of 7,500 prescriptions per month for contracted facilities in Florida, with service fees from those fulfillments contributing to bottom-line improvement, Phipps said.

Expansion Plans Include National Fulfillment and E-Commerce Healthcare Site

Executives said NextPlat is preparing to expand its healthcare business beyond Florida through a newly created nationwide fulfillment partnership. Norkute said the operational rollout and supporting infrastructure remain in development, but the relationship is expected to support broader prescription access, cash-pay opportunities, e-commerce initiatives and future offerings in high-demand therapeutic categories, including GLP-1 therapies.

Phipps said the company is also preparing to launch a new online healthcare e-commerce website before the end of the second quarter. The site is expected to feature prescription medications such as GLP-1s, as well as over-the-counter products, including the company’s Florida Sunshine brand vitamins and supplements.

In response to a shareholder question, Phipps said the company continues to see opportunities in retail pharmacy, particularly in less dense or rural areas where large retail chains have less presence.

E-Commerce Remains Steady

NextPlat’s e-commerce revenue was approximately $3.2 million in the first quarter, compared with approximately $3 million in the prior-year period. Ferrio said the segment moderated sequentially from the seasonally stronger fourth quarter but continued to benefit from demand in satellite communications, recurring airtime services and global e-commerce channels.

Phipps said the company generated sales from customers in more than 130 countries during the quarter. He also pointed to European government and military orders and multi-year contracts as contributors to a stronger business pipeline. Demand for satellite-enabled Internet of Things products from partners including Iridium and Globalstar helped drive IoT sales and recurring revenue to record highs, he said.

Balance Sheet and Outlook

Ferrio said NextPlat ended the quarter with approximately $11 million in cash and working capital of approximately $14 million. She said the company has no meaningful debt and maintains a conservative balance sheet.

The company also established an at-the-market equity program with H.C. Wainwright after quarter-end. Ferrio said the program is intended to provide financial flexibility for potential growth initiatives, including possible joint ventures or acquisitions, but that the company currently has no specific plans for its use. Phipps added during the Q&A portion that the company would not consider accessing the program “at these current levels.”

Management said its priorities for the rest of 2026 include expanding contract-based healthcare and fulfillment services, sustaining gross margins, improving operating leverage, maintaining expense discipline, improving cash flow performance and positioning the company for sustained profitability.

Phipps said the company believes it has created a path toward operational profitability in the second half of 2026. He added that NextPlat continues to work with counsel and its insurance company to resolve a remaining legal matter, but said there was no specific update to provide.

About NextPlat (NASDAQ:NXPL)

NextPlat Corp operates as a healthcare and e-commerce company in Europe, North America, South America, the Asia and Pacific, and Africa. The company operates full-service retail specialty services pharmacies that provides prescription pharmaceuticals prescription pharmaceuticals, third-party administration, risk and data management services, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, contracted pharmacy services, and health practice risk management to healthcare organizations and providers, as well as supplies prescription medications to long-term care facilities.