NextPlat Corp reported third‑quarter 2025 results that showed a 11% decline in revenue to $13.8 million, a net loss of $2.2 million, and a contraction in gross‑profit margin to 19.9% from 23.2% a year earlier. The company’s operating loss narrowed from a $4.2 million loss in Q3 2024, reflecting stronger cost discipline and a lower impact from one‑time charges.
Revenue fell largely because the company’s Healthcare Operations segment—its largest source of income—generated $10.1 million, down from $11.4 million in the same quarter last year. The decline was driven by a drop in 340B contract revenue, while the e‑commerce segment produced $3.7 million, a modest increase that was offset by higher airtime costs. The combined effect produced the overall revenue decline.
Operating expenses dropped to $4.7 million, a 40% reduction from $7.8 million in Q3 2024 when non‑recurring items are excluded. The company eliminated a $3.7 million impairment charge that had been recorded in the prior year and reduced stock‑based compensation and workforce costs. These measures contributed to the narrowing of the net loss and the compression of margins.
The gross‑profit margin contraction reflects the loss of high‑margin 340B revenue and the rise in airtime costs, which eroded the company’s ability to maintain the 23.2% margin seen in Q3 2024. While the company’s cost‑cutting initiatives improved operating efficiency, the mix shift toward lower‑margin services and higher input costs outweighed those gains.
Management indicated that sequential improvement is expected in Q4 2025 and into 2026, with a target of operational break‑even in the second half of 2026. The guidance signals confidence that the cost‑control program will continue to pay off, even as the company navigates the current headwinds in its healthcare segment.
Additional context for the quarter includes a $250,000 loss from a litigation settlement, the launch of a share‑repurchase program, a cash balance of $13.9 million at quarter‑end, and the announcement of an AI upgrade to the ClearMetrX platform, slated for commercial availability in 2026.
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