NextPlat Corp announced that it has secured two new 340B contracts that are expected to add more than 12,000 prescriptions in the next quarter, a move that will lift revenue and improve gross margins in its healthcare segment.
The company’s Q3 2025 results showed a revenue of $13.8 million, an 11% year‑over‑year decline, and a net loss of $2.2 million. Gross profit margin fell to 19.9% from 23.2% in the prior quarter. The new contracts are intended to reverse that trend by generating higher‑margin recurring prescription volume.
The contracts, which were signed earlier in 2025, are projected to produce a 75% sequential quarterly increase in 340B contract revenue compared with Q3. The additional 12,000 prescriptions will benefit from higher reimbursement rates and lower cost of goods sold, directly supporting margin expansion.
CEO David Phipps said the company’s cost‑cutting and customer re‑engagement initiatives are already delivering results, and the new contracts will accelerate the turnaround. Chairman Rodney Barreto highlighted the progress made by the expanded leadership team and the company’s growing traction in the 340B market.
Financially, the contracts are expected to reduce operating losses in 2025 and help the company achieve breakeven in its healthcare segment by 2026, supporting a cash‑neutral operating target for that year. The higher‑margin recurring revenue is a key component of NextPlat’s broader strategy to shift away from its traditional retail pharmacy model.
Investors reacted positively to the announcement, citing the expected sequential growth in 340B revenue and the company’s demonstrated cost‑control success as evidence of a strengthening financial position.
The contracts reinforce NextPlat’s pivot toward higher‑margin pharmacy services, but the company still faces risks such as a Nasdaq listing compliance letter and tariff impacts on its e‑commerce operations.
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