Monitor gross margin sustainability and 2026 guidance on the earnings call, as improved margins and operational execution are positive signs despite declining net income. The stock may focus on the return to quarterly profitability and strategic initiatives rather than absolute earnings decline.
Price Chart
Executive Summary
Solsence reported full-year 2025 record revenue of $62.1 million, up 19% YoY, but net income declined 57% to $1.8 million. Q4 revenue was flat YoY at $12.5 million, though gross margin improved to 27% from 22% and the company returned to profitability with $0.2M net income versus a $0.6M loss. The stock may react positively to margin expansion and operational improvements despite declining profitability on higher sales.
Key Financial Metrics
Key Facts
- Full-year 2025 revenue: $62.1 million (19% YoY growth)
- Full-year net income: $1.8 million (down 57% from $4.2 million in 2024)
- Q4 revenue: $12.5 million (flat YoY vs $12.6 million)
- Q4 gross margin improved to 27% from 22% in prior year
- Q4 net income: $0.2 million vs net loss of $0.6 million in Q4 2024
- Company launched 'Transform & Transcend' strategic initiative focused on operational excellence and market expansion
Financial Impact
Revenue up 19% annually but profitability sharply lower; Q4 margins improved and company returned to profitability after prior-year loss
Risk Factors
- Declining net income despite revenue growth suggests cost pressures or one-time benefits in prior year
- Gross profit for full year 2025 ($16.1M) was nearly flat vs 2024 ($16.2M), limiting scalability
- Company faces customer concentration risk with dependence on limited key customers
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001171843-26-002061 |
| Document: f8k_033126.htm | 0001171843-26-002061 |
| Document: 0001171843-26-002061-index-headers.html | 0001171843-26-002061 |
| Document: 0001171843-26-002061-index.html | 0001171843-26-002061 |
| Document: 0001171843-26-002061.txt | 0001171843-26-002061 |
| 8-K Data (Synthetic) | 0001171843-26-002061 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 21d ago | 8-K | $0.8000 | awaiting T+20 | — | $0.7700 (−3.75%) |
Aug 21, 2026 9w ago | 8-K | $0.9500 $0.8141 | ▲ +14.31% | ▲ +13.78% | $0.7700 (+18.95%) |
Aug 20, 2026 9w ago | 8-K | $0.9907 $0.8036 | ▲ +18.89% | ▲ +18.89% | $0.7700 (+22.28%) |
Aug 19, 2026 9w ago | Press Release | $0.9907 $0.8036 | ▲ +18.89% | ▲ +18.89% | $0.7700 (+22.28%) |
Aug 10, 2026 11w ago | Press Release | $1.02 | awaiting T+20 | — | $0.7700 (−24.51%) |
Jul 28, 2026 12w ago | Press Release | $0.9300 $0.9499 | ▲ +2.14% | ▼ −2.88% | $0.7700 (−17.20%) |
Jul 10, 2026 15w ago | 8-K | $0.6790 $1.04 | ▲ +52.43% | ▲ +49.25% | $0.7700 (+13.40%) |
May 12, 2026 23w ago | 8-K | $1.24 $1.12 | ▲ +9.68% | ▲ +7.95% | $0.7700 (+37.90%) |
May 12, 2026 23w ago | Press Release | $1.24 $1.12 | ▲ +9.68% | ▲ +7.95% | $0.7700 (+37.90%) |
Apr 28, 2026 25w ago | Press Release | $1.30 $1.32 | ▲ +1.54% | ▼ −4.51% | $0.7700 (−40.77%) |
US Market Status
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