This is a going-concern red flag. With only $0.29M cash left, the $2.7M ATM raise buys maybe 4-5 months of runway at current burn. The debt-to-market-cap ratio of ~7x makes refinancing nearly impossible. Traders should expect a reverse split or further dilutive financing — or a potential bankruptcy filing if the beverage pivot doesn't generate cash fast. Avoid the common stock; the preferred or debt instruments may offer a better risk/reward if the company survives.
Price Chart
Executive Summary
Synergy CHC reported a disastrous Q1 2026: revenue collapsed 33% YoY to $5.49M (missing $8.3M consensus by 34%), EPS swung from +$0.10 to -$0.23 (a $0.26 miss vs $0.03 consensus), and operating cash burn more than doubled to -$2.0M. The company burned through 89% of its cash in the quarter, leaving just $0.3M, and now has a working capital deficit of $0.5M. While management touts beverage momentum, the core business is deteriorating rapidly and the ATM offering raised $2.7M post-quarter just to keep the lights on.
Key Financial Metrics
Key Facts
- Revenue fell 33% YoY to $5.49M, missing $8.3M consensus by 34%
- EPS of -$0.23 vs consensus $0.03 — a 867% miss
- Net loss of -$2.57M vs +$0.88M profit in Q1 2025
- Cash burned to $0.29M from $2.6M in just 3 months (89% depletion)
- Working capital swung from +$1.78M surplus to -$0.50M deficit
- Operating cash outflow doubled to -$2.0M vs -$0.82M a year ago
- Total debt of $27.7M against a $4M market cap — extreme leverage
- Post-quarter ATM raised $2.7M, further diluting existing shareholders
Financial Impact
Revenue miss of $2.81M (34% below consensus); EPS miss of $0.26; cash burn of $2.0M in the quarter
Risk Factors
- Cash runway of <6 months even after ATM raise — imminent need for additional financing
- Extreme leverage: $27.7M debt vs $4M market cap — risk of covenant breach or forced restructuring
- Core Flat Tummy brand declining (out-of-stocks, online sales drop) with no clear recovery catalyst
- Beverage division at $4M annualized run rate is too small to offset legacy declines
- Potential Nasdaq delisting if stock price stays below $1 (currently ~$0.35 based on $4M market cap / 11.3M shares)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3294876 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 5w ago | 8-K | $0.0905 | awaiting T+20 | — | — |
Aug 26, 2026 8w ago | 8-K | $0.0980 | awaiting T+20 | — | — |
Aug 21, 2026 9w ago | 8-K | $0.1009 $0.0905 | ▲ +10.31% | ▲ +9.78% | — |
Aug 21, 2026 9w ago | Press Release | $0.1009 $0.0905 | ▲ +10.31% | ▲ +9.78% | — |
Jun 29, 2026 17w ago | 8-K | $0.1985 $0.1679 | ▲ +15.42% | ▲ +14.39% | — |
May 26, 2026 22w ago | EFFECT | $0.2650 $0.2150 | ▲ +18.87% | ▲ +16.92% | — |
May 18, 2026 23w ago | 8-K | $0.2760 $0.1941 | ▲ +29.67% | ▲ +31.26% | — |
May 15, 2026 23w ago | S-1 | $0.2760 $0.1941 | ▲ +29.67% | ▲ +31.26% | — |
May 14, 2026 23w ago | 8-K | $0.2750 $0.1960 | ▲ +28.73% | ▲ +27.87% | — |
May 14, 2026 23w ago | Press Release | $0.2750 $0.1960 | ▲ +28.73% | ▲ +27.87% | — |
US Market Status
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