NextPlat (NASDAQ:NXPL) executives used the company’s year-end 2025 results conference call to outline progress in a business turnaround effort, point to early 2026 indicators of margin improvement, and explain a recently announced reverse stock split undertaken to maintain its Nasdaq listing.
Management frames 2025 as a turning point
Chief Executive Officer David Phipps said the end of 2025 marked “a significant turning point” as the company “largely completed” work tied to refocusing and operational improvement plans designed to reduce costs, improve operations, and support profitability in 2026.
Healthcare: shift toward higher-margin contracted services
NextPlat’s healthcare segment represented about 73% of 2025 revenue, according to Phipps, and remains central to the company’s plans. He said the company’s efforts in late 2025 focused on higher-margin avenues such as 340B covered entities and long-term care facilities, medication fulfillment contracts, re-engaging former clients, and improving customer service.
Phipps highlighted several fourth-quarter operational developments in healthcare:
- A “strong 94% increase in 340B contract revenue” in Q4 2025 versus Q3 2025.
- Recently added medication fulfillment contracts that “surpassed expectations,” with the company fulfilling “7,000+ prescriptions per month” to two Florida facilities.
- A nationwide fulfillment partnership with HealthWarehouse intended to allow the company to support customers and patients in all 50 states, expanding beyond Florida where the healthcare business was previously concentrated.
Vice President of Healthcare Operations Birute Norkute said the fourth-quarter results reflected “continued positive trends” in higher-margin 340B and contracted medication fulfillment services, which helped offset “continued softness in retail prescription volumes.” She added that this is why the company is prioritizing higher-margin contracted services “instead of traditional retail business in the near term,” even if it impacts top-line revenue and prescription volumes in the first half of 2026.
Norkute said the company has “dramatically streamlined” operations, enhanced customer service, and reduced headcount by “more than 25%.” She also provided updates on customer activity and sales efforts:
- Three new 340B entities started in Q4 2025, with two more becoming active on Jan. 1, 2026, and “several more lined up” for later quarters in 2026.
- The company recruited dedicated long-term care sales personnel and refreshed its sales strategy, with expectations for increased “census and revenue contribution” in the second half of 2026.
- Purchasing and inventory optimization produced “meaningful one-time savings” and tighter controls, which Norkute said should have a sustained positive impact on cash flow management.
Norkute also said the company continues to develop a partnership with an integrated care model organization combining telehealth, clinical management, and 340B infrastructure, aimed at reaching high-need populations, including patients requiring MOUD, HIV, and hepatitis C care. She added that the HealthWarehouse partnership is now effective and “expands our operational capabilities, contract opportunities, and market access.”
E-commerce segment posts growth and international expansion
Phipps said the e-commerce segment set “new annual sales records,” citing growth in Internet of Things hardware and recurring airtime revenue. He noted annual sales of “over 5,000 Iridium and Globalstar devices,” plus “more than 12,000 satellite-enabled trackers and messengers,” both described as new annual records.
He also pointed to several commercial developments, including selection of the company’s GTC business as an exclusive distributor in Nordic countries for personal messaging and tracking products by a “leading global satellite network operator,” a new IoT and 5G product distribution agreement with Telit Cinterion, and a “significant contract supporting a NATO customer.” Phipps added that NextPlat launched e-commerce sales in five South American countries through Mercado Libre.
Financial results: revenue decline, cost reductions, cash position
Chief Financial Officer Amanda Ferrio reported total revenue of approximately $54 million for the year ended Dec. 31, 2025, down from approximately $66 million in 2024, an 18% decline. Ferrio attributed the decrease primarily to lower contributions from healthcare operations due to reduced 340B and retail prescription volumes earlier in the year.
Within healthcare, Ferrio reported full-year revenue of approximately $40 million, compared to approximately $52 million in 2024. Fourth-quarter healthcare revenue of approximately $9 million was “relatively stable” compared with approximately $10 million in Q3, which she described as a transition period. She reiterated that Q4 included the 94% increase in 340B contract revenue and “initial contributions” from higher-margin fulfillment services, along with “early signs of retail prescription stabilization.”
E-commerce revenue rose to approximately $15 million, up 6% year over year, driven by satellite connectivity and IoT demand and expansion of recurring airtime and subscription-based services, according to Ferrio.
Ferrio said consolidated gross margin for the full year was approximately 20% versus approximately 26% in 2024, while emphasizing “sequential improvement” late in the fourth quarter tied to higher-margin healthcare services and improved unit economics. She said the company expects margins to improve through 2026, with “a more meaningful step-up beginning in the second quarter as higher margin revenue streams continue to scale.”
On costs, Ferrio said total operating expenses declined about 25% to approximately $20 million, compared with approximately $26 million in the prior year (excluding a prior-year non-recurring impairment charge of nearly $14 million). Salaries and wages fell about 20%, and professional fees declined about 49%, she said.
Ferrio said the company ended 2025 with nearly $14 million in cash, “no meaningful debt,” and approximately $15 million in working capital. Cash usage declined significantly compared with the third quarter, and she said management expects “relatively stable cash levels” in the first half of 2026.
Reverse split, buyback considerations, and litigation update
During the Q&A portion, Phipps said a buyback was not an option because the prior repurchase program expired in December and the company has been in a blackout period since then. He added that buybacks face “significant restrictions and guidelines” that limit a company’s ability to influence share price, and said management is being “prudent” with cash as it sees opportunities to invest in growth. Phipps said maintaining a Nasdaq listing is “a critical part” of NextPlat’s expansion plans and called the reverse split “the most viable option” in the current market environment.
On future repurchases, Phipps said reinstating a buyback program is under consideration and that the company will announce details “when appropriate.”
Regarding lawsuits, Phipps said the company is working with counsel to resolve the “final remaining legal matter,” and that the outcome could involve either trial or settlement depending on counsel and the insurance company. He said the company took a non-cash contingency charge for potential future litigation costs “should it be necessary.”
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.
