NEXGEL, Inc.

What they do

NexGel manufactures custom hydrogels (gels) using proprietary electron beam cross-linking technology. The company operates as a contract manufacturer, selling custom gels to customers in wound care, medical diagnostics, transdermal drug delivery, and cosmetics. Revenue has grown from $1.6M in 2021 to $11.4M in 2025, though net losses persist.

Revenue drivers

• Contract manufacturing of custom hydrogels — Primary revenue source, selling custom gels across multiple applications; revenue grew from $2.0M in 2022 to $11.4M in 2025.
• Wound care products — One of the key application segments; specifics not detailed in provided excerpts.
• Medical diagnostics and transdermal drug delivery — Other key application segments contributing to revenue; relative sizes not disclosed.
• Cosmetics — Additional application segment; relative size not disclosed.

Recent performance

For fiscal year 2025, revenue was $11.4M, up from $8.7M in 2024, with a net loss of $3.0M, improved from -$3.3M. Quarterly revenue was relatively flat through early 2026: $2.9M in Q2 2025, $2.9M in Q3 2025, $2.8M in Q4 2025, and $2.6M in Q1 2026. Operating cash flow improved to -$1.3M in 2025 from -$3.9M in 2024. As of March 31, 2026, cash was $2.1M, total assets $11.6M, and shareholder equity $4.0M.

Strategy

The company focuses on expanding contract manufacturing relationships, leveraging its proprietary gel technology to serve multiple industries. Management emphasizes capital raising to fund operations and business plan execution, given the history of losses. Recent 8-K filings indicate new material agreements, direct financial obligations, and unregistered sales of equity, suggesting a strategy of raising capital through financing activities. The company also sees opportunities in custom gel development for existing and new customers, though specific strategic initiatives are not detailed in the provided excerpts.

Risks

• Going concern risk — The 10-Q highlights substantial doubt about the ability to continue as a going concern due to recurring losses and inadequate capital.
• Limited capital — Cash of $2.1M and ongoing net losses require additional financing to sustain operations.
• Key customer concentration — The business depends on contract manufacturing relationships; loss of a key customer could materially impact revenue.
• Regulatory and manufacturing risks — Compliance with current good manufacturing practices is required and any failure could disrupt operations.

Outlook

Management expects to continue investing in working capital before generating significant revenue from new contracts, with uncertainty about timing of profitability. The company plans to raise additional capital to fund operations and execute its business plan. No specific guidance was provided in the excerpts.