Solesence (SLSN) AI Stock Analysis

• Market Cap: $307.30M
• Dividend Yield: N/A
• Average Volume (3M): 42.76K
• Price to Earnings (P/E): 55.8
• Beta (1Y): 1.13
• Revenue Growth: 65.67%
• EPS Growth: N/A
• Country: US
• Employees: 98
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.04
• Shares Outstanding: 70,481,940
• 10 Day Avg. Volume: 64,126
• 30 Day Avg. Volume: 42,760
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 5.26
• Enterprise Value/Gross Profit: 18.68
• Enterprise Value/Ebitda: 46.49
• 1Y Price Target: $4.50
• Price Target Upside: 11.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $4.50 ▲(11.66% Upside)

Solesence's strong revenue growth and profitability are offset by cash flow challenges and a high P/E ratio, suggesting potential overvaluation. The technical indicators show positive momentum but also hint at an overbought condition.

Solesence Business Overview & Revenue Model

Company Description

Solesence (SLSN) is a leading innovator in the health and wellness sector, specializing in the development and distribution of advanced skincare solutions. The company focuses on harnessing the power of nature through proprietary formulations that combine botanical extracts with cutting-edge technology. Solesence offers a range of products designed to enhance skin health and beauty, catering to both individual consumers and professional skincare providers.

How the Company Makes Money

Solesence generates revenue primarily through the sale of its skincare products, which are marketed to both retail consumers and professional beauty establishments. Key revenue streams include direct-to-consumer online sales, wholesale distribution to salons and spas, and partnerships with major retailers for shelf space. Additionally, Solesence may engage in collaborations with dermatologists and skincare professionals to promote its products, further enhancing brand visibility and sales. The company also invests in research and development to expand its product line, which can lead to increased market share and higher earnings.

Solesence Financial Statement Overview

Summary

Solesence shows solid revenue growth and efficient production, but profitability is hindered by high operating expenses. The balance sheet is moderately strong with low leverage, but cash flow management is a concern due to negative free cash flow and reliance on financing activities.

Income Statement

Solesence has shown a positive revenue growth trend with a TTM revenue of $57.1M, a 9.1% increase from the previous year. The gross profit margin stands at a healthy 28%, indicating efficient production processes. However, the net profit margin decreased to 6% from 8% annually, reflecting increased expenses or reduced pricing power. The EBIT and EBITDA margins are 7.5% and 8.7% respectively, showing operational efficiency but indicating room for improvement in cost management to enhance net profitability.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.66, demonstrating a relatively low level of leverage compared to equity. The equity ratio of 26.6% suggests a balanced asset financing structure, but there is potential risk from the significant liabilities. Return on equity is a strong 22.6%, indicating effective utilization of shareholders' funds, yet the overall equity base could be strengthened further.

Cash Flow

Solesence's TTM free cash flow is negative at -$3.9M, despite an improvement in operating cash flow. Operating cash flow to net income ratio is negative, indicating cash flow challenges, possibly due to capital expenditure needs. The reliance on financing activities for cash flow highlights potential liquidity concerns, although it provides short-term financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.42M	52.35M	37.30M	37.32M	29.48M	17.12M
Gross Profit	18.13M	16.19M	7.83M	8.36M	8.69M	5.99M
EBITDA	7.29M	6.06M	-2.80M	-1.69M	3.96M	1.84M
Net Income	5.23M	4.24M	-4.39M	-2.62M	2.32M	493.33K
Balance Sheet
Total Assets	59.96M	50.00M	32.88M	33.56M	28.39M	13.54M
Cash, Cash Equivalents and Short-Term Investments	4.11M	1.41M	1.72M	2.19M	657.00K	956.75K
Total Debt	10.71M	15.30M	21.26M	18.11M	14.75M	7.57M
Total Liabilities	41.77M	35.06M	30.98M	27.91M	20.93M	10.81M
Stockholders Equity	18.19M	14.95M	1.90M	5.65M	7.46M	2.73M
Cash Flow
Free Cash Flow	-5.48M	-2.59M	-3.06M	-4.47M	447.00K	-2.94M
Operating Cash Flow	-1.48M	1.97M	-2.01M	-1.65M	2.32M	-2.06M
Investing Cash Flow	-5.27M	-4.56M	-1.05M	-2.82M	-1.87M	-878.00K
Financing Cash Flow	8.51M	2.27M	2.59M	6.00M	-747.00K	2.70M

Solesence Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLSN, the sentiment is Positive. The current price of 4.03 is above the 20-day moving average (MA) of 3.41, above the 50-day MA of 3.47, and above the 200-day MA of 3.19, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLSN.

Solesence Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMT	68 Neutral	$165.66M	17.60	6.10%	―	-15.64%	-43.49%
NTIC	67 Neutral	$72.57M	25.49	7.60%	2.12%	3.46%	-34.80%
SLSN	61 Neutral	$307.30M	55.82	34.76%	―	65.67%	―
LWLG	54 Neutral	$560.48M	-27.29	-14.58%	―	4.52%	6.57%
TSE	45 Neutral	$82.69M	-0.21	-14.81%	1.71%	-7.97%	13.42%
ALTO	43 Neutral	$85.14M	-1.21	-32.15%	―	-12.70%	-74.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Solesence Corporate Events

Solesence Announces Leadership Changes Amid Strategic Shift

On September 3, 2025, Solésence, Inc. announced significant leadership changes as part of its strategic transformation. Kevin Cureton was promoted to President and CEO, Laura Riffner was appointed CFO, and Jess Jankowski transitioned to Board Advisor until his retirement in November 2025. These changes follow Solésence’s rebranding and uplisting to Nasdaq, positioning the company for continued growth in delivering high-performance skincare products. The leadership appointments are expected to drive future innovation and growth, enhancing Solésence’s market position and shareholder value.

Solesence Holds Successful Annual Shareholder Meeting

On August 28, 2025, Solésence, Inc. held its Annual Meeting of Shareholders, where 86.83% of the shares entitled to vote were represented. During the meeting, shareholders elected two director nominees, approved the 2025 Equity Compensation Plan, and ratified the appointment of RSM US LLP as the independent registered public accounting firm for 2025.