Solesence (SLSN) AI Stock Analysis

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Solesence

(NASDAQ:SLSN)

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Rating:59Neutral

Price Target:$1.50▼(-1.32% Downside)

Action:reiterated

Date:11/14/26

The overall score of 59 reflects a company in the midst of a strong operational and financial turnaround, as evidenced by record earnings and robust cash flow. This fundamental strength is the primary driver of the score. However, significant risks weigh on the outlook: an extremely overbought technical condition suggests the recent price surge may be unsustainable, a high P/E ratio limits valuation appeal, and a Nasdaq delisting notice presents a material corporate governance risk. The reduction in EBITDA guidance also signals that the recovery path may not be perfectly linear.

Positive Factors

Revenue and margin expansionRecord quarterly revenue and a substantial gross-margin improvement indicate stronger demand and better operating execution. If maintained, the combination can improve earnings quality, support reinvestment, and strengthen Solesence’s ability to scale its specialty ingredient and formulation platform.

Negative Factors

Unstable profitability and marginsRevenue growth has not yet translated into consistently durable earnings, as the latest trailing period returned to losses and margins weakened from earlier levels. Persistent cost or pricing pressure could limit operating leverage and reduce confidence in near-term profit conversion.

Solesence (SLSN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $107.38M
Dividend Yield: ―
Average Volume (3M): 313.05K
Price to Earnings (P/E): 36.1
Beta (1Y): 2.41
Revenue Growth: -1.95%
EPS Growth: 122.62%
Country: US
Employees: 115
Sector: Consumer Defensive
Sector Strength: 62
Industry: Household & Personal Products

Solesence Business Overview & Revenue Model

Company Description

Solesence, Inc., formerly known as Nanophase Technologies Corporation, specializes in the development and production of clean-label, inclusive, and mineral-based skincare and cosmetic products. The company collaborates with a diverse range of partner...

How the Company Makes Money

Solesence makes money primarily by selling specialty ingredient products and formulation solutions to customers (e.g., consumer brands and contract manufacturers) that incorporate these materials into finished goods such as sunscreens and other perso...

Solesence Earnings Call Summary

Earnings Call Date:Nov 12, 2026(Q3-2026)|% Change Since:67.22%|Next Earnings Date:Apr 29, 2020

Earnings Call SentimentPositive

The call was predominantly positive, supported by record third-quarter revenue and net income, substantial gross-margin expansion, improved manufacturing efficiency, lower labor and indirect costs, and confidence in continued momentum into the fourth quarter and 2027. The main negatives were the reduction of full-year EBITDA margin expectations below the previously communicated double-digit target, remaining operational improvement needs, customer concentration, and the timing of expected commercial growth.

Positive Updates

Record Third-Quarter Revenue

Third-quarter 2026 revenue reached $20.2 million, the highest third-quarter revenue ever recorded by Solésence and a 38% increase from $14.6 million in the third quarter of 2025.

Negative Updates

EBITDA Margin Guidance Reduced

Full-year EBITDA margins are now expected to be slightly below the previously communicated double-digit target, primarily due to softer performance in the first half of 2026. Management is no longer guiding toward double-digit EBITDA growth this year and expects it to be a little less than that.

Company Guidance

Management expects shipped and on-hand orders to reach at least $65 million by year end and 2026 to be a third consecutive year of record revenue growth and profit growth, while maintaining a 30% gross profit floor for the year, with the potential to exceed this level as we finish 2026 and move forward into 2027. Full-year EBITDA margins are expected to be slightly below the previously communicated double-digit target, and the company is no longer guiding towards double-digit growth this year, saying it expects it to be a little bit less than that; fourth-quarter EBITDA margins are expected to remain well above first half levels. Looking ahead, Solésence believes it can achieve greater than 20% EBITDA, expects to grow in 2027, and thinks greater growth is in 2028 than it is in 2027, although that is not official guidance.

Solesence Financial Statement Overview

Summary

Financial performance reflects a strong turnaround with robust cash flow (Score 72) and an improved balance sheet (Score 62), offset by a still-rebuilding income statement (Score 58). The company has moved from a high-risk position to one of stability, with operating cash flow swinging to $10.2M and debt-to-equity improving dramatically to 0.86, though thin net margins of 4.8% remain a watchpoint.

Income Statement

58Neutral

Balance Sheet

62Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	60.94M	62.06M	52.35M	37.30M	37.32M	29.48M
Gross Profit	19.43M	16.03M	16.19M	7.83M	8.36M	8.69M
EBITDA	5.11M	3.69M	6.06M	-2.80M	-1.69M	3.96M
Net Income	2.91M	1.79M	4.24M	-4.39M	-2.62M	2.32M
Balance Sheet
Total Assets	44.44M	50.05M	50.00M	32.88M	33.56M	28.39M
Cash, Cash Equivalents and Short-Term Investments	1.27M	1.29M	1.41M	1.72M	2.19M	657.00K
Total Debt	9.14M	24.32M	15.30M	21.26M	18.11M	14.75M
Total Liabilities	27.69M	32.42M	35.06M	30.98M	27.91M	20.93M
Stockholders Equity	16.75M	17.63M	14.95M	1.90M	5.65M	7.46M
Cash Flow
Free Cash Flow	7.30M	-10.71M	-2.59M	-3.06M	-4.47M	447.00K
Operating Cash Flow	10.25M	-8.57M	1.97M	-2.01M	-1.65M	2.32M
Investing Cash Flow	-1.99M	-2.14M	-4.56M	-1.05M	-2.82M	-1.87M
Financing Cash Flow	-7.42M	10.59M	2.27M	2.59M	6.00M	-747.00K

Solesence Technical Analysis

Technical Analysis SentimentPositive

Last Price1.52

Price Trends

50DMA0.87Positive

100DMA0.87Positive

200DMA1.04Positive

Market Momentum

MACD0.06Negative

RSI84.56Negative

STOCH62.13Neutral

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 1.52 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.87, and above the 200-day MA of 1.04, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 84.56 is Negative, neither overbought nor oversold. The STOCH value of 62.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLSN.

Solesence Risk Analysis

Solesence disclosed 27 risk factors in its most recent earnings report. Solesence reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Solesence Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

SLSN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SLSN	59Neutral	$107.38M	36.10	18.04%	―	-1.95%	122.62%
HELE	55Neutral	$872.94M	-8.58	-11.86%	―	0.52%	84.94%
SKIN	54Neutral	$106.71M	-5.72	-32.09%	―	-4.41%	-51.42%
EPC	51Neutral	$1.26B	-24.58	-3.53%	2.20%	-10.21%	-310.40%
NUS	41Neutral	$196.17M	-0.84	-34.83%	5.96%	-15.27%	-318.35%

* Consumer Defensive Sector Average

Performance Comparison

SLSN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SLSN	Solesence, Inc	1.52	-0.36	-19.15%
HELE	Helen Of Troy	37.32	19.77	112.65%
NUS	Nu Skin Enterprises	4.03	-5.15	-56.10%
EPC	Edgewell Personal Care Co	27.28	9.98	57.68%
SKIN	Beauty Health Company	16.31	-9.09	-35.79%

Solesence Corporate Events

Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance

Solesence Extends Maturity of Affiliate Loan Agreements

Positive

Oct 5, 2026

On September 30, 2026, Solésence, Inc. amended three existing loan agreements with Strandler, LLC and Beachcorp, LLC, both affiliates of controlling shareholder Bradford T. Whitmore. The fourth amendments to its term, amended and restated, and revolv...

Delistings and Listing ChangesRegulatory Filings and Compliance

Solesence Receives Nasdaq Non-Compliance Minimum Bid Notice

Negative

Oct 2, 2026

On September 29, 2026, Solésence, Inc. disclosed that it had received written notice from Nasdaq that its common stock had closed below $1.00 per share for 30 consecutive trading days, putting the company out of compliance with Nasdaq’s minimum bid p...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 14, 2026

Solesence AI Stock Analysis