Solesence (SLSN) AI Stock Analysis

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Solesence

(NASDAQ:SLSN)

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Rating:42Neutral

Price Target:$0.88▼(-3.74% Downside)

Action:reiterated

Date:10/06/26

The overall score is very low, driven primarily by weak financial performance and bearish technicals. The company is unprofitable, burning cash, and its stock is in a downtrend below all major moving averages. The most critical risk is the Nasdaq delisting notice, which threatens capital-raising ability. While management's guidance for a stronger second half and a growing order book offers a potential turnaround path, this is speculative and overshadowed by current fundamental and technical weakness.

Positive Factors

Differentiated specialty technologiesSolesence competes through specialized dispersion, delivery, and formulation technologies rather than undifferentiated commodity materials. These capabilities can deepen customer integration, support premium applications, and create durable relevance as beauty brands seek better-performing and more appealing products.

Negative Factors

Revenue and profitability deteriorationThe return to declining revenue and losses shows that recent growth and profitability have not yet proved durable. Weaker demand or product timing can reduce operating leverage, limit internal funding for innovation, and make management’s recovery outlook more dependent on future execution.

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

Market Cap: $64.36M
Dividend Yield: ―
Average Volume (3M): 45.88K
Price to Earnings (P/E): -34.9
Beta (1Y): 2.04
Revenue Growth: -14.05%
EPS Growth: -138.82%
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:Aug 19, 2026(Q2-2026)|% Change Since:-3.30%|Next Earnings Date:Apr 29, 2020

Earnings Call SentimentNeutral

The call presents a mixed picture: materially weaker reported Q2 revenue and profitability and a significant accounting remediation (inventory costing restatements) are clear negatives that expose historical control weaknesses and distorted year-over-year comparatives. Offsetting this, management highlights tangible operational improvements (labor efficiency, OEE), a growing order book (shipped and on-hand orders up ≈8.2% year-over-year), new product launches targeting sizable addressable markets, and confident guidance for a stronger second half and full-year outperformance versus 2025. Management has committed to remediation actions and control enhancements. Overall, positives around backlog growth, product pipeline, and remediation efforts balance the near-term financial and control challenges.

Positive Updates

Order Book Growth and Positive Full-Year Outlook

Shipped and on-hand orders as of August 17 totaled $64.9 million, up from $60.0 million in the same period a year ago (≈+8.2%). Management now expects to outperform 2025 on a full-year revenue basis and projects the second half of 2026 to generate approximately $35 million in revenue — the strongest second-half performance in company history.

Negative Updates

Significant Year-Over-Year Revenue Decline

Second quarter revenue was $15.3 million versus $20.4 million in Q2 2025, a decline of approximately 25%. The prior-year quarter benefited from a major new product launch and pipeline fill, and revenue for that specific product was lower in Q2 2026.

Company Guidance

The company guided that it now expects to outperform 2025 on a full‑year revenue basis and to deliver sequential improvement in Q3 revenue and profitability, forecasting the second half of 2026 to generate approximately $35.0 million (its strongest second half ever) and citing $64.9 million in shipped and on‑hand orders as of August 17 (up from $60.0 million a year earlier); Q2 results included $15.3 million of revenue versus $20.4 million in Q2 2025 (about 25% lower), a 31% gross margin (restated 32% in Q2 2025), a Q2 net loss of $0.158 million versus prior‑year net income of $3.2 million, and adjusted EBITDA of $0.523 million versus $3.7 million prior, with one‑time REFY items reducing net income by ~$0.938 million and an ERC benefit of ~$1.4 million in Q2 2025 noted—management also reiterated expectations for double‑digit growth and improvements in labor/OEE efficiency while targeting continued operational control improvements.

Solesence Financial Statement Overview

Summary

Financial performance is fragile. The income statement shows a sharp swing to a net loss with declining revenue, and cash flow remains deeply negative on a free cash flow basis. The balance sheet has improved significantly through recapitalization, reducing leverage, but this is overshadowed by the inability to generate profits or positive cash flow.

Income Statement

38Negative

Balance Sheet

55Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	55.37M	62.06M	52.35M	37.30M	37.32M	29.48M
Gross Profit	14.87M	16.03M	16.19M	7.83M	8.36M	8.69M
EBITDA	93.00K	3.69M	6.06M	-2.80M	-1.69M	3.96M
Net Income	-1.88M	1.79M	4.24M	-4.39M	-2.62M	2.32M
Balance Sheet
Total Assets	46.44M	50.05M	50.00M	32.88M	33.56M	28.39M
Cash, Cash Equivalents and Short-Term Investments	1.05M	1.29M	1.41M	1.72M	2.19M	657.00K
Total Debt	22.70M	24.32M	15.30M	21.26M	18.11M	14.75M
Total Liabilities	33.28M	32.42M	35.06M	30.98M	27.91M	20.93M
Stockholders Equity	13.15M	17.63M	14.95M	1.90M	5.65M	7.46M
Cash Flow
Free Cash Flow	-1.81M	-10.71M	-2.59M	-3.06M	-4.47M	447.00K
Operating Cash Flow	1.02M	-8.57M	1.97M	-2.01M	-1.65M	2.32M
Investing Cash Flow	-1.86M	-2.14M	-4.56M	-1.05M	-2.82M	-1.87M
Financing Cash Flow	-2.21M	10.59M	2.27M	2.59M	6.00M	-747.00K

Solesence Technical Analysis

Technical Analysis SentimentPositive

Last Price0.91

Price Trends

50DMA0.85Positive

100DMA0.87Positive

200DMA1.05Negative

Market Momentum

MACD0.01Negative

RSI55.93Neutral

STOCH58.47Neutral

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 0.91 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.85, and below the 200-day MA of 1.05, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 58.47 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%
EPC	58Neutral	$1.34B	-25.84	-6.27%	2.09%	-10.21%	-310.40%
HELE	55Neutral	$888.49M	-8.50	-11.86%	―	0.52%	84.94%
SKIN	54Neutral	$109.06M	-5.68	-32.09%	―	-4.41%	-51.42%
SLSN	42Neutral	$64.36M	-34.88	-11.58%	―	-14.05%	-138.82%
NUS	41Neutral	$189.36M	-0.80	-34.83%	5.99%	-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	0.91	-0.92	-50.33%
HELE	Helen Of Troy	37.19	18.69	101.03%
NUS	Nu Skin Enterprises	4.01	-5.28	-56.81%
EPC	Edgewell Personal Care Co	28.74	11.12	63.09%
SKIN	Beauty Health Company	15.96	-9.64	-37.65%

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: Oct 06, 2026

Solesence AI Stock Analysis