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Solesence (SLSN) AI Stock Analysis
Solesence
(NASDAQ:SLSN)
The score is held down primarily by weakened TTM financial performance (return to losses and negative free cash flow) and bearish technicals (price below all key moving averages with negative momentum). Partially offsetting these are management’s stronger second-half guidance and order book growth, plus some financing runway from extended affiliate loan maturities, though listing compliance risk and the inventory-costing restatement overhang remain meaningful.
Solesence (SLSN) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $61.24M
- Dividend Yield
- ―
- Average Volume (3M)
- 24.97K
- Price to Earnings (P/E)
- -33.2
- Beta (1Y)
- 2.03
- Revenue Growth
- -14.05%
- EPS Growth
- -135.74%
- 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
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.
Q2-2026 Updates
Positive Updates
Negative Updates
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
Overall fundamentals have softened in the TTM period: revenue fell (-8.3%), operating profit turned negative, and net income moved back to a loss. While the balance sheet shows improved leverage versus prior stress (moderate debt-to-equity and a healthier equity base), cash flow quality is weak with negative free cash flow and volatile conversion, limiting financial flexibility if the earnings rebound does not materialize.
Income Statement
44NeutralBalance Sheet
62PositiveCash Flow
39Negative| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLSN, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.86, and below the 200-day MA of 1.06, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
2 New RisksSolesence Peers Comparison
Overall Rating
EPC58Neutral
HELE55Neutral
SKIN49Neutral- SLSN46Neutral
NUS41Neutral
Financial Indicators
| 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 | $1.32B | -13.99 | -6.27% | 2.14% | -7.00% | -246.78% |
| HELE | 55Neutral | $883.46M | -8.58 | -11.86% | ― | 0.52% | 84.94% |
| SKIN | 49Neutral | $67.35M | -5.51 | -32.11% | ― | -6.45% | -43.98% |
| SLSN | 46Neutral | $61.24M | -33.22 | -11.58% | ― | -14.05% | -135.74% |
| NUS | 41Neutral | $220.51M | -0.85 | -34.83% | 5.85% | -15.27% | -318.35% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SLSN | Solesence, Inc | 0.86 | -1.95 | -69.50% | |
| HELE | Helen Of Troy | 37.43 | 17.98 | 92.44% | |
| NUS | Nu Skin Enterprises | 4.10 | -5.43 | -56.96% | |
| EPC | Edgewell Personal Care Co | 27.99 | 9.69 | 52.93% | |
| SKIN | Beauty Health Company | 15.71 | -11.89 | -43.08% |
Solesence Corporate Events
Solesence Extends Maturity of Affiliate Loan Agreements
PositiveOn 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 r...
Solesence Receives Nasdaq Non-Compliance Minimum Bid Notice
NegativeOn 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 mi...
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