Quarterly ResultMay 14, 2026, 08:26 AM
Synergy CHC Q1 Net Loss $(2.57)M; Revenue Down 32.8%
AI Summary
Synergy CHC Corp. reported a net loss of $(2.57) million for Q1 2026, a significant decline from a net income of $0.88 million in Q1 2025, with total revenue decreasing by 32.8% to $5.49 million. The company also disclosed a working capital deficit of $(0.50) million and negative cash flow from operations. Despite these challenges, management believes it can continue as a going concern due to a lender amendment, employee layoffs, and recent equity financing activities, including an ATM program that raised $2.67 million post-quarter.
Key Highlights
- Net loss of $(2.57) million in Q1 2026, compared to net income of $0.88 million in Q1 2025.
- Total revenue decreased 32.8% to $5.49 million in Q1 2026 from $8.17 million in Q1 2025.
- Basic net loss per share was $(0.23) in Q1 2026, down from $0.10 earnings per share in Q1 2025.
- Working capital deficit of $(0.50) million as of March 31, 2026.
- Net cash used in operating activities increased to $(2.04) million in Q1 2026 from $(0.82) million in Q1 2025.
- Subsequent to quarter-end, the company raised $2.67 million gross proceeds via an ATM equity offering.
- Company laid off 13 employees to reduce overhead expenses.
- Management concluded that going concern doubts are alleviated by strategic actions and financing.