Shares of Nexgel, Inc. (NASDAQ: NXGL) experienced a notable recovery on the US stock charts following the market close on Monday, driven by record revenue figures. During the after-market session, NXGL stock surged by 17.16% to reach $2.39, recovering from a regular-session loss of -7.69%.

Quarterly Revenue of

Nexgel

Nexgel announced its preliminary, unaudited revenue for the second quarter of 2024 and provided revenue guidance for the third and fourth quarters of the same year. According to the preliminary data, Nexgel reported a second-quarter revenue of $1.4 million, marking an approximate 20% increase year-over-year and a 10% sequential growth.

The company also anticipates a significant year-over-year increase of 83% in Q3 2024, projecting revenues of $2.2 million. Nexgel anticipates growth in the second half of this year, which puts the firm in a strong position to transition to positive cash flow from operations, even if the Q3 estimate does not yet include any revenue from its collaboration with AbbVie.

Future Outlook

Despite facing lower-than-normal revenues at CG Converting and Packaging due to a move into a newly expanded facility, Nexgel delivered record revenue for the second quarter of 2024. The company provided an optimistic outlook for the second half of the year, surpassing expectations for both contract manufacturing and consumer products. The growth in contract manufacturing is attributed primarily to new customer relationships with large global corporations, while several NXGL brands are also experiencing substantial growth.

Strategic Partnership with Cintas Corporation

In a strategic business move, Nexgel announced a supply agreement with Cintas Corporation, a leading provider of corporate identity uniforms, first aid and safety products, and services to over one million businesses across North America. Through this partnership, Cintas will distribute SilverSeal, a hospital-grade hydrogel dressing for wounds and burns, to its customers across various sectors, including hospitality and public service.

NXGL expects the first order of SilverSeal to be delivered during the fourth quarter of 2024. This partnership is significant for Nexgel, not only for the associated revenue but also for enhancing brand awareness of SilverSeal.