10-Q · May 12, 2026
Solésence, Inc. reported a decline in Q1 2026 total revenue to $12.96 million, a decrease from $14.63 million in Q1 2025, while the gross margin improved to 25.6% from 22.7%. Operating cash flow turned positive at $1.52…
Earnings analysis · 10-Q
SLSN earnings analysis
Filed August 19, 2026 · Our reading of the company's report
The latest report
The provided 10-Q excerpt does not contain the income statement, balance sheet or cash-flow figures, so current-period revenue, margins, EPS, cash flow and segment trends cannot be determined from the filing text…
Read full summary
The provided 10-Q excerpt does not contain the income statement, balance sheet or cash-flow figures, so current-period revenue, margins, EPS, cash flow and segment trends cannot be determined from the filing text supplied. The most significant disclosure is a material weakness in inventory-cost accounting identified as of June 30, 2026, with previously issued financial statements no longer reliable and amendments/restatements under evaluation. The company also faces a $938,000 settlement obligation payable in 12 installments, partly offset by a six-month exclusivity arrangement tied to a potential SPF product supply agreement.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
-
Inventory-control remediation underway
Management initiated remediation during the quarter and expects to continue the remediation activities during the remainder of 2026, including revised inventory-costing methodologies, enhanced review controls and stronger documentation.
-
Potential SPF partnership pathway
The Refy settlement provides for a six-month exclusivity period for development of a new SPF product and potential supply-agreement negotiations; the agreement requires payments totaling the British Pound Sterling equivalent of $938,000 in 12 installments.
What to watch
-
Material inventory-accounting weakness
Disclosure controls were deemed ineffective as of June 30, 2026 because of a material weakness involving inventory-cost accumulation, allocation and review. Management identified errors in previously issued financial statements and said those statements should no longer be relied upon.
-
Potential financial restatements
The company is evaluating and preparing amendments and restatements of previously issued financial statements to correct inventory and cost-of-sales errors. The weakness will not be considered remediated until controls have operated for a sufficient period and testing confirms effectiveness.
-
Settlement-related cash obligation
Solésence agreed to pay the Refy settlement amount of $938,000 in 12 equal installments of $78,166.66, beginning August 5, 2026. The obligation could pressure liquidity, although the final six payments may instead be credited toward purchases under a future SPF supply agreement.
Management's outlook
The provided 10-Q excerpt does not include quantitative revenue or EPS guidance. The prior $22 million-$24 million revenue and $0.03-$0.05 EPS outlook was disclosed in the July 10, 2026 8-K, not this filing.
Earlier filings 4
10-K · April 23, 2026
The amended 10-K (Amendment No. 1) only adds Exhibit 97.1 (Clawback Policy) and does not change any other disclosures from the original Form 10-K filed March 31, 2026. The original filing shows Solésence shifting toward…
10-K · March 31, 2026
Solésence reports a portfolio shift toward finished consumer products, which accounted for $54.9M or 88% of 2025 revenue (up from $44.4M / 85% in 2024), implying total 2025 revenue of roughly $62.4M (54.9M / 88%). Q4…
10-Q · August 14, 2025
Solésence reported a strong Q2 with total revenue of $20,359,000 (up from $13,046,000 in Q2 2024) and GAAP net income of $2,667,000 (Q2 2024: $856,000), driving diluted EPS of $0.04. Gross margin was roughly stable at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.