NextPlat Corp Q3 FY2025 earnings call

• David Phipps stated the company undertook actions to improve operations, reduce costs, and grow business, with September showing meaningful improvements and expecting more sequential progress starting in Q4 and into next year.
• Barut Norkut discussed the Healthcare segment's turnaround, including a strong rebound in 340B business with increased prescriptions and revenue, retail prescription volume up 27%, a 50-employee headcount reduction saving $200,000 monthly, and focus on optimizing inventory and logistics.
• Amanda Ferriero walked through financial results, highlighted cost structure streamlining, stock share repurchases under the authorized program, and emphasized disciplined expense management focus for Q4.

For the third quarter ended 09/30/2025, total revenue was $13,800,000, a 11% decrease from the prior year quarter's $15,400,000. The decline was mainly due to a $1,500,000 drop in the Healthcare Operations segment and a modest $100,000 decrease in the e-commerce segment. Within the Healthcare Operations segment, pharmacy prescription revenues increased by approximately $400,000 or 5% to $9,500,000, driven by higher reimbursement rates offsetting some decline in prescriptions filled. 340B contract revenue fell to $600,000 from $2,500,000 in the prior year quarter. E-commerce revenue was $3,700,000, a 4% decrease primarily due to lower hardware sales.

• Expect significant reduction in cash burn going forward due to operational improvements.
• View Q3 as the low point and anticipate sequential improvement starting in Q4 and continuing into 2026 towards operational breakeven.
• Focus on disciplined expense management in Q4 and continue to invest in marketing and sales to grow profitable business lines, with new contracts set to come online in Q4 2025.

• Tariff-related challenges in China affecting business operations.
• Ongoing litigation matters with two resolved but one still being worked on with counsel to resolve quickly while protecting shareholders' long-term interests.

Q: What are the current plans for the buyback?

A: At this point, the share repurchase program is still available. We continue to monitor the market and intend to be prudent in deploying available cash for share repurchases, with an update on the program in the fourth quarter report.

Q: How does the additional 180-day extension from Nasdaq change your plans to increase the stock price to regain compliance?

A: We are pleased with the extension, but in the very short term, it doesn't significantly alter our plans. We remain focused on improving financial results to build investors' confidence, and starting early in the New Year, we'll have opportunities to be more proactive in engaging with new investors.

Q: Have your views on China changed given the lingering uncertainties?

A: Tariff-related challenges are being addressed. For non-US made products like OpCo, there are still opportunities as inventory sells quickly even with high marketing costs. The slow approval process for optical animal products is frustrating, but strong overall demand for OpCo products is seen, and the Tmall store is approved with the first batch set to ship soon after clearing import certification requirements.

Q: Can you comment on the status of the ongoing lawsuits?

A: Cannot specifically comment on ongoing litigation except to say two matters have been resolved and we are working with counsel to resolve the final matter as quickly as possible while protecting the long-term interests of our shareholders.