NextPlat Corp Q4 FY2025 earnings call

• Announced a reverse split was necessary to maintain NASDAQ listing, with the company well - capitalized, having nearly $14 million in cash, no debt, and high insider ownership.
• The business has a fundamentally improving foundation with growing margins and an expanding new business pipeline.
• Healthcare business expanded from Florida to nationwide, with efforts focused on new business development, targeting higher - margin 340B covered entities and long - term care facilities, securing medication fulfillment contracts, re - engaging with former clients, and improving customer service.
• Dramatic decreases in cost structure, over $2 million in underlying cost reductions.
• E - commerce segment continued to grow with global expansion, new product distribution agreements, and new e - commerce sales in South American countries through MercadoLibre.

Healthcare segment: In 2025, the healthcare segment generated nearly $40 million in sales, approximately 73% of consolidated revenue, all from Florida. In the fourth quarter of 2025, 340B contract revenue increased by 94% compared to the third quarter. Recently added medication fulfillment contracts have surpassed expectations, with over 7,000 prescriptions fulfilled per month to two facilities in Florida. The healthcare business is expanding nationwide through a partnership with Health Warehouse. E - commerce segment: Continued to set new annual sales records, driven by strong growth in Internet of Things hardware and recurring high - margin airtime revenue. Annual sales of over 5,000 Iridium and GlobalStar devices, and more than 12,000 satellite - enabled trackers and messages set new annual records. Revenue increased to approximately $15 million in 2025, up 6% year over year, driven by strong demand for satellite connectivity and Internet of Things products, and expansion of recurring airtime and subscription - based services.

• First quarter 2026 data indicates success across key operational and financial metrics, early margin improvement expected to support meaningful reductions in operating losses by latter half of 2026.
• Intends to update on first quarter 2026 performance shortly after completing financial close.
• Implemented over $2 million in annualized overhead, staff, and other operational cost reductions.
• Healthcare business can now expand nationally beyond Florida through partnership with Health Warehouse, enabling support for multi - state contracted customers and creation of new revenue streams.
• E - commerce segment expected to remain a stable growth engine with global e - commerce expansion, marketplace diversification, and continued demand for mission - critical connectivity solutions.

• Investor negativity around reverse splits.
• Known and unknown risks, uncertainties, and other factors that could cause the company to not achieve some or all of its goals.
• Ongoing legal matters with two paths (proceeding to trial or reaching a settlement) and related potential litigation costs risk.

Q: Do you believe that the reverse split was necessary couldn't the company buy back stock in an effort to achieve the $1 minimum bid requirement?

A: Firstly, the buyback program expired in December and there has been a blackout period since then, so repurchasing shares haven't been an option. The buyback program was designed to support the stock price, not drive it up. Maintaining listing on NASDAQ is critical for growth and expansion plans, and given the current market environment, the reverse split was the most viable option at this time.

Q: What are the current plans for the buyback? Reinstating the program is something we are considering and we'll certainly announce any details on this when appropriate.

Q: Can you comment on the status of the ongoing lawsuits? Does the accrual mean the settlement is pending?

A: We continue to work with council to resolve the final remaining legal matter as quickly as possible while protecting the long - term interest of our shareholders. There are two paths, proceeding to trial or reaching a settlement. The ultimate path depends on the opinion of the council and the assurance company, which is why a non - cash contingency charge was taken for potential future litigation costs if necessary.