NextPlat Corp Q3 FY2025 earnings call

• David Phipps mentioned the company undertook actions in Q3 to improve operations, reduce costs, and grow business. Although Q3 results didn't fully reflect efforts, there were improvements in operating metrics in September and expected to continue into Q4 and next year. - Barut Norkut discussed Healthcare segment: Began to see turnaround in Q3, especially in 340B line of business with momentum continuing into October. Reduced employee headcount by 50 since start of year for payroll savings. 340B business rebounded with former clients returning and new covered entities joining, leading to gains in volume and revenue. Retail prescription business also gained momentum with volume up 27% supported by new contract and improved operational performance. Also, focus on optimizing inventory levels and purchasing intervals, and key personnel changes in logistics to enhance performance and reduce costs. - David Phipps noted the business model is built around three core segments: Healthcare services through PharmCo Rx pharmacies, communications products and services through global Telesat, Orbis and Satcom, and Outfit of Satellite subsidiaries, and e - commerce development program.

The company has three core segments. Healthcare segment: Despite third - quarter revenue decline, cost reduction efforts and business development investments led to improvements. 340B business rebounded with more prescriptions dispensed in October and higher contract revenue. Retail prescription volume was up 27% from earlier in 2025. E-commerce segment: Revenue was $3,700,000 in Q3 2025, a 4% decline mainly due to lower hardware sales but partially offset by favorable foreign currency impact. Satellite - based connectivity and IoT products sales were robust, and high - margin recurring revenue remained at record levels. Communications segment: GTC was selected as exclusive distributor for personal messaging and tracking products in Nordic region; Starlink products were sold in US; OPKO Healthcare branded products sold well in China; Florida Sunshine nutraceutical products launched in UK and EU, and preparations were underway for AI - driven marketing campaign and advancing Tmall store in China. Revenue contribution percentages weren't explicitly stated in absolute terms but the breakdown of revenue by segment showed Healthcare Operations had revenue of $9,500,000 and e - commerce had $3,700,000 in Q3 2025.

• David Phipps stated Q3 results were the low point in the business and believed efforts would start making more meaningful sequential impact from Q4 2025 through next year towards achieving operational breakeven in 2026. - In the shorter term, continued emphasis on growth of profitable business lines through capital commitment to marketing and sales efforts. Adding new contracts in communication and healthcare segments coming online in Q4 2025. Further committed to invest in critical areas like adding to sales team in Q4, enhancing business development efforts, and recruiting long - term care sales team.

Certain statements during the call are forward - looking statements involving known and unknown risks, uncertainties, and other factors that could cause the company to not achieve some or all of its goals or its previously reported actual results.

Q: What are the current plans for the buyback? Do you intend to increase the level of activity and pace?

A: At this point in time, the program is still available. We continue to monitor the market. Intend to be prudent in deploying available cash for share repurchase as there are other critical investments. Will provide an update on this 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: Pleased to get the extension, but in the very short term it doesn't really change plans. Remain focused on improving financial results. Believe starting early in the New Year, there will be opportunities to be more proactive in engaging with new investors and looking at a number of events and activities.

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

A: Tariff - related challenges are being dealt with. For non - US made products like OpCo, there are still opportunities as when inventory gets into China it sells quickly even with high marketing costs. Slow approval process for optical animal products is frustrating but still see strong demand for OpCo products and intend to pursue them once approved. Florida Sunshine's Tmall store has been approved and first batch of products will be shipped once import certification requirements are cleared.

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

A: Cannot comment specifically on ongoing litigation other than saying two matters have been resolved and working with counsel to resolve the final matter as quickly as possible while protecting shareholders' long - term interest.