NextPlat Corp Reports 73% Revenue Growth to $65.5 Million Despite Increased Net Loss

NextPlat Corp reported significant financial growth in its fiscal year ending December 31, 2024, with total revenues reaching approximately $65.5 million, a 73% increase from $37.8 million in the previous year. This growth was primarily driven by the acquisition of Progressive Care, which contributed approximately $24.9 million to the revenue increase, alongside a $2.8 million rise in e-commerce revenues attributed to the acquisition of Outfitter. Despite the revenue growth, the company recorded a net loss of $23.1 million, compared to a loss of $12.4 million in 2023, largely due to increased operating expenses and impairment charges.

The company's operating expenses rose to $39.9 million, up 15% from $34.5 million in 2023. This increase was influenced by higher salaries and professional fees, particularly related to the merger with Progressive Care and litigation costs. Notably, the gross profit margin decreased to 24.8% from 30.0%, reflecting pressures from rising medication prices and reimbursement rates that did not keep pace with these increases. The company filled approximately 514,000 prescriptions in 2024, a slight increase from 489,000 in 2023, indicating stable demand for its pharmacy services.

Strategically, NextPlat has focused on expanding its e-commerce operations, launching a state-of-the-art platform to enhance online sales capabilities. The company operates two main e-commerce websites and 25 third-party storefronts, including significant partnerships with Alibaba and Amazon, which accounted for 32.8% and 51.6% of total sales in 2024 and 2023, respectively. The company plans to continue expanding its e-commerce presence and product offerings, targeting new markets and enhancing its logistics capabilities.

NextPlat's workforce has also seen changes, with a total of 162 full-time and 18 part-time employees as of December 31, 2024. The company is actively pursuing strategic acquisitions to bolster its market position and expand its service offerings. However, it faces challenges, including a history of net losses and reliance on key suppliers, which could impact its operational stability. The company is committed to improving its internal controls, particularly regarding inventory valuation, to address identified weaknesses in its financial reporting processes.

Looking ahead, NextPlat aims to leverage its recent acquisitions and expand its healthcare and e-commerce operations. The company anticipates continued revenue growth, although it acknowledges the potential for ongoing losses as it invests in business development and operational improvements. Management believes that existing cash resources, totaling approximately $20 million, will support operations for the next 12 months, but additional financing may be necessary to sustain growth and meet future liquidity needs.