Solesence
NASDAQ: SLSN
$0.98 ▲ +0.04  (+4.26%)
At close: Jul 27, 2026 · 9:36 AM UTC
Financial Ratios
Market Cap69.21 Mn
P/E73.32
P/S1.15
Div. Yield0.00
Total Debt (Qtr)4.05 Mn
Revenue Growth (1y) (Qtr)-11.41
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About

Solésence, Inc. is a science-driven innovator specializing in skin health solutions across beauty, health, and wellness markets. The company develops and manufactures advanced materials, active pharmaceutical ingredients, and finished consumer products designed to protect skin from environmental aggressors while enhancing aesthetic performance. Operating through proprietary and patented technologies, Solésence serves both ingredient and finished product markets, with a…

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Sector: Consumer Defensive Industry: Household & Personal Products CIK: 0000883107

Investment Thesis

▲ Bull case
  • The company is executing a multi year Transform and Transcend plan that aims to shift from a pure contract manufacturer to a strategic innovation partner. This shift is designed to capture a larger portion of the value chain and improve profitability through higher margin offerings. Early results show gross margin expansion of 300 basis points driven by labor efficiency gains and waste reduction. The initiative is laying groundwork for sustainable double digit EBITDA margins by year end.
  • The launch of Chromalum and WHSPR proprietary technologies expands the company's addressable market beyond traditional sunscreen products. These technologies enable formulation of SPF infused hybrid items that combine UV protection skin health benefits and a pleasant user experience. By aligning with the convergence of health wellness and beauty trends the company can attract new brand partners seeking substantiated claims. This innovation pipeline supports future adjacency into hair and scalp care categories.
  • The combined shipped and open orders total of $47,000,000 provides a visible forward looking demand base that exceeds prior year levels. Co marketing activations with partners such as Color Science BloomAX and Seal have deepened strategic relationships and driven product level performance. These collaborations are being formalized into a program that should increase the company's share of channel value. Continued improvement in On Time In Full performance is expected to convert this backlog into revenue growth over the remaining quarters.
  • Facility consolidation and SIOP implementation are projected to generate six figure annual savings that will flow to the bottom line as operational efficiencies mature. Improved inventory management through SIOP reduces carrying costs and mitigates obsolescence risk. Labor efficiency gains from revised shift structures and training are already evident in the quarterly gross margin expansion. These structural improvements position the company to achieve its guided 30% floor for gross profit margins and to reach double digit EBITDA margins by the end of the fiscal year.
▼ Bear case
  • The company is relying on the successful rollout of multiple operational changes including shift structure revisions lean manufacturing training and SIOP deployment. Any delay or resistance in adopting these new processes could prolong the period of suboptimal OTIF performance and keep revenue below potential. The early quarter results already showed a net loss despite gross margin improvement indicating that cost savings may take longer to materialize than anticipated. Investors should watch for signs that the Transform and Transcend initiative is not delivering the expected margin expansion on schedule.
  • A significant portion of future growth is tied to the success of co marketing programs and the ability to convince brand partners to adopt new proprietary technologies. If brand partners do not perceive sufficient differentiation or if they allocate budgets elsewhere the company's expansion into adjacent categories such as hair and scalp care could stall. The beauty industry is highly competitive and rapid shifts in consumer preferences could reduce demand for SPF infused hybrid products. This dependence creates a vulnerability to changes in partner relationships or marketing spend.
  • Management has characterized 2026 as a year of rationalized performance implying that the rapid growth rates seen in prior years may not be sustainable. A broader slowdown in consumer discretionary spending could affect orders for premium beauty ingredients and limit the upside of the $47,000,000 backlog. Inflationary pressure on raw materials or packaging could erode the gross margin gains achieved through labor efficiency. Without continued top line expansion the company may struggle to convert its operational improvements into meaningful profitability.
  • The $47,000,000 figure combines shipped orders and open orders that are not yet due for delivery and may include orders that are subject to cancellation or modification. If a meaningful portion of this backlog fails to convert into revenue the company's forward looking guidance could prove overly optimistic. Additionally the company has acknowledged that it is reviewing the usefulness of this metric for investor guidance which suggests internal uncertainty about its predictive power. Investors should treat the backlog as an indicative signal rather than a firm revenue forecast.

Product and Service Breakdown of Revenue (2025)

Peer Comparison

Companies in the Household & Personal Products
S.No. Ticker Company Market CapP/EP/STotal Debt (Qtr)
1 PG PROCTER & GAMBLE Co 346.06 Bn20.743.9937.03 Bn
2 UL Unilever Plc 133.77 Bn28.204.0432.92 Bn
3 CL Colgate Palmolive Co 73.60 Bn33.233.547.94 Bn
4 KVUE Kenvue Inc. 37.29 Bn22.992.448.66 Bn
5 KMB Kimberly Clark Corp 36.91 Bn92.732.237.08 Bn
6 EL Estee Lauder Companies Inc 29.75 Bn-155.782.017.31 Bn
7 CHD Church & Dwight Co Inc /De/ 23.30 Bn24.91417.652.40 Bn
8 CLX Clorox Co /De/ 11.68 Bn15.161.732.49 Bn