NextPlat Corp reported third-quarter 2025 financial results showing a consolidated revenue of approximately $13.8 million compared to $15.4 million in the prior year period. The revenue decline primarily reflected lower 340B pharmacy contract revenue, though the company noted late-quarter customer re-engagement efforts drove improving prescription volumes expected to continue into the fourth quarter.
The company's gross margin declined to 19.9% from 23.2% in the prior year, attributed to lower Healthcare and e-commerce margins tied to reduced 340B revenue, new airtime costs, and temporary customer rate adjustments. Despite the revenue and margin challenges, NextPlat demonstrated significant progress in cost management with operating expenses falling to roughly $4.7 million from $7.8 million in the same quarter last year.
The substantial reduction in operating expenses resulted from decreased stock-based compensation, executive compensation, and headcount reductions under companywide efficiency measures. These cost-cutting initiatives contributed to a reduced net loss of approximately $2.2 million, or ($0.08) per diluted share, compared to a loss of $4.2 million, or ($0.22) per diluted share, in the prior year period.
NextPlat ended the quarter with $13.9 million in cash and repurchased 130,549 shares during the period, demonstrating financial stability amid its restructuring efforts. The company's improved financial performance reflects its strategic focus on operational efficiency and cost management while navigating challenging market conditions in both its healthcare and e-commerce segments.
For investors seeking detailed financial information, the full press release is available at https://ibn.fm/o5FVB. Additional company updates and news relating to NextPlat are accessible through the company's newsroom at https://ibn.fm/NXPL.
The quarterly results are significant for investors and industry observers as they demonstrate NextPlat's ability to implement effective cost-control measures while maintaining core operations. The improving prescription volumes in the healthcare segment suggest potential recovery in this key business area, while the substantial reduction in operating expenses indicates successful execution of the company's efficiency initiatives.
For the broader healthcare and e-commerce industries, NextPlat's experience highlights the ongoing challenges companies face in managing margins amid changing market conditions and regulatory environments. The company's performance provides insights into how diversified technology and healthcare service providers are adapting to current economic pressures while positioning for future growth.
The reduced net loss and improved cash position may signal a turning point for NextPlat as it continues to optimize its operations across both healthcare services and e-commerce communications divisions. The company's progress in controlling expenses while maintaining revenue streams in key business areas could serve as a model for similar companies facing margin pressures in competitive markets.
