On Thursday, NextPlat (NASDAQ:NXPL) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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Summary
NextPlat Corp has regained compliance with NASDAQ’s minimum bid requirement following a reverse stock split, positioning it for long-term profitable growth.
The company’s Q1 2026 results showed significant margin expansion and improved profitability, largely driven by its healthcare operations which accounted for 68% of revenue.
Strategic initiatives include expanding healthcare services to all 50 states, launching a new e-commerce healthcare website, and maintaining strong global demand for satellite connectivity products.
Gross margin improved to 35% in Q1 2026, up from 21% a year prior, due to a shift towards higher-margin revenue streams and operational restructuring.
NextPlat Corp ended the quarter with $11 million in cash and no meaningful debt, aiming to sustain profitability and explore growth opportunities through potential joint ventures or acquisitions.
Full Transcript
OPERATOR
Welcome to The Next Platform First Quarter 2026 Earnings Conference Call Certain statements made during this conference call constitute forward looking statements. These statements include the capabilities and success of the Company’s business and any of its products, services or solutions. The words believe, forecast, project, intent, expect, plan, should, would and similar expressions in all statements which are not historical facts are intended to identify forward looking statements. These forward looking statements involve and are subject to known and unknown risks, uncertainties and other factors any of which could cause the Company to not achieve some or all of its goals or the Company’s previously reported actual results, performance, gaps in operating, including those expressed or implied by such forward looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, copies of which may be obtained from the SEC’s website at www.sec.gov the company assumes no and hereby disclaims any obligation to update the forward looking statements made during this conference call. Joining us on the call today are David Phipps, Chief Executive Officer, Amanda Ferriero, Chief Financial Officer and Bruti Narkut, Vice President of Healthcare Operations. I will now turn the meeting over to David Phipps for opening remarks.
David Phipps (Chief Executive Officer)
Good morning and welcome to NextPlat’s first quarter 2026 results conference call. Thank you for joining us. On today’s call, we will discuss our first quarter results and highlight many of the improvements now being delivered in our business because of our turnaround efforts. In addition to discussing the results of the quarter, we will also share with you some insights into what we expect for the remainder of 2026 and specifically the progress we are making on achieving our growth and profitability goals. As is customary, I will begin today’s call by briefly recapping the results of the first quarter. Then I will turn the call over to Bruti Narkut, our Vice President of Healthcare Operations, to discuss that segment in more detail and then turn the call over to Amanda Ferriero, our Chief Financial Officer, to review financial results. Following that, I will make closing remarks and then conclude the conference call by responding to questions that were submitted by our shareholders. Let me start by commenting on our NASDAQ listing status. On April 27, we announced that we regained our compliance with NASDAQ’s minimum bid requirement as a result of us completing a required reverse split. As I indicated on our last call, this was not something we wanted to do. It was required to maintain our listing on Nasdaq, which we believe was in the best interest of our shareholders. With that behind us, instead of looking back, we are now 100% focused on delivering on the promise we see of a bright future for our company, as evidenced by our significantly improved Q1 operating results announced today.
David Phipps (Chief Executive Officer)
These improvements are the direct result of our efforts to turn the business around and position it for long term profitable growth. As you can see, we now have a fundamentally improved business featuring dramatic margin expansion supported by a leaner operating structure and an expanding domestic and international new business pipeline. With the turnaround largely complete, we are now looking to add scale and expand the scope of our business, in particular in our healthcare operations.
David Phipps (Chief Executive Officer)
This is highlighted by our expansion into all 50 states from our current base in Florida and other developments which we intend to announce shortly. I will discuss these and other critical developments in a minute. Looking at the first Quarter the positive trends established late last year and as outlined in our previous guidance announcement have continued. The business is now beginning to deliver tangible financial results. This is especially visible in terms of improved profitability as reflected by a consolidated gross margin percentage which is now at record levels.
David Phipps (Chief Executive Officer)
This is largely driven by a dramatic improvement in our healthcare business which represented about 68% of our revenue in the first quarter. As we previously indicated, our efforts here were focused on new business development targeting higher margin 340B covered entities and long term care facilities, securing medication fulfilment contracts, re engagement with former clients and improving customer service. Initiated late last year, these efforts are now delivering sustainable margin improvement and are expected to support revenue growth later this year. This is a major contributor to our ability to achieve operational profitability in the latter half of 2026. Furthermore, as evidenced by our first quarter results, the combination of new higher margin revenue and a greatly streamlined and cost efficient operating structure means that we have created a clear path to meaningful reductions in operating losses in the second half of the year. At this point, I’d like to now review our business and provide some additional insights which I believe will be helpful for investors in measuring our progress in our healthcare segment.
David Phipps (Chief Executive Officer)
We are pleased to report the following improvements in operations during the first quarter. Although revenue continues to be down on a year over year basis as expected, our focus on attracting and supporting the needs of contracted 340B entities, long term care providers and other healthcare facility operators is delivering bottom line improvements. Furthermore, momentum in this segment is building. Having secured new 340B pharmacy service agreements with five new entities a single quarter record, these entities are now onboarding a process which usually takes about 90 days to complete before they can start directing prescriptions for us for fulfillment.
David Phipps (Chief Executive Officer)
As such, we believe these new customers will start contributing to our revenue during the third quarter. The contributions from medication fulfillment contracts continue to surpass expectations as we filled an …
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