NexGel (NASDAQ:NXGL) reported first-quarter 2026 revenue that was slightly lower than a year earlier while outlining plans to integrate its recently closed BioNX Surgical acquisition, which management said is expected to significantly expand the company’s revenue base.
Chief Executive Officer Adam Levy said revenue for the first quarter totaled $2.65 million, compared with $2.81 million in the same period last year. He described the year-over-year performance as “relatively flat,” with lower sales from Silly George partially offset by growth in contract manufacturing and the company’s MEDAGEL brand.
Cash and restricted cash totaled approximately $2.1 million as of March 31, 2026, Levy said. As of the call, the company had $1.8 million in cash on hand. Levy said NexGel raised a total of $13.8 million, consisting of $8.8 million in cash and a $5 million convertible note delivered to Celularity to fund the acquisition and provide working capital.
BioNX Acquisition Expected to Add Revenue Beginning in Q2
Levy said first-quarter results did not include any revenue from the BioNX acquisition, which closed in mid-April. He said the company expects to account for revenue from the acquisition for about half of the second quarter.
Levy said financing for BioNX was led by Sequence LifeScience, which made a $5.5 million investment. He said the transaction replaced a financial lender seeking a near-term exit with a long-term strategic partner focused on supporting growth and execution.
Sequence LifeScience CEO Brian J. Keefer and COO Kevin Harris have joined NexGel’s board of directors. Levy said they bring experience in product innovation and distribution that can help grow the newly acquired business.
The BioNX portfolio includes six established regenerative biomaterial products. Levy said the products are commercial-stage assets with more than a decade of clinical use, demonstrated real-world utility and existing reimbursement pathways. He said the products are approved in approximately 500 hospitals across the U.S. and represent opportunities across surgical specialties and wound care.
NexGel also appointed Dave Hazard as vice president of sales for BioNX Surgical. Levy said Hazard has more than 13 years of sales leadership experience in orthopedics, spine and biologics, and will help build sales infrastructure and enterprise partnerships.
Management Points to Pipeline and Pro Forma Revenue Growth
Levy said NexGel has three 510(k) devices in development within the BioNX pipeline. He said the programs represent approximately $4.6 million in invested paid-in capital and are targeted for commercialization in 2026, 2027 and 2028.
On a pro forma basis, Levy said NexGel anticipates the acquisition will approximately triple annual revenue to roughly $35 million and be immediately accretive to profitability upon closing. He said the deal combines NexGel’s hydrogel platform with commercial regenerative products and a strategic manufacturing partner.
“This positions us to accelerate product development, broaden our commercial footprint and pursue new opportunities within the regenerative medicine landscape,” Levy said.
The company also introduced Ian Blackman as its new chief financial officer. Levy said Blackman, described as a veteran financial and M&A leader, has been appointed to lead the acquisition integration, scale the business and accelerate growth.
Sales Force Ramp and Operating Expenses Discussed
During the question-and-answer portion of the call, Maxim Group analyst Naz Rahman asked how long the BioNX field force had been promoting the products and whether NexGel had seen an uptick in sales compared with the prior run rate under the previous owner.
Levy said NexGel was limited in what it could do before closing because the assets were not yet owned by the company. He said there was also a lag in getting contracts approved, completing training and changing vendor and hospital account information from Celularity to BioNX.
“As of May 15th, we’re just really getting out there and starting to ramp the sales,” Levy said. He added that the company is “excited” about the second half of May and June but is “really just getting started.”
Rahman also asked about operating expense levels following the addition of sales representatives and research and development staff. Blackman said the company expects “an approximate monthly run rate of $500,000 all in for salaries, marketing and commissions and so on.”
Legacy Business and Consumer Products
In response to a question from private investor Bess Mihailov about the legacy business, Levy said the company is being conservative in its growth assumptions. He said Silly George had an “exceptionally bad” fourth quarter and a softer first quarter, driven in part by underperformance from new products such as lip gloss and competition in the category. However, he said the company is seeing signs of normalized revenue in April and noted that a new tweezers product is performing well.
Levy said STADA-related products are “growing nicely,” though one product faced a delayed market launch due to Amazon stickering issues. He also said Trofolastin products have shipped from Germany and are expected to be received and listed on Amazon within 60 days.
Asked about iRhythm, Levy said the customer has placed orders but has not yet become as large as initially expected. “So far, we haven’t seen them be a huge customer yet,” he said. “They are a steady customer.”
Levy also addressed a laser hair removal-related product associated with Innovative Optics, saying a study sponsored and paid for by Innovative Optics had been published about three weeks earlier. He said the study showed a 96% reduction in plume and secondary endpoints including reduced pain. Levy said Innovative Optics is using the study to market the product and buys goods from NexGel at a transfer price.
NexGel said it expects to provide more detail on the BioNX integration and execution when it reports second-quarter results in August.
About NexGel (NASDAQ:NXGL)
NexGel, Inc (NASDAQ: NXGL) is a development-stage materials science company focused on the research and commercialization of advanced polymer formulations tailored for additive manufacturing and 3D printing applications. Leveraging proprietary expertise in polymer chemistry, NexGel develops high-performance materials designed to meet rigorous mechanical, thermal, and chemical resistance requirements across diverse end markets.
The company’s product pipeline includes custom-engineered resins, powders and elastomeric systems optimized for a range of additive manufacturing processes, including selective laser sintering (SLS), stereolithography (SLA) and fused deposition modeling (FDM).
