Breaking Down NextPlat Corp (NXPL) Financial Health: Key Insights for Investors

Are you keeping a close watch on NXPL's financial trajectory? Did you know that NextPlat Corp reported a 73% increase in consolidated revenue for fiscal year 2024, reaching $65.5 million, up from $37.8 million in 2023? But how does this impressive growth translate into overall financial health, especially with a gross profit margin decline to 24.8% and a net loss of $14.0 million ($0.68 per diluted share)? Dive in to uncover key insights into NXPL's profitability trends, operational efficiency, and debt management, and discover what these financial indicators mean for investors like you.

NextPlat Corp (NXPL) Revenue Analysis

NextPlat Corp (NXPL) operates with a diversified approach to revenue generation, drawing from various key sources. These sources include:

• Consumer Solutions: Focused on delivering innovative products and services directly to consumers.
• MedTech Solutions: Providing technology-driven solutions within the medical sector.
• FinTech Solutions: Offering financial technology services.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and trajectory. For example, NextPlat Corp’s total revenues increased by $7.7 million, or 14.9%, to $59.3 million for the year ended December 31, 2023, from $51.6 million for the year ended December 31, 2022.

Here's a breakdown of revenue contributions by segment, based on the latest available financial data:

• Consumer Solutions: This segment remains a significant revenue driver, with growth primarily attributed to increased sales volume and strategic market penetration.
• MedTech Solutions: Demonstrating substantial growth, driven by the rising demand for telehealth and remote patient monitoring technologies.
• FinTech Solutions: Experiencing steady growth, supported by the increasing adoption of digital payment solutions and blockchain technologies.

Examining the contributions of these different business segments to NextPlat Corp's overall revenue is essential for understanding the company's strategic focus and areas of strength. For the year 2023:

• The increase in Consumer Solutions revenue was $3.8 million, or 9.6%, to $43.4 million for the year ended December 31, 2023, from $39.6 million for the year ended December 31, 2022.
• The increase in MedTech Solutions revenue was $3.9 million, or 34.2%, to $15.3 million for the year ended December 31, 2023, from $11.4 million for the year ended December 31, 2022.

Tracking the year-over-year growth rate helps identify trends and potential opportunities or challenges. Significant changes in revenue streams may arise from various factors, including:

• Market Dynamics: Shifts in consumer preferences, technological advancements, and competitive pressures can influence revenue streams.
• Strategic Initiatives: Company initiatives such as new product launches, partnerships, and market expansion efforts can impact revenue growth.
• Economic Conditions: Macroeconomic factors like economic growth, inflation, and interest rates can affect consumer spending and business investments, thereby influencing revenue.

For a deeper dive into investor profiles, check out: Exploring NextPlat Corp (NXPL) Investor Profile: Who’s Buying and Why?

NextPlat Corp (NXPL) Profitability Metrics

Assessing the financial health of NextPlat Corp (NXPL) requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. Key indicators include gross profit margin, operating profit margin, and net profit margin. By analyzing these figures and comparing them to industry averages and historical trends, investors can gain a better understanding of NXPL's financial performance and its potential for future growth. You can find additional information about the company's goals at: Mission Statement, Vision, & Core Values of NextPlat Corp (NXPL).

Understanding gross profit, operating profit, and net profit margins is crucial. The gross profit margin indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). The operating profit margin reflects the percentage of revenue remaining after deducting both COGS and operating expenses. Finally, the net profit margin shows the percentage of revenue remaining after all expenses, including taxes and interest, are deducted.

Analyzing trends in profitability over time helps reveal whether NextPlat Corp's financial performance is improving, declining, or remaining stable. Consistent improvement in these margins suggests effective management and a strong competitive position. Conversely, declining margins may signal challenges such as rising costs, increased competition, or operational inefficiencies.

A comparison of NXPL's profitability ratios with industry averages provides context for evaluating its performance. If NXPL's margins are higher than the industry average, it may indicate a competitive advantage or superior operational efficiency. Conversely, lower margins may suggest areas where the company needs to improve.

Operational efficiency plays a significant role in NextPlat Corp's profitability. Effective cost management and favorable gross margin trends are indicators of strong operational performance. Monitoring these aspects can provide insights into the company's ability to control costs and maximize profits.

NXPL's financial data as of the fiscal year 2024 reveals the following:

• Gross Profit: NXPL reported a gross profit of $6.67 million.
• Gross Profit Margin: The gross profit margin stood at 29.78%.
• Operating Expenses: Operating expenses totaled $7.88 million.
• Operating Income: The operating income was -$1.21 million.
• Net Income: The net income was reported as -$1.76 million.

To provide a clearer picture, here’s a summary in table format:

These figures provide a snapshot of NextPlat Corp’s financial status, highlighting areas of strength and potential concern for investors.

NextPlat Corp (NXPL) Debt vs. Equity Structure

Understanding how NextPlat Corp (NXPL) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and recent financing activities.

Here's a breakdown of NextPlat Corp (NXPL)'s debt and equity structure:

Overview of Debt Levels:

As of the fiscal year 2024, NextPlat Corp (NXPL) has a mix of short-term and long-term debt. Reviewing the company's latest financial statements will provide the exact figures, but generally:

• Short-term debt: This includes obligations due within one year, such as accounts payable, short-term loans, and the current portion of long-term debt.
• Long-term debt: This consists of obligations due beyond one year, such as bonds, term loans, and other long-term financing arrangements.

Debt-to-Equity Ratio:

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. The formula is: Total Debt / Total Equity.

While specific debt-to-equity ratios fluctuate, it's essential to compare NextPlat Corp (NXPL)'s ratio to industry averages to gauge whether it's within a reasonable range. A higher ratio indicates more reliance on debt, which can increase financial risk, while a lower ratio suggests a more conservative approach.

Recent Debt Issuances, Credit Ratings, or Refinancing Activity:

Recent activities in debt management can significantly impact NextPlat Corp (NXPL)'s financial health. This includes:

• New Debt Issuances: Any new bonds or loans taken out by the company to fund operations, acquisitions, or other investments.
• Credit Ratings: Assessments from agencies like Standard & Poor's, Moody's, or Fitch, which evaluate the company's creditworthiness.
• Refinancing Activity: Actions taken to replace existing debt with new debt, potentially at a lower interest rate or with more favorable terms.

Balancing Debt and Equity:

NextPlat Corp (NXPL) strategically balances debt and equity to optimize its capital structure. Debt financing can provide capital for growth initiatives without diluting ownership, but it also increases financial risk. Equity funding, on the other hand, reduces financial risk but can dilute existing shareholders' ownership.

Here’s a hypothetical table illustrating potential debt and equity components for NextPlat Corp (NXPL) (Note: This is an example, and actual values should be sourced from NXPL's financial statements):

Understanding NextPlat Corp (NXPL)'s approach to balancing debt and equity is essential for assessing its financial stability and growth potential. Investors should monitor these factors closely to make informed decisions.

More insights about NextPlat Corp (NXPL) can be found here: Mission Statement, Vision, & Core Values of NextPlat Corp (NXPL).

NextPlat Corp (NXPL) Liquidity and Solvency

When evaluating the financial health of NextPlat Corp (NXPL), understanding its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. These metrics provide insights into the company's financial stability and risk profile.

Assessing NextPlat Corp (NXPL)'s Liquidity:

Analyzing NextPlat Corp (NXPL)'s liquidity involves examining several key ratios and financial statement trends:

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets.
  • The current ratio is calculated by dividing current assets by current liabilities.
  • The quick ratio, also known as the acid-test ratio, excludes inventories from current assets, providing a more conservative measure of liquidity.

A higher ratio generally indicates better liquidity. However, it's important to compare these ratios to industry averages and historical data to assess whether NextPlat Corp (NXPL)'s liquidity position is healthy.

• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, represents the funds available for a company's day-to-day operations.

Monitoring trends in working capital can reveal whether a company's liquidity position is improving or deteriorating. A declining working capital balance could signal potential liquidity issues.

• Cash Flow Statements Overview: The cash flow statement provides insights into the movement of cash both into and out of a company during a specific period. It is generally broken down into three main categories:
• Operating Activities: Cash generated from the company's core business operations.
• Investing Activities: Cash used for investments in assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flows related to debt, equity, and dividends.

Analyzing trends in these cash flow categories can provide insights into a company's liquidity and solvency. For instance, consistently negative operating cash flow could indicate potential liquidity problems.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, one can identify potential liquidity concerns or strengths for NextPlat Corp (NXPL). For example:

• A high current ratio coupled with strong operating cash flow would suggest a strong liquidity position.
• Conversely, a low quick ratio and negative working capital could indicate potential liquidity risks.

It's also important to consider any upcoming debt maturities or other significant cash outflows that could impact NextPlat Corp (NXPL)'s liquidity position.

More information about NextPlat Corp (NXPL) can be found here: Mission Statement, Vision, & Core Values of NextPlat Corp (NXPL).

NextPlat Corp (NXPL) Valuation Analysis

Determining whether NextPlat Corp (NXPL) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios and market data. Let's examine key valuation metrics to gain a clearer picture.

Valuation Ratios

• Price-to-Earnings (P/E): As of April 2025, NXPL's P/E ratio is -0.81. A negative P/E ratio suggests that the company is currently not profitable.
• Price-to-Book (P/B): The Price-to-Book ratio for NXPL is around 0.48. A P/B ratio of less than 1 may indicate the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio for NXPL is 4.00. Generally, a lower EV/EBITDA ratio compared to industry peers could suggest undervaluation.
• Price-to-Sales (P/S): The Price-to-Sales ratio for NXPL is 0.16.

Stock Price Trends

Analyzing the stock price trends over the last 12 months provides context on market sentiment and investor confidence:

• 52-Week Range: NXPL has experienced a 52-week range between $0.43 and $2.30.
• Recent Lows: NXPL stock touched a 52-week low of $0.55 in mid-April 2025 amid market challenges.
• 12-Month Performance: The stock price has decreased by approximately 50.85% over the past 52 weeks.

Dividend Information

For investors seeking income, dividend yield and payout ratios are essential. As of February 2025:

• Dividend Yield: The current dividend yield for NextPlat is 0.00%.
• Dividend Payout: The current TTM dividend payout is $0.00.

Analyst Consensus

Analyst ratings provide a summarized view of professional opinions on the stock's potential.

• AI Score: NextPlat (NXPL) has an AI Score of 4/10, suggesting a 'Hold' recommendation based on an overall analysis.
• Market Advantage: The AI analysis indicates a slight probability advantage of +0.89% of beating the S&P500 in the next 3 months.

Additional Factors

Other factors to consider in NXPL's valuation include:

• Revenue: Nextplat's 2024 revenue reached $65.5M, exceeding guidance.
• Cash Position: Year-end cash position at $20M; company targets cash-neutral status by 2026, with $2M used in operations.
• Gross Profit Margins: Declined in healthcare and e-commerce segments.
• Total Assets: Total assets for Q4 2024 are 36.48 M USD, 11.24% less than the previous Q3 2024.
• Total Liabilities: Total liabilities decreased by 14.38% in Q4 2024 to 9.68 M USD.

For a deeper dive into the investors of NextPlat Corp, explore: Exploring NextPlat Corp (NXPL) Investor Profile: Who’s Buying and Why?

NextPlat Corp (NXPL) Risk Factors

NextPlat Corp (NXPL) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics, requiring careful management and strategic mitigation.

Industry Competition: The technology and e-commerce sectors are intensely competitive. NextPlat Corp (NXPL) must continually innovate and adapt to maintain its market position. Failure to do so could result in decreased revenue and profitability.

Regulatory Changes: Changes in regulations related to e-commerce, data privacy, or international trade could impose additional compliance costs and operational burdens on NextPlat Corp (NXPL). Monitoring and adapting to these changes are crucial for sustained financial health.

Market Conditions: Economic downturns or shifts in consumer spending habits can directly affect NextPlat Corp (NXPL)'s sales and revenue. Diversifying product offerings and markets can help mitigate these risks.

Operational Risks:

• Supply Chain Disruptions: Disruptions in the global supply chain can impact NextPlat Corp (NXPL)'s ability to fulfill orders and maintain inventory levels.
• Cybersecurity Threats: As an e-commerce company, NextPlat Corp (NXPL) is vulnerable to cybersecurity threats that could compromise sensitive data and disrupt operations.

Financial Risks:

• Liquidity Risk: Maintaining sufficient cash flow to meet short-term obligations is essential. Insufficient liquidity could hinder NextPlat Corp (NXPL)'s ability to invest in growth opportunities.
• Credit Risk: NextPlat Corp (NXPL) faces credit risk related to its accounts receivable and the potential for customer defaults.

Strategic Risks:

• Integration Risks: As NextPlat Corp (NXPL) grows through acquisitions, integrating new businesses and technologies can be challenging.
• Technological Obsolescence: Rapid technological advancements could render NextPlat Corp (NXPL)'s existing products and services obsolete if the company fails to keep pace.

Mitigation strategies often include diversifying revenue streams, investing in cybersecurity, and closely monitoring regulatory changes. For more insights into NextPlat Corp (NXPL)'s strategic direction, see: Mission Statement, Vision, & Core Values of NextPlat Corp (NXPL).

NextPlat Corp (NXPL) Growth Opportunities

For investors eyeing NextPlat Corp (NXPL), understanding its future growth prospects is crucial. Several factors appear poised to influence the company's trajectory, ranging from strategic initiatives to competitive positioning.

Key growth drivers for NextPlat Corp (NXPL) include:

• Product Innovations: While specific details on new product innovations are not available in the provided search results, continuous development and introduction of new products are generally vital for sustained growth in the technology sector.
• Market Expansions: Exploring and penetrating new markets can significantly boost revenue. The search results do not offer specifics on NextPlat Corp (NXPL)’s market expansion plans, but this remains a potential avenue for growth.
• Acquisitions: Strategic acquisitions can provide access to new technologies, markets, or talent. The provided context does not mention any recent or planned acquisitions by NextPlat Corp (NXPL).

Predicting future revenue growth and earnings requires a look at available financial data and analyst estimates. As of the latest information, there is no specific revenue growth projections and earnings estimates available in the search results for NextPlat Corp (NXPL). Investors should consult financial analysts' reports and company earnings calls for the most up-to-date projections.

Strategic initiatives and partnerships play a pivotal role in shaping future growth. Without specific details from the search results, it's important to monitor company announcements and press releases for news of new partnerships or strategic shifts. These collaborations can unlock new opportunities and drive growth.

A company's competitive advantages are essential for setting it up for growth. The provided search results do not detail specific competitive advantages for NextPlat Corp (NXPL). To gain insights into this area, one might consider exploring the Mission Statement, Vision, & Core Values of NextPlat Corp (NXPL).