NextPlat (NASDAQ:NXPL) reported second-quarter results that showed improved margins and a substantially narrower loss, as growth in higher-margin contracted healthcare services and sequential gains in e-commerce helped offset lower retail pharmacy revenue.
Total net revenue for the quarter ended June 30 was $11.9 million, down from $13.2 million a year earlier but up more than 20% from $9.9 million in the first quarter, Chief Financial Officer Amanda Ferrio said. Consolidated gross profit rose 63% year over year to $4.7 million, while gross margin reached a company-record 40%, compared with 22% in the prior-year quarter and 35% in the first quarter.
Healthcare Mix Shifts Toward Contracted Services
Healthcare revenue was $7.8 million, down from $9.1 million in the prior-year period, reflecting lower payer reimbursement rates and changes in payer mix, according to Ferrio. Pharmacy prescription revenue fell to $5.6 million from $8.2 million, with the company attributing the decrease to $1.6 million in lower reimbursement rates and $1 million in lower prescription volume.
However, healthcare revenue composition continued to shift toward contract pharmacy, 340B and medication fulfillment services. Contracted pharmacy revenue increased 136% to approximately $2.2 million from $0.9 million a year earlier and rose about 20% sequentially. Ferrio said roughly $700,000 of the year-over-year increase came from 340B contract services, largely from expanded activity with existing covered entities, while $600,000 came from medication fulfillment contracts secured late in 2025.
Vice President of Healthcare Operations Birute Norkute said the company filled about 96,000 prescriptions during the quarter, compared with approximately 91,000 in the prior-year period. Within that total, 340B prescription volume rose more than 33% to about 7,500 prescriptions.
Healthcare gross margin improved to approximately 46%, from 20% a year earlier and 39% in the first quarter. Healthcare gross profit doubled to about $3.6 million from $1.8 million. Contracted and 340B services accounted for approximately 61% of total healthcare gross profit, compared with about 52% a year ago, Norkute said.
The company added six new 340B contracted covered entities during the second quarter after adding five in the first quarter. Norkute said agreements generally require about 90 days for onboarding before prescription referrals begin. Revenue from the first-quarter additions is expected to begin contributing late in the current quarter, while second-quarter additions are expected to contribute more fully in the fourth quarter.
Pensacola Acquisition and Healthcare Expansion
NextPlat said it has agreed to acquire a profitable community pharmacy in the Pensacola, Florida, area for $1.5 million in cash. The operation would expand the company into a market it does not currently serve and provide a physical platform for 340B support, contracted medication fulfillment and provider relationships.
Ferrio said the transaction is targeted to close by the end of the third quarter, subject to customary closing conditions, due diligence and negotiation of a lease for the premises. Norkute said the company intends to use the Pensacola operation as a model as it evaluates additional markets and service lines.
Chief Executive Officer David Phipps said the company is focusing its brick-and-mortar acquisition strategy on Florida, citing the state’s population demographics and NextPlat’s existing infrastructure. He said the company is seeking profitable operations in markets that are not saturated by larger pharmacy chains.
Phipps said potential future transactions could be financed with a combination of restricted shares, earn-outs, cash or bank credit lines. Ferrio added that NextPlat had not sold shares under its at-the-market program established in May, though the program remains available for financial flexibility.
E-Commerce Revenue Rises Sequentially
NextPlat’s e-commerce business generated $4.1 million in second-quarter revenue, essentially unchanged from the prior-year period but 27% higher than the first quarter. Segment gross margin was 27%, compared with 26% a year earlier.
Phipps said the business generated sales in 115 countries during the quarter and recorded high-margin recurring airtime contract revenue. He cited demand from European government and military customers for satellite-enabled internet-of-things products offered by partners including Iridium and Globalstar, as well as Iridium push-to-talk devices under contract with a U.K. government department.
Sales to government-sector customers totaled more than $1.75 million in the first half of 2026, Phipps said.
The company also plans to launch a healthcare e-commerce website during the current quarter. The site is expected to offer prescription products, including GLP-1 medications, along with over-the-counter products and Florida Sunshine-branded vitamins and supplements.
Cash Position and Outlook
NextPlat ended the quarter with $11.9 million in cash, up $900,000 from March 31, and working capital of $14.2 million. Cash used in operating activities during the first six months totaled $1.5 million, compared with $3.1 million in the same period of 2025. The company said it has no meaningful debt.
Both operating segments were profitable during the quarter. Healthcare generated $1 million in segment operating income, compared with a $1.1 million loss a year earlier, while e-commerce generated $200,000 in segment operating income, compared with $88,000 in the prior-year period.
Looking ahead, Ferrio said NextPlat expects continued sequential improvement and more favorable year-over-year comparisons in the third and fourth quarters. If current trends continue, the company expects to reach bottom-line profitability beginning in the third quarter and sustain it into 2027, though she noted that third-quarter results will include transaction and integration costs related to the Pensacola acquisition.
About NextPlat (NASDAQ:NXPL)
NextPlat Corp operates as a healthcare and e-commerce company in Europe, North America, South America, the Asia and Pacific, and Africa. The company operates full-service retail specialty services pharmacies that provides prescription pharmaceuticals prescription pharmaceuticals, third-party administration, risk and data management services, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, contracted pharmacy services, and health practice risk management to healthcare organizations and providers, as well as supplies prescription medications to long-term care facilities.
