NextPlat Corp (NASDAQ:NXPL) said it expects to generate approximately $55 million in revenue for 2025 and anticipates continued operational improvement following strategic business refocusing efforts, with margin expansion and cost reductions projected to extend into 2026.
The global consumer products and services company, which delivers healthcare and technology solutions through e-commerce and retail channels, reported preliminary indications of sequential improvement across key financial and operating metrics in the fourth quarter ended December 31, 2025. The figures remain subject to completion of the company’s year-end audit and could change.
Management said initiatives launched over the past six months to streamline operations and prioritize higher-margin revenue streams are beginning to produce measurable results, supporting progress toward growth, profitability, and efficiency targets.
Healthcare operations drive revenue momentum
NextPlat expects fourth-quarter 2025 revenue from its 340B healthcare program to rise more than 90% sequentially compared with the third quarter, supported by direct engagement initiatives and operational improvements with existing customers. Total prescription volume is projected to increase about 7% quarter over quarter, reflecting stronger contracted prescription activity.
While prescription volumes may fluctuate during 2026 as the company shifts toward contracted services, management said unit economics are already improving due to a focus on revenue quality, tighter cost discipline, and benefits from the Medicare manufacturer rebate program, all contributing to margin expansion.
Margins and cost structure improving
Consolidated gross margin for the fourth quarter is expected to remain broadly in line with the prior quarter. However, as healthcare operations continue transitioning toward higher-margin contracted services — including growth in 340B and medication fulfillment agreements — NextPlat forecasts consolidated gross margin expansion of roughly 20%–25% in the first quarter of 2026, with additional gains expected throughout the year.
The company also reiterated expectations for sustained reductions in annual operating expenses through structural efficiency measures, including closing underutilized office locations, consolidating personnel, lowering reliance on external consultants, and improving logistics processes.
Balance sheet and 2026 outlook
NextPlat said it maintains solid liquidity, with approximately $13 million in cash, about $15 million in working capital, and no unsecured debt expected as of December 31, 2025.
Preliminary results early in 2026 indicate continued growth in higher-margin 340B and contracted fulfillment revenue alongside ongoing efficiency improvements. Management expects these trends to meaningfully reduce operating losses by the end of the second quarter of 2026.
“We continue to build upon the results of our business refocusing and improvement efforts as reported in the third quarter, and although we are going to be impacted by several one-time, non-recurring costs in the fourth quarter, we believe our results will clearly demonstrate the positive fundamental impacts of our efforts to position NextPlat for long-term profitability and growth,” said Chief Executive Officer David Phipps. “Looking ahead, although there is work still to be done, we remain confident in the potential to rapidly and profitably grow the business in 2026. Through continued execution and capitalizing on the many opportunities ahead of us, we are committed to delivering increased value to our stakeholders – our customers, patients, and our shareholders.”
NextPlat expects to file its annual report on Form 10-K for the year ended December 31, 2025 by March 31, 2026, and plans to host an earnings conference call with investors following the filing.
About NextPlat
NextPlat is a global consumer products and services company providing healthcare and technology solutions through e-commerce and retail channels worldwide. Through acquisitions, joint ventures, and partnerships, the company helps businesses expand online sales domestically and internationally. Its operations include a global e-commerce communications division offering voice, data, tracking, and IoT services, as well as pharmacy and healthcare data management services in the United States through subsidiary Progressive Care.