NextPlat Corp (NASDAQ:NXPL) reported a decline in third-quarter revenue on Thursday, posting $13.8 million, down from $15.4 million a year earlier, as its healthcare division faced softer pharmacy 340B contract activity. The company recorded a net loss of $0.08 per share for the period.
Despite the revenue drop, NextPlat shares moved 1.32% higher in pre-market trading, with investors encouraged by early signs that the company’s turnaround efforts are beginning to gain traction.
Operating expenses fell sharply to $4.7 million, compared with $7.8 million in the same quarter last year, excluding roughly $3.7 million in one-time costs. Gross margin slipped to 19.9% from 23.2%.
NextPlat ended the quarter with $13.9 million in cash. The company posted a net loss attributable to common shareholders of about $2.2 million, a meaningful improvement from the $4.2 million loss reported in Q3 2024.
CEO and President David Phipps said momentum began shifting late in the quarter as restructuring actions took hold. “Late in the third quarter, we began to see the positive impact of our cost-cutting, customer re-engagement, and business efficiency efforts, reversing the sequential declines witnessed in the first half of 2025,” he said.
Management said it has already identified and implemented more than $2 million in annualized overhead reductions, including workforce cuts, operational streamlining, and consolidation of unused office space. These savings are expected to drive stronger operating performance beginning in the fourth quarter.
The company’s e-commerce division continued to perform well, benefiting from steady demand for satellite-based connectivity and IoT solutions, particularly through Amazon. Recurring revenue in this area remains at record levels.
Looking ahead, NextPlat expects sequential improvement to accelerate through Q4 and into 2026, supported by rising prescription volumes in the healthcare business and further benefits from ongoing cost-reduction initiatives.