NextPlat Corp. is repositioning its business following a difficult first quarter marked by a drop in revenue, shifting customer dynamics in health care, and new trade headwinds.
The company is now emphasizing international ecommerce expansion and targeted investments in health care services as it looks to stabilize performance and drive long-term growth. NextPlat Corp. is a global ecommerce and health care services company.
For its fiscal Q1 ending May 15, NextPlat reported revenue of $14.5 million. That was down 17% from $17.5 million during the same period last year. The year-over-year decline was due to a reduction in health care-related sales and margin compression across both its ecommerce and health care divisions.
Despite the top-line contraction, the company narrowed its net loss to $1.3 million. That compares to $1.5 million in the first quarter of 2024. Operating expenses dropped significantly to $4.9 million, a 26.2% reduction of $6.7 million. The company eliminated one-time legal fees from earlier mergers, non-recurring write-downs, and fully vested stock-based compensation.
Why NextPlat is homing in on ecommerce
In a business update released June 30, interim CEO Rodger Kersh outlined a shift in strategy that focuses on building recurring, high-margin revenue streams through international ecommerce and specialized health care services.
“Focusing on scalable, high-margin ecommerce and health services is where we see the greatest opportunity,” Kersh said.
Ecommerce remains a smaller portion of NextPlat’s revenue mix. Still, the company sees it as a key engine for future growth. NextPlat currently facilitates online sales in more than 150 countries through major platforms including Amazon, Walmart, and Alibaba. It also does so through its own proprietary storefronts. The company’s global presence is central to its plans to:
- Introduce new products
- Acquire digital service assets
- Support manufacturers with storefront optimization tools
A major part of its ecommerce push involves deeper collaboration with OPKO Health Inc., a Miami-based health care company engaged in diagnostics, pharmaceuticals, and biologics. Through this partnership, NextPlat aims to increase cross-border sales of nutritional supplements and animal health products in China, where demand remains strong and several product categories are exempt from current U.S.-China tariffs. NextPlat is also exploring licensing opportunities that would allow it to operate a nationwide ecommerce pharmacy and eventually expand into mail-order prescription fulfillment.
The company’s initial plans to launch its Florida Sunshine vitamin brand in Asian markets have been delayed due to escalating trade tariffs between the U.S. and China. In response, NextPlat is actively pursuing expansion into the United Kingdom and European Union, where regulatory environments are more favorable and consumer demand for wellness products remains high.
How health care creates opportunities for NextPlat
The health care side continues to account for most of NextPlat’s revenue. NextPlat is facing significant operational shifts in that division. During its Q1, the company experienced a reduction in 340B pharmacy service revenue and overall prescription volume. These declines were primarily due to several covered entities opting to exit the 340B program or bringing pharmacy operations in-house.
As a result, gross margins in the health care segment compressed and the company is taking steps to recalibrate. Among the areas of focus are:
- The expansion of 340B services
- Entry into the cash-pay prescription market
- The addition of compounding services and over-the-counter products
- The pursuit of specialty drug accreditations
The company is also investing in better digital infrastructure to improve compliance and customer engagement. Recruitment is underway to bring in seasoned health care leadership, with renewed emphasis on customer service and sales outreach.
Kersh noted that the restructuring of the health care business is intended to reduce reliance on traditional, lower-margin reimbursement models and create more flexibility and resilience within the segment.
The late Charles Fernandez, who was CEO during the reporting period, expressed confidence in the company’s broader strategy during the Q1 earnings release on May 15.
“Over the longer term, we believe we have multiple opportunities to leverage the value of our existing businesses, strong balance sheet, and cash position to transform our company,” he said.
As NextPlat enters a new chapter under interim leadership, the company is focused on becoming a more efficient, globally oriented operator. With a dual-track strategy that invests in digital commerce and modernized health care delivery, NextPlat aims to overcome near-term challenges and position itself for long-term profitability and growth.
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