Synergy CHC Corp Reports Second Quarter 2025 Financial Results and its Tenth Consecutive Quarter of Profitability
WESTBROOK, Maine, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Synergy CHC Corp. (NASDAQ: SNYR) (“Synergy” or the “Company”), a consumer health and wellness company, is announcing its financial results for the three months ended June 30, 2025.
“We are pleased to report another strong quarter, marking our tenth consecutive quarter of profitability,” said Jack Ross, CEO of Synergy. “Revenue, gross profit, net income and earnings per share all grew year-over-year, reflecting our continued focus on disciplined execution and profitable growth.”
“We also made significant progress across our strategic priorities, including expanding the global footprint of our FOCUSfactor brand through a licensing agreement in Turkey. On the beverage side, our new leadership team is already driving results, securing distribution partners across North America and advancing the growth of our RTD business. In addition, we successfully completed a $20 million debt refinancing, which is a significant milestone for the company. It extends our maturity profile, enhances financial flexibility and supports our long-term growth strategy. With this improved capital structure and continued momentum, we’re well positioned to accelerate growth in the second half of 2025 and beyond.”
Second Quarter 2025 Financial Summary vs. Same Year-Ago Period
- Revenue of $8.1 million vs. $8.0 million.
- Gross margin of 76.7% vs. 69.5%.
- Income from operations of $1.62 million vs. $1.58 million.
- Net income of $1.5 million vs. $655.2 thousand.
- Earnings per share of $0.17 vs. $0.09.
- EBITDA, a non-GAAP financial measure, was $3.80 million vs. $1.61 million.
Recent Business Highlights
- Synergy recently announced a series of major North American retail and distribution wins across its FOCUSfactor supplement and beverage lines, significantly expanding availability across mass, grocery, pharmacy, convenience and wholesale channels, which should start yielding significant results in the fourth quarter of 2025.
- On June 18, 2025, Synergy announced the expansion of its international licensing deal with Gravity Pharma, adding Turkey alongside the United Arab Emirates (UAE) for exclusive distribution of FOCUSfactor.
- On June 4, 2025, Synergy announced that it entered into a $20 million term loan credit agreement, due May 2029, with ACP Agency, LLC, of which $17.5 million has been drawn.
- During the second quarter, Synergy announced the additions of key individuals to drive the Company’s beverage growth.
- During the second quarter, the Company reduced outstanding liabilities by $869 thousand.
- Subsequent to the quarter end, Synergy reduced outstanding notes payable by $1.8 million.
Second Quarter 2025 Financial Results
Revenue in the second quarter of 2025 was $8.1 million, up 1% compared to $8.0 million in the second quarter of 2024. The Company generated $1.4 million in license revenue during the quarter.
Gross margin in the second quarter of 2025 was 76.7% compared to 69.5% in the second quarter of 2024. The increase was largely driven by license revenue.
Operating expenses in the second quarter of 2025 were $4.6 million, up 16% compared to $4.0 million in the second quarter of 2024. The increase was driven by incremental costs associated with being a public company.
Income from operations for the second quarter of 2025 was $1.62 million, up 2.5% compared to $1.58 million in the second quarter of 2024. The increase in operating income was due to the improvement in gross margin.
Net income in the second quarter of 2025 was $1.5 million, up 125% compared to net income of $655.2 thousand in the second quarter of 2024.
Earnings per share in the second quarter was $0.17, up 86% compared to $0.09 in the second quarter of 2024.
EBITDA (a non-GAAP financial measure) in the second quarter of 2025 was $3.80 million, up 136% compared to $1.61 million in the second quarter of 2024.
Balance Sheet and Cash Flow
As of June 30, 2025, Synergy had approximately $1.5 million in cash and cash equivalents, compared to $687.9 thousand in cash and cash equivalents as of December 31, 2024.
As of June 30, 2025, Synergy had a working capital surplus of $12.4 million, compared to a $1.12 million working capital deficit as of December 31, 2024.
As of June 30, 2025, Synergy had $2.4 million in inventory, compared to $1.7 million in inventory as of December 31, 2024.
Cash used in operating activities for the six months ended June 30, 2025 was $899.7 thousand compared to cash used in operating activities of $1.1 million for the six months ended June 30, 2024.
Non-GAAP Financial Measure Reconciliation: EBITDA
To assist financial statement users in an assessment of our historical performance, the Company discloses non-GAAP financial measures in press releases and on investor conference calls and related events, as the Company believes that the non-GAAP information enhances investors' overall understanding of our financial performance, and should be read in addition to, rather than instead of, the financial statements prepared in accordance with GAAP.
Management believes EBITDA provides useful information to investors by excluding certain items that may not be indicative of the Company’s core operating results and that can vary significantly between periods. EBITDA is defined as net income plus interest expense, income tax expense, depreciation and amortization.
The following table reconciles net income to EBITDA (in millions of US dollars):
| 3 Months ended June 30 | ||||
| 2025 | 2024 | |||
| Net income for the period | $1.47 | $0.66 | ||
| Adjusted for: | ||||
| Interest expense, net | 2.11 | 0.74 | ||
| Amortization of intangible assets | 0.03 | 0.03 | ||
| Tax expense | 0.19 | 0.18 | ||
| EBITDA | $3.80 | $1.61 | ||
Conference Call
In conjunction with this announcement, Synergy will host a conference call at 9:00 a.m. ET / 6:00 a.m. PT on August 14, 2025 with the Company’s Chief Executive Officer, Jack Ross, and the Company’s Chief Financial Officer, Jaime Fickett. A live webcast of the call will be available on the Investor Relations section of Synergy’s website. To access the call by phone, please register here and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call 15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website.
About Synergy CHC Corp.
Synergy CHC Corp. is a provider of consumer health and wellness products. Its brand portfolio includes two flagship names: FOCUSfactor, a clinically studied brain health supplement shown to improve memory, concentration, and focus; and Flat Tummy, a lifestyle brand offering nutritional solutions designed to support women's wellness and weight management goals.
Forward Looking Statements
Certain statements contained in this press release constitute "forward-looking statements," including statements regarding expansion and growth initiatives, refinancing of our indebtedness and our free cash flow. These forward-looking statements represent Synergy's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, which are set forth in Synergy's registration statement on Form S-1, as amended, many of which are outside of Synergy's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Synergy does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Synergy to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Synergy’s filings with the SEC. The risk factors and other factors noted in Synergy's filings could cause its actual results to differ materially from those contained in any forward-looking statement.
Investor Relations
Gateway Group
Cody Slach, Greg Robles
949.574.3860
SNYR@gateway-grp.com
|
Synergy CHC Corp. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 1,458,561 | $ | 687,920 | ||||
| Restricted cash | 100,000 | 100,000 | ||||||
| Accounts receivable, net | 7,069,889 | 5,321,037 | ||||||
| Other receivables | 2,025,094 | 1,999,637 | ||||||
| Loan receivable (related party) | 4,427,883 | 4,375,059 | ||||||
| Prepaid expenses (including related party amount of $801,345 and $312,966, respectively) | 2,064,094 | 1,859,563 | ||||||
| Inventory, net | 2,364,158 | 1,716,552 | ||||||
| Total Current Assets | 19,509,679 | 16,059,768 | ||||||
| Intangible assets, net | 216,667 | 283,333 | ||||||
| Total Assets | $ | 19,726,346 | $ | 16,343,101 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued liabilities (including payable to shareholder of $92,955 and $88,644, respectively) | $ | 4,960,331 | $ | 5,191,868 | ||||
| Income taxes payable | 266,472 | 242,977 | ||||||
| Contract liabilities | 4,887 | 24,252 | ||||||
| Short term loans payable, net of debt discount | 1,894,857 | 7,725,272 | ||||||
| Current portion of long-term notes payable, net of debt discount and debt issuance cost, shareholder | - | 4,000,000 | ||||||
| Total Current Liabilities | 7,126,547 | 17,184,369 | ||||||
| Long-term Liabilities: | ||||||||
| Notes payable, net of debt discount, shareholder | - | 8,333,053 | ||||||
| Notes payable, net of debt discount | 24,978,999 | 7,457,022 | ||||||
| Total long-term liabilities | 24,978,999 | 15,790,075 | ||||||
| Total Liabilities | 32,105,546 | 32,974,444 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Deficit: | ||||||||
| Common stock, $0.00001 par value; 300,000,000 shares authorized; 9,621,926 and 8,721,818, shares issued, respectively; 9,441,853 and 8,541,745 outstanding, respectively | 96 | 87 | ||||||
| Additional paid in capital | 29,508,354 | 27,643,660 | ||||||
| Accumulated other comprehensive loss | (9,838 | ) | (47,777 | ) | ||||
| Accumulated deficit | (41,750,312 | ) | (44,099,813 | ) | ||||
| Less: Treasury stock (180,073 shares) at cost | (127,500 | ) | (127,500 | ) | ||||
| Total stockholders’ deficit | (12,379,200 | ) | (16,631,343 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 19,726,346 | $ | 16,343,101 | ||||
|
Synergy CHC Corp. | ||||||||||||||||
| Unaudited Condensed Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
| For the three months ended | For the six months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Product Sales | $ | 6,734,996 | $ | 8,024,840 | $ | 13,405,530 | $ | 17,436,703 | ||||||||
| License Revenue | 1,400,000 | - | 2,900,000 | - | ||||||||||||
| Total Revenue | 8,134,996 | 8,024,840 | 16,305,530 | 17,436,703 | ||||||||||||
| Cost of sales | 1,896,391 | 2,448,890 | 3,902,904 | 5,086,029 | ||||||||||||
| Gross profit | 6,238,605 | 5,575,950 | 12,402,626 | 12,350,674 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing | 3,062,211 | 3,055,186 | 5,938,482 | 6,639,863 | ||||||||||||
| General and administrative | 1,519,325 | 903,838 | 2,826,039 | 2,252,223 | ||||||||||||
| Depreciation and amortization | 33,334 | 33,334 | 66,667 | 66,667 | ||||||||||||
| Total operating expenses | 4,614,870 | 3,992,358 | 8,831,188 | 8,958,753 | ||||||||||||
| Income from operations | 1,623,735 | 1,583,592 | 3,571,438 | 3,391,921 | ||||||||||||
| Other (income) expenses | ||||||||||||||||
| Other income | ||||||||||||||||
| Interest income | (379 | ) | (374 | ) | (14,261 | ) | (761 | ) | ||||||||
| Interest expense | 2,107,714 | 745,528 | 3,203,083 | 1,855,508 | ||||||||||||
| Gain on settlement of notes payable | (2,154,522 | ) | - | (2,154,522 | ) | - | ||||||||||
| Remeasurement (gain) loss on translation of foreign subsidiary | 7,578 | 3,870 | 8,990 | (5,113 | ) | |||||||||||
| Total other (income) expenses | (39,609 | ) | 749,024 | 1,043,290 | 1,849,634 | |||||||||||
| Net income before income taxes | 1,663,344 | 834,568 | 2,528,148 | 1,542,287 | ||||||||||||
| Income tax benefit (expense) | (190,107 | ) | (179,382 | ) | (178,647 | ) | (306,571 | ) | ||||||||
| Net income after tax | $ | 1,473,237 | $ | 655,186 | $ | 2,349,501 | $ | 1,235,716 | ||||||||
| Net income per share – basic | $ | 0.17 | $ | 0.09 | $ | 0.27 | $ | 0.17 | ||||||||
| Net income per share – diluted | $ | 0.17 | $ | 0.09 | $ | 0.27 | $ | 0.17 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 8,928,548 | 7,373,745 | 8,743,639 | 7,373,745 | ||||||||||||
| Diluted | 8,928,548 | 7,373,745 | 8,743,639 | 7,373,745 | ||||||||||||
| Comprehensive income: | ||||||||||||||||
| Net income | 1,473,237 | 655,186 | 2,349,501 | 1,235,716 | ||||||||||||
| Foreign currency translation adjustment | 39,874 | 55,736 | 37,939 | 187,373 | ||||||||||||
| Comprehensive income | $ | 1,513,111 | $ | 710,922 | $ | 2,387,440 | $ | 1,423,089 | ||||||||
|
Synergy CHC Corp. | ||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| For the six |
For the six |
|||||||
| months ended |
months ended |
|||||||
| June 30, | June 30, | |||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net income | $ | 2,349,501 | $ | 1,235,716 | ||||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Amortization of debt discount and debt issuance cost | 892,435 | - | ||||||
| Depreciation and amortization | 66,667 | 66,667 | ||||||
| Stock based compensation | - | 4,611 | ||||||
| Stock issued for modification of notes payable | 847,062 | - | ||||||
| Foreign currency transaction loss (gain) | (9,068 | ) | 23,345 | |||||
| Remeasurement loss (gain) on translation of foreign subsidiary | 8,990 | (5,113 | ) | |||||
| Non cash implied interest | - | 4,799 | ||||||
| Gain on settlement of debt | (2,154,522 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,748,852 | ) | (1,161,992 | ) | ||||
| Other receivables | (25,457 | ) | - | |||||
| Loan receivable, related party | (52,824 | ) | 35,449 | |||||
| Inventory | (647,606 | ) | 1,805,950 | |||||
| Prepaid expenses | 283,848 | (276,818 | ) | |||||
| Prepaid expense, related party | (488,379 | ) | (326,682 | ) | ||||
| Income taxes payable | 23,495 | 262,374 | ||||||
| Contract liabilities | (19,365 | ) | (2,949 | ) | ||||
| Accounts payable and accrued liabilities | (610,770 | ) | (2,804,381 | ) | ||||
| Accounts payable, shareholder | 385,114 | (980 | ) | |||||
| Net cash used in operating activities | (899,731 | ) | (1,140,005 | ) | ||||
| Cash Flows from Investing Activities | - | - | ||||||
| Cash Flows from Financing Activities | ||||||||
| Advances from related party | 135,000 | 1,509,226 | ||||||
| Repayment of notes payable, related party | (135,000 | ) | (84,500 | ) | ||||
| Proceeds from notes payable | 18,996,250 | 600,000 | ||||||
| Payment of loan financing fees | (1,980,914 | ) | - | |||||
| Repayment of notes payable, shareholder | (10,000,000 | ) | - | |||||
| Repayment of notes payable | (5,382,903 | ) | (1,617,335 | ) | ||||
| Net cash provided by financing activities | 1,632,433 | 407,391 | ||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | 37,939 | 187,373 | ||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 770,641 | (545,241 | ) | |||||
| Cash and restricted cash, beginning of year | 787,920 | 732,534 | ||||||
| Cash and restricted cash, end of period | $ | 1,558,561 | $ | 187,293 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 896,734 | $ | 1,850,896 | ||||
| Income taxes | $ | - | $ | 44,197 | ||||
| Supplemental Disclosure of Noncash Investing and Financing Activities: | ||||||||
| Accounts payable converted to loan payable upon settlement | $ | - | $ | 3,770,824 | ||||
| Reduction of short term related party note payable by reduction of prepaid balance | $ | - | $ | 328,003 | ||||
| Issuance of common stock for loan financing | $ | 117,648 | $ | - | ||||
| Issuance of pre-funded warrants for settlement of shareholder notes payable | $ | 899,993 | $ | - | ||||
| Exercise of pre-funded warrants | $ | 4 | $ | - | ||||
| Loan fees payable to lender | $ | 375,000 | $ | - | ||||
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