Solesence, Inc. (SLSN) AI Stock Analysis
SLSN AI stock analysis summary
AI ResearchSolesence, Inc. provides engineered materials, formulation development, and manufacturing services for skin care and industrial applications. In FY2025, the company grew revenue 18.6% to $62.1M, but recorded -$10.7M in free cash flow. In the quarter ended June 30, 2026, revenue fell 24.7% year-over-year, and trailing twelve month EPS was -$0.04.
- Market cap
- $63.6M
- Revenue (TTM)
- $55.4M
- P/E
- — fwd 11.4x
- 1Y return
- -77.0% S&P 500 16.8%
- Avg. target
- —
Bull case
- Solesence delivered a 4-year revenue compound annual growth rate of 20.5% from FY2021 through FY2025, reaching $62.1M in revenue.
- Company insiders hold 73.1% of the shares, representing substantial equity ownership by leadership.
- The stock trades at a forward P/E ratio of 11.4x, lower than the median of 14.3x for its US-listed Consumer Defensive peers.
Bear case
- Free cash flow fell to -$10.7M in FY2025, driven by negative operating cash flow of -$8.6M.
- Operating performance deteriorated in the quarter ended June 30, 2026, with revenue declining 24.7% and earnings falling 93.5% year-over-year.
- Total debt of $22.7M significantly exceeds the company's cash and short-term investments of $1.0M as of June 30, 2026.
What Solesence does
Solesence, Inc., formerly known as Nanophase Technologies Corporation, provides engineered materials, formulation development, and commercial manufacturing services in the United States. It manufactures surface engineered zinc oxide and titanium dioxide ingredients, as well as skin care formulations featuring mineral-based UV protection enabled by proprietary active pharmaceutical ingredients. The company also produces skin health products, such as sunscreens and daily care products, serving the beauty, wellness, and skin health sectors. Beyond personal care, its products are sold into medical diagnostics, architectural coatings, industrial coatings, abrasion-resistant additives, and plastics additives applications.
Growth and profitability
Between FY2021 and FY2025, revenue expanded at a 4-year compound annual growth rate of 20.5%, rising from $29.5M in FY2021 to $62.1M in FY2025. Annual profitability has fluctuated, with net income moving from -$2.6M in FY2022 and -$4.4M in FY2023 to $4.2M in FY2024 and $1.8M in FY2025. Gross margin was 25.8% in FY2025, down from 30.9% in FY2024. For the trailing twelve months, revenue totaled $55.4M with an operating margin of 0.8% and a net profit margin of -5.2%. In the quarter ended June 30, 2026, revenue fell 24.7% year-over-year, and quarterly earnings dropped 93.5%.
Balance sheet and cash flow
As of June 30, 2026, Solesence held $1.0M in cash and short-term investments against total debt of $22.7M, resulting in net debt of $21.7M. The company's current ratio stood at 0.97, and its debt-to-equity ratio was 1.73 against shareholders' equity of $13.2M. For FY2025, operating cash flow was -$8.6M and capital expenditures were $2.1M, leading to free cash flow of -$10.7M. Over the past five years, the company's share count increased 50.3%.
Valuation and performance
Solesence carries a market capitalization of $63.6M and an enterprise value of $79.6M. Its forward P/E multiple is 11.4x, below the median of 14.3x for its US-listed Consumer Defensive peers. However, the company trades at an EV to EBITDA ratio of 27.7x, compared to the peer median of 11.7x, and a price-to-sales ratio of 1.1x versus the peer median of 0.7x. Over the past year, the stock fell 77.0%, underperforming the S&P 500 return of 16.8%. Year-to-date through October 16, 2026, the stock has declined 43.8%.
What analysts expect
Consensus rating distributions and price targets are not reported for Solesence. Over the trailing twelve months, the company recorded an EPS of -$0.04. Performance in the latest reported quarter ended June 30, 2026 showed a quarterly earnings contraction of 93.5% year-over-year. The company's next earnings report is scheduled for November 10, 2026.
Key risks and what to watch
- Liquidity is constrained by a current ratio of 0.97 and cash reserves of only $1.0M as of June 30, 2026.
- The balance sheet carries leverage with a debt-to-equity ratio of 1.73 and net debt of $21.7M.
- Shareholder equity has seen dilution, with the share count increasing by 50.3% over a five-year period.
- Market volatility is high, with a beta of 1.38 and a 1-year share price drop of 77.0%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SLSN AI stock analysis
This page is an AI-written research summary of Solesence, Inc. (SLSN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SLSN income statement, SLSN balance sheet, SLSN key metrics, SLSN chart. See the SLSN stock overview for the latest quote and news.
SLSN AI stock analysis FAQ
What products does Solesence manufacture?
Solesence manufactures surface engineered zinc oxide and titanium dioxide ingredients, proprietary mineral-based UV skin care formulations, sunscreens, and daily care products, along with additives for industrial coatings and plastics.
Does Solesence pay a dividend?
Solesence does not pay a dividend.
When does Solesence report earnings next?
The company's next scheduled earnings report date is November 10, 2026.
What is Solesence's debt position?
As of June 30, 2026, Solesence held $22.7M in total debt and $1.0M in cash and short-term investments, resulting in net debt of $21.7M and a debt-to-equity ratio of 1.73.
How is Solesence valued compared to peer averages?
Solesence trades at a forward P/E of 11.4x, below the US-listed Consumer Defensive peer median of 14.3x, while its EV to EBITDA ratio of 27.7x sits above the peer median of 11.7x.