NextPlat (NASDAQ:NXPL) reported a narrower operating loss and higher gross margins in the third quarter of 2026, even as revenue fell amid lower retail pharmacy prescription volumes and reimbursement pressures.
Revenue declined to $10.5 million from $13.8 million a year earlier, while the operating loss narrowed to $0.8 million from $2.2 million, Chief Financial Officer Amanda Ferrio said on the company’s earnings call. Consolidated gross margin rose to 35% from nearly 20%, helped by a shift toward higher-margin contracted healthcare services.
Results were softer than in the second quarter, however. Executives cited lower prescription volumes and the closure of a customer’s medication fulfillment facility, which had generated particularly strong margins.
Healthcare Contracts Grow as Retail Faces Pressure
Healthcare revenue fell to $6.7 million from $10.1 million a year earlier. Within that total, pharmacy contract revenue climbed to $2.4 million from $0.6 million, driven primarily by a $1.6 million increase in revenue from 340B contracts, Ferrio said.
Chief Executive Officer David Phipps said NextPlat secured three new 340B contracts during the third quarter, bringing its total for the year to 14. He said onboarding typically takes about 90 days before initial prescriptions are received, leaving many of the new clients in their early stages.
Vice President of Healthcare Operations Birute Norkute said healthcare gross margin was a little over 41%, up from 18% a year earlier but down approximately five percentage points from the second quarter. She attributed a significant part of the sequential decline to the permanent closure of a customer’s medication fulfillment facility. Phipps said revenue from contracts with medication fulfillment facilities fell approximately $0.3 million from the prior quarter as a result.
Retail prescription volumes remained below year-ago levels. Norkute said changes in payer mix and customer relationships contributed to the decline, including instances where clinics established their own pharmacies and brought prescription fulfillment in-house. Long-term care prescription volumes remained stable, she said.
Pharmacy Expansion and Online Plans
NextPlat is looking to its new Jacksonville location and its October 1 purchase of Scott’s Pharmacy in Pensacola to help offset retail pressures. Phipps said Scott’s has performed ahead of margin expectations since the acquisition and, based on current activity, is expected to contribute about $1.2 million in revenue and $150,000 in net profit in the fourth quarter.
Ferrio said the Scott’s acquisition cost $1.5 million in cash. During the shareholder question-and-answer portion of the call, Phipps said NextPlat continues to see interest from pharmacy operators both inside and outside Florida, but would pursue only opportunities meeting its requirements for revenue, margins and profitability.
NextPlat also expects its new healthcare e-commerce website to go live in November, after delaying it from an earlier target before the end of the third quarter. Phipps said the company needed more time to optimize the platform for e-commerce at scale. The site is expected to offer prescription medications, over-the-counter products and the company’s Florida Sunshine vitamins and supplements.
Norkute said the company’s first automated prescription dispensing kiosk was on its way for installation. NextPlat is also developing potential partnerships involving medication management, customized packaging and home delivery.
E-Commerce and Financial Position
E-commerce revenue rose 3% year over year but fell about 6% sequentially, a decline Ferrio said was largely expected because of seasonality. The segment’s gross margin held at 24% compared with the prior-year quarter.
Phipps said NextPlat sold to customers in more than 115 countries during the quarter and generated record recurring airtime contract revenue. The company also expanded its consumer sales channels through an agreement with sporting goods retailer Decathlon, which has begun selling satellite connectivity products online in 20 countries, he said.
Companywide operating expenses fell to $4.5 million from $5 million a year earlier. Ferrio said the healthcare business generated positive operating income, while combined segment income of $0.2 million was offset by $1 million in corporate overhead.
NextPlat ended September with $11.2 million in cash and $13.5 million in working capital. Ferrio said the company began selling shares under its at-the-market program during the fourth quarter, raising more than $140,000 in net proceeds.
Asked about an ongoing lawsuit, Phipps said the situation remained much the same as in recent months and that the company’s legal counsel and insurer were working to resolve the matter.
About NextPlat (NASDAQ:NXPL)
NextPlat Corp. (NASDAQ: NXPL) is a technology-focused company operating in the e-commerce and healthcare sectors. The company develops and manages online commerce businesses, including the sale of consumer products through major digital marketplaces and direct-to-consumer channels. Through its e-commerce operations, NextPlat provides online retail, marketplace management, and related digital commerce services designed to help brands market and distribute products across platforms such as Amazon, Walmart, eBay, and Shopify.
