NEXGEL, Inc. (NXGL): Business Model Canvas [Dec-2025 Updated]

You're digging into how a niche tech company turns specialized chemistry into real revenue, and honestly, the latest strategy for NEXGEL, Inc. (NXGL) is a fascinating case study in diversification. Their core engine is that proprietary electron-beam, cross-linked hydrogel technology, but the real story is how they are balancing high-volume contract manufacturing-like supplying iRhythm's Zio system-with growing their branded beauty line. With a $12 million to $12.5 million revenue guide for the full year 2025 and a recent $1 million non-dilutive capital injection from STADA AG, the model looks lean but multi-pronged. Let's break down the nine blocks of their late 2025 commercialization plan to see exactly where the next dollar is coming from below.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel NEXGEL, Inc.'s manufacturing scale and market reach. These aren't just vendor agreements; they are strategic anchors for revenue stability and product validation. Honestly, the contract manufacturing segment, which these partnerships drive, is what's keeping the lights on while the branded products scale up.

STADA AG: Expanded North American Distribution

The collaboration with STADA Arzneimittel AG, a European consumer health leader, deepened in 2025. This expansion focuses on bringing new digestive enzyme formulas and solutions for scars and stretch marks to North American consumers. To kick off this next phase, STADA advanced $1 million to NEXGEL in non-dilutive capital in July 2025 to specifically support the joint go-to-market strategy and marketing efforts. For context, STADA Arzneimittel AG reported group sales of € 4,059 million in their 2024 fiscal year and sells products in over 100 countries worldwide.

Cintas: Ongoing Contract Manufacturing for SilverSeal

The relationship with Cintas Corporation for supplying the SilverSeal wound care kits remains a cornerstone of the contract manufacturing business. This partnership, which started with an initial order delivery expected in Q4 2024, is now characterized by strong, recurring quarterly reorders that began in late Q2 2025. This steady demand contributes directly to the segment's financial performance. The contract manufacturing revenue for the third quarter of 2025 totaled $907,000.

iRhythm: Supplying Hydrogels for Zio ECG System

NEXGEL, Inc. signed a key agreement in May 2025 with iRhythm, a NASDAQ-listed digital health company, to supply its hydrogels for the Zio ECG heart monitoring system. This represents a significant validation for NEXGEL's medical-grade hydrogel technology. Management anticipated the first direct orders from iRhythm in the fourth quarter of 2025, which is crucial for hitting the full-year revenue target of $12 million to $12.5 million for 2025.

Innovative Optics: Clinical Study Funding

The partnership with Innovative Optics US dba Vanalay centered on a crucial clinical validation point. Innovative Optics entirely funded an Institutional Review Board (IRB) study assessing NEXGEL's hydrogel application during laser hair removal to reduce carcinogenic plume. This 30-patient study concluded, and NEXGEL expected the publication of the results before the end of 2025. This type of third-party validation is gold for future medical and aesthetic applications.

Large Global Corporations for White Label Contract Manufacturing

Beyond the named partners, the broader contract manufacturing segment is seeing growth from the successful onboarding of several new global corporations. This diversification helps smooth out revenue volatility. Here's a quick look at how the contract manufacturing segment performed relative to the total company results for Q3 2025:

The reliance on these manufacturing relationships is clear, as they provide the necessary scale. You can see the importance of this segment in the structure of the business:

• Contract manufacturing revenue was $863,000 in Q2 2025, showing sequential growth into Q3.
• The business model is segmented into contract manufacturing, consumer products, and aspirational medical device development.
• New global corporations are actively being onboarded into the contract manufacturing pipeline.
• The Cintas relationship involves offering SilverSeal as a wound care solution to over 1 million Cintas business customers.
• The company has formulated over 200 different hydrogel combinations for partners.

Finance: draft 13-week cash view by Friday.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Key Activities

You're looking at the core engine driving NEXGEL, Inc. (NXGL) right now, which is a mix of proprietary science, consumer brand scaling, and B2B fulfillment. Here's the quick math on what they are actively doing to hit that revised full-year 2025 revenue guidance of between $12 million and $12.5 million.

Proprietary electron-beam, cross-linked hydrogel R&D and manufacturing.

NEXGEL, Inc. operates an FDA-registered and ISO-certified facility using its proprietary electron-beam cross-linking process to make these high-water-content hydrogels. This technology is a key differentiator, as they are one of only two known manufacturers using this specific electron beam technology for these types of hydrogels in the wound care, cosmetic, and drug delivery industries. Research and development costs for the year ended December 31, 2024, totaled approximately $78 thousand. The company's current intent for medical devices is to pursue licensing arrangements rather than full commercialization due to the required expense.

Managing and growing branded consumer product lines (e.g., Silly George).

The branded segment is a major focus for growth. The Silly George beauty brand, acquired in May 2024, has seen its revenue run rate increase from $2 million to over $5 million annually. In late September 2025, Silly George introduced a new lip gloss line. Other branded activities include Kenco Derm expanding into eczema products. Revenue from consumer branded products was reported as stable year-over-year in the third quarter of 2025.

Securing and fulfilling large-scale contract manufacturing orders.

This activity provides a stable base. Contract manufacturing revenue for the third quarter of 2025 was $907,000, showing a slight year-over-year and sequential increase. New contract manufacturing customers onboarded include Cintas and Owens & Minor, with initial orders from Cintas already moving into reorders for the second quarter of 2025. The company is focused on maintaining discipline and improving operational efficiencies here, which helped the overall gross profit margin improve to 42.4% in Q3 2025.

The scale of these activities is reflected in the Q3 2025 financial snapshot:

Regulatory approvals for new markets, like Health Canada for SilverSeal.

Securing market access is a clear activity. As of the third quarter 2025 earnings call on November 11, 2025, NEXGEL, Inc. had just received approval from Health Canada to sell SilverSeal in that territory. This opens up a new international market for a key branded product.

Strategic partnership development and product co-launches.

Partnerships are critical for distribution and capital. The company is expanding its collaboration with STADA, a European leader in consumer health. This partnership resulted in $1 million in non-dilutive capital from STADA to support upcoming launches. Together with STADA, NEXGEL, Inc. is planning the soft launch of Glutacin, a digestive enzyme, in December 2025, with several more product launches slated for early 2026. Additionally, an agreement was signed with iRhythm to supply hydrogels for the Zio ECG heart monitoring system, with initial orders anticipated in the fourth quarter of 2025.

• New partnership signed with iRhythm for Zio ECG system hydrogels.
• STADA partnership provided $1 million in non-dilutive financing.
• Glutacin soft launch planned for December 2025 with STADA.
• Cash balance as of September 30, 2025, was approximately $938,000.

Finance: draft 13-week cash view by Friday.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Key Resources

You're looking at the core assets NEXGEL, Inc. (NXGL) relies on to execute its business strategy as of late 2025. These are the tangible and intellectual foundations of their operations.

The most critical resource is the science itself. NEXGEL, Inc. (NXGL) has developed and manufactures its proprietary electron-beam, cross-linked hydrogel technology. This process uses ionizing radiation to cross-link a hydrophilic polymer, creating a matrix with a very high water content, which is a key differentiator. This technology allows for precise control over cross-linking and avoids the need for chemical cross-linking agents that might interfere with active ingredients. The resulting hydrogels are ultra-gentle and skin-friendly, making them suitable for sensitive applications.

Operationally, the company's physical asset base is centered in Langhorne, Pennsylvania. This US-based manufacturing facility is FDA-registered and ISO-certified, giving NEXGEL, Inc. (NXGL) control over the entire product lifecycle from research and development through production and packaging.

NEXGEL, Inc. (NXGL) maintains a portfolio of branded products that represent direct market access and brand equity. These brands leverage the core hydrogel platform across healthcare and beauty sectors:

• SilverSeal®
• Kenkoderm®
• Silly George®
• Metagel (Note: MEDAGEL® is also referenced in company materials)
• Hexagels®
• Turfguard®

Financially, the company's near-term liquidity is supported by recent capital events. Here's a look at the key figures as of the third quarter close:

The proprietary technology itself has specific performance characteristics that define its value proposition. For instance, some formulations can achieve up to 94.5% water content. The company also holds intellectual property, with 17 active patents covering formulations and processes as of mid-2025.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Value Propositions

The Value Propositions for NEXGEL, Inc. (NXGL) center on its proprietary hydrogel technology and the diverse commercialization channels built around it, spanning contract manufacturing to proprietary consumer brands.

Ultra-gentle, high-water-content hydrogels for sensitive skin.

• NEXGEL, Inc. provides ultra-gentle, high-water-content hydrogel products for consumer applications.
• The company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades.

Vertically integrated contract manufacturing for custom hydrogel patches.

This segment provides a stable revenue foundation, supported by key customer relationships and new global customer onboarding.

Dermatologically safe technology for medical device components.

The technology serves the healthcare segment, with direct orders anticipated from medical device partners.

• NEXGEL, Inc. is a leading provider of healthcare products.
• First direct orders from iRhythm expected in Q4 2025.

High-margin, branded OTC and beauty products for direct-to-consumer.

The overall gross margin reflects the combined performance of contract manufacturing and branded products, showing operational efficiency improvements.

Rapid product development and launch cycle via acquisitions and partnerships.

The company is focused on executing new product launches across its portfolio, with specific near-term milestones planned.

• Full-Year 2025 Revenue Guidance is set between $12.0 million and $12.5 million.
• Management expects Q4 2025 to be a record quarter.
• STADA partnership soft-launch planned for December (Glutathione product).
• Adjusted EBITDA loss narrowed sequentially to ($0.35) million in Q3 2025.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Customer Relationships

You're looking at how NEXGEL, Inc. manages its diverse customer base, which spans from large corporate manufacturers to individual consumers buying branded goods. It's a dual approach, really: heavy-duty service for B2B contracts and more hands-off for B2C.

Dedicated account management for large contract manufacturing clients.

For your major contract manufacturing clients, the relationship is clearly high-touch. The ongoing strength of the relationship with Cintas is a prime example, with reorders starting in late Q2 2025. This segment is a major driver; contract manufacturing revenue hit $907,000 in the third quarter of 2025, showing stability year-over-year despite flat overall revenue. Furthermore, the onboarding of new global corporations continues to be a focus. A significant new relationship is with iRhythm, where NEXGEL, Inc. supplies hydrogels for their Zio® ECG heart monitoring system; first direct orders from this partnership are anticipated in Q4 2025. This level of integration requires dedicated support, definitely.

Partnership-driven co-marketing and joint go-to-market strategies (STADA).

The collaboration with STADA Arzneimittel AG, a European leader whose 2024 group sales reached € 4,059 million, is a key relationship for consumer health expansion in North America. This partnership was expanded in July 2025 to launch digestive enzyme formulas and solutions for scars and stretch marks. To fuel this joint go-to-market strategy, STADA advanced $1 million in non-dilutive capital to NEXGEL, Inc. As of September 30, 2025, $920,000 of this was held as restricted cash. The soft-launch of one product, Gluticin, is planned for December 2025, setting up further North American launches in early 2026.

High-touch support for medical device integration projects.

The medical device integration, like the one with iRhythm, demands high-touch support to ensure the hydrogel technology integrates seamlessly into complex systems like the Zio ECG monitor. This is about proving efficacy and reliability in a regulated space. The company has been developing and manufacturing its electron-beam, cross-linked hydrogels for over two decades, which builds a foundation of trust for these critical applications.

Building brand loyalty through quality and product efficacy (Kenkoderm).

Brand loyalty for consumer products hinges on quality and visible results. Take the Silly George brand, acquired in 2024; its annual revenue run rate grew from an initial $2 million to over $5 million by early 2025, showing rapid customer acceptance. For Kenkoderm, the focus is on expanding the product line into larger therapeutic areas, specifically eczema solutions, which is a direct play on product efficacy. Consumer branded product revenue remained stable year-over-year and sequentially in Q3 2025, but management anticipates a very strong fourth quarter following the resolution of logistical delays that pushed some launches, like the new Kenkoderm eczema products, to late September.

Automated, self-service e-commerce for branded consumer products.

While the contract manufacturing side is relationship-heavy, the consumer side relies on scalable distribution, including e-commerce. The performance of the branded segment, which saw a 95% year-over-year revenue increase in Q2 2025, is supported by new product introductions, such as the Silly George lip gloss line launched in late September 2025. The overall 2025 full-year revenue guidance is between $12 million and $12.5 million, with strong holiday consumer performance being a key factor in reaching the higher end of that range.

Here's a quick look at the segment performance as of the latest reported quarter:

The customer relationship strategy involves several key touchpoints:

• Maintaining strong recurring orders with existing partners like Cintas.
• Accelerating joint go-to-market with STADA for North American launches.
• Securing new, high-value medical device integration contracts, such as iRhythm.
• Driving consumer adoption through new SKU introductions across brands.
• Resolving logistical hiccups that delayed Q3 consumer product launches.

If onboarding for a new major client like iRhythm takes longer than anticipated into Q1 2026, it could affect the revenue mix, but the current pipeline suggests strong sequential growth into Q4.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Channels

You're looking at how NEXGEL, Inc. moves its hydrogel products to market as of late 2025. The channels are clearly segmented between high-volume contract manufacturing and direct/partnered consumer sales.

The contract manufacturing and white label channel is a significant revenue driver, evidenced by the $907,000 generated in the third quarter of 2025. This segment saw $863,000 in revenue in Q2 2025, representing a 103% year-over-year increase.

Here is a quick look at the revenue contribution from the major segments for Q3 2025, based on reported figures:

For branded consumer sales, the company relies on a multi-pronged digital approach. E-commerce platforms, especially Amazon, are key, though the company noted a decrease in advertising, marketing, and Amazon fees in Q3 2025 compared to the prior year. The branded direct-to-consumer (DTC) channel saw activity with the late September launch of a new lip gloss line under the Silly George brand. Overall Consumer Branded Product Revenue was stable year-over-year in Q3 2025, following the resolution of logistical delays. This segment had previously shown a 95% year-over-year revenue increase in Q2 2025.

The B2B distribution model is heavily integrated with the contract manufacturing side. The ongoing relationship with Cintas is a prime example, where NEXGEL, Inc.'s SilverSeal product is included in their national wound care kits and cabinets for businesses.

International expansion is being channeled through the partnership with STADA Arzneimittel AG for North America. This collaboration secured $1 million in non-dilutive capital for NEXGEL, Inc. to support launches. The plan involves a soft-launch of Gluticin in December, with further North America-focused launches slated for early 2026. For context on the partner's scale, STADA Arzneimittel AG reported group sales of €4,059 million in financial year 2024.

The primary distribution and sales mechanisms are:

• Direct Sales team supporting contract manufacturing and white label deals.
• E-commerce platforms, with Amazon being a primary focus for branded sales.
• Branded DTC websites, including the Silly George platform.
• International distribution in North America via the STADA AG agreement.
• B2B supply channels, exemplified by the Cintas partnership for wound care kits.

Finance: draft 13-week cash view by Friday.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Customer Segments

You're looking at the customer base for NEXGEL, Inc. (NXGL) as of late 2025, mapping out where the revenue is coming from across their distinct business lines. Honestly, the strategy relies heavily on B2B partnerships, but the consumer side is growing fast.

The overall financial expectation for the full year 2025 is between $12 million and $12.5 million in revenue, aiming for positive EBITDA during the year. For context, Q3 2025 revenue was reported at $2.93 million.

Global Consumer Healthcare and OTC companies (Contract Manufacturing)

This segment provides a stable foundation, driven by existing and new global corporations needing white-label or contract manufacturing services for their hydrogel-based products. For the third quarter of 2025, contract manufacturing revenue specifically totaled $907,000. To give you a sense of the segment's velocity, in Q2 2025, contract manufacturing revenue saw a 103% year-over-year rise, hitting $863,000.

Key relationships here include:

• New potential customers in the robust pipeline.
• The ongoing partnership with Stada, which provided $1 million in non-dilutive capital to support launches.
• Two new large international customers onboarded.

Medical Device Manufacturers requiring skin-safe hydrogel components (iRhythm)

This is a high-value niche where NEXGEL, Inc. (NXGL) supplies its core hydrogel technology as a component in sophisticated medical devices. The focus here is on skin-friendly, dermatologically safe applications that require long-term wear without irritation.

The most prominent example is the agreement signed with iRhythm to supply hydrogels for the Zio ECG heart monitoring system. Initial orders for this application are anticipated in the fourth quarter of 2025, showing a clear path for revenue ramp-up from this specific medical device customer.

Direct-to-Consumer (DTC) buyers of beauty and skincare products (Silly George)

The DTC channel is powered by acquired brands, most notably Silly George, which has seen significant scaling. The revenue run rate for the Silly George acquisition has increased from $2 million to over $5 million annually. This segment experienced a 95% year-over-year revenue increase in Q2 2025.

New product introductions are a major driver for this customer base:

• Silly George introduced a lip gloss line in late September 2025.
• The company is expanding the Silly George line to include under-eye products and mascaras.

Consumers seeking specialized OTC solutions (eczema, wound care, sun protection)

This group seeks specialized, ready-to-use Over-The-Counter (OTC) products leveraging NEXGEL, Inc. (NXGL)'s hydrogel expertise for specific conditions. This is where their branded products like SilverSeal and Kenkoderm play a role.

Specific product line expansions targeting these consumers include:

• Kenkoderm expanding into eczema solutions.
• MEDAGEL launching new wound and burn kits.

Industrial and commercial businesses needing first-aid supplies (Cintas)

This customer segment falls under the broader Contract Manufacturing umbrella but is distinct in its end-market application-business-to-business first-aid fulfillment. The partnership with Cintas remains strong, with reorders for their SilverSeal product continuing each subsequent quarter. SilverSeal is included in Cintas's wound care kits and cabinets distributed across the country.

Here is a quick look at how the key revenue drivers compare based on recent quarterly data:

It's worth noting that the Langhorne, Pennsylvania facility is currently operating at about 18% capacity, which means there is significant room to scale production to meet the demand from these customer segments without immediate capital expenditure for expansion.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive NEXGEL, Inc.'s operations as of late 2025. Understanding this structure is key to seeing where the company is spending to support its dual focus on contract manufacturing and consumer brands. Honestly, the cost discipline is showing up in the gross margin improvement, even with flat revenue.

The primary, direct costs associated with generating sales are detailed below, showing a slight year-over-year reduction in the cost of goods sold despite building inventory for the expected Q4 ramp.

The Cost of Revenues reduction, which came in at $1.7 million for Q3 2025, was driven by a decrease in materials and finished products, alongside lower amortization and depreciation. However, this was partially offset by increased commission and contract fees, plus higher equipment, production, and other expenses.

SG&A expenses were $1.96 million, a slight uptick from $1.94 million in Q3 2024. This increase was primarily due to higher spending in personnel-related areas, but it's important to note where the company pulled back on spending:

• Compensation and benefits increased.
• Share-based compensation increased.
• Professional and consulting fees increased.
• Advertising, marketing, and Amazon fees decreased.

Raw material procurement and inventory management clearly impacted the Cost of Revenues line. Management confirmed they built inventory dramatically in Q3, both for consumer products and on the raw material side for contract manufacturing. This suggests a significant upfront cash outlay in Q3 to prepare for anticipated Q4 shipments and sales, aiming to reduce that inventory and collect receivables quickly in the fourth quarter.

Research and defintely development for new hydrogel applications is a necessary, though seemingly small, component of the overall operating structure. While a precise, isolated R&D dollar amount for Q3 2025 isn't clearly itemized outside of a partial table suggesting a very low figure, the company's focus on innovation is evident through its product pipeline, including new launches planned with STADA in December 2025 and early 2026.

Marketing, advertising, and e-commerce platform fees showed a positive cost control trend within the SG&A structure. The financial results explicitly noted that the slight year-over-year increase in total SG&A was offset by a decrease in these specific areas. This suggests a strategic tightening on customer acquisition costs, likely relying more on contract manufacturing partner support or the delayed consumer launches setting up for a Q4 push.

NEXGEL, Inc. (NXGL) - Canvas Business Model: Revenue Streams

You're looking at the core ways NEXGEL, Inc. brings in money right now, which is a mix of established manufacturing contracts and growing proprietary brands. It's not just one thing; it's a few distinct channels feeding the top line.

The Contract Manufacturing segment is a steady foundation. For the third quarter of 2025, this revenue totaled $907,000. This stream is supported by recurring orders, like those from Cintas for their wound care kits, and the onboarding of new global customers. The company also noted that initial direct orders from iRhythm for hydrogels used in their Zio ECG system are anticipated in the fourth quarter of 2025, which should boost this segment further.

The Branded Consumer Product Sales represent a significant growth area, though Q3 2025 saw stable year-over-year revenue as some launches faced minor delays. NEXGEL, Inc. has a portfolio including several key brands:

• Silly George lip gloss line.
• Kenkoderm eczema solutions.
• Metagel products performing well on Amazon.
• SilverSeal, approved for sale in Canada.

To give you some context on the brand scale, the Silly George brand grew sales from an initial $2 million annual revenue run rate to over $5.0 million in 2024. The company is also planning a soft launch for Gluticin in December through its STADA partnership.

The revenue breakdown across these key areas for the third quarter of 2025 and the overall outlook for the year looks like this:

The Medical Device Component Sales stream is poised for near-term growth, specifically through the new agreement to supply hydrogels for the iRhythm Zio ECG system. This is a clear example of leveraging their core hydrogel technology into a new, high-value application.

Finally, while the current focus is on manufacturing and direct sales, the potential for Licensing or royalty revenue from intellectual property remains a possible future stream, especially with ongoing partnerships and product development efforts. Honestly, the path to profitability is tied closely to the success of these Q4 consumer product sales and the ramping up of the iRhythm contract.

Finance: draft 13-week cash view by Friday.