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Synergy CHC Corp.(SNYR) - 2025 Q1 - Quarterly Results
SNYRSynergy CHC Corp.(SNYR)2025-05-15 12:00

Financial Performance - Earnings per share increased by 30% year-over-year, reaching 0.10comparedto0.10 compared to 0.08 in the prior year[2] - Revenue for Q1 2025 was 8.2million,adecreaseof138.2 million, a decrease of 13% from 9.4 million in Q1 2024, primarily due to a new product sell-in that did not repeat[4] - Gross margin improved to 75.4% in Q1 2025 from 72.0% in Q1 2024, driven by a favorable product mix[6] - Net income rose by 51% to 876.3thousandinQ12025,upfrom876.3 thousand in Q1 2025, up from 580.5 thousand in Q1 2024[7] - EBITDA for Q1 2025 was 1.98million,a71.98 million, a 7% increase from 1.85 million in Q1 2024, attributed to lower SG&A expenses[8] - Operating expenses decreased by 15% to 4.2millioninQ12025from4.2 million in Q1 2025 from 5.0 million in Q1 2024[6] International Expansion - The company is preparing for international expansion into three new markets later in 2025 for its FOCUSfactor brand and Ready-To-Drink beverages[2] - Synergy established a wholly owned subsidiary in Mexico and is onboarding key suppliers and retailers in the region[5] Debt and Cash Flow Management - The company aims to refinance its debt to extend the maturity date to 2029, which is expected to enhance free cash flow[2] - Total liabilities decreased by 1.7millionto1.7 million to 31.3 million as of March 31, 2025, compared to 33.0millionattheendof2024[9]−Netcashusedinoperatingactivitieswas33.0 million at the end of 2024[9] - Net cash used in operating activities was (822,781) for the three months ended March 31, 2025, slightly improved from (858,042)inthesameperiodof2024[22]−Cashandrestrictedcashattheendoftheperiodwas(858,042) in the same period of 2024[22] - Cash and restricted cash at the end of the period was 277,882, down from 1,010,749attheendofthesameperiodin2024,indicatingadecreaseof72.51,010,749 at the end of the same period in 2024, indicating a decrease of 72.5%[22] - Net cash provided by financing activities was 314,678 for the three months ended March 31, 2025, compared to 1,004,620inthesameperiodof2024,adeclineof68.71,004,620 in the same period of 2024, a decline of 68.7%[22] - Cash paid for interest during the period was 573,529, down from 1,102,781inthesameperiodof2024,adecreaseof47.91,102,781 in the same period of 2024, a decrease of 47.9%[22] - Advances from related party amounted to 135,000, a significant decrease from 1,400,000inthesameperiodof2024[22]AssetManagement−Accountsreceivableincreasedby1,400,000 in the same period of 2024[22] Asset Management - Accounts receivable increased by 940,519, while inventory decreased by (629,935)duringthethreemonthsendedMarch31,2025[22]−Thecompanyissuedcommonstockforloanfinancingamountingto(629,935) during the three months ended March 31, 2025[22] - The company issued common stock for loan financing amounting to 117,648 during the period[22] Foreign Currency Impact - The company reported a foreign currency transaction loss of (3,137)forthethreemonthsendedMarch31,2025,comparedtoagainof(3,137) for the three months ended March 31, 2025, compared to a gain of 11,178 in the same period of 2024[22] - The effect of exchange rate on cash, cash equivalents, and restricted cash resulted in a loss of $(1,935) for the three months ended March 31, 2025[22]