Synergy CHC Corp. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Synergy CHC (NASDAQ:SNYR) reported Q1 2026 revenue of $5.49 million vs. $8.17 million a year ago, reflecting non-recurring 2025 license revenue and Flat Tummy stockouts. The Company posted a net loss of $2.57 million and operating loss of $0.57 million.
Functional beverages generated over $650,000 in quarterly revenue, exceeding all 2025 beverage sales, with an estimated annual run rate above $4 million. Gross margin was 72.3%; normalized year-ago margin was 70.0%, implying improvement. Synergy ended the quarter with $0.30 million cash and later raised about $2.7 million via an ATM equity program.
Positive
- Functional beverage revenue exceeded $650,000 in Q1 2026, above all 2025 beverage revenue
- Beverage division operating at estimated annualized revenue run rate above $4 million
- Normalized gross margin improved 2.3 percentage points year-over-year to 72.3% vs. 70.0%
- Adjusted EBITDA loss limited to $0.35 million vs. EBITDA loss of $0.54 million
- Approximately $2.7 million gross proceeds raised post-quarter via ATM equity offering
- Inventory reduced to $3.4 million from $3.7 million at December 31, 2025
Negative
- Total revenue declined to $5.49 million from $8.17 million year-over-year
- Reported gross margin decreased to 72.3% from 75.4% including prior-year license revenue
- Shift from $1.95 million operating income to $0.57 million operating loss
- Net result moved from $0.88 million profit to $2.57 million loss
- Cash balance fell to $0.30 million from $2.6 million at year-end 2025
- Working capital swung from $1.78 million surplus to $0.50 million deficit
- Cash used in operating activities rose to $2.0 million from $0.82 million
News Market Reaction – SNYR
On the day this news was published, SNYR declined 8.43%, reflecting a notable negative market reaction. Argus tracked a peak move of +3.2% during that session. Argus tracked a trough of -5.3% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $403K from the company's valuation, bringing the market cap to $4.38M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 01 | Q4/FY 2025 earnings | Negative | -20.9% | Revenue pressure and one-time charges despite improved liquidity metrics. |
| Nov 13 | Q3 2025 earnings | Positive | -6.4% | 11th profitable quarter with revenue growth and margin expansion. |
| Aug 14 | Q2 2025 earnings | Positive | -8.0% | Tenth profitable quarter with strong EBITDA and higher margins. |
| May 15 | Q1 2025 earnings | Positive | +10.3% | EPS and net income growth with improved gross margin and lower opex. |
| Mar 31 | Q4/FY 2024 earnings | Negative | -19.0% | Profitability maintained but revenue down and full-year decline post-IPO. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often seen negative or volatile reactions, including several selloffs following otherwise positive profitability updates.
Over the past year, Synergy’s earnings reports have highlighted a transition from a long streak of profitability to mounting revenue pressure and GAAP losses. Earlier quarters in 2024–2025 emphasized consecutive profitability, growing EBITDA, and expanding international distribution. More recent results, including Q4 2025, noted revenue headwinds and one-time charges despite improved liquidity. Today’s Q1 2026 release continues that narrative with lower revenue, negative EBITDA and net loss as the company leans into its functional beverage growth strategy.
Key Terms
ebitda financial
adjusted ebitda financial
non-gaap financial
at-the-market (atm) equity offering program financial
cash and cash equivalents financial
working capital deficit financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
N. WINDHAM, Maine, May 14, 2026 (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 March 31, 2026.
“Our first quarter results reflect continued execution and the growing momentum of our functional beverage business,” said Jack Ross, CEO of Synergy CHC Corp. “During the quarter, we generated over
First Quarter 2026 Financial Summary vs. Same Year-Ago Period
- Revenue of
$5.49 million vs.$8.17 million . - Gross margin of
72.3% vs.75.4% . - Income (loss) from operations of (
$0.57) million vs.$1.95 million . - Net income (loss) of (
$2.57) million vs.$0.88 million . - Earnings (loss) per share of (
$0.23) vs.$0.10 . - EBITDA (loss), a non-GAAP financial measure, was (
$0.54) million vs.$1.98 million . - Adjusted EBITDA (loss), a non-GAAP financial measure, was
$(0.35) million vs.$1.98 million .
First Quarter 2026 Financial Results
Revenue in the first quarter of 2026 was
Gross margin in the first quarter of 2026 was
Operating expenses in the first quarter of 2026 were
Income (loss) from operations for the first quarter of 2026 was (
Net income (loss) in the first quarter of 2026 was (
Earnings (loss) per share in the first quarter of 2026 was (
EBITDA (loss) (a non-GAAP financial measure) in the first quarter of 2026 was (
Adjusted EBITDA (loss) (a non-GAAP financial measure) in the first quarter of 2026 was
Balance Sheet and Cash Flow
As of March 31, 2026, Synergy had approximately
As of March 31, 2026, Synergy had a working capital deficit of
As of March 31, 2026, Synergy had
Cash used in operating activities for the three months ended March 31, 2026 was
Non-GAAP Financial Measure Reconciliation: EBITDA and Adjusted 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 and Adjusted EBITDA provide 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. Adjusted EBITDA is calculated as EBITDA plus or minus foreign exchange gains or losses, one-time expenses and non-cash expenses. Since Adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP.
The following table reconciles net income to EBITDA and Adjusted EBITDA (in millions of US dollars):
| 3 Months ended March 31 | ||||||
| 2026 | 2025 | |||||
| Net (loss) income for the period | $ | (2.57) | $ | 0.88 | ||
| Adjusted for: | ||||||
| Interest expense, net | 2.01 | 1.08 | ||||
| Amortization of intangible assets | 0.03 | 0.03 | ||||
| Tax benefit | (0.01) | (0.01) | ||||
| EBITDA | $ | (0.54) | $ | 1.98 | ||
| Foreign currency adjustment | (0.00 | 0.00 | ||||
| Stock based compensation | 0.16 | - | ||||
| Board expenses | 0.03 | - | ||||
| Adjusted EBITDA | $ | (0.35) | $ | 1.98 | ||
About Synergy CHC Corp.
Synergy CHC Corp. develops and markets consumer health and wellness products, led by its flagship brands FOCUSfactor® and Flat Tummy®. FOCUSfactor®, a clinically studied brain health supplement and functional beverage line with a 25-year legacy, enjoys established distribution in the U.S., Canada and Mexico. through major retailers including Costco, Walmart, Amazon, BJ's, and Walgreens, among others. Flat Tummy® complements Synergy's portfolio as a lifestyle brand focused on women's wellness and weight management.
Forward Looking Statements
Certain statements contained in this press release constitute "forward-looking statements," including statements regarding brand expansion and growth initiatives. 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 | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 292,115 | $ | 2,622,313 | ||||
| Restricted cash | 100,000 | 100,000 | ||||||
| Accounts receivable, net | 1,268,022 | 3,203,505 | ||||||
| Prepaid expenses (including related party amount of | 1,303,173 | 351,049 | ||||||
| Inventory, net | 3,381,614 | 3,737,509 | ||||||
| Total Current Assets | 6,344,924 | 10,014,376 | ||||||
| Intangible assets, net | 116,667 | 150,000 | ||||||
| Total Assets | $ | 6,461,591 | $ | 10,164,376 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued liabilities (including payable to shareholder of | $ | 4,031,994 | $ | 6,388,219 | ||||
| Income taxes payable | 85,811 | 88,108 | ||||||
| Contract liabilities | - | 1,526 | ||||||
| Short term loans payable, net of debt discount, related party | - | 100,000 | ||||||
| Current portion of notes payable, net of debt discount | 2,730,981 | 1,658,215 | ||||||
| Total Current Liabilities | 6,848,786 | 8,236,068 | ||||||
| Long-term Liabilities: | ||||||||
| Notes payable, net of debt discount | 25,018,055 | 25,056,446 | ||||||
| Total long-term liabilities | 25,018,055 | 25,056,446 | ||||||
| Total Liabilities | 31,866,841 | 33,292,514 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Deficit: | ||||||||
| Common stock, | 114 | 114 | ||||||
| Additional paid in capital | 33,710,857 | 33,594,550 | ||||||
| Common stock to be issued | 153,400 | - | ||||||
| Accumulated other comprehensive loss | (132,201 | ) | (154,281 | ) | ||||
| Accumulated deficit | (59,009,920 | ) | (56,441,021 | ) | ||||
| Less: Treasury stock (180,073 shares) at cost | (127,500 | ) | (127,500 | ) | ||||
| Total stockholders’ deficit | (25,405,250 | ) | (23,128,138 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 6,461,591 | $ | 10,164,376 | ||||
| Synergy CHC Corp. Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income | ||||||||
| For the three months ended | For the three months ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Revenue | ||||||||
| Product Sales | $ | 5,492,705 | $ | 6,670,534 | ||||
| License Revenue | - | 1,500,000 | ||||||
| Total Revenue | 5,492,705 | 8,170,534 | ||||||
| Cost of Sales | 1,521,910 | 2,006,513 | ||||||
| Gross Profit | 3,970,795 | 6,164,021 | ||||||
| Operating expenses | ||||||||
| Selling and marketing | 2,455,732 | 2,876,271 | ||||||
| General and administrative | 2,048,850 | 1,306,714 | ||||||
| Depreciation and amortization | 33,333 | 33,333 | ||||||
| Total operating expenses | 4,537,915 | 4,216,318 | ||||||
| (Loss) Income from operations | (567,120 | ) | 1,947,703 | |||||
| Other (income) expenses | ||||||||
| Interest income | (340 | ) | (13,882 | ) | ||||
| Interest expense | 2,012,121 | 1,095,369 | ||||||
| Remeasurement loss on translation of foreign subsidiary | 3,718 | 1,412 | ||||||
| Total other expenses | 2,015,499 | 1,082,899 | ||||||
| Net (loss) income before income taxes | (2,582,619 | ) | 864,804 | |||||
| Income tax benefit | 13,720 | 11,460 | ||||||
| Net (loss) income after tax | $ | (2,568,899 | ) | $ | 876,264 | |||
| Net (loss) income per share – basic | $ | (0.23 | ) | $ | 0.10 | |||
| Net (loss) income per share – diluted | $ | (0.23 | ) | $ | 0.10 | |||
| Weighted average common shares outstanding | ||||||||
| Basic | 11,303,853 | 8,560,636 | ||||||
| Diluted | 11,303,853 | 8,577,620 | ||||||
| Comprehensive (loss) income: | ||||||||
| Net (loss) income | $ | (2,568,899 | ) | $ | 876,264 | |||
| Foreign currency translation adjustment | 22,080 | (1,935 | ) | |||||
| Comprehensive (loss) income | $ | (2,546,819 | ) | $ | 874,329 | |||
| Synergy CHC Corp. Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| For the three months ended | For the three months ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net (loss) income | $ | (2,568,899 | ) | $ | 876,264 | |||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
| Amortization of debt discount and debt issuance cost | 951,942 | 406,841 | ||||||
| Depreciation and amortization | 33,333 | 33,333 | ||||||
| Stock based compensation | 116,307 | - | ||||||
| Foreign currency transaction loss (gain) | 2,684 | (3,137 | ) | |||||
| Remeasurement loss (gain) on translation of foreign subsidiary | 3,718 | (1,412 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,935,483 | 940,519 | ||||||
| Other receivables | - | 144,637 | ||||||
| Loan receivable, related party | - | (833 | ) | |||||
| Inventory | 355,895 | (629,935 | ) | |||||
| Prepaid expenses | (410,657 | ) | (114,787 | ) | ||||
| Prepaid expense, related party | (541,467 | ) | (195,913 | ) | ||||
| Income taxes payable | (2,297 | ) | (165,413 | ) | ||||
| Contract liabilities | (1,526 | ) | (24,216 | ) | ||||
| Accounts payable and accrued liabilities | (1,915,323 | ) | (2,218,041 | ) | ||||
| Accounts payable, related party | (3,871 | ) | 129,312 | |||||
| Net cash used in operating activities | (2,044,678 | ) | (822,781 | ) | ||||
| Cash Flows from Investing Activities | - | - | ||||||
| Cash Flows from Financing Activities | ||||||||
| Advances from related party | - | 135,000 | ||||||
| Repayment of notes payable, related party | (100,000 | ) | - | |||||
| Proceeds from notes payable | 2,660,000 | 1,496,250 | ||||||
| Payment of loan financing fees | (55,000 | ) | - | |||||
| Repayment of notes payable | (2,812,600 | ) | (1,316,572 | ) | ||||
| Net cash (used in) provided by financing activities | (307,600 | ) | 314,678 | |||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | 22,080 | (1,935 | ) | |||||
| Net decrease in cash, cash equivalents and restricted cash | (2,330,198 | ) | (510,038 | ) | ||||
| Cash and restricted cash, beginning of year | 2,722,313 | 787,920 | ||||||
| Cash and restricted cash, end of period | $ | 392,115 | $ | 277,882 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 392,846 | $ | 573,529 | ||||
| Income taxes | $ | - | $ | - | ||||
| Supplemental Disclosure of Noncash Investing and Financing Activities: | ||||||||
| Issuance of common stock for accounts receivable advance financing | $ | - | $ | 117,648 | ||||
| Loan financing fees, accrued | $ | 110,000 | $ | - | ||||
| Capitalized interest on senior debt | $ | 400,033 | $ | - | ||||
| Common stock to be issued for accounts receivable advance financing | $ | 153,400 | $ | - | ||||
