Company Continues Turnaround Executing on Organic Growth Initiatives Strengthened by Strategic Acquisition Opportunities
HALLANDALE BEACH, Fla., July 28, 2026 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL) ("NextPlat" or the "Company"), a global consumer products and services company providing healthcare and technology solutions through e-commerce and retail channels worldwide,today issued the following mid-year Shareholder Update Letter:
To Our Shareholders:
With the start of the second half of 2026, NextPlat has reached an important inflection point, having substantially completed its strategic turnaround and refocusing initiatives. As we have communicated previously, our actions were designed to stabilize the Company, strengthen the foundation for future growth, and more importantly, position NextPlat to achieve profitability - a critical ingredient in creating sustainable, long-term shareholder value. In today's update, we will highlight several recent significant developments including our acquisition of an independent pharmacy near Pensacola and provide additional insights into some of the strategic initiatives that we believe will drive our business through the remainder of 2026 and into 2027.
OPERATIONAL DEVELOPMENTS
As evidenced by the significant sequential improvements in our operational metrics for the most recently reported quarter ended March 31, 2026, our team has successfully refocused and streamlined the business. We believe these wide-ranging improvements are sustainable and the Company is now positioned to begin delivering profitability supported by:
- Record consolidated gross margins of 35%, driven by fundamental improvements in our Healthcare Operations segment which continues to experience rapid growth in its higher margin 340B and contracted services. Contributions from our healthcare segment are exceeding expectations and are now driving our ability to achieve quarterly operational profitability ahead of schedule.
- Strong order volumes in our e-commerce segment for connectivity products from leading satellite network operators including Globalstar, Iridium, and other low earth orbit satellite operators continue to deliver globally diversified growth to the business.
- A more cost-efficient operational structure, supported by positive working capital, a strong balance sheet with no material long-term debt, and over $11 million in cash as of the most recently reported quarter ended March 31, 2026, providing the Company with a stable financial foundation and the flexibility to support additional growth.
- An increasing number of opportunities to contribute to our ongoing organic growth through complementary acquisitions that can rapidly add scale, expand capabilities, and enhance long-term value.
We intend to provide additional updates and details on the business in our 2Q 2026 earnings release and conference call next month.
HEALTHCARE OPERATIONS UPDATE
The biggest driver of our improved operating performance continues to be the remarkable turnaround in our Healthcare Operations segment, where our efforts to refocus the business, improve efficiency, and invest in growth are producing meaningful results.
- Our Healthcare Operations completed the first quarter of 2026 with an impressive 39% gross margin, nearly doubling the year-ago level, driven by factors including an increased focus on contracted services, such as supporting entities participating in the U.S. Government's 340B discount drug pricing program.
- Early second quarter results indicate that higher-margin 340B prescriptions have continued to increase rapidly, rising over 70% from year-ago levels. In the second quarter, we set another record, adding six new 340B contracts, beating the first quarter record of five new contracts. We expect continued growth throughout the remainder of the year as revenue from the five new covered entities secured in the first quarter, and new entities secured in Q2 begin contributing to our results late in the current quarter and more fully early in the fourth quarter.
- From a technology perspective, ClearMetrX 4.0, the latest generation of the Company's proprietary AI-powered healthcare data analytics and reporting platform was recently deployed internally and, following successful testing, released for use by multiple customers, including some under annual subscription plans. The platform's AI capabilities automate prescription intake and processing, including data entry, faxing and refill management, creating fully HIPAA-compliant digital workflows designed to improve processing accuracy and reduce costs. ClearMetrX's enhanced capabilities are central to our ability to support both current and anticipated prescription volumes.
PharmcoRx – Integrated Pharmacy Services as a Differentiator
Powering our Healthcare Operations is the strong performance of our PharmcoRx (Pharmco) pharmacy unit. For this reason, I want to take the opportunity to elaborate on how we are differentiating ourselves in an admittedly crowded pharmacy market.
Pharmco is not simply another retail pharmacy. Our pharmacies serve their communities by supporting patients, doctors, and local contracted providers with high-touch, reliable medication delivery, refill coordination, patient outreach, pharmacist support and data management solutions. At its core, Pharmco provides:
- Traditional Retail Pharmacy Services - Providing full-service prescription fulfillment, medication management, delivery, patient support and coordination with healthcare providers.
- 340B Pharmacy Services - Partnering with eligible healthcare organizations focused on underserved populations including children's and sole community hospitals, hemophilia diagnostic treatment centers, HIV/sexually transmitted disease and family planning clinics, through prescription fulfillment, inventory management, claims administration, compliance support and reporting.
- Long-Term Care Pharmacy Services - Supporting assisted living, senior-care communities and other institutional providers with customized medication packaging, scheduled delivery, pharmacist oversight and medication-administration support.
- Government Healthcare Contracting - Providing pharmacy fulfillment and medication-support services to government agencies and other public-sector healthcare programs.
- Specialty Pharmacy Services - Supporting patients receiving complex or high-cost therapies through specialized dispensing, patient education, adherence monitoring and coordination with prescribers and insurers.
- Medication Delivery & Patient Support - Combining reliable, same-day medication delivery with refill coordination, patient outreach and pharmacist support. This higher-touch service model differentiates the business from commodity pharmacy chains and can improve patient retention, adherence and provider satisfaction.
Our business model in the competitive pharmacy market is differentiated by our ability to combine retail, specialty, institutional, 340B and government services, while supporting multiple patient populations and healthcare partners through a single pharmacy operation. This diversified model reduces reliance on any one customer channel and creates several avenues for sustainable, long-term growth.
That is why when many national chains are closing locations, we are expanding our brick-and-mortar network, recently announcing the strategic acquisition of an independent pharmacy near Pensacola in the Panhandle region of Florida. Complementing our organic growth initiatives, this acquisition is expected to deliver immediate benefits and synergies. It brings significant and profitable revenue and provides access to an underserved northwest Florida market where we can introduce our high-value contracted healthcare services for regional 340B covered entities, long-term care facilities, and other institutional and government providers.
Given the current dynamics in the retail pharmacy market, we believe using pharmacy locations in underserved communities as a platform for the introduction of new higher-value services is a clear differentiator for Pharmco and creates attractive growth opportunities. For this reason, we are currently seeking additional selective acquisitions similar to the Panhandle pharmacy that can significantly increase the scale of our brick-and-mortar business in Florida.
Finally, as a further differentiator from traditional retail pharmacies, Pharmco recently earned its NABP Specialty Pharmacy Accreditation from the National Association of Boards of Pharmacy®. Receipt of NABP Specialty Pharmacy Accreditation is one element of a multi-year effort to potentially expand the variety and scope of pharmacy and specialty care services offered.
E-COMMERCE OPERATIONS UPDATE
As demand for satellite-enabled connectivity solutions continues to grow worldwide, the Company continues to expand the global scale and scope of its e-commerce platform, with a particular focus on adding sales in North and South America.
- The Company continues to see strong customer demand for connectivity products including satellite-enabled Internet of Things (IoT), Push-to-Talk, and satellite messengers produced by manufacturers including Globalstar and Iridium, with significant new orders received from European and international government and military customers through the first half of 2026. Some satellite-enabled product lines reached record sales levels during the period.
- In the first six months of 2026, new government sector sales activity surpassed $1.75 million, highlighted by expanded deployments of satellite-enabled push-to-talk hardware across U.K. ministerial departments and foreign military customers, each creating additional upselling and cross-selling opportunities we are actively exploring.
- As part of its recent nationwide healthcare expansion, the Company is preparing for the launch of its new dedicated e-commerce website later in the third quarter. The new site will feature an array of popular prescription medications such as GLP-1s for weight loss, and over-the-counter products including our Florida Sunshine brand of premium vitamins and supplements. This new site will enable Pharmco to fulfill prescriptions and deliver OTC products to consumers in all 50 U.S. states, marking a major expansion of its service offering and its addressable market beyond the state of Florida where it currently operates.
LOOKING AHEAD
As I indicated earlier, we believe NextPlat has reached an important inflection point, where the improvements we have implemented over the past year to position the Company for long-term growth and value creation are beginning to generate tangible results.
Driven by solid underlying business and end-user market fundamentals, we remain optimistic about NextPlat's future. Our team is fully committed to building upon the solid foundation we have created, continuing to improve upon the quality of our quarterly financial results, and executing on what we believe is a stable and diversified business model capable of delivering not only growth, but profitability.
To learn more about NextPlat and its businesses, please click here to view our new corporate factsheet.
As always, we want to thank our partners, customers, employees, and investors for their continued trust and support, and we look forward to sharing our continued progress.
Sincerely,
David Phipps
Chief Executive Officer
For more information about NextPlat, please visit www.NextPlat.com and connect with us on Facebook, LinkedIn and X.
About NextPlat Corp
NextPlat is a global consumer products and services company providing healthcare and technology solutions through e-commerce and retail channels worldwide. Through acquisitions, joint ventures, and collaborations, the Company seeks to provide access to high quality healthcare and pharmacy services supporting patients, providers, institutions, and public-sector organizations and creating online sales channels for the sales of products to domestic and international consumers. Through its subsidiaries, NextPlat provides pharmacy and healthcare data management services and prescription fulfillment services in the United States and operates an e-commerce division offering voice, data, tracking, and IoT products and services worldwide.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to successfully acquire and integrate pharmacies, launch new e-commerce websites, and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Media and Investor Contact for NextPlat Corp:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
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