Solesence (SLSN) has put fresh numbers on the table for Q1 2026, coming off a Q4 2025 where revenue was US$12.5 million, net income excluding extra items was US$0.2 million, and basic EPS came in at US$0.002. Over the last few quarters the company has seen revenue move between US$12.5 million and US$20.4 million, with basic EPS ranging from a loss of US$0.016 to a profit of US$0.038, while trailing twelve month margins compressed from 8.1% to 2.9%. This latest print lands in the middle of a story that is focused on how firmly those margins can stabilize.

See our full analysis for Solesence.

With the headline figures set, the next step is to see how this margin picture lines up with the widely followed narratives around Solesence's earnings quality, risk profile, and long term potential.

Margins Under Pressure At 2.9%

• Over the last twelve months, Solesence converted US$62.1 million of revenue into US$1.8 million of net income excluding extra items, which works out to a 2.9% net margin compared with 8.1% the prior year.
• What stands out for the bullish narrative that focuses on a science backed skin health platform is that the 5% per year earnings growth over five years and a profitable trailing twelve month EPS of US$0.025 sit alongside this margin compression to 2.9%,
  • Supporters can point to the company being profitable over the last five years and to trailing twelve month EPS remaining positive, but critics will highlight that net income fell to US$1.8 million on US$62.1 million of sales.
  • The mix of a long term earnings growth rate near 5% per year with a lower current margin means the bullish story leans heavily on whether margins can move closer to the earlier 8.1% level.

48.9x P/E Sits Between Peers And Industry

• The stock trades on a trailing P/E of 48.9x, below the peer average of 54x but at a premium to the broader US Chemicals industry at 23.3x, with a current share price of US$1.24 anchored to trailing twelve month EPS of US$0.025.
• Bears focus on valuation quality rather than just the headline P/E, pointing to weaker earnings quality and balance sheet coverage alongside that 48.9x multiple,
  • Critics highlight that earnings include a high level of non cash items, so the US$1.8 million of trailing net income may not fully reflect cash generation even though it supports the current P/E.
  • They also flag weak interest coverage, which means that despite trading cheaper than peers on P/E, the premium to the industry average and the earnings mix both matter when judging how comfortable that valuation is.

On these numbers, many investors will want to see how other companies with similar profiles are priced before deciding what looks attractive in this corner of the market, and that is exactly where a focused screener of stocks can help by lining up valuation, balance sheet strength, and earnings quality side by side using a predefined set of filters such as a solid balance sheet and fundamentals stocks screener (46 results)

Sharp Swing In Recent Quarterlies

• Quarterly net income excluding extra items moved from US$3.0 million in Q3 2024 to US$2.7 million in Q2 2025, then down to US$0.2 million in Q4 2025, while quarterly revenue ranged from US$12.5 million to US$20.4 million over the same stretch.
• What is striking for the broader narrative built around a science driven materials and formulations platform is how this choppy pattern in profitability sits next to the longer term 5% annual earnings growth and positive five year track,
  • The swing from a quarterly loss in Q3 2025, when net income excluding extra items was US$1.1 million on US$14.6 million of revenue, to a profit of US$0.2 million in Q4 2025, shows that short term results can move quite sharply even though the trailing twelve month line stays positive.
  • At the same time, the move in trailing twelve month net income from US$4.2 million in Q4 2024 to US$1.8 million in Q4 2025 confirms that the recent margin squeeze is not just a single quarter issue and will be an important data point for anyone building a longer term thesis.

To put these swings into context and see how different investors are stitching them into longer term stories around growth, risk and valuation, it is worth checking how the community frames Solesence using the Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Solesence's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

The tone of this update might feel mixed, so now is a good time to look at the numbers yourself and pressure test the story against your own expectations. To see what specific issues others are watching, review the 4 important warning signs.

See What Else Is Out There

Choppy margins at 2.9%, weaker recent net income, and a 48.9x P/E with concerns around interest coverage all point to a less resilient profile.

If you want stocks where earnings quality and balance sheet strength look tighter, start comparing companies side by side using the solid balance sheet and fundamentals stocks screener (46 results) today while this is front of mind.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.