Synergy CHC Q1 Revenue Drops 33% to $5.49M, Beverage Run Rate Tops $4M
Synergy CHC reported Q1 revenue of $5.49M, down from $8.17M in Q1 2025 due to a non-recurring $1.5M license and Flat Tummy out-of-stock issues. Its functional beverage business generated over $650,000 in Q1, pushing its annualized run rate above $4M, using $2M operating cash while raising $2.7M via ATM equity.
1. First-Quarter Financial Results
Synergy CHC posted Q1 revenue of $5.49 million versus $8.17 million a year earlier, reflecting the absence of a $1.5 million license payment and Flat Tummy online stock shortages. Gross margin fell to 72.3% from 75.4%, while net loss widened to $2.57 million, or $0.23 per share, and adjusted EBITDA was a $0.35 million loss.
2. Beverage Business Growth
The company’s functional beverage segment delivered over $650,000 in Q1 sales—surpassing total beverage revenue for all of 2025—and is now operating at an annualized run rate exceeding $4 million. Expansion of retail and distribution partnerships across the U.S. has driven healthy sell-through and increased reorder activity.
3. Cash Flow and Balance Sheet
Synergy ended March with $0.3 million in cash and equivalents, down from $2.6 million at year-end, and used $2.0 million in operating cash for the quarter. Working capital shifted to a $0.5 million deficit, offset by $2.7 million in gross proceeds raised via an at-the-market equity offering.
4. Outlook and Strategy
Management plans to leverage the beverage division’s momentum and expanded distribution footprint to drive sustainable growth throughout 2026. The company expects continued expansion in functional beverages to create shareholder value and capitalize on rising demand in the health and wellness sector.