Solesence Inc. Common Stock (SLSN)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Solesence as a Graham-style student of balance sheets and owner earnings. The company supplies engineered ingredients and manufacturing for skin-care and sunscreen products—a business I can understand, but the supplied figures do not show a durable moat. Revenue grew from $37.3M in FY2023 (period ended 2023-12-31) to $52.3M in FY2024 (period ended 2024-12-31) and $62.1M in FY2025 (period ended 2025-12-31), which is encouraging. Yet profit went the wrong way: net income was $4.2M in FY2024, then $1.8M in FY2025, and the latest filings show losses—$962,000 in fiscal Q1 2026 (quarter ended 2026-03-31) and $158,000 in fiscal Q2 2026 (quarter ended 2026-06-30), when revenue was $15.3M. Worse, fiscal Q2 2026 revenue fell from $20.4M in fiscal Q2 2025 (quarter ended 2025-06-30), and that prior-year quarter earned $3.2M. The balance sheet raises red flags: debt-to-equity is 1.73, Altman Z-Score is -1.53, a FairStock calculation suggesting financial distress, and trailing free cash flow is negative $849,000. At the close on 2026-10-13, the price was $0.99. The market capitalization is $69.9M, but P/B is 5.21, EV/EBITDA is 984.89, and the FairStock Score is 29/100. The Lynch category is TURNAROUND because the company returned to profit after a loss within the last three years, but a turnaround must be paid for with cash earnings, not hope. I would want to see revenue stabilize, losses reverse, and debt come down before calling this a sound value.

In plain English: Solesence makes ingredients and skin-care products, including sunscreen-related materials, for other businesses. In the quarter ended 2026-06-30, sales fell and the company lost money; debt is high and cash flow is negative. At $0.99 on 2026-10-13, the stock does not look cheap compared with what the company currently earns or its financial strength, even though it is far below its 52-week high.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer