Loading...
01/11 05:02
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company shows strong financial performance with increased EPS and EBITDA margins, effective cost management, and strategic growth initiatives. The debt refinancing plan is expected to enhance cash flow, and the licensing agreements promise future revenue growth. Despite a 13% revenue decline due to a non-recurring event, the outlook is optimistic with expansion into new markets and partnerships with major retailers. The Q&A session provided clarity on revenue expectations and strategic plans. Overall, the positive indicators outweigh the risks, suggesting a stock price increase in the short term.
Earnings Per Share (EPS) $0.10 per diluted share, a 30% increase year over year, reflecting successful execution of strategic growth initiatives and cost management.
Net Revenue $8,200,000, a 13% decrease year over year, primarily driven by a one-time sell-in to one customer during 2024 that did not repeat in 2025.
Gross Margin 75.4%, an increase from 72% year over year, driven by a favorable product mix.
Operating Expenses $4,200,000, a decrease of 15% year over year, reflecting ongoing focus on managing costs effectively while investing in key growth initiatives.
Income from Operations $1,900,000, an increase of 8% compared to $1,800,000 in the first quarter of 2024.
Net Income $876,000, a 30% increase year over year, reflecting successful execution of strategic growth initiatives and cost management.
EBITDA $1,980,000, up 7% compared to $1,850,000 in the first quarter of 2024.
Cash and Cash Equivalents $177,900, down from $687,900 as of 12/31/2024.
Inventory $2,300,000, up from $1,700,000 at the end of the previous quarter.
Total Liabilities $31,300,000, a decrease of $1,700,000 from $33,000,000 at 12/31/2024.
Cash Used in Operating Activities $823,000, compared to $858,000 at 03/31/2024, primarily attributable to an increase in inventory and a decrease in accounts payable and accrued expenses.
RTD Beverage Progress: We have hired an industry veteran with over ten years of experience in the beverage and convenience store industry, set to join on May 26. We expect him to add significant growth to our beverage business starting almost immediately.
Focus Factor Licensing: We signed a license agreement for the Focus Factor brand in the UAE, generating a fee of $1,500,000. Revenue from this territory is expected to start in Q4.
International Expansion: We have entered a three-year license agreement for Focus Factor in the UAE and incorporated a wholly owned subsidiary in Mexico, targeting revenue generation by early Q3.
New Market Entry: Plans to open markets in Australia and Taiwan in Q4, with Costco as the lead customer.
Cost Management: Operating expenses decreased by 15% to $4,200,000, reflecting effective cost management while investing in growth initiatives.
Supplier Agreement: Entered a long-term supplier agreement for Focus Factor products, shifting inventory ownership to the supplier, which will reduce capital needs.
Debt Refinancing: Entered into two term sheets to refinance debt, expected to close soon, alleviating over $10,000,000 of principal payments in 2025 and extending maturity to 2029.
Regulatory Issues: The company is aware of evolving tariffs that may impact certain ingredients, but does not expect a material impact on its business.
Supply Chain Challenges: Synergy is onboarding manufacturing partners and customers, including major retailers like Costco and Walmart, which may present challenges in execution.
Economic Factors: The company reported a 13% decrease in net revenue year over year, primarily due to a one-time sell-in to a customer in 2024 that did not repeat in 2025.
Competitive Pressures: The company is expanding its global presence through licensing agreements, which may expose it to competitive pressures in new markets.
Debt Management: Synergy is in the process of refinancing its debt, which is expected to alleviate over $10,000,000 of principal payments in 2025, but the success of this refinancing is a risk.
International Expansion: Entered into a three-year license agreement for the Focus Factor brand in the UAE, expecting revenue generation by Q4 2025. Plans to add new licensees in selected markets.
Wholly Owned Subsidiary in Mexico: Onboarding manufacturing partners and customers, including Costco and Walmart, with expected revenue generation starting early Q3 2025.
RTD Beverage Progress: Hired an industry veteran to enhance growth in the beverage business, with over 400 additional convenience stores opened in Canada.
Long-term Supplier Agreement: Entered into an agreement for Focus Factor products, changing capital needs and reducing inventory ownership.
Debt Refinancing: Entered into two term sheets to refinance debt, expected to close soon, alleviating over $10 million of principal payments in 2025.
Revenue Expectations: Expecting to generate revenue from the UAE licensee by Q4 2025 and from the Mexican subsidiary early in Q3 2025.
RTD Revenue Projections: Expecting approximately $2 million in RTD revenue for Q2 2025.
EBITDA Margin: Expanded EBITDA margins to 24.1% from 19.7% year-over-year.
Cost Management: Operating expenses decreased by 15% year-over-year, reflecting effective cost management.
Future Cash Flow: Refinancing expected to accelerate free cash flow and extend debt maturity to 2029.
License Fee: $1,500,000 received for the UAE territory.
Debt Refinancing: Refinancing expected to alleviate more than $10,000,000 of principal payments in 2025.
The earnings call presents mixed signals. Financial performance shows revenue growth and improved gross margins, but net income and EPS have declined due to higher expenses from the beverage division launch. The Q&A reveals plans for further expansion, which may strain financials. Despite a strong revenue increase, cash flow challenges and increased operating costs pose risks. The lack of a shareholder return plan discussion and potential G&A rate increases further contribute to a neutral sentiment. Without market cap data, the stock reaction is uncertain, but no strong catalysts for significant movement are evident.
The company shows strong financial performance with increased EPS and EBITDA margins, effective cost management, and strategic growth initiatives. The debt refinancing plan is expected to enhance cash flow, and the licensing agreements promise future revenue growth. Despite a 13% revenue decline due to a non-recurring event, the outlook is optimistic with expansion into new markets and partnerships with major retailers. The Q&A session provided clarity on revenue expectations and strategic plans. Overall, the positive indicators outweigh the risks, suggesting a stock price increase in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
