Company Secures New Healthcare Contracts, Implements Additional Cost Reductions and Launches New AI Powered Proprietary Healthcare Management Software and Consumer Health Products
HALLANDALE BEACH, Fla., Oct. 8, 2025 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL) (NASDAQ: NXPLW) ("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 Shareholder Update Letter:
To Our Shareholders:
As we enter the final quarter of 2025, we are writing to you to provide our latest update on the notable progress we have achieved in our plans to deliver improved customer support, financial performance and drive long-term growth.
Operational Developments
The primary focus of our leadership and the Board is to ensure our business is managed effectively for the long-term benefit of our collective stakeholders - our customers, our patients, our employees and our shareholders. Following my appointment as Interim CEO in late May, and as outlined in my interim update back in June, we conducted a comprehensive top-to-bottom review of the business and created and implemented a strategic plan designed to address both the near-term challenges and future opportunities we see for NextPlat. It was clear that we needed to significantly reduce corporate overheads, recruit additional healthcare leadership, and reevaluate every operational aspect of the business. As of today, I am pleased to report that we have now made significant progress on these critical points:
- Executive Healthcare Leadership: As announced in August, we have significantly re-aligned our healthcare management team, now led by Birute Norkute who returns to our Progressive Care subsidiary as its new Vice President of Healthcare Operations. Ms. Norkute brings over two decades of industry leadership and experience to the team, including playing a pivotal role in building Progressive Care Inc. which NextPlat acquired in late 2024. Under Ms. Norkute's leadership, the team has not only been working to improve and ensure the efficient and effective daily operation of the healthcare division, but is actively supporting new business development, customer retention and account management activities. We are confident that results of these efforts will begin to have a positive impact on the financial results of our healthcare operations segment in Q4-2025 and throughout 2026.
- Operational Process Efficiency and Cost Reduction: Improving efficiency and cutting costs across the organization remains a critical priority. Building on the approximate $1.0 million in previously identified annual expense savings, recent measures, such as closing underutilized office space, further consolidating personnel, discontinuing external consultants, and enhancing logistics efficiencies, are expected to contribute up to an additional $1.0 million in yearly overhead reductions beginning at the end of this current quarter. Together, these initiatives mark an important step in strengthening our financial position, improving our cash flows, and advancing toward long-term profitability.
Business Development and Growth
While reducing costs is central to our plan, supporting growth is also a critical element so I want to provide some insights on this.
NextPlat's business model is built around three core channels: Healthcare services through our PharmcoRx pharmacies; Communications products and services through our Global Telesat, Orbital Satcom and Outfitter Satellite subsidiaries; and our E-Commerce Development Program supporting the sales of U.S.-produced products into the vast Chinese market. I am pleased to report that over the past few months, significant progress has been achieved in each of these channels:
- In Healthcare Services - Our largest business in terms of revenue, despite ongoing industry-wide challenges in pricing and reimbursements for insurance-covered prescriptions, we have secured several new contracts during Q3 and invested in product and service enhancements which have the potential to contribute to growth and market expansion starting late this year:
- Our recently awarded prescription management and fulfillment services subcontract on behalf of a government contractor has now been expanded to a second facility. This additional facility, and others which are managed by this contractor, are expected to generate a significant increase in new prescriptions.
- As part of our re-investment into the business, we have commenced a technology upgrade program for ClearMetrX, our proprietary healthcare data analytics and reporting software platform. This upgrade seeks to incorporate a full range of artificial intelligence (AI)-enhanced capabilities designed to make operations more efficient and effective. We are excited by the potential impact that ClearMetrX 4.0 will have on our own pharmacy operations when we deploy it internally by late this year before making it available to new and existing customers in 2026.
- In our higher margin 340B clinic services business, as previously disclosed, we have several new customers coming online in Q4. Additionally, we have successfully re-engaged a major client who had previously transitioned to other providers and now anticipate a significant increase in high value prescription volumes from this important customer beginning this quarter.
- In August, we expanded the scope of our pharmacy business to include 24/7 pharmacist services and currently operate our pharmacies seven days a week to accommodate the requirements of our new contracts while demonstrating our commitment to delivering greater responsiveness to our customers.
- In Communications - We continue to see increased transaction volumes for global satellite-based connectivity driven by our partnerships with leading commercial satellite network operators such as Iridium, Starlink and Globalstar. We see both organic and non-organic growth opportunities which we believe will support our efforts to further establish ourselves as a leading provider in the market:
- Positive trends in the services aspect of our communications business are driving record levels of high margin recurring airtime revenue as global demand for satellite-enabled IoT solutions continues to grow. This growth is being supported in part by previously announced contracts with our UK government and African military customers, together with a general increase in sales to regular consumers and corporate end users. Our distribution agreement with EVERYWHERE Communications has also resulted in a year-on-year increase of 170% in related services.
- Hardware demand continues highlighted by our growing partnership with Garmin, increased sales of Globalstar, Inc.'s satellite-enabled trackers and messengers which now have surpassed 50,000 units sold, and our exclusive distribution agreement with Zoleo driving strong sales of their Iridium satellite-enabled messengers. We are working to expand our relationships with these and other leading hardware providers in the coming months to further capitalize on the growth opportunities we continue to see in the market.
- We continue to investigate ways to further scale our satellite connectivity business, both domestically and internationally. As such, we are exploring acquisitions and new partnerships which can bring immediate revenues, open additional market segments, and add exciting new product offerings to our portfolio.
- In Our E-Commerce Development Program for China - Sales activity continues to increase despite uncertainty around future tariffs:
- Our e-commerce partnership and exclusive distribution agreement with OPKO Health, Inc. ("OPKO") for the sale of its health, nutrition, and dietary supplements to customers in China continues to grow, supported by recent approval for higher volumes of product imports which previously limited sales. Additionally, the approval to import OPKO's unique animal care products is still expected later this year. Importantly, OPKO products are not subject to any current tariffs.
- In September, we officially launched our Florida Sunshine brand of premium vitamins and supplements in domestic and international markets, already recording initial sales to customers in the EU, UK and US. Supported by a planned AI-powered digital advertising program scheduled for Q4-2025, we expect to reach consumers across top social media channels such as Facebook, Instagram, Google, TikTok, and YouTube, potentially contributing to significantly increased sales. Furthermore, we are preparing for Florida Sunshine's entry into the large Chinese market on Alibaba Group Holding Limited's Tmall Global following receipt of approval from the e-commerce platform. Sales in China are expected to begin late in the fourth quarter of 2025.
For Our Shareholders
In addition to the activities outlined in this update letter, our team continues to execute across several business and product development and operational initiatives we believe have the potential to contribute to shareholder value over the long term. Some developments here to note include:
- In September, the Company actively repurchased shares under its current buyback program in strict compliance with the limitations mandated by the SEC and Nasdaq. We intend to provide an update on the status of the program when we release our results for the third quarter ended September 30, 2025, expected on or before November 14, 2025. It is management's current expectation that we will continue the buyback program following the Q4 blackout period, subject to changes in market conditions or funding priorities.
- As we continue to refocus the business, we have updated our online presence to reflect our refined messaging and have recently launched a refreshed corporate website which you can view here - www.nextplat.com, together with an updated healthcare website - www.pharmcorx.com
- We are continuing to explore additional avenues to demonstrate our commitment to the business and our belief in its value.
In conclusion, while challenges remain in the shorter-term, as evidenced by this CEO Update and our recent press releases, we are diligently making progress on our plans to drive measurable value for all our stakeholders and wish to thank our partners, customers, employees, and investors for their support. As a team, we intend to continue to honor our commitments to greater engagement and transparency in the months ahead and look forward to sharing additional updates on the progress we are making.
Sincerely,
David Phipps
Chief Executive Officer
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 assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-Commerce presence and revenue. NextPlat currently operates an e-Commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in the United States through its subsidiary, Progressive Care.
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 launch additional e-commerce capabilities for consumer and healthcare products and its ability to grow 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 Securities and Exchange Commission (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
[email protected]
SOURCE NextPlat Corp.
