NutriBand Revenue Jumps 51% Amidst Soaring Net Losses

TL;DR

**NTRBW's revenue is up, but a massive preferred dividend just wiped out common shareholders; this stock is a high-risk gamble.**

AI Summary

NutriBand Inc. (NTRBW) reported a significant increase in revenue for the three months ended July 31, 2025, reaching $622,452, up 40.57% from $442,830 in the same period last year. For the six months ended July 31, 2025, revenue grew to $1,289,884, a 51.50% increase from $851,362 in the prior year. Despite revenue growth, the company experienced a substantial net loss available to common stockholders of $23,814,503 for the three months ended July 31, 2025, compared to a net loss of $1,705,465 in the prior year, primarily due to a $21,814,166 preferred shares dividend. The net loss per share for common stockholders was $(2.12) for the three months ended July 31, 2025, a sharp increase from $(0.15) in the prior year. Operating losses also widened to $2,003,213 for the three months ended July 31, 2025, from $1,409,742 in 2024. Cash and cash equivalents increased to $6,995,101 as of July 31, 2025, from $4,311,719 at January 31, 2025, largely due to $5,305,503 from warrant exercises. The company continues to fund operations through equity financing and a $5,000,000 credit line facility, with management believing sufficient funds will be generated to fund operations for the next twelve months.

Why It Matters

NutriBand's substantial revenue growth, particularly in contract development and manufacturing services, signals increasing demand for its transdermal and topical product expertise, which could attract new customers and partnerships. However, the massive net loss driven by preferred share dividends raises serious concerns about shareholder dilution and the company's path to profitability, potentially impacting investor confidence and stock valuation. Competitively, the company's focus on abuse-deterrent technology and specialized manufacturing positions it uniquely in the pharmaceutical and health and wellness markets, but sustained losses could hinder its ability to innovate and compete with larger, more established players. Employees and customers might view the operational growth positively, but the financial instability could create uncertainty.

Risk Assessment

Risk Level: high — The company reported a net loss available to common stockholders of $23,814,503 for the three months ended July 31, 2025, a dramatic increase from $1,705,465 in the prior year, primarily due to a $21,814,166 preferred shares dividend. This significant dividend payout, coupled with continued operating losses of $3,416,710 for the six months ended July 31, 2025, indicates substantial dilution risk and a challenging path to profitability for common shareholders.

Analyst Insight

Investors should exercise extreme caution and thoroughly evaluate the impact of the preferred share dividend on common stock value. Given the significant net loss and ongoing reliance on equity financing, potential investors should wait for clear signs of sustainable profitability and reduced dilution before considering an investment.

Financial Highlights

debt To Equity

0.20

revenue

$622,452

operating Margin

-321.86%

total Assets

$10,176,588

total Debt

$1,682,780

net Income

$-23,814,503

eps

$(2.12)

gross Margin

-24.73%

cash Position

$6,995,101

revenue Growth

+40.57%

Revenue Breakdown

Key Numbers

• $622,452 — Revenue for Q3 2025 (Increased 40.57% from $442,830 in Q3 2024)
• $1,289,884 — Revenue for six months ended July 31, 2025 (Increased 51.50% from $851,362 in the prior year)
• $23,814,503 — Net loss available to common stockholders for Q3 2025 (Significantly higher than $1,705,465 in Q3 2024 due to preferred dividends)
• $21,814,166 — Preferred shares dividend (Major contributor to increased net loss for common stockholders)
• $(2.12) — Net loss per share for common stockholders for Q3 2025 (Increased from $(0.15) in Q3 2024)
• $6,995,101 — Cash and cash equivalents (As of July 31, 2025, up from $4,311,719 at January 31, 2025)
• $5,305,503 — Proceeds from warrant exercises (Contributed to cash increase during the six months ended July 31, 2025)
• $3,416,710 — Net loss from operations for six months ended July 31, 2025 (Increased from $3,299,219 in the prior year)
• 12,034,883 — Common shares outstanding (As of September 8, 2025, indicating potential dilution)
• 3,008,642 — Preferred shares issued (As of July 31, 2025, contributing to dividend payout)

Key Players & Entities

• NutriBand Inc. (company) — registrant
• 4P Therapeutics LLC (company) — acquired subsidiary
• Pocono Pharmaceuticals Inc. (company) — wholly owned subsidiary
• Active Intelligence LLC (company) — acquired subsidiary
• SEC (regulator) — filing authority
• Nasdaq Stock Market LLC (regulator) — exchange for NTRB and NTRBW
• $23,814,503 (dollar_amount) — net loss available to common stockholders for three months ended July 31, 2025
• $21,814,166 (dollar_amount) — preferred shares dividend for three months ended July 31, 2025
• $6,995,101 (dollar_amount) — cash and cash equivalents as of July 31, 2025
• $5,305,503 (dollar_amount) — proceeds from exercise of warrants during six months ended July 31, 2025

FAQ

Risk Factors

• Significant Net Loss and Dilution [high — financial]: The company reported a substantial net loss of $23,814,503 available to common stockholders for Q3 2025, a significant increase from $1,705,465 in Q3 2024. This was heavily influenced by a $21,814,166 preferred shares dividend. The net loss per common share widened to $(2.12) from $(0.15).
• Reliance on Equity Financing [high — financial]: NutriBand continues to fund operations through equity financing and a $5,000,000 credit line. While cash increased to $6,995,101 due to warrant exercises ($5,305,503), the ongoing need for external funding indicates potential dilution and financial vulnerability.
• Widening Operating Losses [medium — operational]: Operating losses increased to $2,003,213 for the three months ended July 31, 2025, from $1,409,742 in the prior year. This trend, despite revenue growth, suggests increasing operational costs or inefficiencies.
• FDA Approval Dependency [high — regulatory]: The company's principal business involves developing transdermal pharmaceutical products, requiring preclinical and clinical trials for FDA approval before marketing. Delays or failures in obtaining FDA approval pose a significant risk to revenue generation and business viability.
• Preferred Stock Impact [high — financial]: The issuance of preferred stock, with a significant dividend of $21,814,166 in Q3 2025, dramatically impacted the net loss available to common stockholders. Future preferred stock issuances or dividend obligations could continue to depress common shareholder value.
• Integration of Acquisitions [medium — operational]: The company has integrated businesses like 4P Therapeutics and Pocono Pharmaceuticals. Challenges in integrating these diverse operations, including contract manufacturing and drug development, could impact efficiency and profitability.
• Accumulated Deficit [high — financial]: As of July 31, 2025, the company has an accumulated deficit of $41,851,842. This substantial historical loss underscores the long-term profitability challenges the company faces.

Industry Context

NutriBand operates in the health and wellness market, focusing on transdermal patch technology for pharmaceuticals and nutraceuticals. The company faces competition from established pharmaceutical companies and contract manufacturers. The industry is characterized by rigorous regulatory requirements (FDA approval) and ongoing innovation in drug delivery systems.

Regulatory Implications

The company's reliance on FDA approval for its transdermal pharmaceutical products presents a significant regulatory hurdle. Any delays, rejections, or changes in FDA guidelines could severely impact product development timelines and market entry. Compliance with manufacturing standards for its contract development and manufacturing organization (CDMO) segment is also critical.

What Investors Should Do

1. Monitor operating expense trends closely.
2. Evaluate the impact of preferred stock and future financing.
3. Track progress on FDA approvals.
4. Assess the sustainability of revenue growth.

Key Dates

• 2025-07-31: End of Q3 2025 reporting period — Reported significant revenue growth but also a substantial increase in net loss available to common stockholders, primarily due to preferred dividends.
• 2025-01-31: End of Q4 2025 reporting period (prior) — Cash and cash equivalents were $4,311,719, indicating a substantial increase in cash by July 31, 2025.
• 2016-01-04: Company Incorporation — Marks the official establishment of NutriBand Inc. as a Nevada corporation.
• 2018-08-01: Acquisition of 4P Therapeutics LLC — Shifted the company's principal business towards transdermal pharmaceutical product development.
• 2020-08-25: Formation of Pocono Pharmaceuticals Inc. — Established a subsidiary focused on contract development and manufacturing of transdermal and topical products.

Glossary

Accumulated deficit

The total net losses of a company since its inception that have not been offset by net income. (Indicates the company's historical unprofitability, with a deficit of $41,851,842 as of July 31, 2025.)

Preferred shares dividend

A distribution of a company's earnings to the holders of preferred stock. (A significant factor in the large net loss available to common stockholders ($21,814,166 in Q3 2025).)

Warrant exercises

The process where holders of warrants purchase shares of the company's stock at a specified price. (A key source of cash inflow ($5,305,503 in the six months ended July 31, 2025), contributing to the increase in cash reserves.)

Operating lease right of use asset

An asset recognized under ASC 842 for the right to use a leased asset over the lease term. (Represents a new lease commitment, with an asset of $90,000 and a current liability of $31,007 as of July 31, 2025.)

Treasury stock

Stock that a company has repurchased from the open market. (The company held $86,852 of treasury stock as of July 31, 2025, which reduces total stockholders' equity.)

Deferred revenue

Revenue that has been received by the company but not yet earned. (Decreased from $155,880 to $19,419, indicating revenue recognition for previously received payments.)

Year-Over-Year Comparison

NutriBand Inc. has demonstrated strong revenue growth, with a 40.57% increase in Q3 2025 revenue to $622,452 and a 51.50% increase for the six-month period to $1,289,884. However, this growth is overshadowed by a dramatic increase in net loss available to common stockholders, soaring to $23,814,503 in Q3 2025 from $1,705,465 in the prior year, largely due to a significant preferred stock dividend. Operating losses have also widened. While cash reserves have improved to $6,995,101 due to warrant exercises, the company's reliance on equity financing and its substantial accumulated deficit remain key concerns.

Key Financial Figures

• $0.001 — of the issuer's common stock, par value $0.001 per share, was 12,034,883 shares as of

Filing Documents

• ea0256300-10q_nutriband.htm (10-Q) — 901KB
• ea025630001ex31-1_nutriband.htm (EX-31.1) — 9KB
• ea025630001ex31-2_nutriband.htm (EX-31.2) — 9KB
• ea025630001ex32-1_nutriband.htm (EX-32.1) — 4KB
• 0001213900-25-086270.txt ( ) — 6358KB
• ntrb-20250731.xsd (EX-101.SCH) — 51KB
• ntrb-20250731_cal.xml (EX-101.CAL) — 33KB
• ntrb-20250731_def.xml (EX-101.DEF) — 316KB
• ntrb-20250731_lab.xml (EX-101.LAB) — 545KB
• ntrb-20250731_pre.xml (EX-101.PRE) — 327KB
• ea0256300-10q_nutriband_htm.xml (XML) — 795KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America have been condensed or omitted from the following financial The results of operations for the three and six months ended July 31, 2025 and 2024 are not necessarily indicative of the results for the entire fiscal year or for any other period. 1 NUTRIBAND INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS July 31, January 31, 2025 2025 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 6,995,101 $ 4,311,719 Accounts receivable-net 160,804 73,847 Inventory 138,031 212,041 Prepaid expenses 226,500 196,658 Total Current Assets 7,520,436 4,794,265 PROPERTY & EQUIPMENT-net 615,857 695,063 OTHER ASSETS: Goodwill 1,719,535 1,719,535 Operating lease right of use asset 90,000 - Intangible assets-net 230,760 261,092 TOTAL ASSETS $ 10,176,588 $ 7,469,955 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 1,393,013 $ 698,821 Deferred revenue 19,419 155,880 Operating lease liability-current portion 31,007 - Notes payable-current portion 128,369 128,144 Total Current Liabilities 1,571,808 982,845 LONG-TERM LIABILITIES: Note payable-net of current portion 47,290 58,205 Operating lease liability-net of current portion 63,682 - Total Liabilities 1,682,780 1,041,050 Commitments and Contingencies - - STOCKHOLDERS' EQUITY: Preferred stock, $ .001 par value, 10,000,000 shares authorized, 3,008,642 and - 0 - issued and outstanding as of July 31, 2025 and January 31, 2025, respectively 3,009 - Common stock, $ .001 par value, 291,666,666 shares authorized, 12,034,883 and 11,107,210 shares issued at July 31, 2025 and January 31,

financial statements

financial statements 2 NUTRIBAND INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended For the Six Months Ended July 31, July 31, 2025 2024 2025 2024 Revenue $ 622,452 $ 442,830 $ 1,289,884 $ 851,362 Costs and expenses: Cost of revenues 465,571 341,272 881,022 585,018 Research and development 562,554 773,975 1,245,980 1,748,510 Selling, general and administrative 1,597,540 737,325 2,579,592 1,817,053 Total Costs and Expenses 2,625,665 1,852,572 4,706,594 4,150,581 Loss from operations ( 2,003,213 ) ( 1,409,742 ) ( 3,416,710 ) ( 3,299,219 ) Other income (expense): Interest income 8,649 77,332 39,157 77,350 Loss on extinguishment of debt - ( 368,036 ) ( 368,036 ) Interest expense ( 5,773 ) ( 5,019 ) ( 11,653 ) ( 13,637 ) Total other income (expense) 2,876 ( 295,723 ) 27,504 ( 304,323 ) Loss before provision for income taxes ( 2,000,337 ) ( 1,705,465 ) ( 3,389,206 ) ( 3,603,542 ) Provision for income taxes - - - - Net loss $ ( 2,000,337 ) $ ( 1,705,465 ) $ ( 3,389,206 ) $ ( 3,603,542 ) Preferred shares dividend ( 21,814,166 ) - ( 21,814,166 ) - Net loss available to common stockholders - basic and diluted $ ( 23,814,503 ) $ ( 1,705,465 ) $ ( 25,203,372 ) $ ( 3,603,542 ) Net loss per share available to common stockholders - basic and diluted $ ( 2.12 ) $ ( 0.15 ) $ ( 2.26 ) $ ( 0.36 ) Weighted average common shares outstanding - basic and diluted 11,218,581 11,061,725 11,172,543 10,111,357 See notes to unaudited consolidated

financial statements

financial statements 3 NUTRIBAND INC. AND SUBSIDIARIES CONSOLIDATED Six Months Ended July 31, 2025 Accumulated Common Stock Preferred Stock Additional Other Number of Number of Paid In Comprehensive Accumulated Treasury Total shares Amount shares Amount Capital Income(Loss) Deficit Stock Balance, February 1, 2025 $ 6,428,905 11,074,810 $ 11,075 - $ - $ 45,029,317 $ ( 304 ) $ ( 38,462,636 ) $ ( 148,547 ) Treasury stock issued for services 104,400 13,500 14 - - 42,691 - - 61,695 Exercise of warrants 5,305,503 825,117 825 - - 5,304,678 - - - Exercise of employee stock options 44,206 20,055 20 - - 44,186 - - - Preferred Shares issued as Common stock dividend - - - 3,008,642 3,009 ( 3,009 ) - - - Cashless exercise of warrants - 82,501 82 - - ( 82 ) - - - Net loss ( 3,389,206 ) - - - - - - ( 3,389,206 ) - Balance, July 31, 2025 $ 8,493,808 12,015,983 $ 12,016 3,008,642 $ 3,009 $ 50,417,781 $ ( 304 ) $ ( 41,851,842 ) $ ( 86,852 ) Six Months Ended July 31, 2024 Accumulated Common Stock Preferred Stock Additional Other Number of Number of Paid In Comprehensive Accumulated Treasury Total shares Amount shares Amount Capital Income(Loss) Deficit Stock Balance, February 1, 2024 $ 6,438,235 8,859,870 $ 8,860 - $ - $ 34,442,339 $ ( 304 ) $ ( 27,980,019 ) $ ( 32,641 ) Proceeds from sale of common stock and warrants 8,400,000 2,100,000 2,100 - - 8,397,900 - - - Options issued for services 553,335 - - - - 553,335 - - - Common stock and warrants issued for conversion of debt 672,958 76,230 $ 76 - - $ 672,882 - - - Cashless exercise of warrants 0 60,085 $ 60 - - $ ( 60 ) - - - Net loss ( 3,603,542

financial statements

financial statements 5 NUTRIBAND INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended July 31, 2025 2024 Cash flows from operating activities: Net loss $ ( 3,389,206 ) $ ( 3,603,542 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 114,862 139,050 Operating lease expense 18,000 15,690 Loss on extinguishment of debt - 368,036 Stock-based compensation-shares issued for services 104,400 - Stock-based compensation-options - 553,335 Changes in operating assets and liabilities: Accounts receivable ( 86,957 ) 80,638 Prepaid expenses ( 29,842 ) 15,432 Inventories 74,010 ( 55,255 ) Deferred revenue ( 136,461 ) 22,074 Operating lease liability ( 13,158 ) ( 16,748 ) Accounts payable and accrued expenses 694,039 103,617 Net Cash Used In Operating Activities ( 2,650,313 ) ( 2,377,673 ) Cash flows from investing activities: Purchase of equipment ( 5,324 ) ( 45,085 ) Net Cash Used in Investing Activities ( 5,324 ) ( 45,085 ) Cash flows from financing activities: Proceeds from note payable-related party - 300,000 Proceeds from the exercise of employee stock options 44,206 Proceeds from sale of common stock and exercise of warrants 5,305,503 8,400,000 Payment on note payable ( 10,690 ) ( 10,217 ) Net Cash Provided by Financing Activities 5,339,019 8,689,783 Net change in cash 2,683,382 6,267,025 Cash and cash equivalents - Beginning of period 4,311,719 492,942 Cash and cash equivalents - End of period $ 6,995,101 $ 6,759,967 Supplementary information: Cash paid for: Interest $ 1,250 $ 611 Income taxes $ - $ 2,943 Supplemental disclosure of non-cash investing and financing activities: Cashless conversion of warrants $ 82 $ 60 Measurement of operarating lease right-of-use assets and

financial statements

financial statements 6 NUTRIBAND INC. AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements as of and for the Three and Six Months Ended July 31, 2025 and 2024 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Organization Nutriband Inc. (the "Company") is a Nevada corporation, incorporated on January 4, 2016. In January 2016, the Company acquired Nutriband Ltd, an Irish company which was formed by the Company's chief executive officer in 2012 to enter the health and wellness market by marketing transdermal patches. References to the Company relate to the Company and its subsidiaries unless the context indicates otherwise. On August 1, 2018, the Company acquired 4P Therapeutics LLC ("4P Therapeutics") for $ 2,250,000 , consisting of 250,000 shares of common stock, valued at $ 1,850,000 , and $ 400,000 , and a royalty of 6 % on all revenue generated by the Company from the abuse deterrent intellectual property that had been developed by 4P Therapeutics payable to the former owner of 4P Therapeutics. The former owner of 4P Therapeutics was a director of the Company from April 2018, when the Company entered into an agreement to acquire 4P Therapeutics until he resigned as a director in January 2022. 4P Therapeutics is engaged in the development of transdermal pharmaceutical products. With the acquisition of 4P Therapeutics, 4P Therapeutics' drug development business became the Company's principal business. The primary focus of the business is to incorporate the Company's Aversa abuse deterrent technology into transdermal patches containing already approved drugs. Although these drugs are already approved, the Company needs to conduct a product development program which will include the preclinical and clinical trials that are necessary to receive FDA approval before we can market any of our pharmaceutical products. On August 25, 2020, the Company formed Pocono Pharmaceuticals Inc. ("Pocono Pharmaceuticals"), a wholly owned subsidiary of the Comp

Financial Statements

Financial Statements The consolidated balance sheet as of July 31, 2025, and the consolidated statements of operations, stockholders' equity, and cash flows for the periods presented have been prepared by the Company and are unaudited. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) to prepare fairly the financial position, results of operations, changes in stockholders' equity and cash flows for all periods presented have been made. The results for the six months ending July 31, 2025, are not necessarily indicative of the results to be expected for the full year. The consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes therein included in the Company's Annual Report on Form 10-K for the year ended January 31, 2025. Certain information and footnote disclosures required under generally accepted accounting principles in the United States of America ({U.S. GAAP}) have been condensed or omitted from these consolidated financial statements pursuant to the rules and regulations, including interim reporting requirements of the U.S. Securities and Exchange Commission ("SEC"). The preparation of consolidated statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosures of contingent amounts in our consolidated financial statements and accompanying footnotes. Actual results could differ from estimates. The Company's significant accounting policies are in Note 2 in the Company's Annual Report on Form 10-K for the year ended January 31, 2025. There were no significant changes to these accounting policies during the six months ended July 31, 2025. 7 Going Concern Assessment Management assesses liquidity and going concern uncertainty in the Company's condensed financial statements to determine whether there is sufficient cash on hand and working capital, including availabl

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