Retractable Technologies reports first-quarter net sales of $7.2 million

Retractable Technologies, Inc. (NYSE American: RVP) reported total net sales of $7.2 million for the first three months of 2026, compared with $8.3 million for the same period of 2025. The loss from operations was $6.2 million, compared with approximately $4.7 million a year earlier. The company reported a net loss of $4.2 million for the quarter. The results were released in a Form 8-K filed on May 15, 2026, which states that the company's Form 10-Q was filed the same day.

Retractable is based in Little Elm, Texas. It manufactures and markets VanishPoint and Patient Safe safety medical products and the EasyPoint needle.

Sales mix and units

Domestic sales accounted for 82.9% of total revenues in the first quarter of 2026, compared with 89.6% a year earlier. Domestic revenues decreased 20.0%, while domestic unit sales decreased 11.5%. Domestic unit sales represented 72.1% of total unit sales, compared with 84.9% for the same period last year. The release says the decrease in sales was not proportional to the decrease in units. The main reason was a lower average selling price, which reflected a change in product mix and higher transaction costs associated with distributor agreements.

International revenues increased 42.4% compared with the first quarter of 2025. The release says the increase was primarily driven by higher EasyPoint needle sales. International sales traditionally carry lower average selling prices than domestic sales, and there remains uncertainty regarding the timing of future international orders. Overall unit sales increased 3.6%. A larger proportion of international sales and an increase in EasyPoint needle sales contributed to lower overall revenues, despite unit sales increasing slightly.

Costs and expenses

Cost of manufactured product decreased 3.1% compared with the first quarter of 2025, primarily due to a decrease in freight and tariff expense. Royalty expense decreased 7.0% due to lower gross sales. The company spent approximately $11.6 thousand on tariff expenses in the first quarter of 2026, which the release describes as a large decrease compared with prior periods. The company credits ongoing mitigation efforts, including strategic sourcing decisions and increased domestic production. It produced 39% of its products domestically in the quarter.

Operating expenses increased 14.0%, or $655 thousand, primarily because of higher donation expense. The company said approximately $900 thousand of its first-quarter operating expenses were attributable to non-recurring consulting expenses and charitable product donations. The release says the loss from operations increased mainly because of negative gross margin for the period and higher donation expense.

The company also reported an unrealized gain on debt and equity securities of $192 thousand for the quarter. In the first quarter of 2025 it recorded a material unrealized loss of $7.2 million on the same securities. The provision for income taxes was $1.8 thousand, compared with a benefit for income taxes of $286 thousand a year earlier.

Workforce reduction

In April 2026, the company reduced its workforce by approximately 16%. The release estimates that the reduction will save $2.2 million a year in wages and employment benefits, or approximately 13% of total estimated workforce costs. The savings are offset by one-time separation payments of approximately $122 thousand to the affected workers.

Financial position

The company's SEC XBRL financial data show revenue of $38.3 million for fiscal 2025 and $33.0 million for fiscal 2024, as reported in its 10-K filed on March 27, 2026. Net loss was $12.6 million for fiscal 2025, compared with $11.9 million for fiscal 2024. Cash from operations was negative $7.1 million in fiscal 2025 and negative $11.6 million in fiscal 2024. Research and development expense was $675,567 in fiscal 2025 and $673,944 in fiscal 2024. Year-end cash and cash equivalents were $4.2 million at the end of fiscal 2024.

What the company says comes next

The release says the April reduction in force is expected to reduce costs in future periods. It also says that tariffs may continue to materially affect the company's costs in future periods, and that the timing of future international orders is uncertain. The company points readers to its Form 10-Q for further details on its results of operations and other matters.

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