Nephros (NEPH) Q2 2025 earnings summary

Executive summary

• Achieved third consecutive quarter of profitability, with Q2 2025 net revenue of $4.4 million, up 36% year-over-year, and net income of $237,000, reversing prior year losses.

• First half 2025 revenue reached $9.3 million, a 37% increase over the same period in 2024, with net income of $795,000 versus a $458,000 loss in the prior year.

• Programmatic sales and active-site counts hit all-time highs, with the dialysis water segment securing its largest purchase order.

• Added over 400 new active customer sites in two years, now serving over 1,600 as of June 30, 2025.

• Highest customer retention rate in the past six quarters.

Financial highlights

• Q2 2025 net revenue: $4.4 million, up from $3.3 million in Q2 2024; six-month revenue: $9.3 million, up from $6.8 million.

• Gross margin improved to 63% in Q2 2025 from 59% in Q2 2024; six-month gross margin: 64% vs. 61% prior year.

• Q2 net income: $237,000 vs. net loss of $289,000 in Q2 2024; six-month net income: $795,000 vs. net loss of $458,000.

• Adjusted EBITDA for Q2: $355,000 vs. loss of $133,000 in Q2 2024; six-month adjusted EBITDA: $1 million vs. $(228,000) prior year.

• Cash and cash equivalents at June 30, 2025: $5.1 million, up from $3.8 million at year-end 2024; company remains debt-free.

Outlook and guidance

• Management expects current cash balances to fund operations for at least the next 12 months.

• Focused on expanding into underserved verticals such as dental, government, and municipal facilities, and on sales growth and expense management.

• Continued rollout of innovations like the filter tracking app and new microfilter products.

• If operating results fall short, discretionary spending may be reduced, including headcount and R&D.