Nephros (NEPH) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 18% YoY to $5.622M; net income was $512K and Adjusted EBITDA was ~$0.6M.

• 9M revenue increased 20% to $16.851M; net income was $1.849M and Adjusted EBITDA was $2.045M.

• Trailing 12-month revenue exceeded $21M, and active customer sites reached a record 1,766.

Financial highlights

• Q3 product revenue was $5.43M vs. $4.60M; service, royalty and other revenue was $191K vs. $168K.

• 9M product revenue was $16.17M vs. $13.61M; service, royalty and other revenue was $679K vs. $447K.

• Q3 operating income was $501K vs. $314K; net income was $512K vs. $337K.

• Q3 SG&A rose 9% to $2.43M and R&D declined 2% to $331K; 9M SG&A rose 10% to $7.36M and R&D to $1.04M.

Outlook and guidance

• Q4 priorities: execute, finish 2026 strong, grow programmatic and service revenue, expand the installed base, improve margins, and strengthen education and product capabilities.

• Management plans continued investment in products, services, marketing, sales and working capital; existing cash and projected operating cash flows are expected to fund the operating plan for at least 12 months from financial-statement issuance.

• Inventory purchases are expected to moderate as stock sells through; collections and inventory management are expected to support improved working capital and operating cash flow.