Nephros (NEPH) Q4 2025 earnings summary

Executive summary

• Achieved 33% year-over-year revenue growth in 2025, reaching a record $18.8 million, with strong expansion in both product and service offerings.

• Net income was $1.2 million for 2025, marking the second consecutive year of profitability and up from $74,000 in 2024.

• Adjusted EBITDA for 2025 was $1.6 million, nearly tripling from $548,000 in 2024.

• Growth driven by increased programmatic sales, higher reorder rates, expansion into new markets, and a focus on education and customer engagement.

• Extended long-term supply agreement with a key partner and launched the Nephros Water Institute to support education and compliance-driven solutions.

Financial highlights

• Full-year net revenue rose to $18.8 million from $14.2 million in 2024; Q4 net revenue increased to $4.7 million from $3.9 million.

• Gross margin for 2025 was 62%, flat year-over-year; Q4 2025 gross margin was 58%, down from 64% in Q4 2024 due to tariffs.

• Adjusted EBITDA for 2025 was $1.6 million, up from $548,000; Q4 Adjusted EBITDA was $131,000, down from $481,000.

• Net cash provided by operating activities was $1.6 million in 2025, compared to net cash used of $500,000 in 2024.

• Year-end cash balance was $5.4 million, with the company remaining debt-free.

Outlook and guidance

• Positioned to benefit from trends in water safety awareness, regulatory changes, and aging infrastructure.

• Management expects continued growth based on integrated product, service, and education strategy.

• Anticipates continued growth in non-healthcare markets through education and service expansion.

• Multi-year strategy underway to build commercial, hospitality, and other verticals, with early traction observed.

• U.S. tariff policy remains a source of margin uncertainty despite recent reductions.