Nephros Reports 38% Revenue Growth to $4.9 Million in Q1 2025

Nephros, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total net revenues reaching $4.9 million, a 38% increase from $3.5 million in the same period of 2024. This growth was primarily driven by increased sales in both programmatic and emergency response segments, reflecting strong reorder activity and the addition of new active sites. The company achieved a gross margin of approximately 65%, up from 62% in the prior year, attributed to a favorable product mix and a price increase implemented in February 2025.

The company also reported a net income of $558,000 for the three months ended March 31, 2025, compared to a net loss of $169,000 in the same quarter of the previous year. This turnaround in profitability was supported by a reduction in operating losses, which improved from a loss of $200,000 in Q1 2024 to an operating income of $566,000 in Q1 2025. Operating expenses increased slightly to $2.6 million, primarily due to higher sales commissions and research and development costs.

Nephros has made strategic advancements, including the extension of its License and Supply Agreement with Medica S.p.A. until December 31, 2028. This agreement is crucial for the marketing and sale of filtration products based on Medica’s proprietary technology. The company continues to focus on expanding its product offerings in both medical and commercial markets, with a particular emphasis on infection control and dialysis water filtration solutions.

Operationally, Nephros reported an increase in accounts receivable, which rose to $2.7 million from $1.8 million, indicating a growing customer base and increased sales activity. The company’s cash and cash equivalents also improved, totaling $4.1 million as of March 31, 2025, compared to $3.8 million at the end of 2024. Despite an accumulated deficit of $143.8 million, Nephros believes its current cash balances are sufficient to fund operations for at least the next 12 months.

Looking ahead, Nephros anticipates continued growth driven by increased market acceptance of its products and ongoing regulatory changes that may enhance demand for its filtration solutions. However, the company acknowledges potential challenges, including economic conditions and competition, which could impact future performance. Management is actively working to strengthen internal controls over revenue recognition to mitigate risks associated with financial reporting.