Nuwellis Reports 21.4% Decline in Q2 2025 Net Sales, Increases Losses

Nuwellis, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $1.725 million, a decrease of 21.4% from $2.194 million in the same period last year. For the first half of 2025, the company generated $3.629 million in revenue, down 10.4% from $4.051 million in the first half of 2024. The decrease in sales was attributed primarily to a 21% drop in circuit sales and a temporary backorder of approximately $400,000 in circuit revenue due to issues with a sterilization vendor. The cost of goods sold also increased, rising to $767,000 in Q2 2025 from $720,000 in Q2 2024, reflecting unfavorable manufacturing variances.

Operating expenses for the second quarter totaled $3.864 million, slightly higher than the $3.794 million reported in the same quarter of 2024. The increase was driven by a rise in research and development costs, which grew to $675,000 from $558,000 year-over-year. Despite a reduction in selling, general, and administrative expenses, which fell to $3.189 million from $3.236 million, the overall loss from operations widened to $2.906 million compared to a loss of $2.320 million in Q2 2024. The net loss for the quarter was $12.553 million, significantly higher than the $7.725 million loss reported in the prior year.

In terms of strategic developments, Nuwellis completed a public offering on June 10, 2025, raising approximately $5 million through the sale of common stock and warrants. This offering included 61,444 shares of common stock and pre-funded warrants to purchase 335,381 shares, with the Series A and B warrants classified as liabilities on the balance sheet. The company also executed a reverse stock split on July 3, 2025, aimed at regaining compliance with Nasdaq listing requirements. As of June 30, 2025, Nuwellis had an accumulated deficit of $314.4 million and reported total liabilities of $18.155 million.

Operationally, Nuwellis is focusing on the U.S. market, having decided to exit international operations to concentrate on areas with the highest growth potential. The company is also prioritizing investments in outpatient heart failure, pediatric, and critical care markets. As of June 30, 2025, Nuwellis had cash and cash equivalents of $4.450 million, down from $5.095 million at the end of 2024. The company anticipates needing additional capital to support its growth initiatives and plans to seek funding through equity or debt offerings.

Looking ahead, Nuwellis expects to continue incurring losses as it invests in expanding its sales and marketing capabilities and developing its product offerings. The company has implemented measures to reduce its cash burn rate by approximately 40% in anticipation of challenging capital market conditions. While management believes that existing capital resources will support operations into the fourth quarter of 2025, there is no assurance that the company will be able to raise additional capital or achieve profitability in the future.