Nuwellis Reports 2.5% Revenue Growth to $1.9 Million in Q1 2025

Nuwellis, Inc. reported its financial results for the first quarter of 2025, revealing a net sales figure of $1.9 million, a 2.5% increase from $1.86 million in the same period last year. The company attributed this growth primarily to a 4% rise in circuit sales, reflecting an increase in the number of patients treated with its Aquadex therapy, alongside higher console sales. However, this was partially offset by a decline in international sales. The gross profit for the quarter was $1.07 million, resulting in a gross margin of 56%, down from 64.1% in the prior year, largely due to increased costs of goods sold, which rose by 25.7% to $837,000.

Operating expenses for the quarter decreased significantly to $4.13 million from $5.94 million a year earlier, driven by reductions in selling, general, and administrative expenses, which fell by 22.3% to $3.58 million. Research and development expenses also saw a notable decline of 58.8%, totaling $550,000, as the company reduced headcount and project spending. Despite these reductions, Nuwellis reported a net loss of $3.01 million, an improvement from the $4.33 million loss recorded in the first quarter of 2024. The basic and diluted loss per share was $(0.69), compared to $(24.11) in the previous year, reflecting the impact of a reverse stock split that took effect in June 2024.

In terms of operational metrics, Nuwellis maintained a steady customer base, with one customer accounting for 14% of net sales in the current quarter, down from 22% in the prior year. The company continues to focus on expanding its market presence, particularly in the U.S., where it sells directly to hospitals and clinics, while also utilizing specialty distributors for international sales. As of March 31, 2025, Nuwellis had cash and cash equivalents of $2.56 million, a decrease from $5.1 million at the end of 2024, indicating a need for additional capital to support ongoing operations and growth initiatives.

Looking ahead, Nuwellis is actively seeking to raise additional capital to fund its growth strategies, which include expanding its sales and marketing capabilities and investing in product development. The company has implemented measures to reduce its cash burn rate by approximately 40% in anticipation of challenging capital market conditions. Despite these efforts, there remains substantial doubt about the company's ability to continue as a going concern beyond May 31, 2025, unless it successfully secures further financing. The company has also announced a strategic partnership with KDI Precision Manufacturing to enhance its manufacturing capabilities, which is expected to streamline operations and improve product delivery to healthcare providers.