Rockwell Medical, Inc. reported a significant decline in financial performance for the second quarter of 2025, with net sales of $16.1 million, down 38% from $25.8 million in the same period last year. The decrease was primarily attributed to a $9.9 million reduction in sales to DaVita, a key customer, which now represents only 11% of total net sales. The company's gross profit also fell to $2.5 million, a 45% decrease from $4.6 million in the prior year, reflecting a similar decline in cost of sales, which amounted to $13.6 million compared to $21.3 million in the previous year.

For the first half of 2025, Rockwell's net sales totaled $35 million, down 28% from $48.5 million in the first half of 2024. The decline was again largely due to reduced sales to DaVita, which accounted for 20% of total sales during this period. The company reported a net loss of $3 million for the six months ended June 30, 2025, compared to a loss of $1.4 million in the same period of 2024. The operating loss for the second quarter was $1.3 million, a stark contrast to the operating income of $515,000 reported in the prior year.

In terms of strategic developments, Rockwell Medical has been actively pursuing new customer relationships to offset the loss of business from DaVita. The company entered into a new product purchase agreement with Innovative Renal Care, which includes commitments for the supply of hemodialysis concentrates over a three-year term. Additionally, Rockwell continues to engage in discussions with DaVita regarding potential contract extensions and volume commitments, although the outcome of these discussions remains uncertain.

Operationally, Rockwell Medical's total assets decreased to $52.6 million as of June 30, 2025, down from $59.2 million at the end of 2024. The company reported a cash and cash equivalents balance of $12.5 million, alongside investments available-for-sale totaling $5.9 million. The company’s employee headcount remained stable, with no significant changes reported. However, the company has implemented cost containment measures to manage its financial position amid declining revenues.

Looking ahead, Rockwell Medical's management believes it has sufficient liquidity to meet its operational needs for at least the next twelve months, with approximately $18.4 million in cash, cash equivalents, and investments available-for-sale. The company plans to utilize its at-the-market facility to raise additional capital if necessary. However, the ongoing global economic uncertainties, including inflationary pressures and geopolitical tensions, pose risks to the company's future operations and financial stability. Rockwell Medical's ability to achieve sustained profitability and execute its growth strategy will be critical in navigating these challenges.

About ROCKWELL MEDICAL, INC.

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