Rockwell Medical, Inc. reported a significant decline in financial performance for the third quarter of 2025, with net sales of $15.9 million, down 44% from $28.3 million in the same period last year. The decrease was primarily attributed to a $13 million reduction in sales to DaVita, which represented 12% of total sales in Q3 2025 compared to 52% in Q3 2024. The company also noted that the previous year's figures included a one-time large order from DaVita, which further impacted the year-over-year comparison. Gross profit for the quarter fell to $2.3 million, a 64% decrease from $6.2 million in Q3 2024, driven by lower sales volume and increased costs associated with the closure of the Greer manufacturing facility.
For the nine months ending September 30, 2025, Rockwell's net sales totaled $50.9 million, a 34% decline from $76.8 million in the same period of 2024. The company attributed this drop to a $27.9 million reduction in sales to DaVita, which is transitioning to a new supplier. Despite these challenges, Rockwell reported a slight increase in revenue from other customers, contributing $2 million to offset some losses. The gross profit for the nine-month period was $7.8 million, down from $13.9 million in 2024, reflecting the impact of reduced sales and increased operational costs.
In terms of operational changes, Rockwell Medical has streamlined its operations by closing its South Carolina manufacturing facility, which is expected to enhance efficiency. The company has also entered into a new product purchase agreement with Innovative Renal Care, which will supply hemodialysis concentrates over a three-year term, potentially stabilizing revenue streams. As of September 30, 2025, Rockwell had approximately $23.7 million in cash, cash equivalents, and investments available for sale, indicating a solid liquidity position despite the operational challenges.
The company’s total liabilities decreased to $20.5 million from $26.6 million at the end of 2024, primarily due to a reduction in accrued liabilities and accounts payable. Rockwell's stockholders' equity increased to $37 million, up from $32.6 million, reflecting the issuance of common stock under its at-the-market facility, which generated $7.8 million in net proceeds. The company continues to explore additional capital-raising opportunities to support its operational plans and growth strategy.
Looking ahead, Rockwell Medical remains focused on enhancing its market share and improving profitability through strategic partnerships and operational efficiencies. However, the company acknowledges the uncertain macroeconomic environment, which could impact its future operations and financial performance. Management believes that with its current liquidity and operational strategies, it can meet its obligations for at least the next twelve months, but recognizes the need for ongoing capital management and potential fundraising efforts to sustain growth.
About ROCKWELL MEDICAL, INC.
Rockwell Medical develops and manufactures hemodialysis concentrates and related products for dialysis providers worldwide. Its core offerings include liquid and dry acid and bicarbonate concentrates, dialysates, and ancillary supplies used in end-stage kidney disease treatment. Serving clinics, hospitals, and international markets, the company emphasizes quality, reliability, and customer service, with a focus on growth through expanding customer base, product portfolio, and manufacturing efficiency within the renal care sector.
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