Nephros (NEPH) Q4 2025 earnings summary

Executive summary

• Achieved record full-year net revenue of $18.8 million, up 33% year-over-year, with strong expansion in both product and service offerings.

• Net income was $1.2 million for 2025, marking the second consecutive year of profitability.

• Adjusted EBITDA for 2025 was $1.6 million, nearly tripling from $548,000 in 2024.

• Growth driven by increased programmatic sales, higher reorder rates, expansion into new markets, and a three-pillar strategy: products, services, and education.

• Extended long-term supply agreement with a key partner and launched the Nephros Water Institute to support education and compliance-driven solutions.

Financial highlights

• Full-year net revenue rose to $18.8 million from $14.2 million in 2024; Q4 net revenue increased to $4.7 million from $3.9 million.

• Gross margin for 2025 was 62%, flat year-over-year; Q4 2025 gross margin was 58%, down from 64% in Q4 2024 due to tariffs.

• Adjusted EBITDA for 2025 was $1.6 million, up from $548,000 in 2024; Q4 Adjusted EBITDA was $131,000.

• Net cash provided by operating activities was $1.6 million in 2025, compared to net cash used of $500,000 in 2024.

• Year-end cash balance was $5.4 million, with no debt.

Outlook and guidance

• Management expects continued growth in non-healthcare markets, with education and service offerings expected to drive adoption.

• Expansion into commercial, hospitality, and public facility markets is a multi-year strategy, with early traction observed.

• Regulatory trends and increased awareness of water safety expected to support long-term demand.

• U.S. tariff policy remains a source of margin uncertainty despite recent reductions.

• Forward-looking statements highlight potential for further revenue growth and operational scale.