Nephros Inc Financials
This page shows Nephros Inc (NEPH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Nephros’s turnaround is being driven by gross profit scaling past overhead and by profits finally converting into cash.
FY2024’s near-breakeven result was weak in cash terms, but FY2025’s$1.2M net income became$1.6M of operating cash flow even as inventory and receivables increased. That mix points to a higher-quality profit year: the business funded its own working-capital build and still finished with more cash.
The move from an
The balance sheet still looks self-funded rather than lender-funded: there is no reported long-term debt, the current ratio remained above 4.0x, and cash reached
Financial Health Signals
Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Nephros Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Nephros Inc scores -5.40, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($39.5M) relative to total liabilities ($3.4M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Nephros Inc passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Nephros Inc generates $1.34 in operating cash flow ($1.6M OCF vs $1.2M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Nephros Inc earns $1146.0 in operating income for every $1 of interest expense ($1.1M vs $1K). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Nephros Inc generated $18.8M in revenue in fiscal year 2025. This represents an increase of 32.7% from the prior year.
Nephros Inc's EBITDA was $1.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 812.1% from the prior year.
Nephros Inc reported $1.2M in net income in fiscal year 2025. This represents an increase of 1513.5% from the prior year.
Nephros Inc earned $0.11 per diluted share (EPS) in fiscal year 2025. This represents an increase of 1000.0% from the prior year.
Cash & Balance Sheet
Nephros Inc held $5.4M in cash against $0 in long-term debt as of fiscal year 2025.
Nephros Inc had 11M shares outstanding in fiscal year 2025. This represents an increase of 0.9% from the prior year.
Margins & Returns
Nephros Inc's gross margin was 61.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.3 percentage points from the prior year.
Nephros Inc's operating margin was 6.1% in fiscal year 2025, reflecting core business profitability. This is up 6.1 percentage points from the prior year.
Nephros Inc's net profit margin was 6.3% in fiscal year 2025, showing the share of revenue converted to profit. This is up 5.8 percentage points from the prior year.
Nephros Inc's ROE was 11.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 10.8 percentage points from the prior year.
Capital Allocation
Nephros Inc invested $1.3M in research and development in fiscal year 2025. This represents an increase of 47.8% from the prior year.
NEPH Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $5.2M+10.2% | $4.7M-0.7% | $4.8M+7.8% | $4.4M-9.4% | $4.9M+26.0% | $3.9M+10.0% | $3.5M+8.2% | $3.3M |
| Cost of Revenue | $2.2M+12.8% | $2.0M+6.4% | $1.8M+13.9% | $1.6M-5.7% | $1.7M+23.5% | $1.4M+1.9% | $1.4M+2.2% | $1.3M |
| Gross Profit | $3.0M+8.4% | $2.8M-5.3% | $2.9M+4.3% | $2.8M-11.4% | $3.2M+27.4% | $2.5M+15.2% | $2.1M+12.4% | $1.9M |
| R&D Expenses | $346K-12.4% | $395K+16.9% | $338K+8.7% | $311K+5.4% | $295K+17.1% | $252K+34.0% | $188K-26.0% | $254K |
| SG&A Expenses | $2.5M+8.9% | $2.3M+3.9% | $2.2M+1.3% | $2.2M-2.4% | $2.3M+20.4% | $1.9M+8.8% | $1.7M-11.3% | $1.9M |
| Operating Income | $97K+438.9% | $18K-94.3% | $314K+26.6% | $248K-56.2% | $566K+78.5% | $317K+53.9% | $206K+165.0% | -$317K |
| Interest Expense | N/A | N/A | N/A | $1K | N/A | N/A | N/A | N/A |
| Income Tax | $0 | $0-100.0% | $3K-66.7% | $9K | $0-100.0% | $15K | $0 | $0 |
| Net Income | $140K+125.8% | $62K-81.6% | $337K+42.2% | $237K-57.5% | $558K+59.9% | $349K+90.7% | $183K+163.3% | -$289K |
| EPS (Diluted) | $0.01 | N/A | $0.03+50.0% | $0.02-60.0% | $0.05 | N/A | $0.02+166.7% | $-0.03 |
NEPH Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $13.8M+1.1% | $13.6M+3.0% | $13.2M+8.2% | $12.2M+3.9% | $11.8M+5.1% | $11.2M+7.9% | $10.4M-6.4% | $11.1M |
| Current Assets | $11.5M+2.4% | $11.2M+4.8% | $10.7M+11.8% | $9.6M+6.5% | $9.0M+8.4% | $8.3M+12.8% | $7.4M-7.2% | $7.9M |
| Cash & Equivalents | $4.0M-25.6% | $5.4M+4.4% | $5.2M+1.9% | $5.1M+24.3% | $4.1M+8.5% | $3.8M+53.0% | $2.5M-20.2% | $3.1M |
| Inventory | $3.6M+12.0% | $3.2M+18.0% | $2.7M+22.4% | $2.2M+14.5% | $2.0M-25.3% | $2.6M-15.6% | $3.1M+10.6% | $2.8M |
| Accounts Receivable | $3.5M+45.9% | $2.4M-9.3% | $2.7M+30.4% | $2.0M-23.8% | $2.7M+50.3% | $1.8M+5.3% | $1.7M-10.0% | $1.9M |
| Goodwill | $759K0.0% | $759K0.0% | $759K0.0% | $759K0.0% | $759K0.0% | $759K0.0% | $759K0.0% | $759K |
| Total Liabilities | $3.1M-10.1% | $3.4M+6.1% | $3.2M+22.6% | $2.6M+6.3% | $2.5M-5.3% | $2.6M+18.7% | $2.2M-30.3% | $3.2M |
| Current Liabilities | $2.5M-8.7% | $2.8M+12.2% | $2.5M+39.2% | $1.8M+16.7% | $1.5M-2.8% | $1.6M+47.6% | $1.1M-45.8% | $2.0M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $10.7M+4.9% | $10.2M+2.0% | $10.0M+4.2% | $9.6M+3.3% | $9.3M+8.2% | $8.6M+5.0% | $8.2M+3.1% | $7.9M |
| Retained Earnings | -$143.0M+0.1% | -$143.1M0.0% | -$143.2M+0.2% | -$143.5M+0.2% | -$143.8M+0.4% | -$144.3M+0.2% | -$144.7M+0.1% | -$144.9M |
NEPH Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.7M-1003.2% | $185K+86.9% | $99K-90.0% | $994K+208.7% | $322K-75.3% | $1.3M+309.3% | -$623K-24.4% | -$501K |
| Capital Expenditures | N/A | N/A | N/A | N/A | N/A | $0 | $0 | N/A |
| Free Cash Flow | N/A | N/A | N/A | N/A | N/A | $1.3M+309.3% | -$623K | N/A |
| Investing Cash Flow | N/A | N/A | N/A | N/A | N/A | $0 | $0 | N/A |
| Financing Cash Flow | $289K+29000.0% | -$1K+50.0% | -$2K-100.0% | -$1K0.0% | -$1K0.0% | -$1K | $0+100.0% | -$2K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
NEPH Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.4%-0.9pp | 58.4%-2.8pp | 61.2%-2.1pp | 63.2%-1.4pp | 64.7%+0.7pp | 63.9%+2.9pp | 61.1%+2.3pp | 58.8% |
| Operating Margin | 1.9%+1.5pp | 0.4%-6.2pp | 6.6%+1.0pp | 5.6%-6.0pp | 11.6%+3.4pp | 8.2%+2.3pp | 5.9%+15.6pp | -9.8% |
| Net Margin | 2.7%+1.4pp | 1.3%-5.8pp | 7.1%+1.7pp | 5.4%-6.1pp | 11.4%+2.4pp | 9.0%+3.8pp | 5.2%+14.1pp | -8.9% |
| Return on Equity | 1.3%+0.7pp | 0.6%-2.8pp | 3.4%+0.9pp | 2.5%-3.5pp | 6.0%+1.9pp | 4.1%+1.8pp | 2.2%+5.9pp | -3.6% |
| Return on Assets | 1.0%+0.6pp | 0.4%-2.1pp | 2.5%+0.6pp | 1.9%-2.8pp | 4.7%+1.6pp | 3.1%+1.3pp | 1.8%+4.4pp | -2.6% |
| Current Ratio | 4.55+0.5 | 4.06-0.3 | 4.34-1.1 | 5.41-0.5 | 5.92+0.6 | 5.31-1.6 | 6.95+2.9 | 4.06 |
| Debt-to-Equity | 0.29-0.0 | 0.34+0.0 | 0.32+0.0 | 0.280.0 | 0.27-0.0 | 0.31+0.0 | 0.27-0.1 | 0.40 |
| FCF Margin | N/A | N/A | N/A | N/A | N/A | 33.7%+51.4pp | -17.7% | N/A |
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Frequently Asked Questions
What is Nephros Inc's annual revenue?
Nephros Inc (NEPH) reported $18.8M in total revenue for fiscal year 2025. This represents a 32.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Nephros Inc's revenue growing?
Nephros Inc (NEPH) revenue grew by 32.7% year-over-year, from $14.2M to $18.8M in fiscal year 2025.
Is Nephros Inc profitable?
Yes, Nephros Inc (NEPH) reported a net income of $1.2M in fiscal year 2025, with a net profit margin of 6.3%.
What is Nephros Inc's EBITDA?
Nephros Inc (NEPH) had EBITDA of $1.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Nephros Inc's gross margin?
Nephros Inc (NEPH) had a gross margin of 61.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Nephros Inc's operating margin?
Nephros Inc (NEPH) had an operating margin of 6.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Nephros Inc's net profit margin?
Nephros Inc (NEPH) had a net profit margin of 6.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Nephros Inc's return on equity (ROE)?
Nephros Inc (NEPH) has a return on equity of 11.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Nephros Inc's operating cash flow?
Nephros Inc (NEPH) generated $1.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Nephros Inc's total assets?
Nephros Inc (NEPH) had $13.6M in total assets as of fiscal year 2025, including both current and long-term assets.
How much does Nephros Inc spend on research and development?
Nephros Inc (NEPH) invested $1.3M in research and development during fiscal year 2025.
What is Nephros Inc's current ratio?
Nephros Inc (NEPH) had a current ratio of 4.06 as of fiscal year 2025, which is generally considered healthy.
What is Nephros Inc's debt-to-equity ratio?
Nephros Inc (NEPH) had a debt-to-equity ratio of 0.34 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Nephros Inc's return on assets (ROA)?
Nephros Inc (NEPH) had a return on assets of 8.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Nephros Inc's Altman Z-Score?
Nephros Inc (NEPH) has an Altman Z-Score of -5.40, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Nephros Inc's Piotroski F-Score?
Nephros Inc (NEPH) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Nephros Inc's earnings high quality?
Nephros Inc (NEPH) has an earnings quality ratio of 1.34x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Nephros Inc cover its interest payments?
Nephros Inc (NEPH) has an interest coverage ratio of 1146.0x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Nephros Inc?
Nephros Inc (NEPH) scores 56 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.