Nephros Announces Strong Financial Results for Quarter Ended June 30, 2026
Rhea-AI Summary
Nephros (Nasdaq: NEPH) reported record second-quarter 2026 net revenue of $6.0 million, up 36% from $4.4 million in 2025, with core programmatic revenue growing 27% year over year. Net income rose to $1.2 million from $0.2 million, including an approximately $0.6 million one-time tariff refund benefit.
Gross margin improved to 67% from 63%, aided by recognizing the IEEPA tariff refund as a reduction of cost of goods sold. Adjusted EBITDA increased to $1.3 million from $0.4 million. For the first six months of 2026, revenue was $11.2 million (up 21%), net income $1.3 million, and Adjusted EBITDA $1.5 million. According to Nephros, cash and equivalents were $4.7 million as of June 30, 2026, and the company remained debt free.
Positive
- Q2 2026 net revenue $6.0M, up 36% year over year
- Q2 2026 net income $1.2M vs. $0.2M in Q2 2025
- Q2 2026 Adjusted EBITDA $1.3M vs. $0.4M in Q2 2025
- Core programmatic revenue up 27% YoY in Q2; 25% for six months
- Service revenue nearly tripled year over year in Q2 2026
- Gross margin improved to 67% in Q2 2026 from 63% in Q2 2025
- Six-month 2026 revenue $11.2M, up 21% from $9.3M in 2025
- Six-month 2026 Adjusted EBITDA $1.5M vs. $1.0M in 2025
- Cash and cash equivalents $4.7M at June 30, 2026; company remains debt free
Negative
- Six-month 2026 gross margin 63%, down from 64% in 2025
- Cost of goods sold up 26% for six months and 23% in Q2 2026
- SG&A expenses up 10% in Q2 and 11% for six months year over year
- R&D expenses up 18% in Q2 and higher for six months year over year
- Cash balance declined to $4.7M from $5.4M at December 31, 2025
- Q2 and six-month net income include approximately $0.6M one-time tariff refund benefit
News Explained
As of June 30, 2026, more common shares reduce existing holders’ percentage ownership, while the tariff-refund benefit was still a receivable.
Nephros reported financial results for the quarter ended
Under the supplied dilution definition, additional shares increase the total share count and reduce existing holders' percentage ownership absent offsetting changes, so the reported increase indicates dilution.
The release calls the results strong, but reported net income includes an approximately
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | Q1 earnings | Positive | +9.0% | Revenue increased while programmatic sales grew and profitability remained positive. |
| Mar 12 | FY2025 earnings | Positive | -7.9% | Full-year revenue and profitability improved, but the stock declined after results. |
| Nov 06 | Q3 earnings | Positive | -11.5% | Revenue, income, and programmatic sales reached higher levels, but shares fell. |
| Aug 07 | Q2 earnings | Positive | +35.0% | Revenue grew 36%, profitability continued, and programmatic sales reached a record. |
| Nov 07 | Q3 earnings | Positive | +3.9% | The company reported its first profitable quarter and higher gross margins. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings reactions were mixed, with three gains and two declines despite generally positive financial announcements.
Key Terms
adjusted ebitda financial
gaap financial
ieepa regulatory
accounts receivable financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Record Second-Quarter Net Revenue Growth of
Core Programmatic Revenue Grew by
SOUTH ORANGE, N.J., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Nephros, Inc. (Nasdaq: NEPH), a leading water technology company providing filtration solutions to the medical and commercial markets, today announced financial results for the second quarter ended June 30, 2026.
Financial Highlights
- Net revenue was a record
$6 million , compared to$4.4 million in the second quarter of 2025, up36% - Net income was
$1.2 million , compared to a net income of$0.2 million in the second quarter of 2025. Net income includes the benefit of a one-time tariff refund of approximately$0.6 million - Adjusted EBITDA was
$1.3 million , compared to$0.4 million in the second quarter of 2025
"The second quarter of 2026 marks another significant milestone for Nephros, as we delivered the highest quarterly revenue in the Company's history," said Robert Banks, President and Chief Executive Officer of Nephros. "Our results reflect broad-based strength across the business, driven by continued expansion of our core programmatic revenue, accelerating service revenue, growing adoption of our newer product offerings, and disciplined execution throughout the organization."
Banks continued, “Perhaps most encouraging is the quality of our growth. Core programmatic revenue increased
Commenting on the broader outlook, Banks said, “Beyond our financial performance, we continued to elevate the visibility of Nephros within the investment community. During the quarter we hosted our second Virtual Investor Event, participated in the Maxim Health, Wellness & Longevity Conference, announced our inclusion in the Russell Microcap Index, and continued expanding awareness of our differentiated technology through multiple industry-focused announcements. We believe increasing awareness among customers and investors alike is an important component of creating long-term shareholder value.”
Banks concluded, “As we enter the second half of 2026, we believe Nephros is stronger than at any point in our history. We have a growing recurring revenue base, expanding commercial opportunities, differentiated technology, an increasingly comprehensive service platform, and an exceptional team executing against a clear strategy. While we remain mindful of the broader economic environment, we believe the investments we have made over the past several years position us well to continue delivering sustainable growth and increasing shareholder value.”
Financial Performance for the Quarter Ended June 30, 2026
Net revenue for the three months ended June 30, 2026, and 2025 was
Cost of goods sold for the second quarter of 2026 was
Gross margin for the second quarter of 2026 was
Selling, general and administrative expenses for the second quarter of 2026 were approximately
Research and development expenses for the second quarter of 2026 were approximately
Depreciation and amortization expenses for the second quarter of 2026 were approximately
Net income for the second quarter of 2026 was
Adjusted EBITDA for the second quarter 2026 was approximately
Financial Performance for the Six Months Ended June 30, 2026
Net revenue for the six months ended June 30, 2026, and 2025 was
Cost of goods sold for the six months ended June 30, 2026 and 2025 was
Selling, general and administrative expenses for the six months ended June 30, 2026 and 2025 were approximately
Research and development expenses for the six months ended June 30, 2026 and 2025 were
Depreciation and amortization expenses for the six months ended June 30, 2026 and 2025 were approximately
As a result of the improved sales and the approximately
Adjusted EBITDA for the six months ended June 30, 2026 was approximately
As of June 30, 2026, Nephros had cash and cash equivalents of approximately
Adjusted EBITDA Definition and Reconciliation to GAAP Financial Measures
Adjusted EBITDA is calculated by taking net income calculated in accordance with generally accepted accounting principles (“GAAP”) and excluding all interest-related expenses and income, tax-related expenses and income, and non-cash items, including depreciation, amortization, non-cash inventory write-offs, and non-cash compensation. The following tables present a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, for the second quarter of the 2026 fiscal year:
| (unaudited) | ||||
| Three Months Ended June 30, | ||||
| 2026 | 2025 | |||
| (in $ thousands) | ||||
| Net income | 1,197 | 237 | ||
| Adjustments: | ||||
| Depreciation of property and equipment | 12 | 13 | ||
| Amortization of other assets | 16 | 20 | ||
| Interest expense | 1 | 1 | ||
| Interest income | (30 | ) | (31 | ) |
| Income taxes | 13 | 9 | ||
| Non-cash stock-based compensation | 61 | 71 | ||
| Non-cash inventory impairments | 11 | 35 | ||
| Adjusted EBITDA Income | 1,281 | 355 | ||
| Six Months Ended June 30, | ||||
| 2026 | 2025 | |||
| (in $ thousands) | ||||
| Net income | 1,337 | 795 | ||
| Adjustments: | ||||
| Depreciation of property and equipment | 23 | 30 | ||
| Amortization of other assets | 32 | 43 | ||
| Interest expense | 1 | 1 | ||
| Interest income | (62 | ) | (44 | ) |
| Income taxes | 13 | 9 | ||
| Non-cash stock-based compensation | 121 | 147 | ||
| Non-cash inventory impairments | 22 | 41 | ||
| Adjusted EBITDA Income | 1,487 | 1,022 | ||
Nephros believes that Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to Nephros’ financial condition and results of operations. Management does not consider Adjusted EBITDA in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recognized in Nephros’ financial statements. In addition, Adjusted EBITDA is subject to inherent limitations as it reflects the exercise of judgments by management about which expenses and income are excluded or included in determining Adjusted EBITDA. To compensate for these limitations, management presents Adjusted EBITDA in connection with net income, the most directly comparable GAAP financial measure. Nephros urges investors to review the reconciliation of Adjusted EBITDA to net income and not to rely on any single financial measure to evaluate the business.
Conference Call Today at 4:30pm Eastern Time
Nephros will host a conference call today at 4:30pm ET, during which management will discuss Nephros’ financial results and provide a general business overview.
Participants may dial into the call as follows:
Domestic access: 1 (844) 808-7106
International access: 1 (412) 317-5285
Upon joining, please ask to be joined into the Nephros conference call.
An audio archive of the call will be available shortly after the call on the Nephros Investor Relations page.
Alternatively, a replay of the call may be accessed until August 13th, 2026 at 1 (877) 669-9658 or
1 (412) 317-0088 for international callers and entering replay access code: 3951894.
About Nephros
Nephros is committed to improving the human relationship with water through leading, accessible technology. We provide innovative water filtration products and services, along with water-quality education, as part of an integrated approach to water safety. Nephros goods serve the needs of customers within healthcare and commercial markets, offering both proactive and emergency solutions for water management.
For more information about Nephros, please visit nephros.com.
Forward-Looking Statements
This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding Nephros’ expected future business, revenue and gross margin growth and the timing of such growth, the drivers of our revenue growth, the effect of new regulations on future revenue growth, the expected competitive advantages and anticipated impact of new product offerings and market expansions, and other statements that are not historical facts, including statements that may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including Nephros’ ability to further develop its sales organization and realize increased revenues, the extent to which financial results based on emergency response sales can be outside Nephros’ control, the extent to which U.S. tariffs may increase our expenses, inflationary factors and other economic and competitive conditions, the availability of capital when needed, dependence on third-party manufacturers and researchers, and regulatory reforms. These and other risks and uncertainties are detailed in Nephros’ reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2025, which it may update in Part II, Item 1A – Risk Factors in its Quarterly Reports on Form 10-Q that it has filed or will file hereafter. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this release, and Nephros does not undertake any responsibility to update any forward-looking statements that it makes, except as may be required by law.
Investor Relations Contacts:
Kirin Smith, President
PCG Advisory, Inc.
(646) 823-8656
ksmith@pcgadvisory.com
Robert Banks, CEO
Nephros, Inc.
(201) 343-5202 x110
robert.banks@nephros.com
| NEPHROS, INC. | |||||||
| BALANCE SHEETS | |||||||
| (In thousands, except share and per share amounts) | |||||||
| (Unaudited) | |||||||
| ASSETS | June 30, 2026 | December 31, 2025 | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 4,697 | $ | 5,400 | |||
| Accounts receivable, net | 4,096 | 2,414 | |||||
| Inventory | 4,547 | 3,232 | |||||
| Prepaid expenses and other current assets | 256 | 177 | |||||
| Total current assets | 13,596 | 11,223 | |||||
| Property and equipment, net | 83 | 106 | |||||
| Lease right-use-of assets | 832 | 1,021 | |||||
| Intangible assets, net | 302 | 318 | |||||
| Goodwill | 759 | 759 | |||||
| License and supply agreement, net | 148 | 164 | |||||
| Other assets | 50 | 50 | |||||
| TOTAL ASSETS | $ | 15,770 | $ | 13,641 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | 1,965 | 914 | |||||
| Accrued expenses | 965 | 1,462 | |||||
| Current portion of lease liabilities | 414 | 391 | |||||
| Total current liabilities | 3,344 | 2,767 | |||||
| Lease liabilities, net of current portion | 458 | 672 | |||||
| TOTAL LIABILITIES | 3,802 | 3,439 | |||||
| STOCKHOLDERS' EQUITY: | |||||||
| Preferred stock, $.001 par value; 5,000,000 shares authorized at June 30, 2026 and December 31, 2025; no shares issued and outstanding at June 30, 2026 and December 31, 2025. | - | - | |||||
| Common stock, $.001 par value; 40,000,000 shares authorized at June 30, 2026 and December 31, 2025; 10,860,120 and 10,644,268 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively. | 11 | 11 | |||||
| Additional paid-in capital | 153,758 | 153,329 | |||||
| Accumulated deficit | (141,801 | ) | (143,138 | ) | |||
| TOTAL STOCKHOLDERS' EQUITY | 11,968 | 10,202 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 15,770 | $ | 13,641 | |||
| NEPHROS, INC. | |||||||||||||||
| STATEMENTS OF OPERATIONS | |||||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net revenue: | |||||||||||||||
| Product revenues | $ | 5,701 | $ | 4,311 | $ | 10,741 | $ | 9,017 | |||||||
| Service, royalty and other revenues | 316 | 108 | 488 | 279 | |||||||||||
| Total net revenues | 6,017 | 4,419 | 11,229 | 9,296 | |||||||||||
| Cost of goods sold | 1,991 | 1,624 | 4,210 | 3,347 | |||||||||||
| Gross margin | 4,026 | 2,795 | 7,019 | 5,949 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 2,418 | 2,201 | 4,939 | 4,455 | |||||||||||
| Research and development | 366 | 311 | 712 | 606 | |||||||||||
| Depreciation and amortization | 29 | 35 | 58 | 74 | |||||||||||
| Total operating expenses | 2,813 | 2,547 | 5,709 | 5,135 | |||||||||||
| Operating income | 1,213 | 248 | 1,310 | 814 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||
| Interest income | 30 | 31 | 62 | 44 | |||||||||||
| Other income (expense), net | (32 | ) | (32 | ) | (21 | ) | (53 | ) | |||||||
| Total other expense: | (3 | ) | (2 | ) | 40 | (10 | ) | ||||||||
| Income (loss) before income taxes | 1,210 | 246 | 1,350 | 804 | |||||||||||
| Income tax expense | (13 | ) | (9 | ) | (13 | ) | (9 | ) | |||||||
| Net income | $ | 1,197 | $ | 237 | $ | 1,337 | $ | 795 | |||||||
| Net income per common share, basic | $ | 0.11 | $ | 0.02 | $ | 0.12 | $ | 0.07 | |||||||
| Net income per common share, diluted | $ | 0.11 | $ | 0.02 | $ | 0.12 | $ | 0.07 | |||||||
| Weighted average common shares outstanding, basic | 10,856,541 | 10,600,409 | 10,754,248 | 10,600,379 | |||||||||||
| Weighted average common shares outstanding, diluted | 11,112,671 | 10,813,028 | 11,046,023 | 10,691,881 | |||||||||||
