Nephros Announces Strong Third Quarter Financial Results; Achieving Highest Level of Programmatic Sales in Company History
Rhea-AI Summary
Nephros (Nasdaq: NEPH) reported third-quarter results for the period ended September 30, 2025, with Q3 net revenue $4.8M (up 35% year-over-year) and Q3 net income $0.3M (up 84% year-over-year), marking the company’s fourth consecutive profitable quarter.
For the nine months ended Sept 30, 2025, net revenue was $14.1M (up 37% YTD) and net income was $1.1M versus a $0.3M loss in prior year; Adjusted EBITDA improved to $1.44M YTD. The company reported cash and equivalents $5.2M and zero debt. Programmatic revenue showed strong growth (Q3 +51%; YTD +35%) and a new PFAS filtration product launched in early October.
Positive
- Q3 net revenue +35% to $4.8M
- Q3 net income +84% to $337,000
- Nine-month revenue +37% to $14.1M
- Nine-month net income turned to $1.1M from ($275,000)
- Adjusted EBITDA YTD +$1.37M to $1.44M
- Programmatic revenue Q3 +51% (YTD +35%)
- Cash and equivalents $5.2M; zero debt
Negative
- Q3 selling, general & administrative expenses +30%
- Q3 research & development expenses +80%
- YTD non-cash stock-based compensation increased to $217,000
News Market Reaction 3 Alerts
On the day this news was published, NEPH declined 8.61%, reflecting a notable negative market reaction. Argus tracked a trough of -9.4% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $53M at that time.
Data tracked by StockTitan Argus on the day of publication.
Third-Quarter Net Revenue of
SOUTH ORANGE, NJ., Nov. 06, 2025 (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 third quarter ended September 30, 2025.
Financial Highlights
Net revenue increased
Net income increased
Adjusted EBITDA increased
For the nine months ended September 30, 2025:
Net revenue increased
Net income was
Adjusted EBITDA was
“Q3 2025 marks another powerful milestone—delivering not only continued profitability but achieving the highest level of programmatic sales in company history,” said Robert Banks, President and Chief Executive Officer of Nephros. “This performance is a direct result of our strategic focus on the execution of customer-centered initiatives. By expanding our series of educational webinars, on-site training, and field installation and replacement capabilities, we helped facilities achieve stronger results from their water treatment programs. Collectively, these efforts created sustainable value for both our customers and company.”
“It’s an energizing time at Nephros as we are also seeing the impact of our recent investments in innovation,” Banks continued. “In the third quarter, we finalized development and market preparation for our new PFAS filtration solution, which officially launched in early October. This latest release positions Nephros to expand into new markets where water quality is critical and regulatory standards drive action. In parallel, the same customer-centered initiatives that strengthened our programmatic business also supported expansion in the number of active sites across all key segments—infection control, dialysis, and commercial. These results provide further evidence that our approach resonates with customers seeking reliable support, who value both product quality and consistent high performance.”
Mr. Banks concluded, “With strong cash reserves, zero debt, and a robust innovation pipeline, we remain confident that Nephros is well-positioned to sustain growth, broaden our market reach, and deliver durable value in the quarters ahead.”
Financial Performance for the Quarter Ended September 30, 2025
Net revenue for the three months ended September 30, 2025, and 2024 was
Cost of goods sold for the third quarter of 2025 was
Selling, general and administrative expenses for the third quarter of 2025 were approximately
Research and development expenses were approximately
Depreciation and amortization expenses were approximately
As a result of the improved sales, net income for the third quarter of 2025 was
Adjusted EBITDA for the third quarter 2025 was approximately
Financial Performance for the Nine Months Ended September 30, 2025
Net revenue for the nine months ended September 30, 2025, and 2024 was
Cost of goods sold for the nine months ending September 30, 2025, and 2024 was
Selling, general and administrative expenses for the nine months ended September 30, 2025, and 2024 were approximately
Research and development expenses for the nine months ending September 30, 2025, and 2024 were
Depreciation and amortization expenses for the nine months ending September 30, 2025, and 2024 were approximately
As a result of the improved sales and gross margins, net income for the nine months ending September 30, 2025, was
Adjusted EBITDA for the nine months ending September 30, 2025, was approximately
As of September 30, 2025, 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 (loss) calculated in accordance with generally accepted accounting principles (“GAAP”) and excluding all interest-related expenses and income, tax-related expenses and income, non-recurring 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 (loss), the most directly comparable GAAP financial measure, for the third quarter and year-to-date period of the 2025 fiscal year:
| (unaudited) | ||||
| Three Months Ended September 30, | ||||
| 2025 | 2024 | |||
| (in $ thousands) | ||||
| Net income | 337 | 183 | ||
| Adjustments: | ||||
| Depreciation of property and equipment | 12 | 12 | ||
| Amortization of other assets | 22 | 21 | ||
| Interest expense | - | - | ||
| Interest income | (41 | ) | (20 | ) |
| Income taxes | 3 | - | ||
| Non-cash stock-based compensation | 70 | 65 | ||
| Non-cash inventory impairments | 15 | 34 | ||
| Adjusted EBITDA Income | 418 | 295 | ||
| (unaudited) | ||||
| Nine Months Ended September 30, | ||||
| 2025 | 2024 | |||
| (in $ thousands) | ||||
| Net Income (loss) | 1,132 | (275 | ) | |
| Adjustments: | ||||
| Depreciation of property and equipment | 42 | 34 | ||
| Amortization of other assets | 65 | 68 | ||
| Interest expense | 1 | 1 | ||
| Interest income | (85 | ) | (66 | ) |
| Income taxes | 12 | - | ||
| Non-cash stock-based compensation | 217 | 91 | ||
| Non-cash inventory impairments | 56 | 214 | ||
| Adjusted EBITDA Income | 1,440 | 67 | ||
Adjusted EBITDA Income (loss)
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 (loss), the most directly comparable GAAP financial measure. Nephros urges investors to review the reconciliation of Adjusted EBITDA to net income (loss) and not to rely on any single financial measure to evaluate the business.
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 revenue growth and the timing of such growth, the extent to which Nephros’ customer installation and replacement programs will lead to increased product reorders and revenue, the extent to which Nephros’ operational activities and product innovations will lead to revenue growth, Nephros’ ability to continue realizing net income from its operations, the effect of new regulations on future revenue growth, the expected competitive advantages and anticipated impact of new product offerings, 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, 2024, 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 | September 30, 2025 | December 31, 2024 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,171 | $ | 3,760 | ||||
| Accounts receivable, net | 2,661 | 1,781 | ||||||
| Inventory | 2,738 | 2,615 | ||||||
| Prepaid expenses and other current assets | 136 | 142 | ||||||
| Total current assets | 10,706 | 8,298 | ||||||
| Property and equipment, net | 119 | 161 | ||||||
| Lease right-use-of assets | 1,112 | 1,377 | ||||||
| Intangible assets, net | 326 | 349 | ||||||
| Goodwill | 759 | 759 | ||||||
| License and supply agreement, net | 175 | 216 | ||||||
| Other assets | 50 | 50 | ||||||
| TOTAL ASSETS | $ | 13,247 | $ | 11,210 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 936 | 649 | ||||||
| Accrued expenses | 1,151 | 565 | ||||||
| Current portion of lease liabilities | 380 | 348 | ||||||
| Total current liabilities | 2,467 | 1,562 | ||||||
| Lease liabilities, net of current portion | 774 | 1,063 | ||||||
| TOTAL LIABILITIES | 3,241 | 2,625 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, $.001 par value; 5,000,000 shares authorized at September 30, 2025 and December 31, 2024; no shares issued and outstanding September 30, 2025 and December 31, 2024. | - | - | ||||||
| Common stock, $.001 par value; 40,000,000 shares authorized at September 30, 2025 and December 31, 2024; 10,626,683 and 10,544,691 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively. | 11 | 11 | ||||||
| Additional paid-in capital | 153,195 | 152,906 | ||||||
| Accumulated deficit | (143,200 | ) | (144,332 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 10,006 | 8,585 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 13,247 | $ | 11,210 | ||||
| NEPHROS, INC. | ||||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended Sep 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net revenue: | ||||||||||||||||
| Product revenues | $ | 4,596 | $ | 3,472 | $ | 13,613 | $ | 10,186 | ||||||||
| Service, royalty and other revenues | 168 | 46 | 447 | 106 | ||||||||||||
| Total net revenues | 4,764 | 3,518 | 14,060 | 10,292 | ||||||||||||
| Cost of goods sold | 1,849 | 1,369 | 5,196 | 4,044 | ||||||||||||
| Gross margin | 2,915 | 2,149 | 8,864 | 6,248 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,229 | 1,721 | 6,684 | 5,804 | ||||||||||||
| Research and development | 338 | 188 | 944 | 654 | ||||||||||||
| Depreciation and amortization | 34 | 34 | 108 | 101 | ||||||||||||
| Total operating expenses | 2,601 | 1,943 | 7,736 | 6,559 | ||||||||||||
| Operating income (loss) | 314 | 206 | 1,128 | (311 | ) | |||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | - | - | (1 | ) | (1 | ) | ||||||||||
| Interest income | 41 | 20 | 85 | 66 | ||||||||||||
| Other income (expense), net | (15 | ) | (43 | ) | (68 | ) | (29 | ) | ||||||||
| Total other expense: | 26 | (23 | ) | 16 | 36 | |||||||||||
| Income (loss) before income taxes | 340 | 183 | 1,144 | (275 | ) | |||||||||||
| Income tax expense | (3 | ) | - | (12 | ) | - | ||||||||||
| Net income (loss) | $ | 337 | $ | 183 | $ | 1,132 | $ | (275 | ) | |||||||
| Net income (loss) per common share, basic | $ | 0.03 | $ | 0.02 | $ | 0.11 | $ | (0.03 | ) | |||||||
| Net income (loss) per common share, diluted | $ | 0.03 | $ | 0.02 | $ | 0.10 | $ | (0.03 | ) | |||||||
| Weighted average common shares outstanding, basic | 10,612,012 | 10,544,139 | 10,604,300 | 10,518,742 | ||||||||||||
| Weighted average common shares outstanding, diluted | 11,040,925 | 10,580,906 | 10,846,477 | 10,518,742 | ||||||||||||
FAQ
What were Nephros (NEPH) Q3 2025 revenue and net income figures?
How much did Nephros programmatic sales grow in Q3 2025 for NEPH?
What is Nephros’ nine-month 2025 financial performance (NEPH)?
Did Nephros (NEPH) report positive Adjusted EBITDA in 2025?
What product or commercial progress did Nephros announce in October 2025?
What is Nephros’ cash and debt position as of Sept 30, 2025 (NEPH)?
