Nephros, Inc., a water technology company, reported financial results for 2024 that marked a significant turnaround, including its first quarterly and annual net income in company history. The organization achieved $14.2 million in net revenue, consistent with 2023 levels, and demonstrated notable improvements in financial performance.
The company's fourth quarter showed particularly strong results, with net revenue increasing 19% to $3.9 million compared to the same period in 2023. Net income for the quarter reached $349,000, contrasting with a net loss of $654,000 in the previous year's fourth quarter.
CEO Robert Banks highlighted the company's strategic adaptations, including expansion into new market sectors such as office spaces and transportation-related entities. A key product launch was the 20" HydraGuard Ultrafilter, designed for high-volume water applications in industries like sterile processing, laboratories, and manufacturing.
Despite a significant decline in emergency response business during the first half of 2024, Nephros maintained resilience by growing core programmatic revenue. The company added nearly 600 new customer sites, representing approximately $2 million in sales and over 13% of annual revenue.
Financial improvements were driven by cost management, with selling, general, and administrative expenses decreasing 14% to $7.7 million in 2024. The company also improved gross margins to 62% for the year, compared to 59% in 2023, primarily due to more favorable supplier terms.
With cash and cash equivalents of $3.8 million and remaining debt-free, Nephros appears positioned for continued growth and market expansion in water filtration technology.
