Nephros Reports Strong Q1 2025 Financial Performance with 38% Revenue Increase

Nephros, Inc. announced robust financial results for the first quarter of 2025, highlighting substantial growth across its water technology business. The company reported net revenue of $4.9 million, a 38% increase from the same period in 2024, marking a significant milestone in its financial performance.

The quarter's results were characterized by strong performance in both core programmatic and emergency response business segments. Core programmatic revenue grew by 23%, reflecting increased reorder rates and expansion of active sites to a record 1,600 locations. The company also saw a peak in its dialysis business, indicating growing market adoption.

From a financial perspective, Nephros demonstrated considerable improvement. The company transitioned from a net loss of $169,000 in Q1 2024 to a net income of $558,000 in Q1 2025. Gross margin increased from 62% to 65%, primarily driven by a strategic price increase and a more favorable product mix.

CEO Robert Banks emphasized that while emergency business reached record levels, the company does not anticipate sustaining this intensity throughout the year. Instead, Nephros remains focused on its core programmatic business and continues to invest in innovation with plans for new product launches and capability advancements.

The company's financial stability is further underscored by its debt-free status and cash reserves of approximately $4.1 million as of March 31, 2025. Despite potential macro-economic uncertainties, including recent tariff activities, Nephros remains confident in its market positioning and ability to maintain strong performance.