Rockwell Medical (RMTI) Q2 2025 Earnings Call August 14, 2025 08:00 AM ET Speaker0Good morning, and welcome to Rockwell Medical's Second Quarter twenty twenty five Results Conference Call and Webcast. Please note this event is being recorded. At this time, I would like to turn the conference call over to Heather Hunter, Senior Vice President, Chief Corporate Affairs Officer at Rockwell Medical. Heather, please go ahead.Speaker1Good morning, and thank you for joining us for this update on Rockwell Medical. J ...

Rockwell Medical (RMTI) came out with a quarterly loss of $0.05 per share in line with the Zacks Consensus Estimate. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this maker of products used in the treatment of kidney disease and anemia would post a loss of $0.03 per share when it actually produced a loss of $0.04, delivering a surprise of -33.33%.Over the last four quarters, the company has surpassed consensu ...

Commission File Number: 000-23661 United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ROCKWELL MEDICAL, INC. (Exact name of registrant as specified in its charter) | Delaware | 38-3317208 | | --- | --- | | (S ...

Rockwell Medical Announces Second Quarter 2025 Results Wixom, Michigan, August 14, 2025 – Rockwell Medical, Inc. (the "Company") (Nasdaq: RMTI), a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products to dialysis providers worldwide, today announced financial and operational results for the three and six months ended June 30, 2025. FINANCIAL HIGHLIGHTS: THREE- AND SIX-MONTHS ENDED JUNE 30, 2025 Net Sales Gross Profit Gross Margin • Generated $1. ...

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $18.9 million, a 17% decrease from $22.7 million in Q1 2024, primarily due to the largest customer transitioning to another supplier [12] - Gross profit for Q1 2025 was $3 million, consistent with the same period in 2024, while gross margin increased to 16% from 14% in Q1 2024 [13] - Net loss for Q1 2025 was $1.5 million, an improvement from a net loss of $1.7 million in Q1 2024 [13] - Cash and cash equivalents decreased to $17.3 million from $21.6 million at the end of 2024, attributed to timing of payments and seasonal expenses [14] Business Line Data and Key Metrics Changes - The addition of a single-use bicarbonate cartridge technology to the product portfolio represents a growth opportunity in the dialysis products market [9] - The company continues to diversify its customer base with leading hemodialysis providers, signing several new contracts during the quarter [5] Market Data and Key Metrics Changes - Approximately 90% of revenue comes from U.S. dialysis providers, with only 10% generated internationally, and the impact of recent U.S. tariff actions is negligible [8] - The at-home dialysis market is growing, with increased sales expected from new product offerings that are higher margin [25] Company Strategy and Development Direction - The company aims to strengthen its position in the renal market through business development opportunities, including product acquisitions and international expansion [10] - Rockwell Medical is focused on maintaining a long-term arrangement with its largest customer while also pursuing new customer contracts to mitigate revenue loss [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing negotiations with the largest customer may result in a scaled-down commitment, but they are optimistic about maintaining some level of service [19] - The company is confident in its guidance for 2025, projecting net sales between $65 million and $70 million, with expectations of revenue growth in the latter half of the year [11][22] Other Important Information - The company is actively monitoring the impact of a recent cyber attack in the industry and has taken precautionary measures to protect its IT infrastructure [6][7] Q&A Session Summary Question: What scenarios could arise from negotiations with the largest customer? - Management indicated that discussions are ongoing to maintain some level of service, likely at a smaller scale than before [19] Question: What is the expected revenue cadence for the remainder of 2025? - Management suggested Q2 may be the low point for the year, with expectations of improvement thereafter [22] Question: What is the outlook for the at-home dialysis market? - The at-home market is progressing as expected, with increasing sales anticipated for the new product offerings [25] Question: What are the opportunities for international market expansion? - The company sees significant opportunities in Latin America and is exploring expansion into the West Coast of the U.S. [30][32] Question: How much revenue can be replaced from new customers after losing the largest customer? - Management believes there are enough opportunities among small independent dialysis providers to replace a significant portion of the lost revenue [34] Question: Is the revenue guidance based on the current customer base? - The guidance is based on the current customer base, with potential upside from new customers not yet included [36]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $18.9 million, a 17% decrease from $22.7 million in Q1 2024, primarily due to the largest customer transitioning to another supplier [12] - Gross profit for Q1 2025 was $3 million, consistent with Q1 2024, while gross margin increased to 16% from 14% in the same period last year [13] - Net loss for Q1 2025 was $1.5 million, an improvement from a net loss of $1.7 million in Q1 2024 [13] - Cash and cash equivalents decreased to $17.3 million from $21.6 million at the end of 2024, attributed to timing of payments and seasonal expenses [14] Business Line Data and Key Metrics Changes - The addition of a single-use bicarbonate cartridge technology to the product portfolio represents a growth opportunity in the dialysis products market [9] - The company continues to diversify its customer base, signing new contracts with leading hemodialysis providers [5] Market Data and Key Metrics Changes - Approximately 90% of revenue comes from U.S. dialysis providers, with only 10% generated internationally, and only one country is affected by recent U.S. tariff actions [8] - The company is actively pursuing business development opportunities to strengthen its position in the renal market and expand internationally [10] Company Strategy and Development Direction - The company aims to maintain a long-term arrangement with its largest customer, albeit at a smaller scale than previously [20] - Rockwell Medical is focused on expanding its customer base both domestically and internationally, particularly in Latin America and the West Coast of the U.S. [30][31] - The company is optimistic about the at-home dialysis market, which is expected to grow and provide higher margins [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the largest customer's transition but expressed confidence in the guidance provided for 2025 [21] - The second quarter is anticipated to be the low point for revenue, with expectations of improvement in subsequent quarters [22] Other Important Information - The company is monitoring the impact of a recent cyber attack in the industry but has not experienced direct implications on its systems [6] - The company has reiterated its projected guidance for 2025, with net sales expected between $65 million and $70 million [11] Q&A Session Summary Question: What are the scenarios arising from negotiations with the largest customer? - Management indicated that negotiations are ongoing to maintain some level of service, likely at a smaller scale than before [20] Question: What is the revenue cadence expected for the remainder of 2025? - Management stated it is difficult to predict but expressed confidence in the guidance provided, with Q2 likely being the low point [21][22] Question: What is the status of the at-home dialysis market? - The at-home market is progressing as expected, with increasing sales and higher margins anticipated [24] Question: What are the opportunities for international market expansion? - The company sees significant opportunities in Latin America and is exploring expansion into the West Coast of the U.S. [30][31] Question: How much revenue can be replaced from new customers? - Management believes there are enough opportunities among small independent dialysis providers to replace a significant portion of lost revenue [33] Question: Is the revenue guidance based on the current customer base? - Yes, the guidance is based on the current customer base, with potential upside from new customers [35]

Financial Performance - Net sales for the three months ended March 31, 2025, were $18.914 million, a decrease of 16.5% compared to $22.676 million for the same period in 2024[14]. - Gross profit for Q1 2025 was $3.042 million, slightly down from $3.064 million in Q1 2024, resulting in a gross margin of 16.1%[14]. - The net loss for the three months ended March 31, 2025, was $1.515 million, compared to a net loss of $1.731 million for the same period in 2024, reflecting a 12.5% improvement[14]. - Basic and diluted net loss per share improved to $0.04 in Q1 2025 from $0.06 in Q1 2024[14]. - Comprehensive loss for Q1 2025 was $1,509 million, slightly improved from $1,706 million in Q1 2024, showing a reduction of approximately 11.5%[16]. - For the three months ended March 31, 2025, Rockwell Medical reported a net loss of $1.515 million, an improvement from a net loss of $1.731 million in the same period of 2024, representing a decrease of approximately 12.5%[23]. Assets and Liabilities - Total assets decreased to $53.961 million as of March 31, 2025, down from $59.208 million as of December 31, 2024[10]. - Total liabilities decreased to $22.439 million as of March 31, 2025, compared to $26.622 million as of December 31, 2024, indicating a reduction of 15.8%[10]. - Stockholders' equity decreased to $31.522 million as of March 31, 2025, from $32.586 million as of December 31, 2024[11]. - Total current liabilities decreased from $14,091 million as of December 31, 2024, to $11,205 million as of March 31, 2025, a reduction of approximately 20.5%[10]. - Total accrued liabilities decreased to $4.6 million as of March 31, 2025, from $6.3 million as of December 31, 2024, representing a reduction of approximately 26.9%[80]. Cash Flow and Liquidity - Cash and cash equivalents were $11.391 million as of March 31, 2025, down from $15.662 million as of December 31, 2024[10]. - Net cash used in operating activities for the three months ended March 31, 2025 was approximately $3.487 million, an increase of 46.5% compared to $2.380 million for the same period in 2024[23]. - Rockwell's net decrease in cash and cash equivalents for the three months ended March 31, 2025 was $4.271 million, compared to a decrease of $2.341 million for the same period in 2024[23]. - As of March 31, 2025, Rockwell had approximately $17.3 million in cash, cash equivalents, and investments available-for-sale, with working capital of $21.8 million[30]. - The company continues to explore capital-raising options, with $21.1 million available under its at-the-market facility[31]. Revenue Sources - Revenue from DaVita accounted for approximately 27% of total revenues for the three months ended March 31, 2025, down from 44% in the same period of 2024[49]. - Revenue from drug products was $0.325 million, while concentrate product sales were $18.589 million, with U.S. sales accounting for $16.436 million and international sales $2.153 million[57]. - The company recognized $0.3 million of revenue from deferred license agreements during the three months ended March 31, 2025, as all remaining deferred revenue related to these agreements was recognized[54]. - A one-time, non-refundable payment of $0.9 million from DaVita was recorded as revenue during the three months ended March 31, 2025, to ensure supply continuity[55]. Expenses - The company incurred $711,000 in selling and marketing expenses for Q1 2025, up from $594,000 in Q1 2024, reflecting a 19.7% increase[14]. - Research and product development expenses were $0 for Q1 2025, down from $18 million in Q1 2024, indicating a strategic shift in R&D spending[14]. - Stock-based compensation expense for the three months ended March 31, 2025, was $0.445 million, compared to $0.251 million for the same period in 2024, reflecting an increase of 77%[92]. Stock and Equity - The weighted average number of shares of common stock outstanding increased to 34,107,640 for the three months ended March 31, 2025, compared to 29,327,204 for the same period in 2024, reflecting a 16.5% increase[40]. - The number of common stock equivalents increased to 41,902,125 as of March 31, 2025, compared to 37,222 in 2024[86]. - The Series X Preferred Stock accreted a total of $0.3 million as of March 31, 2025, reflecting ongoing financial obligations related to this equity[82]. - The company issued a warrant to purchase 191,096 shares of common stock at an exercise price of $1.83 per share, with a fair value of approximately $0.2 million at issuance[90]. Compliance and Agreements - The company is currently in compliance with all covenants under its Loan Agreement with Innovatus, which includes an interest-only payment period for 36 months[32]. - The Company is required to maintain consolidated revenue from hemodialysis products at not less than 85.0% of projections for the trailing six-month period[112]. - The company has a Technology License Agreement with Charak for TPN products, which continues until at least February 1, 2034, with royalties based on net sales[103]. Market and Operations - Rockwell Medical operates in the hemodialysis market, manufacturing and distributing a range of hemodialysis products[48]. - The company operates in a single segment focused on the hemodialysis market, providing a range of products for dialysis providers worldwide[25].

Financial Performance - Rockwell Medical reported net sales of $18.9 million for Q1 2025, a 17% decrease from $22.7 million in Q1 2024[5] - Gross profit for Q1 2025 was $3.0 million, consistent with the same period in 2024, resulting in a gross margin of 16%, up from 14% in Q1 2024[6] - The net loss for Q1 2025 was $1.5 million, representing a 12% improvement over the net loss of $1.7 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was ($0.4) million, slightly negative due to seasonal payroll tax and public company expenses[6] - Cash and cash equivalents decreased to $17.3 million as of March 31, 2025, down from $21.6 million at the end of 2024[6] - Total stockholders' equity increased to $31.5 million as of March 31, 2025, compared to $20.6 million in the same period in 2024[22] Future Guidance - Rockwell Medical confirmed its 2025 annual guidance, projecting net sales between $65.0 million and $70.0 million, with a gross margin of 16% to 18%[11] Product Development - The company added a single-use bicarbonate cartridge to its product portfolio through a distribution agreement with a leading medical equipment manufacturer[12] Company Recognition - Rockwell Medical was recognized as a Great Place to Work for the third consecutive year, highlighting its commitment to fostering a supportive workplace[12] Customer Impact - The largest customer transition to another supplier contributed to the decrease in net sales, although a one-time payment of $0.9 million was received to ensure product supply continuity[6]

Rockwell Medical, Inc. (NASDAQ:RMTI) Q4 2024 Earnings Conference Call March 20, 2025 8:00 AM ET Company Participants Heather Hunter - Senior Vice President, Chief Corporate Affairs Officer Mark Strobeck - President & Chief Executive Officer Tim Chole - Chief Commercial Officer Jesse Neri - Chief Financial Officer Conference Call Participants Brandon Folkes - Rodman & Renshaw Ram Selvaraju - H.C. Wainwright Anthony Vendetti - Maxim Group Operator Good morning, and welcome to Rockwell Medical's Fourth Quarter ...

Financial Data and Key Metrics Changes - For the full year of 2024, the company generated net sales of $101,500,000, representing a 21% increase over net sales of $83,600,000 for 2023 [5][22] - Gross margin for the full year 2024 was 17%, an improvement from 10% in 2023 [23] - Adjusted EBITDA for the full year 2024 was a positive $5,200,000, representing a $9,000,000 improvement over a negative adjusted EBITDA of $3,900,000 in 2023 [25] Business Line Data and Key Metrics Changes - Net product sales for the full year 2024 were $101,400,000, a 27% increase over 2023, driven by new customers from the Evoqua acquisition and a large order from the largest customer [22] - Gross profit for Q4 2024 was $3,600,000, a 27% increase over Q4 2023 [23] Market Data and Key Metrics Changes - The company has expanded its distribution agreement with Nephro Group Dialysis Centers in the Philippines, becoming the exclusive supplier of all dry hemodialysis concentrate products [16] - International sales continue to grow, with products sold in over 30 countries [16] Company Strategy and Development Direction - The company aims to diversify its customer base and product portfolio while optimizing its business operations [10][72] - Plans for 2025 include targeting additional customers representing an estimated 14,500,000 gallons of potential business [19] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a transition year but aims to return to growth within the same year [36] - The transition away from the largest customer is expected to result in a loss of approximately $34,000,000 in revenue compared to 2024 [8] Other Important Information - The company terminated its agreement with a third-party contract manufacturer, which will save over $2,000,000 annually in fixed overhead costs [9][24] - Cash, cash equivalents, and investments at the end of 2024 were $21,600,000, an increase from $10,900,000 at the end of 2023 [26] Q&A Session Summary Question: Revenue from the largest customer in 2025 - The largest customer historically generated around $45,000,000, and the expected decline of $34,000,000 is a good way to think about the revenue guidance for 2025 [30][31] Question: Transition year and expense reductions - Management views 2025 as a transition year but aims for growth within the same year, with expense reductions being implemented to mirror the decline in volume [34][36] Question: Factors leading to the largest customer's pivot - The decision by the largest customer to diversify its supplier base was made prior to the current management's arrival, and there are no current issues with other customers [44][46] Question: Growth of the bicarbonate cartridge business - The strategy is to introduce the new bicarbonate cartridge product to the existing customer base, with expectations for short-term sales growth in 2025 [49] Question: Guidance assumptions and international expansion - The revenue guidance for 2025 assumes the largest customer will transition away completely, and any agreements reached would be upside to the guidance [54][56]