Nephros(US:NEPH) Globenewswire·2026-03-12 20:10Core Insights - Nephros, Inc. reported a significant increase in net revenue, achieving $18.8 million for the fiscal year 2025, a 33% increase year-over-year, and $4.7 million for the fourth quarter, up 22% year-over-year [1][5][7] - The company has achieved positive net income for the second consecutive year, with net income of $1.2 million for the year and $62,000 for the fourth quarter [12][7] Financial Performance - For the fiscal year ended December 31, 2025, net revenue was $18.8 million compared to $14.2 million in 2024, marking a 33% increase [5][7] - Fourth-quarter net revenue was $4.7 million, up from $3.9 million in the same quarter of 2024, representing a 22% increase [5][7] - The increase in revenue was driven by higher programmatic revenue, strong reorder activity, and growth in the emergency response business [5][7] Cost and Expenses - Cost of goods sold for the year was $7.2 million, an increase of 32% from $5.4 million in 2024 [6] - Selling, general, and administrative expenses rose to $9 million for the year, a 17% increase from $7.7 million in 2024, primarily due to higher bonuses and sales commissions [9] - Research and development expenses increased to $1.3 million for the year, up from $0.9 million in 2024, reflecting a 57% increase in the fourth quarter [10] Profitability Metrics - Gross margin for the year remained stable at 62%, while the fourth-quarter gross margin decreased to 58% from 64% in the previous year [6][7] - Adjusted EBITDA for the year was $1.6 million, compared to $0.5 million in 2024, while fourth-quarter adjusted EBITDA was approximately $131,000, down from $481,000 in the same quarter of 2024 [13][7] Strategic Developments - The company has focused on three growth pillars: Products, Service, and Education, which have contributed to its revenue growth [4] - Nephros launched the Nephros Water Institute to enhance its authority in waterborne pathogen mitigation and facility water safety, aiming to strengthen customer engagement and long-term demand [4] Cash Position - As of December 31, 2025, Nephros had cash and cash equivalents of approximately $5.4 million, an increase from $3.8 million at the end of 2024 [13]