Nephros(US:NEPH)2025-08-07 21:30Financial Data and Key Metrics Changes - The trailing twelve-month revenue increased from $13.8 million to $16.7 million, reflecting a strong growth trajectory [5] - Net revenue for Q2 reached $4.4 million, up 36% compared to Q2 2024, marking the third consecutive quarter of profitability [6][9] - For the first half of 2025, revenue increased by 37% to $9.2 million from the prior year period [12] - Gross margins improved to 63% in Q2 2025 from 59% in Q2 2024, driven by reduced shipping costs and inventory reserve adjustments [10] - Net income for Q2 was $237,000, compared to a net loss of $289,000 in the same period last year [11] - Adjusted EBITDA for Q2 was positive $355,000, compared to a loss of $133,000 during the same period in 2024 [11] Business Line Data and Key Metrics Changes - The core programmatic business experienced a 40% compound growth over the past two years [7] - Protonight sales reached all-time highs, indicating the effectiveness of the recurring revenue model [7] - Active customer sites grew to over 1,600 as of June 30, 2025, slightly higher than March 31, 2025 [10] Market Data and Key Metrics Changes - Every region outperformed its first-half targets, reinforcing the resilience and scalability of the business [6] - The company is focusing on expanding into underserved verticals such as dental, government, and municipal facilities [8] Company Strategy and Development Direction - The company aims to bring new innovations to market, including the S100 micro filter and 20-inch Hydro Guard, unlocking opportunities across various sectors [8] - The strategic expansion of the sales team into non-healthcare verticals has begun to yield positive results [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth, attributing it to a combination of initiatives including the filter tracking app and enhanced service capabilities [20][22] - The company is focused on maintaining operational discipline while continuing to protect profitability [8] Other Important Information - Research and development expenses increased to $311,000 in Q2 2025 due to higher headcount [10] - Sales, general, and administrative expenses rose by 13% to $2.2 million, driven by higher sales commissions and employee bonuses [11] Q&A Session Summary Question: What initiatives contributed to the growth in customer retention and active sites? - Management attributed growth to a combination of the filter tracking app, service capabilities, and a focused sales team that enhances customer relationships [20][22] Question: Is the current sales force sufficient to pursue growth in new verticals? - Management acknowledged the need for an expanded sales force to effectively cover both existing customers and pursue new opportunities in different verticals [24][26]