Nephros, Inc., a water technology company specializing in filtration solutions, has announced its financial results for 2024, highlighting a transformative year of financial performance and strategic development. The company achieved its first annual net income of $74,000, a remarkable improvement from the $1.6 million net loss experienced in 2023.
The company's fourth-quarter results were particularly noteworthy, with net revenue increasing 19% to $3.9 million compared to $3.3 million in the same quarter of 2023. Despite challenges in the emergency response business during the first half of the year, Nephros managed to pivot and demonstrate resilience through steady programmatic revenue growth.
CEO Robert Banks emphasized the company's strategic achievements, including the launch of the 20" HydraGuard Ultrafilter, a product designed to meet stringent water quality standards in critical sectors such as sterile processing, laboratories, and manufacturing. This new product aligns with the recently introduced ANSI/AAMI ST108 standard, which establishes strict guidelines for water quality in medical instrument sterilization.
The company's financial strategy focused on cost control and operational efficiency, resulting in a significant reduction in selling, general, and administrative expenses. These expenses decreased by 14% to $7.7 million in 2024, compared to $8.9 million in the previous year, primarily due to declines in bonuses, commissions, and stock compensation.
A key highlight of the year was the addition of nearly 600 new customer sites, generating almost $2 million in sales and representing more than 13% of annual revenue. The core programmatic revenue grew by 9% for the year, reflecting the development of new sales personnel and expansion into diverse market sectors.
The company's gross margin improved to 62% in 2024, up from 59% in 2023, primarily attributed to more favorable terms with its largest supplier. Nephros also maintained a strong cash position, with approximately $3.8 million in cash and cash equivalents as of December 31, 2024, and remains debt-free.
Looking forward, Nephros appears positioned for continued growth, with plans to expand its product lineup and explore new market opportunities in sectors such as office spaces and transportation-related entities. The company's ability to adapt to changing market conditions and maintain a focus on innovation suggests potential for sustained financial improvement in the coming years.
