Water technology company Nephros demonstrated substantial financial progress in the first quarter of 2025, reporting a 38% increase in net revenue and returning to profitability. The company's quarterly results highlight growing market adoption and operational momentum across its medical and commercial water filtration solutions.
Net revenue reached $4.9 million, compared to $3.5 million in the same quarter of 2024. Core programmatic revenue grew by 23%, driven by strong reorder rates and an expanding customer base. The company added a record number of active sites, reaching 1,600 in the first quarter.
Notably, Nephros achieved a net income of $558,000, marking only the second quarterly net income in the company's history. This represents a significant improvement from the net loss of $169,000 experienced in the first quarter of 2024. The financial turnaround was supported by a gross margin increase from 62% to 65%, primarily attributed to a strategic price increase and a more favorable product mix.
CEO Robert Banks emphasized the company's performance, highlighting both programmatic and emergency response business segments reaching peak levels. However, he cautioned that the recent surge in emergency business might not persist throughout the year, given potential regulatory changes.
The company's financial strategy focuses on maintaining strong margins and weathering potential macroeconomic challenges. Nephros plans to sustain its market position through continuous innovation, with a pipeline of new product launches and capability advancements.
As of March 31, 2025, Nephros maintained a solid cash position of $4.1 million and remained debt-free. The company's financial resilience and strategic approach position it to continue addressing critical water filtration needs in healthcare and commercial markets.
