Nephros (NEPH) Q4 2024 earnings summary

Executive summary

• Achieved first annual and quarterly net income in company history for 2024, with Q4 net income of $349,000 and full-year net income of $74,000, reversing prior year losses.

• Q4 2024 net revenue was $3.9 million, up 19% year-over-year; full-year 2024 net revenue was $14.2 million, flat versus 2023.

• Added nearly 600 new customer sites, contributing almost $2 million in sales and over 13% of annual revenue.

• Launched the 20-inch HydraGuard UltraFilter, targeting new markets and higher-volume applications.

• Achieved profitability for the first time in Q3 2024.

Financial highlights

• Q4 2024 net revenue: $3.9M (+19% YoY); full-year 2024 net revenue: $14.2M (flat YoY).

• Gross margin improved to 64% in Q4 2024 (from 62% in Q4 2023) and to 62% for the full year (from 59% in 2023).

• Q4 net income was $349,000, compared to a net loss of $654,000 in Q4 2023; full-year net income was $74,000, versus a net loss of $1.6 million in 2023.

• Adjusted EBITDA for Q4 was $466,000 (vs. a loss of $51,000 in Q4 2023); full-year adjusted EBITDA was $533,000 (vs. a loss of $76,000 in 2023).

• Cash balance at year-end was $3.8 million; company remains debt-free.

Outlook and guidance

• Positioned for transformational growth in 2025, focusing on expanding into new markets and leveraging regulatory changes.

• Management expects continued growth through expansion into new markets and product lines, including office space and transportation sectors.

• New product launches and regulatory changes (ANSI/AAMI ST108) anticipated to drive future revenue, especially in sterile processing.

• Select investments planned in R&D, financial support, and marketing, with a focus on maintaining positive cash flow.