Nephros, Inc., a water technology company specializing in filtration solutions for medical and commercial markets, reported robust financial results for the first quarter of 2025, demonstrating substantial growth and improved operational performance. The company's net revenue increased to $4.9 million, up 38% from $3.5 million in the same quarter of 2024. This growth was primarily driven by strong reorder rates, new active sites, and strategic pre-ordering ahead of a modest price increase implemented in February 2025.
President and CEO Robert Banks highlighted the company's exceptional performance, noting record quarterly net revenue and peak performance in both programmatic and dialysis business segments. The company experienced a significant escalation in emergency business with more geographically diverse demand, though Banks cautioned that this level of emergency activity might not persist throughout the year. Key financial metrics revealed promising developments. Gross margin improved to 65% from 62% in the previous year, attributed to a strategic price increase, favorable product mix, and lower inventory reserves.
The company also achieved a net income of $558,000, marking its second quarterly net income in company history, compared to a net loss of $169,000 in the first quarter of 2024. Nephros expanded its active sites to a record high of 1,600 in Q1 and logged hundreds of filter locations within its digital support app. Despite potential macro-economic uncertainties from recent tariff activities, the company remains optimistic about its market position and ability to maintain strong margins.
Looking forward, Nephros plans to continue innovating with new product launches and capability advancements. The company's focus remains on its core programmatic business while maintaining readiness for water-safety-related emergencies. As of March 31, 2025, Nephros maintained a solid financial position with approximately $4.1 million in cash and cash equivalents, remaining debt-free and well-positioned for future growth. The company's performance demonstrates the growing importance of specialized water filtration technology in both medical and commercial applications, particularly as water safety concerns continue to drive demand for reliable filtration solutions across multiple industries.
