Nephros, Inc. announced its fiscal year 2024 financial results, achieving its first profitable year and quarterly net income. The company reported net revenue of $14.2 million, consistent with the previous year, and achieved a net income of $74,000 compared to a net loss of $1.6 million in 2023. The fourth quarter demonstrated notable growth, with net revenue increasing 19% to $3.9 million from $3.3 million in the same quarter of 2023. CEO Robert Banks highlighted the company's strategic adaptability, particularly in navigating a decline in emergency response business during the first half of the year.
A key achievement for Nephros was the launch of its 20" HydraGuard Ultrafilter, designed for high-volume water applications. The product is especially promising for sterile processing, laboratories, and manufacturing sectors, with potential to support compliance with the ANSI/AAMI ST108 standard for water quality in medical instrument sterilization. The company added nearly 600 new customer sites in 2024, generating almost $2 million in sales and representing over 13% of annual revenue. The core programmatic revenue grew 9% for the year, with the fourth quarter showing double-digit growth.
Financial improvements were driven by cost management, with selling, general, and administrative expenses decreasing 14% to $7.7 million. Gross margin increased to 62% in 2024, compared to 59% in 2023, primarily due to more favorable terms with the company's largest supplier. As of December 31, 2024, Nephros maintained a strong cash position of approximately $3.8 million and remained debt-free. The company expressed optimism about future growth, focusing on expanding its product lineup and exploring new market sectors including office spaces and transportation-related entities.
