Nephros, Inc. Achieves First Profitable Year with Strategic Growth and Product Innovation

Nephros, Inc., a leader in water technology, has marked a significant turnaround in its fiscal year 2024 financial results, achieving its first profitable year with a net income of $74,000, a stark contrast to the net loss of $1.6 million reported in 2023. The company's resilience and strategic focus have not only stabilized its revenue at $14.2 million, matching the previous year's figures, but also paved the way for a promising future in the water technology industry.

The fourth quarter of 2024 stood out with a 19% increase in net revenue to $3.9 million, up from $3.3 million in the same period the previous year. This growth underscores the company's ability to adapt and thrive, even as it navigated challenges such as a decline in its emergency response business during the first half of the year. CEO Robert Banks attributed this success to the company's strategic adaptability and innovative product launches, including the 20" HydraGuard Ultrafilter. This product is designed for high-volume water applications and holds significant promise for sectors requiring compliance with stringent water quality standards, such as sterile processing, laboratories, and manufacturing.

Nephros's expansion efforts in 2024 were further evidenced by the addition of nearly 600 new customer sites, contributing almost $2 million in sales and accounting for over 13% of the annual revenue. The company's core programmatic revenue also saw a 9% increase year-over-year, with the fourth quarter experiencing double-digit growth. These achievements reflect the company's growing footprint and the increasing demand for its water technology solutions.

Financial improvements were also a result of effective cost management strategies, with selling, general, and administrative expenses decreasing by 14% to $7.7 million. The gross margin improved to 62% in 2024, up from 59% in 2023, thanks in part to more favorable terms with the company's largest supplier. With a strong cash position of approximately $3.8 million and no debt as of December 31, 2024, Nephros is well-positioned for future growth. The company is optimistic about expanding its product lineup and exploring new market sectors, including office spaces and transportation-related entities, further solidifying its role as a key player in the water technology industry.