This is a transformative quarter for a micro-cap: revenue growth accelerated to 36%, profitability surged, and the core programmatic model is gaining traction. Watch for continued programmatic renewals and commercial segment expansion. The one-time tariff refund inflated earnings — strip that out to assess normalized run rate GAAP EPS of ~$0.06-$0.07.
Price Chart
Executive Summary
Nephros reported record Q2 2026 revenue of $6.0M (+36% YoY) and GAAP EPS of $0.11, significantly up from $0.02 YoY, driven by 27% core programmatic revenue growth and a ~$0.6M one-time tariff refund. Net income surged to $1.2M vs $0.2M last year, with operating leverage improving as SG&A grew only 10%. The $39M market cap company remains debt-free with $4.7M cash.
Key Financial Metrics
Key Facts
- Q2 2026 revenue record $6.017M vs $4.419M in Q2 2025, +36% YoY
- GAAP EPS $0.11 (diluted) vs $0.02 in Q2 2025
- Core programmatic revenue grew 27% YoY
- Net income $1.197M, up from $0.237M (includes ~$0.6M one-time tariff refund)
- Gross margin expanded to 67% from 63%, benefiting from tariff refund
- Adjusted EBITDA $1.281M vs $0.355M, up 3.6x
- Debt-free with $4.697M cash at quarter end
Financial Impact
Revenue beat Street consensus of $5.0M by $1.0M (+20%); GAAP EPS $0.11 vs consensus $0.01 — a ~1000% beat driven by profitability inflection.
Risk Factors
- One-time tariff refund (~$0.6M) inflated net income and gross margin — not recurring
- Gross margins pressured by commercial mix shift toward lower-margin service revenue
- Micro-cap liquidity risk with only $4.7M cash — any growth investment may require future capital
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-036331 |
| Document: form8-k.htm | 0001493152-26-036331 |
| Document: 0001493152-26-036331-index-headers.html | 0001493152-26-036331 |
| Document: 0001493152-26-036331-index.html | 0001493152-26-036331 |
| Document: 0001493152-26-036331.txt | 0001493152-26-036331 |
| 8-K Data (Synthetic) | 0001493152-26-036331 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 12d ago | DEF 14A | $3.51 | awaiting T+20 | — | $3.63 (+3.42%) |
Oct 13, 2026 13d ago | 8-K | $3.52 | awaiting T+20 | — | $3.63 (+3.13%) |
Sep 16, 2026 5w ago | SC 13D/A | $4.23 $3.51 | ▲ +17.02% | ▲ +18.23% | $3.63 (+14.18%) |
Sep 16, 2026 5w ago | SC 13G | $4.23 $3.51 | ▼ −17.02% | ▼ −18.23% | $3.63 (−14.18%) |
Aug 6, 2026 11w ago | 8-K | $4.21 $4.06 | ▼ −3.56% | ▼ −3.17% | $3.63 (−13.78%) |
May 7, 2026 24w ago | 8-K | $3.52 $3.42 | ▼ −2.84% | ▼ −2.86% | $3.63 (+3.13%) |
Apr 30, 2026 25w ago | Press Release | $3.11 $3.69 | ▲ +18.65% | ▲ +13.38% | $3.63 (+16.72%) |
Mar 12, 2026 32w ago | Press Release | $3.50 $2.91 | ▼ −16.86% | ▼ −20.45% | $3.63 (+3.71%) |
Mar 5, 2026 33w ago | Press Release | $3.89 $2.87 | ▼ −26.22% | ▼ −22.43% | $3.63 (−6.68%) |
US Market Status
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