The stock may react positively to the strong annual growth and sustained profitability, but traders should monitor gross margin trends and tariff risks. The disconnect between rising revenue and falling Q4 profitability could limit upside unless management demonstrates cost control in 2026.
Price Chart
Executive Summary
Nephros reported strong full-year 2025 financial results with revenue up 33% year-over-year to $18.8 million and net income surging to $1.2 million from $74,000 in 2024, marking its second consecutive year of profitability. However, fourth-quarter revenue growth slowed to 22% and profitability declined due to rising costs and tariff impacts, despite strong reorder activity and service expansion.
Key Financial Metrics
Key Facts
- Full-year 2025 revenue: $18.8 million, up 33% YoY from $14.2 million in 2024
- Full-year net income: $1.2 million vs. $74,000 in 2024 — a 15-fold increase
- Fourth-quarter revenue: $4.7 million (22% YoY growth), but net income dropped to $62,000 from $349,000 in Q4 2024
- Gross margin held at 62% for the year, but declined to 58% in Q4 from 64% due to 15% Italian import tariffs (later reduced to 10%)
- Cash balance increased to $5.4 million from $3.8 million; company remains debt-free
- Launched Nephros Water Institute and expanded service capabilities to drive recurring revenue
Financial Impact
Revenue increased by $4.6 million year-over-year with net income improving by $1.12 million. However, Q4 profitability sharply declined despite revenue growth, signaling margin pressure.
Risk Factors
- Tariff exposure: 10–15% tariffs on Italian imports are impacting margins and could worsen under changing U.S. trade policy
- Rising operating expenses: SG&A and R&D costs grew faster than revenue, pressuring near-term earnings
- Decelerating quarterly momentum: Q4 revenue growth (22%) and income ($62K) were weaker than prior quarters despite seasonality
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3255126 |
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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