Nephros, Inc., a leader in water technology, has announced its fiscal year 2024 financial results, showcasing a remarkable turnaround with its first profitable year and quarterly net income. The company reported net revenue of $14.2 million, maintaining consistency with the previous year, and achieved a net income of $74,000, a stark contrast to the net loss of $1.6 million in 2023. This financial milestone underscores the company's strategic adaptability and operational efficiency.
The fourth quarter of 2024 was particularly noteworthy for Nephros, with net revenue increasing by 19% to $3.9 million from $3.3 million in the same quarter of the previous year. CEO Robert Banks attributed this growth to the company's ability to navigate challenges, including a decline in emergency response business during the first half of the year. A significant contributor to Nephros's success was the launch of its 20" HydraGuard Ultrafilter, a product designed for high-volume water applications. This innovation is poised to make a substantial impact in sterile processing, laboratories, and manufacturing sectors, particularly in supporting compliance with the ANSI/AAMI ST108 standard for water quality in medical instrument sterilization.
Expanding its customer base, Nephros added nearly 600 new customer sites in 2024, generating almost $2 million in sales and accounting for over 13% of annual revenue. The company's core programmatic revenue grew by 9% for the year, with the fourth quarter experiencing double-digit growth. Financial improvements were further bolstered by effective cost management strategies, with selling, general, and administrative expenses decreasing by 14% to $7.7 million. Additionally, gross margin increased to 62% in 2024, up from 59% in 2023, largely due to more favorable terms with the company's largest supplier.
As of December 31, 2024, Nephros maintained a robust cash position of approximately $3.8 million and remained debt-free. Looking ahead, the company is optimistic about its growth prospects, with plans to expand its product lineup and explore new market sectors, including office spaces and transportation-related entities. This strategic direction, combined with its recent financial achievements, positions Nephros for continued success in the evolving water technology industry.
