Nephros, Inc. reported financial results for the fourth quarter and fiscal year ended December 31, 2025, marking the company's second consecutive year of positive net income. Full-year net revenue increased 33% year-over-year to $18.8 million, while fourth-quarter revenue grew 22% to $4.7 million, representing the highest quarterly revenue in the company's history. President and CEO Robert Banks described 2025 as transformational for the water technology company, attributing the performance to execution of a strategy built around three growth pillars: Products, Service, and Education. "Our differentiated product portfolio remains at the center of our success," Banks stated, noting continued expansion of reorder rates, deployment of additional sales associates, and growth beyond traditional healthcare applications.
The company extended its long-term supply agreement with key partner Medica, ensuring continuity of supply and supporting sustained multi-year growth. Nephros also advanced its service offering through expansion of installation and replacement capabilities led by Director of Service Alfred Vargas, which has reduced barriers to adoption and increased opportunities for recurring revenue. A significant development was the launch of the Nephros Water Institute, led by Director of Business Development Brianne McGuire, which establishes Nephros as an authority in waterborne pathogen mitigation and facility water safety. The Institute expands engagement with customers and industry stakeholders while supporting long-term demand for filtration, service, and compliance-driven solutions.
Financial performance showed net income for the year ended December 31, 2025, was $1.2 million, compared with $74,000 in 2024. Adjusted EBITDA for the year was $1.6 million, compared with $548,000 in 2024. Gross margin remained at 62% for both years, though fourth-quarter 2025 gross margin was 58% compared with 64% in the same period of 2024. The company noted margin erosion during the second half of fiscal 2025 primarily due to tariff impacts. Since April 2025, Nephros has been subject to a 15% tariff on all goods imported from Italy, which was reduced to 10% as of February 22, 2026. While this reduction provides some near-term relief, U.S. tariff policy remains unpredictable, creating uncertainty around potential future margin impacts.
As of December 31, 2025, Nephros had cash and cash equivalents of approximately $5.4 million, compared to $3.8 million as of December 31, 2024, and remains debt free. The company's integrated product, service, and education strategy strengthens its competitive position and provides a durable foundation for continued growth and operational scale. More information about Nephros is available at https://nephros.com.
