Nephros, Inc., a water technology company, reported its financial results for the fourth quarter and fiscal year 2024, marking a significant milestone with its first profitable year and notable growth in key financial metrics.
The company's net revenue remained consistent at $14.2 million, matching the previous year's performance. However, Nephros demonstrated substantial improvement in profitability, transitioning from a net loss of $1.6 million in 2023 to a net income of $74,000 in 2024.
CEO Robert Banks highlighted the company's strategic achievements, including a 19% year-over-year sales growth in the fourth quarter and the addition of nearly 600 new customer sites. The launch of the 20" HydraGuard Ultrafilter represents a strategic expansion into new market sectors, including sterile processing, laboratories, and manufacturing.
The financial turnaround was primarily attributed to disciplined cost management and a focus on core programmatic revenue, which grew 9% for the year. The company's gross margin improved to 62% in 2024, compared to 59% in 2023, reflecting more favorable supplier terms.
Of particular note, Nephros achieved profitability in the third quarter of 2024, marking a pivotal moment in the company's financial trajectory. The new HydraGuard product is expected to provide opportunities in sterile processing, particularly in light of the new ANSI/AAMI ST108 standard for water quality.
As of December 31, 2024, Nephros maintained a strong cash position of $3.8 million and remained debt-free, positioning the company for continued growth and market expansion.
