Revenue: As of FY2026 Q1, the actual value is USD 5.212 M, beating the estimate of USD 4.993 M.

EPS: As of FY2026 Q1, the actual value is USD 0.01.

EBIT: As of FY2026 Q1, the actual value is USD 65 K.

Net Revenue

Nephros, Inc. reported total net revenue of $5.2 million for the first quarter ended March 31, 2026, which is a 7% increase from $4.9 million in the first quarter of 2025. Product revenues were $5.04 million in Q1 2026, compared to $4.706 million in Q1 2025, while royalty and other revenues were $0.172 million in Q1 2026, compared to $0.171 million in Q1 2025.

Core Programmatic Revenue

Core programmatic revenue grew by 23% year over year in the first quarter of 2026, primarily driving the overall revenue increase. This growth was partially offset by a decline in emergency response business, which had been significant in the first quarter of 2025 and did not fully repeat in 2026.

Cost of Goods Sold

Cost of goods sold for the first quarter of 2026 was $2.2 million, an increase of 29% compared to $1.7 million in the first quarter of 2025.

Gross Margin

Gross margin for the first quarter of 2026 was 57%, down from 65% in the first quarter of 2025, representing an 8 percentage point decrease. This decline was primarily attributed to higher product costs due to the U.S. dollar’s decline relative to the Euro, the impact of tariffs, and a revenue mix shift towards lower-margin commercial revenues.

Operating Expenses

• Selling, General and Administrative (SG&A) Expenses: SG&A expenses increased by 12% to approximately $2.5 million in the first quarter of 2026, up from $2.3 million in 2025, primarily due to increases in headcount and professional fees.
• Research and Development (R&D) Expenses: R&D expenses rose by 17% to approximately $346,000 in the first quarter of 2026, compared to $295,000 in the first quarter of 2025, driven by higher headcount.
• Depreciation and Amortization Expenses: These expenses were approximately $29,000 in the first quarter of 2026, compared with approximately $39,000 in the first quarter of 2025.

Operating Income

Operating income for the first quarter of 2026 was $97,000, compared to $566,000 in the first quarter of 2025.

Net Income

Net income for the first quarter of 2026 was $0.1 million, a decrease from $0.5 million during the same period in 2025.

Adjusted EBITDA

Adjusted EBITDA was approximately $0.2 million for the first quarter of 2026, compared to approximately $0.7 million in the first quarter of 2025.

Cash and Cash Equivalents

As of March 31, 2026, Nephros, Inc. had cash and cash equivalents of approximately $4.0 million, a decrease from $5.4 million as of December 31, 2025. The company remains debt-free.

Other Balance Sheet Items (in thousands)

• Accounts receivable, net: $3,521 as of March 31, 2026, compared to $2,414 as of December 31, 2025.
• Inventory: $3,619 as of March 31, 2026, compared to $3,232 as of December 31, 2025.
• Total current assets: $11,496 as of March 31, 2026, compared to $11,223 as of December 31, 2025.
• Total assets: $13,794 as of March 31, 2026, compared to $13,641 as of December 31, 2025.
• Total current liabilities: $2,527 as of March 31, 2026, compared to $2,767 as of December 31, 2025.
• Total liabilities: $3,093 as of March 31, 2026, compared to $3,439 as of December 31, 2025.
• Accumulated deficit: -$142,998 as of March 31, 2026, compared to -$143,138 as of December 31, 2025.

Outlook

Management expressed confidence in the underlying strength of the business, noting the programmatic model drives consistent reorder activity and that installation, replacement, and education initiatives are gaining traction. Nephros, Inc. is actively pursuing refund opportunities for tariffs paid before February 2026 and exploring mitigation strategies for future exposure. The company believes it is well-positioned for both revenue growth and margin expansion through continued expansion in key markets like New York and Puerto Rico, and increasing contributions from its service initiatives.