Nephros (NEPH) Q2 2026 Earnings Report

92 Followers

Previous Report: Q1 2026

NEPH Q2 2026 EPS Results

Actual EPS$0.11

Consensus EPS<$0.01

Beat/MissBeat by +$0.11

One Year Ago EPS$0.02

NEPH Q2 2026 Revenue Results

Actual Revenue$6.02M

Expected Revenue$4.99M

Beat/MissBeat by +$1.02M

YoY Revenue Growth+36.16%

Earnings Announcement Details

QuarterQ2 2026

Date08/06/2026

TimeAfter Close

Conference CallThursday, August 6, 2026

NEPH Upcoming Earnings

Nephros's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

NEPH Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Aug 06, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call conveyed strong operational and financial progress: record quarterly revenue, robust programmatic and service growth, and significant improvements in net income and adjusted EBITDA. These positives were tempered by margin items—partly benefited by a one-time $600K tariff refund—and by cash flow pressures driven by rising inventory and receivables, ongoing tariff/FX/freight cost headwinds, and early-stage adoption of new products. Management emphasized durable, broad-based execution, ongoing investments in markets, services and education, and confidence in future growth, while acknowledging margin and cash conversion areas for improvement.

Company Guidance

Guidance on the call was largely qualitative and execution-focused: management said H2 priorities are to serve existing customers, expand the installed base, increase installation and scheduled replacement services, improve underlying gross margins and broaden investor/market awareness while continuing investments in markets (Greater New York, Puerto Rico), the Nephros Water Institute and new product lines (PFAS, micro/nanoplastics, sterile processing, commercial). They reiterated margin headwinds from a continuing ~10% tariff, weaker USD vs. EUR and higher shipping, noting a one‑time $600k tariff refund (≈$300k applied to H1 2026 revenue and ≈$300k to prior-period inventory) that boosted reported Q2 gross margin to ~67% (Q2 2025: ~63%; H1 2026: ~63% vs 64% prior year on a reported basis); management expects margins to remain pressured. Operational targets are growth across channels rather than single-product dependence—Q2 revenue was $6.0M (+36% YoY, +15% sequential), programmatic product revenue +~27%, service revenue nearly tripled, H1 revenue $11.2M (+21% YoY)—and financial momentum included Q2 net income ~$1.2M (up >400%), adjusted EBITDA ~$1.3M (up 260%), cash of ~$4.7M (debt‑free), while R&D and SG&A investments continued (Q2 R&D +~18%, SG&A ~$2.4M +10%; H1 R&D $712k +17%, SG&A $4.9M +11%), with operating cash flow of $681k in Q2 but net cash used of $990k for the first 6 months.

Record Quarterly Revenue

Net revenue of $6.0M in Q2 2026, the highest quarterly revenue in company history, up 36% year-over-year (from $4.4M) and approximately 15% sequentially from Q1 2026.

Strong Year-to-Date Growth

Revenue for the first six months was $11.2M, up 21% versus $9.3M in the prior year period.

Programmatic Product Growth

Core programmatic product revenue grew approximately 27% year-over-year, representing durable, recurring foundation sales with ongoing replacement purchases.

Service Revenue Acceleration

Service-only revenue nearly tripled in the quarter, reflecting increased adoption of installation, replacement and ongoing support; services are deepening customer relationships and driving additional product purchases.

Record Profitability Metrics

Q2 net income rose to approximately $1.2M (up over 400% from $237K prior year) and adjusted EBITDA increased to ~$1.3M (up 260% from $355K prior year). For the six months, net income rose 68% to $1.3M and adjusted EBITDA increased 46% to $1.5M.

Balance Sheet Strength

Cash balance of ~$4.7M as of June 30, 2026 (up from ~$4.0M on March 31, 2026) and the company remains debt-free.

Broader Market Positioning and Recognition

Expanded investor and market visibility — hosted a virtual investor event, participated at the Maxim conference, and announced inclusion in the Russell Microcap Index — while actively expanding presence in markets such as Greater New York and Puerto Rico.

Product Pipeline and Education Initiatives

Introduced new products addressing PFAS, microplastics/nanoplastics, sterile processing and commercial uses; launched/expanded the Nephros Water Institute and educational outreach to drive future adoption.

NEPH Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 05, 2026	2026 (Q3)	0.02 / -	0.03	―
Aug 06, 2026	2026 (Q2)	<0.01 / 0.11	0.02	450.00% (+0.09)
May 07, 2026	2026 (Q1)	0.01 / 0.01	0.05	-80.00% (-0.04)
Mar 12, 2026	2025 (Q4)	0.01 / 0.01	0.03	-66.67% (-0.02)
Nov 06, 2025	2025 (Q3)	-0.02 / 0.03	0.02	50.00% (<+0.01)
Aug 07, 2025	2025 (Q2)	-0.03 / 0.02	-0.03	166.67% (+0.05)
May 08, 2025	2025 (Q1)	>-0.01 / 0.05	-0.02	350.00% (+0.07)
Mar 06, 2025	2024 (Q4)	0.03 / 0.03	-0.06	150.00% (+0.09)
Nov 07, 2024	2024 (Q3)	-0.02 / 0.02	-0.02	200.00% (+0.04)
Aug 08, 2024	2024 (Q2)	-0.01 / -0.03	-0.04	25.00% (+0.01)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed