Nephros AI Stock Analysis
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Nephros (NEPH) AI Stock Analysis
Nephros
(NASDAQ:NEPH)
The score is primarily supported by improved profitability and a conservatively financed balance sheet, plus a notably upbeat earnings call highlighting growth and customer-base expansion. These are tempered by negative TTM free cash flow (weak cash conversion) and poor technicals (below key moving averages with negative MACD), while valuation appears reasonable but not especially discounted.
Nephros (NEPH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $33.37M
- Dividend Yield
- ―
- Average Volume (3M)
- 43.86K
- Price to Earnings (P/E)
- 17.2
- Beta (1Y)
- -0.16
- Revenue Growth
- 20.36%
- EPS Growth
- 26.09%
- Country
- US
- Employees
- 36
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Instruments & Supplies
Nephros Business Overview & Revenue Model
Company Description
Nephros, Inc. is a company that specializes in developing and marketing sophisticated water purification solutions across the United States, catering to both the medical and commercial sectors. Its operations are structured into three primary segment...
How the Company Makes Money
Nephros makes money primarily by selling filtration products and related consumables used to treat water at the point of use. A significant portion of its revenue is typically generated from recurring replacement-filter demand, because installed filt...
Nephros Earnings Call Summary
The call was strongly positive overall. Nephros reported double-digit revenue growth, higher net income and adjusted EBITDA, a record active customer base, continued programmatic and service expansion, broader market applications, and a debt-free balance sheet. These strengths were partly offset by lower gross margins, higher product and operating costs, volatility in emergency response revenue, long commercial sales cycles, and still-developing education ROI metrics.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management’s objective for the remainder of 2026 is simple: “finish strong,” entering 2027 with “a large recurring revenue base, deeper customer relationship, and broader market opportunities and infrastructure necessary to support this stage of Nephros’ growth.” Priorities are to take exceptional care of existing customers, expand the installed base, grow programmatic and service revenue, strengthen the educational platform, improve underlying margins, introduce differentiated products, and find new applications and markets; management also expects to continue investing in education as a driver of market development and commercial growth, with 1,766 active customer sites, year-to-date revenue of approximately $16.9 million, revenue growth of 20%, and core programmatic revenue growth of 19% as the current base.
Nephros Financial Statement Overview
Summary
Profitability and balance sheet strength are clear positives (improving net income, solid gross margin, very low leverage), but the latest TTM cash flow is the major drag: operating cash flow and free cash flow are negative despite positive earnings, raising cash-conversion and earnings-quality risk.
Income Statement
78PositiveBalance Sheet
86Very PositiveCash Flow
42Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.58M | 18.79M | 14.16M | 14.24M | 9.97M | 10.22M |
| Gross Profit | 12.87M | 11.48M | 8.72M | 8.40M | 4.73M | 5.63M |
| EBITDA | 1.98M | 1.35M | 227.00K | -1.36M | -3.91M | -2.49M |
| Net Income | 1.91M | 1.19M | 74.00K | -1.57M | -7.38M | -4.11M |
Balance Sheet | ||||||
| Total Assets | 15.30M | 13.64M | 11.21M | 11.86M | 11.00M | 17.65M |
| Cash, Cash Equivalents and Short-Term Investments | 4.55M | 5.40M | 3.76M | 4.31M | 3.63M | 6.97M |
| Total Debt | 774.00K | 1.06M | 1.41M | 1.84M | 1.09M | 1.00M |
| Total Liabilities | 2.76M | 3.44M | 2.63M | 3.50M | 2.12M | 2.90M |
| Stockholders Equity | 12.55M | 10.20M | 8.59M | 8.36M | 5.59M | 11.70M |
Cash Flow | ||||||
| Free Cash Flow | -910.00K | 1.65M | -547.00K | 752.00K | -3.37M | -1.45M |
| Operating Cash Flow | -910.00K | 1.65M | -492.00K | 827.00K | -3.23M | -1.42M |
| Investing Cash Flow | 0 | 0 | -50.00K | -75.00K | -137.00K | -85.00K |
| Financing Cash Flow | 285.00K | -5,000 | -5,000 | -79.00K | 34.00K | 237.00K |
Nephros Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEPH, the sentiment is Negative. The current price of 3.07 is below the 20-day moving average (MA) of 3.33, below the 50-day MA of 3.72, and below the 200-day MA of 3.61, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEPH.
Nephros Risk Analysis
Nephros disclosed 29 risk factors in its most recent earnings report. Nephros reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
1 New RiskNephros Peers Comparison
Overall Rating
- NEPH62Neutral
HBIO52Neutral
MLSS50Neutral
FEMY45Neutral
RVP44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| NEPH | 62Neutral | $34.24M | 17.16 | 16.83% | ― | 20.36% | 26.09% |
| HBIO | 52Neutral | $42.15M | -3.68 | -130.06% | ― | 2.34% | 78.52% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| MLSS | 50Neutral | $26.46M | -6.49 | -149.08% | ― | 3.72% | 43.78% |
| FEMY | 45Neutral | $11.98M | -0.33 | -225.98% | ― | 21.86% | 73.27% |
| RVP | 44Neutral | $16.59M | -4.61 | -4.59% | ― | -11.16% | 59.85% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| NEPH | Nephros, Inc. | 3.07 | -1.35 | -30.54% | |
| HBIO | Harvard Bioscience | 9.68 | 3.86 | 66.27% | |
| RVP | Retractable Technologies | 0.55 | -0.26 | -31.60% | |
| MLSS | Milestone Scientific Inc | 0.31 | -0.07 | -18.47% | |
| FEMY | Femasys, Inc. | 1.50 | -15.03 | -90.93% |
Nephros Corporate Events
Nephros Sets Key Deadlines for 2026 Annual Meeting
NeutralNephros, Inc. has scheduled its 2026 Annual Meeting of Stockholders for November 25, 2026, at 11:00 a.m. Eastern, to be conducted virtually via live webcast. The Board set September 30, 2026, as the record date for shareholders entitled to receive no...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 07, 2026