Nephros Inc (NEPH)
NASDAQ:NEPH
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Nephros
(NASDAQ:NEPH)
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Rating:59Neutral
Price Target:
$3.50
▼(-30.14% Downside)
Action:Reiterated
Date:05/14/26
The score is driven by improved profitability versus prior years and a conservative balance sheet, but is held back by negative TTM operating/free cash flow and recent margin compression. Technicals are mildly supportive in the near term, while valuation remains demanding and the latest earnings call reinforced a growth outlook tempered by near-term profitability headwinds.
Positive Factors
Revenue Growth
Sustained top-line growth and a record revenue quarter reflect durable demand and successful site expansion. Programmatic installations and rising active sites indicate recurring project cadence and expanding customer penetration, supporting multi-month revenue visibility and scale potential.
Negative Factors
Negative Operating / Free Cash Flow
A swing to negative operating and free cash flow undermines the sustainability of reported earnings and forces reliance on cash reserves or financing. Persistent cash burn pressures liquidity, limits reinvestment capacity, and raises execution risk if programmatic receivables or inventory cycles worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth and a record revenue quarter reflect durable demand and successful site expansion. Programmatic installations and rising active sites indicate recurring project cadence and expanding customer penetration, supporting multi-month revenue visibility and scale potential.
Read all positive factors
Nephros (NEPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.98M
Dividend YieldN/A
Average Volume (3M)75.62K
Price to Earnings (P/E)56.7
Beta (1Y)-0.35
Revenue Growth23.25%
EPS Growth-3.31%
CountryUS
Employees31
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.07
Shares Outstanding10,856,546
10 Day Avg. Volume107,933
30 Day Avg. Volume75,620
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)5.08
Price to Sales (P/S)2.76
P/FCF Ratio31.48
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.93
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda45.33
Forecast
1Y Price Target
$8.00Price Target Upside59.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.06
Revenue Forecast (FY)$20.60M
Nephros Business Overview & Revenue Model
Company Description
Nephros, Inc. develops and sells high performance water solutions to the medical and commercial markets in the United States. The company operates in three segments: Water Filtration, Pathogen Detection, and Renal Products. It offers ultrafiltrati...
How the Company Makes Money
Nephros makes money primarily by selling point-of-use and related water filtration products and associated replacement filters/consumables used to maintain performance over time. Revenue is generated from (1) product sales of filtration devices an...
Nephros Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: Nephros achieved a record revenue quarter and strong programmatic growth while expanding customer footprint, services and addressable markets. However, profitability and margins were materially compressed this quarter (gross margin down 8 points, net income down 75%, adjusted EBITDA down 69%) due to tariffs, currency headwinds and a deliberate shift into lower-margin commercial applications. Management is pursuing tariff refunds, has reduced tariff rates (15% to 10%) and expects margins to improve as new inventory cycles through and mitigation actions take effect. Given the balance of a clear revenue and strategic growth story against significant near-term margin and profit pressure, the overall tone is cautiously optimistic but tempered by the notable financial headwinds.Positive Updates
Record Quarterly Revenue
Net revenue of $5.2 million in Q1 2026, a company record and the first quarter above $5.0M, up 7% versus $4.9M in Q1 2025.
Negative Updates
Gross Margin Compression
Gross margin declined to 57% in Q1 2026 from 65% in Q1 2025 (down 8 percentage points), driven by tariff impact, currency (stronger euro) and lower-margin product mix.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Net revenue of $5.2 million in Q1 2026, a company record and the first quarter above $5.0M, up 7% versus $4.9M in Q1 2025.
Read all positive updates
Company Guidance
Management guided for continued revenue growth driven by programmatic installations/replacements and geographic expansion (notably New York and Puerto Rico), pointing to Q1 revenue of $5.2M (up 7% from $4.9M), programmatic growth of ~23% YoY and 1,676 active customer sites; they expect margins to improve later in the year as tariff headwinds (which added over $200K in Q1 and were reduced from 15% to 10% at the end of February) abate and newer inventory is sold—Q1 gross margin was 57% (vs. 65% prior year) but would have been in the low‑60s absent tariffs. Key Q1 metrics cited included COGS of ~$2.2M, R&D of ~$346K (+17%), SG&A of ~$2.5M (+12%), net income of ~ $140K (down 75% YoY), adjusted EBITDA of ~ $206K (down 69% YoY), cash of ~ $4M and no debt; management also said they are pursuing tariff refunds, expect increasing contribution from services and education, and view the decline in emergency‑response revenue (historically ~10–15% of sales) as a temporary fluctuation.Nephros Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.12M | 18.79M | 14.16M | 14.24M | 9.97M | 10.22M |
| Gross Profit | 11.29M | 11.48M | 8.72M | 8.40M | 4.73M | 5.63M |
| EBITDA | 814.00K | 1.29M | 227.00K | -1.36M | -3.69M | -2.49M |
| Net Income | 776.00K | 1.19M | 74.00K | -1.57M | -7.38M | -4.11M |
Balance Sheet | ||||||
| Total Assets | 13.79M | 13.64M | 11.21M | 11.86M | 11.00M | 17.65M |
| Cash, Cash Equivalents and Short-Term Investments | 4.02M | 5.40M | 3.76M | 4.31M | 3.63M | 6.97M |
| Total Debt | 968.00K | 1.06M | 1.41M | 1.84M | 1.09M | 1.00M |
| Total Liabilities | 3.09M | 3.44M | 2.63M | 3.50M | 2.12M | 2.90M |
| Stockholders Equity | 10.70M | 10.20M | 8.59M | 8.36M | 5.59M | 11.70M |
Cash Flow | ||||||
| Free Cash Flow | -348.00K | 1.65M | -547.00K | 752.00K | -3.37M | -1.45M |
| Operating Cash Flow | -348.00K | 1.65M | -492.00K | 827.00K | -3.23M | -1.42M |
| Investing Cash Flow | 0.00 | 0.00 | -50.00K | -75.00K | -137.00K | -85.00K |
| Financing Cash Flow | 285.00K | -5.00K | -5.00K | -79.00K | 34.00K | 237.00K |
Nephros Technical Analysis
Positive
5.01
Price Trends
3.13
Positive
3.74
Negative
4.21
Negative
Market Momentum
0.08
Negative
59.57
Neutral
54.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEPH, the sentiment is Positive. The current price of 5.01 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 3.13, and above the 200-day MA of 4.21, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 54.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nephros Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $33.98M | 56.68 | 7.66% | ― | 23.25% | -3.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $28.77M | -7.04 | -173.86% | ― | 3.37% | 15.78% | |
46 Neutral | $23.68M | -1.59 | -73.04% | ― | -6.42% | 83.35% | |
46 Neutral | $19.16M | -1.17 | -8.13% | ― | 10.08% | 71.71% | |
46 Neutral | $21.54M | 21.30 | -258.08% | ― | 39.88% | 64.70% |
* Healthcare Sector Average
NEPH
Nephros
3.68
1.53
71.16%
HBIO
Harvard Bioscience
5.00
1.59
46.71%
RVP
Retractable Technologies
0.67
-0.08
-10.55%
MLSS
Milestone Scientific
0.33
-0.70
-68.14%
FEMY
Femasys
0.36
-0.68
-65.19%
Nephros Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Nephros Releases Updated 2026 Corporate Investor Presentation
Neutral
Mar 27, 2026
On March 27, 2026, Nephros, Inc. announced that it had posted an updated 2026 corporate presentation on its corporate website. The materials were furnished to investors under SEC disclosure rules but were explicitly characterized as not being form...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.