Nephros Inc (NEPH)
NASDAQ:NEPH
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Nephros
(NASDAQ:NEPH)
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Rating:57Neutral
Price Target:
$3.00
▼(-40.12% Downside)
Action:ReiteratedDate:03/17/26
The score is primarily supported by improving fundamentals (profitability turnaround, strong gross margins, low leverage) and generally constructive earnings-call guidance, but is held back by weak technical trend/momentum and a high P/E with no dividend support.
Positive Factors
High Gross Margins
Consistently strong gross margins (~61–62%) reflect favorable product economics for Nephros's filtration devices and consumables. Durable product-level margins support reinvestment in R&D, services and go-to-market efforts, and provide a cushion against cost shocks over the medium term.
Negative Factors
Historical Profitability Volatility
Despite a 2024–25 turnaround, the company’s multi-year history of losses and uneven cash generation weakens confidence in sustained profitability. Small absolute scale means adverse demand or one-off costs could quickly reverse earnings progress, challenging durability of margins.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Consistently strong gross margins (~61–62%) reflect favorable product economics for Nephros's filtration devices and consumables. Durable product-level margins support reinvestment in R&D, services and go-to-market efforts, and provide a cushion against cost shocks over the medium term.
Read all positive factors
Nephros (NEPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.44M
Dividend YieldN/A
Average Volume (3M)75.62K
Price to Earnings (P/E)43.4
Beta (1Y)-0.42
Revenue Growth32.36%
EPS GrowthN/A
CountryUS
Employees31
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.01
Shares Outstanding10,644,268
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 Cap0.83
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit2.20
Enterprise Value/Ebitda19.64
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)$20.78M
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:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial story: solid top-line growth (+33% FY), return to full-year profitability (~$1.2M), improved full-year adjusted EBITDA and positive operating cash flow, expansion of product/service/education initiatives, and an increased active site base. Near-term headwinds were highlighted—most notably Q4 margin compression (58% vs 64% prior-year quarter) driven by import tariffs, higher quarterly SG&A and R&D spend, one-time Q4 expenses, and working capital build that pressured quarterly EBITDA and net income. On balance, the company appears to be scaling with improving annual profitability and cash generation, while managing near-term cost and tariff-related margin challenges.Positive Updates
Strong Revenue Growth
Full-year 2025 revenue of $18.8M, up 33% from $14.2M in 2024; Q4 2025 revenue of $4.7M, up 22% year-over-year, driven by higher programmatic reorder activity and new active sites.
Negative Updates
Quarterly Margin Pressure
Gross margin declined to 58% in Q4 2025 from 64% in Q4 2024 (down 6 percentage points), despite full-year gross margin holding at 62% year-over-year.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Full-year 2025 revenue of $18.8M, up 33% from $14.2M in 2024; Q4 2025 revenue of $4.7M, up 22% year-over-year, driven by higher programmatic reorder activity and new active sites.
Read all positive updates
Company Guidance
Management framed 2026 as a continued, multi‑year growth story built on three pillars—products, services and education—with emphasis on expanding recurring programmatic revenue (over 90% of sales in Q4 and for FY2025) as active sites rise (≈1,681 at year‑end). They pointed to 2025 results that underpin the outlook: revenue +33% to $18.8M (Q4 $4.7M, +22% YoY), net income ≈$1.2M, adjusted EBITDA $1.6M for the year ($131k in Q4), gross margin 62% for FY2025 (58% in Q4), $5.4M cash and no debt, while flagging cost pressures from tariffs (15% on Italian imports since April 2025, reduced to 10% Feb 22, 2026) and higher R&D ($1.3M) and SG&A ($9.0M).Nephros Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.79M | 14.16M | 14.24M | 9.97M | 10.22M |
| Gross Profit | 11.48M | 8.72M | 8.40M | 4.73M | 5.63M |
| EBITDA | 1.29M | 227.00K | -1.36M | -3.69M | -2.49M |
| Net Income | 1.19M | 74.00K | -1.57M | -7.38M | -4.11M |
Balance Sheet | |||||
| Total Assets | 13.64M | 11.21M | 11.86M | 11.00M | 17.65M |
| Cash, Cash Equivalents and Short-Term Investments | 5.40M | 3.76M | 4.31M | 3.63M | 6.97M |
| Total Debt | 1.06M | 1.41M | 1.84M | 1.09M | 1.00M |
| Total Liabilities | 3.44M | 2.63M | 3.50M | 2.12M | 2.90M |
| Stockholders Equity | 10.20M | 8.59M | 8.36M | 5.59M | 11.70M |
Cash Flow | |||||
| Free Cash Flow | 1.65M | -547.00K | 752.00K | -3.37M | -1.45M |
| Operating Cash Flow | 1.65M | -492.00K | 827.00K | -3.23M | -1.42M |
| Investing Cash Flow | 0.00 | -50.00K | -75.00K | -137.00K | -85.00K |
| Financing Cash Flow | -5.00K | -5.00K | -79.00K | 34.00K | 237.00K |
Nephros Technical Analysis
Negative
5.01
Price Trends
3.72
Negative
4.32
Negative
4.32
Negative
Market Momentum
-0.27
Negative
35.09
Neutral
28.79
Neutral
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 5.01 is above the 20-day moving average (MA) of 3.18, above the 50-day MA of 3.72, and above the 200-day MA of 4.32, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 35.09 is Neutral, neither overbought nor oversold. The STOCH value of 28.79 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 25 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 |
|---|---|---|---|---|---|---|---|
57 Neutral | $30.44M | 43.37 | 12.22% | ― | 32.36% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $24.73M | -0.52 | -388.56% | ― | -10.60% | -271.93% | |
46 Neutral | $23.29M | -3.92 | -164.78% | ― | 0.59% | -39.76% | |
43 Neutral | $21.20M | -1.84 | -8.13% | ― | -0.95% | 58.17% | |
42 Neutral | $25.95M | -1.44 | -534.91% | ― | 63.53% | 12.49% |
* Healthcare Sector Average
NEPH
Nephros
2.86
1.05
58.01%
HBIO
Harvard Bioscience
5.53
1.87
51.05%
RVP
Retractable Technologies
0.71
<0.01
1.29%
MLSS
Milestone Scientific
0.29
-0.59
-67.23%
FEMY
Femasys
0.43
-0.69
-61.70%
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.