Nephros Q2 2025: Unpacking Contradictions in Sales Strategy, Digital Tools, and Customer Growth

Sales force expansion and strategy, digital tracking tool's impact on reorders, sales force strategy and customer relationship management, sales team expansion and strategic growth, and customer growth and installations are the key contradictions discussed in Nephros's latest 2025Q2 earnings call.



Revenue Growth and Programmatic Sales:
- Nephros, Inc. reported net revenue of $4.4 million for Q2 2025, up 36% year-over-year.
- Growth was driven by strong performance in the programmatic business, which saw 40% compound growth over the past 2 years.

Customer Base Expansion:
- The company added over 400 new active customer sites in the past 2 years, reaching over 1,600 active sites in Q2 2025.
- This expansion was supported by the thriving installation program, which accelerated reorder rates and a strategic sales team expansion into non-healthcare verticals.

Profitability and Cash Flow Improvement:
- Nephros achieved positive net income of $237,000 in Q2 2025, compared to a net loss in the same period last year, and positive adjusted EBITDA of $355,000.
- The improvement in profitability was due to increased gross margins, primarily driven by reduced shipping costs and inventory adjustments, and improved cash flow through a decrease in accounts receivable.

Gross Margin Improvement:
- Gross margins in Q2 2025 reached 63%, up from 59% in Q2 2024.
- The improvement was driven by a reduction in shipping costs and inventory reserve adjustments, coupled with a favorable product mix.