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what it is
Nephros sells water filters and pathogen testing systems to hospitals, dialysis centers, and commercial buildings.
how it gets paid
Last year Nephros made $19M in revenue. hospital ultrafilters was the main engine at $8.4M, or 44% of sales.
why it's growing
Revenue grew 32.7% last year. 195% revenue growth mattered most because a $19M company needs proof of demand before the market believes any bigger story.
what just happened
Revenue hit $14M, up 195% vs. prior year, while gross margin held at 63.0%.
At a glance
C++ balance sheet — some cracks in the foundation
40/100 earnings predictability — expect surprises
30.8x trailing p/e — you're paying up for this one
0.9% return on capital — nothing to write home about
$0.01 fy2024 eps est
xvary composite: 32/100 — weak
What they do
Nephros sells water filters and pathogen testing systems to hospitals, dialysis centers, and commercial buildings.
Nephros does the unglamorous part of healthcare: keeping bacteria and viruses out of water. That matters because a bad shower, sink, or dialysis line can become a medical problem fast. With just 31 employees, the company still produced a 63.0% gross margin in the latest filing, which tells you customers pay up for filtration that works.
How they make money
$19M
annual revenue · their business grew +32.7% last year
hospital ultrafilters
$8.4M
commercial facility filters
$5.2M
dialysis water filters
$4.0M
pathogen detection systems
$1.4M
The products that matter
filters for hospitals and buildings
Water Filtration Systems
$18.8M · core revenue line
This is the whole reported revenue base today. It grew to $18.8M last year, so when you buy NEPH you are mostly buying this one product family.
33% growth
water quality testing services
Pathogen Detection
revenue not separately disclosed
The service rounds out the pitch, especially for healthcare customers, but the snapshot gives no standalone revenue number. That means you should treat it as strategic support, not yet a proven second engine.
unproven scale
Key numbers
30.8x
trailing p/e
Trailing P/E → stock price divided by past earnings → so what: you are paying about 31 times profit for a company that earned $0.11 a share over the last year.
63.0%
gross margin
Gross margin → sales left after product costs → so what: the filters are profitable before overhead shows up.
1.0%
operating margin
Operating margin → profit after running the business → so what: almost all that gross profit gets eaten by expenses.
$1M
long-term debt
Long-term debt equals just 2% of capital, which means the balance sheet is light on leverage even if the business is still small.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $1M (2% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for NEPH right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $14M, up 195% vs. prior year, while gross margin held at 63.0%.
The quarter showed the good version of Nephros: sales acceleration and positive earnings leverage. The quiet part is that annual operating margin was still just 1.0%, so scale needs to stick.
$14M
revenue
$0.10
eps
63.0%
gross margin
the number that mattered
195% revenue growth mattered most because a $19M company needs proof of demand before the market believes any bigger story.
source: company earnings report, 2026
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What could go wrong
the #1 risk is tariff pressure on Italian-sourced filtration products.
high
tariff pressure on imported products
A 10% tariff on imports from Italy cut Q4 gross margin to 58% from 64%. For a business earning roughly $0.01 per share, that kind of squeeze is not background noise — it is the story.
impact: weaker gross profit on the company’s main revenue line
med
growth slowdown in a one-engine business
Revenue grew 33% last year, which is impressive. It also carries the valuation. If that slows meaningfully while margins stay pressured, a 30.8x trailing P/E stops looking like optimism and starts looking like wishful thinking.
impact: multiple compression and lower confidence in the growth case
med
thin margin for error on profitability
This is a near-break-even company with a C++ balance sheet, 5/100 price stability, and only $1M in long-term debt. Low debt helps. Thin earnings do not. One weak quarter can move the narrative fast.
impact: volatility, capital raise risk, or both if execution slips
A 600-basis-point quarterly margin hit on an $18.8M business tells you NEPH does not have much room to absorb shocks.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
gross margin back above 60%
This is the cleanest tell. If gross margin stays stuck near 58%, revenue growth is buying less profit than the headline suggests.
calendar
next earnings report
The next update needs to show whether Q4 was a tariff dent or the start of a lower-margin run rate. You want both growth and stability.
tariffs
any further change to the Italy import rate
The tariff already moved down to 10% from 15% in February 2026. Another reduction would matter immediately. So would any reversal.
cash flow
free cash flow staying positive
The company generated $1.6M in free cash flow in FY2025. For a $37M market cap name, that matters more than polished investor-relations language ever will.
Analyst rankings
earnings predictability
40 / 100
In human-speak, the numbers are not steady enough to trust quarter to quarter without a wider margin of safety.
risk rank
5
That means it ranks as safer than only 5% of stocks in the dataset. Translation: this is a speculative name.
source: institutional data
Institutional activity
institutional ownership data for NEPH is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4
current price
n/a
target midpoint · n/a from current
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