Nephros, Inc
Nephros, Inc. develops and sells water filtration and ultrafiltration products used in healthcare and commercial settings. Its systems are designed to improve water quality and help reduce infection and contamination risks in hospitals, dialysis centers, and foodservice or hospitality facilities.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueUltrafilters and related products used in hospitals and medical facilities to reduce waterborne pathogens.
Filtration products used in dialysis centers and dialysis equipment to remove biological contaminants.
Filters sold into foodservice, hospitality, convenience store, and industrial applications.
Installation, servicing, maintenance, and technical support for deployed systems.
Products
Reported · share of revenue- Products97.1 %
- Services2.8 %
- Other Revenue0.1 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Nephros sells to hospitals, dialysis providers, and other healthcare facilities that need water filtration for infection control and clinical use. It also serves commercial customers such as hotels, restaurants, casinos, convenience stores, and food and beverage operators that want better water quality for consumption and equipment protection. The company relies on a mix of direct sales and distributors, especially in commercial markets.
Buy ultrafilters for infection control, patient safety, and waterborne pathogen reduction.
Buy filtration products for hemodialysis water and bicarbonate concentrate treatment.
Buy water filters for ice machines, beverage systems, and drinking water quality.
Buy filtration products to improve water taste, odor, and equipment performance.
Buy and resell products or provide installation and service to end customers.
Strategy
Nephros is focused on growing sales of its water filtration products while controlling operating costs and preserving liquidity. Management is also working to expand distribution, strengthen service coverage, and support demand in both healthcare and commercial markets. Product acceptance, regulatory compliance, and the ability to maintain positive operating cash flow are central to the strategy.
Commercial growth now depends on new partners after the Donastar relationship ended.
Hospitals and dialysis centers are core end markets for the ultrafiltration platform.
The company wants to fund operations internally and reduce financing dependence.
Geography
Nephros is a U.S.-based company with corporate headquarters, research, manufacturing, and distribution facilities in New Jersey. The filings do not provide a country revenue split, but the business appears centered on the United States with commercial and healthcare customers served through direct sales and distribution partners. Geography matters because the company’s growth depends on building local service and distribution coverage in each market it enters.
Risks
Nephros depends on third-party contractors and distributors to install, service, and sell its products, so execution failures can directly hurt revenue and reputation. The company also faces regulatory and product-compliance risk because its medically approved products are subject to FDA and other rules, while commercial demand can fluctuate with customer budgets, competition, and emergency-response buying patterns. As a smaller company, it also faces customer concentration, supply-chain dependence, and liquidity sensitivity if demand weakens.
- Reliance on third-party contractors for installation and serviceImpact: HighLikelihood: Medium
Poor service quality or delays can damage product performance, compliance, and customer trust.
Exposure: Healthcare and commercial installations
- Dependence on new distribution partners in commercial marketsImpact: HighLikelihood: Medium
After the Donastar termination, commercial sales growth depends on partner execution.
Exposure - Regulatory compliance and FDA oversightImpact: HighLikelihood: Medium
Medical-use products are subject to testing, labeling, distribution, and approval rules.
Exposure: Ultrafilters used in healthcare settings
- Supply-chain dependence on third-party product suppliersImpact: MediumLikelihood: Medium
The company is vulnerable to supply disruptions and price fluctuations.
Exposure: Product sourcing and inventory availability
- Demand volatility in emergency-response salesImpact: MediumLikelihood: Medium
Management noted elevated emergency-response sales may not persist.
Exposure: Quarterly revenue mix
Accounting
Judgemental itemsShipping-based recognition makes revenue sensitive to order timing and logistics.
Impact: Quarterly revenue and margin volatility
Discounts, returns, and allowances reduce recognized revenue.
Impact: Net revenue and gross margin
Management cited lower inventory reserves as a margin driver in 2025.
Impact: Gross profit and operating income
Finite-lived intangibles and goodwill require periodic impairment testing.
Impact: Non-cash charges to earnings
Share-based awards affect SG&A and can create period-to-period noise.
Impact: Operating expense and net income
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Last updated: 24/09/2026