10-Q · May 7, 2026
Nephros, Inc. reported a revenue increase of 7% year-over-year for Q1 2026, driven by growth in product sales despite a drop in emergency response business. However, gross margins decreased from 65% to 57%, and net…
Earnings analysis · 10-Q
NEPH earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
NEPH reported strong Q2 2026 operating momentum, with revenue of $6.017 million and EPS of $0.11, both up from Q1 2026 and Q2 2025. However, the filing does not provide current gross margin, operating margin, cash flow,…
Read full summary
NEPH reported strong Q2 2026 operating momentum, with revenue of $6.017 million and EPS of $0.11, both up from Q1 2026 and Q2 2025. However, the filing does not provide current gross margin, operating margin, cash flow, balance-sheet, segment, or quantitative guidance data in the extracted text. The principal concern is that disclosure controls remained ineffective as of June 30, 2026 because a previously identified revenue-recognition material weakness had not yet been fully remediated.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.11
What stood out
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Revenue Accelerated
Q2 2026 revenue was $6.017 million versus $5.2 million in Q1 2026 and approximately $4 million in Q2 2025, indicating sequential and year-over-year growth.
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EPS Improved Sharply
Q2 2026 actual EPS was $0.11 versus $0.01 in Q1 2026 and $0.02 in Q2 2025, a substantial sequential and year-over-year improvement.
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Revenue Controls Implemented
Management implemented additional revenue-recognition controls by the quarter ended September 30, 2025, including standalone pricing and controls over service completion and customer approval.
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No Material Misstatement Identified
Management stated that the material weakness had not caused a material misstatement in the financial statements or disclosures for any period presented.
What to watch
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Material Control Weakness Persists
Disclosure controls and procedures were concluded to be ineffective as of June 30, 2026 because of a material weakness in internal control over financial reporting.
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Revenue Recognition Risk
The material weakness, previously disclosed for the period ended June 30, 2025, relates to identifying contracts with product and service deliverables and allocating transaction prices under ASC 606.
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Limited Quarterly Risk Update
The company remains a smaller reporting company and stated that Item 1A risk-factor disclosure was not required; investors were directed to the risk factors in the December 31, 2025 Form 10-K.
Management's outlook
No quantitative outlook or guidance was provided in the extracted 10-Q. The filing states that the 2026 Annual Meeting date had not yet been determined as of August 10, 2026; no operating outlook was disclosed.
Earlier filings 2
10-K · April 30, 2026
Nephros, Inc. reported a mixed performance with revenues increasing to $20 million in FY 2025 from $17 million in FY 2024, reflecting a solid growth trajectory and improved operating margins. However, the company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.