Nephros Inc (NASDAQ: NEPH) is a medical device and water filtration company that develops and markets high-performance water filtration solutions for points of use, with a core focus on medical-grade water filtration. Revenue comes from product sales of filtration devices and consumables, supplemented by royalty and service agreements recognized under ASC 606. The company targets hospitals, dialysis centers, foodservice operators, laboratories, manufacturing facilities, aviation environments, and government buildings. Nephros reported total net revenues of $18.8M for FY2025, up 33% from $14.2M in FY2024, with gross margin holding at 62% in both years. Operating income reached $1.1M in FY2025 versus near-breakeven $6K in FY2024. The company was incorporated in Delaware in April 1997 and is headquartered in South Orange, New Jersey. Nephros does not manufacture its medical device filtration products, sourcing filtration materials and finished goods through a License and Supply Agreement with Medica S.p.A., an Italy-based manufacturer of Medisulfone ultrafiltration technology. Some commercial filtration products are manufactured at the South Orange facility.

Revenue model

Primarily transactional product sales of filtration devices and consumables. Secondary revenue from royalty agreements (recognized when related sales occur) and service revenue (recognized at point of service completion). Revenue allocation for bundled product and service contracts uses relative standalone selling price under ASC 606.

Products and services

Two medical filtration product lines: infection control filters (used in hospitals, NICUs, surgical rooms, ice machines) and dialysis water filters. Commercial filtration products for foodservice, laboratories, manufacturing facilities, aviation, and government buildings. Recent addition of Total PFAS reduction capability targeting schools and federally regulated facilities. Filtration products based on Medica S.p.A.'s proprietary Medisulfone ultrafiltration technology.

Customers and end markets

Hospitals and healthcare facilities (used in hundreds of medical facilities per the 10-K filed 2026-03-12), dialysis centers, foodservice operators, laboratories, manufacturing facilities, aviation environments, and government buildings. Schools and federally regulated facilities are an emerging end market tied to PFAS reduction requirements under the Safe Drinking Water Act. The American Hospital Association's 2023 survey identified approximately 6,093 U.S. hospitals as the addressable base for infection control products.

Value-chain role

Asset-light medical device marketer and distributor for its medical filtration line, relying on Medica S.p.A. (Italy) as exclusive supplier of filtration materials and technology under a License and Supply Agreement. Partial manufacturer for commercial filtration products at its South Orange, New Jersey facility. Subject to FDA QSR compliance and periodic unannounced inspections. Holds regulatory approvals in Canada and Brazil in addition to the United States.

Geographic exposure

Primarily United States. Regulatory approvals also held in Canada and Brazil as of the 10-K filed 2026-03-12. Key supplier (Medica S.p.A.) operates in the European Union, creating exposure to U.S.-EU tariff risk.

Source: SEC 10-K, filed 2026-03-12

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