Key Highlights

  • Net Revenue increased 18 percent to $5.6 million in the third quarter of 2026.
  • Net income was $0.5 million, compared with $0.3 million a year earlier.
  • Adjusted EBITDA rose to $0.6 million from $0.4 million.
  • Revenue followed a record $6.0 million reported in the second quarter.

Nephros, Inc. (NASDAQ:NEPH), a water technology company that provides filtration solutions to medical and commercial markets, reported results for the third quarter ended September 30, 2026. Net revenue increased 18 percent to $5.6 million from $4.8 million a year earlier. Net Income was $0.5 million, up from $0.3 million, and adjusted EBITDA rose to $0.6 million from $0.4 million. The company's president and chief executive, Robert Banks, said the quarter continued the momentum the company has built.

Revenue Trend and Sequential Performance

Revenue in the third quarter of $5.6 million followed the $6.0 million the company reported in the second quarter, so sales were slightly lower on a sequential basis. Year over year, however, revenue grew 18 percent.

Management described the quarter as translating revenue growth into improved profitability. The release presents revenue growth and the move from prior-year profit as connected outcomes, and the figures show both measures improving over the same twelve-month window.

Profitability and Margin Measures

Net income of $0.5 million compares with $0.3 million a year earlier, an increase of about 67 percent on a small base. Adjusted EBITDA of $0.6 million compares with $0.4 million, a gain of roughly 50 percent. Because both measures start from low absolute levels, the percentage increases are large, while the dollar gains remain modest in size.

The gap between net income and adjusted EBITDA indicates that items such as depreciation, amortization, interest and taxes are included in net income but excluded from the adjusted figure.

Business Context and Outlook

Nephros describes itself as a leading water technology company serving medical and commercial customers with filtration products. Growth in those end markets depends on customer adoption of filtration systems and on the company's ability to keep delivering products.

The company's trajectory over recent quarters, from a $6.0 million second quarter to $5.6 million in the third, shows that revenue has not moved in a straight line. Future quarters will show whether the year-over-year growth rate holds and whether the profit improvement continues at a similar scale.

Final Takeaways

Nephros reported revenue growth of 18 percent, net income of $0.5 million and adjusted EBITDA of $0.6 million for the third quarter. The figures show year-over-year improvement in both revenue and profit, while sequential revenue eased from the prior quarter's level.