Nephros Q2 profit rises on higher revenue, tariff refund

The company said growth was driven by expansion in core programmatic and service revenue.

• Core programmatic revenue rose 27% year over year, according to CEO Robert Banks.
• Service revenue nearly tripled year over year, reflecting higher demand for installation, replacement, and water management support.
• The tariff refund provided a one-time boost to gross margin in Q2.

Nephros said its recurring revenue base and commercial opportunities position it for sustainable growth, while noting it remains mindful of the broader economic environment in its outlook.

The current average analyst rating on the shares is buy, with 2 strong buy or buy ratings, 1 hold, and no sell or strong sell ratings. The median 12-month price target is $6.00, about 67.6% above the August 5 closing price of $3.58. The stock recently traded at 37 times next-12-month earnings, versus three months ago.