0001628280-26-021186
SEC filingRockwell Medical, Inc. (RMTI) reported FY 2025 net sales of $69.3 million, a 31.8% decline from $101.5 million in 2024, primarily due to a $34.6 million reduction in sales to DaVita, which fell from 45% to 16% of total net sales. Product revenue was $68.9 million, with non-product revenue of $0.3 million from deferred license revenue. Gross profit decreased 33.1% to $11.7 million, yielding a gross margin of 16.9% versus 17.2% prior year, impacted by lower volumes including a non-recurring $1.8 million premium order from DaVita in 2024, offset partially by $2.0 million price adjustment. Operating loss widened to $4.7 million from $0.6 million profit, driven by higher manufacturing costs and severance. Net loss was $5.3 million. Operating cash flow was negative $0.7 million, versus positive $4.2 million prior, with net cash decrease of $5.0 million. Balance sheet shows $57.1 million total assets, $37.0 million equity, and $25.0 million in cash plus investments. Management believes sufficient liquidity for 12 months, focusing on new customer agreements like Innovative Renal Care, operational efficiency post-South Carolina facility closure, and DaVita extension to 2026 with price increases, positioning for growth in the $560 million U.S. hemodialysis concentrates market by 2028.
Rockwell Medical reported FY 2025 net sales of $69.3 million, down 31.8% from $101.5 million in 2024, driven by a $34.6 million drop in DaVita sales from 45% to 16% of revenue. Gross profit fell 33.1% to $11.7 million (16.9% margin vs. 17.2%), reflecting lower volumes, a non-recurring $1.8 million premium DaVita order in 2024, higher manufacturing costs (+$1.0 million), and severance (+$0.4 million), offset by $2.0 million DaVita price adjustment. Operating loss was $4.7 million versus $0.6 million profit, with selling/marketing at $2.4 million (-14.4%) and G&A $14.0 million (-0.5%). Net loss $5.3 million, other expense $0.6 million. Cash from operations -$0.7 million vs. +$4.2 million prior; total liquidity $25.0 million (cash $10.7 million + investments $14.3 million), working capital $28.6 million.
The Company operates in one segment: hemodialysis market, with dialysate concentrates comprising 100% of revenue ($69.3 million, -31.8% YoY). Product sales $68.9 million; non-product $0.3 million from deferred license revenue (Sun Pharma, Jeil Pharma, Drogsan). DaVita reduction ($34.6 million) offset by $2.1 million from price increases and new customers, including Innovative Renal Care multi-year agreement and expansions with skilled nursing dialysis provider. Added 30 new western U.S. customers (>10% footprint). International sales 12% of total (up from 9%). Serves 294 customers, including all top five U.S. dialysis providers. Amended DaVita agreement extended to 2026 with price increases.
Gross margin 16.9% (down from 17.2%) due to volume decline and cost pressures, partially mitigated by pricing. Cost of sales $57.6 million (83.1% of revenue). Operating margin -6.8%. R&D $0; selling/marketing 3.4% of revenue; G&A 20.3%. Stock-based compensation up $0.5 million in G&A. Efforts include facility closure (South Carolina Q3 2025), supplier renegotiations, equipment upgrades for efficiency.
Operating cash -$659K (net loss -$5.3M, depreciation $2.2M, stock comp $1.8M, inventory change -$2.8M). Investing -$8.5M (investments net -$8.0M, equipment -$542K). Financing +$4.3M (stock issuance $7.8M, offset by Evoqua earn-out $2.4M, notes/leases). Net cash decrease -$5.0M; ending cash $9.0M (balance sheet $10.7M cash). Total assets $57.1M (current $38.2M); liabilities $20.2M (term loans $8.8M); equity $37.0M (accum. deficit -$403.0M). Innovatus A&R Loan $8.8M, compliant with covenants.
Management expects sufficient funds for 12 months via operations, $13.1M ATM facility. Priorities: grow concentrates business, new customers/long-term agreements, diversify portfolio, innovate renal care. DaVita extension to 2026; new pacts with Innovative Renal Care (3+1 years), skilled nursing provider (minimums). Western U.S. expansion. Risks: competition (Fresenius, Nipro), raw material/labor/transport costs, customer concentration, regulatory compliance, debt covenants, capital needs beyond 12 months.