Nephros, Inc. (NEPH) AI Stock Analysis

Nephros, Inc. delivers advanced water solutions for medical and commercial applications across the United States through three segments: Water Filtration, Pathogen Detection, and Renal Products. Its ultrafiltration systems remove biological contaminants and pathogens like legionella and pseudomonas in dialysis centers and hospitals, while also serving military, recreation, commercial, and healthcare facilities. The company markets real-time water testing systems and develops medical devices for renal disease, including a 2nd generation hemodiafiltration system. Additionally, Nephros provides commercial filtration solutions under the Nephros and AETHER brands for food service, hospitality, and convenience stores to improve water taste and prevent biofilm and scale.

Nephros grew annual revenue from $10.2M in FY2021 to $18.8M in FY2025, reflecting a 5-year revenue CAGR of 17.0%. Gross margin improved from 55.1% in FY2021 to 61.1% in FY2025. After net losses of -$4.1M in FY2021 and -$7.4M in FY2022, net income turned positive at $74,000 in FY2024 and expanded to $1.2M in FY2025. Trailing twelve months revenue reached $20.7M with an operating margin of 20.2% and EPS of $0.15. For the latest quarter ended June 30, 2026, quarterly revenue grew 36.2% year-over-year, accompanied by 450.0% quarterly earnings growth.

As of June 30, 2026, Nephros held $4.7M in cash and short-term investments against total debt of $872,000, leaving net cash of $3.8M. Shareholders' equity was $12.0M on total assets of $15.8M. Liquidity is supported by a current ratio of 4.07 and a low debt-to-equity ratio of 0.07. In FY2025, operating cash flow and free cash flow both stood at $1.6M, rebounding from free cash flow of -$547,000 in FY2024. Over a 5-year period, share count increased 10.6%.

At a share price of $3.65 as of October 16, 2026, Nephros has a market capitalization of $39.6M and an enterprise value of $41.9M. The stock trades at a trailing P/E of 24.3x, closely aligned with the 24.6x median of its US-listed Healthcare peers. Its EV/EBITDA of 22.3x is higher than the peer median of 12.0x, while its price-to-sales ratio of 1.9x sits below the peer median of 4.1x. Over the past year, the stock fell 31.5% compared to a 16.8% gain for the S&P 500, and its 5-year return is -53.0% versus 83.0% for the index.

Wall Street coverage includes 1 Strong Buy, 1 Buy, and 1 Hold rating. The mean price target is $6.25, representing a 71.2% premium over the last close of $3.65. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $22.1M and EPS of $0.17, representing 54.5% earnings growth. For the following fiscal year, 1 analyst projects revenue of $25.7M and EPS of $0.21. Nephros beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Nephros, Inc. (NEPH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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