Rockwell Medical Inc (NASDAQ:RMTI) Narrows Q2 2025 Loss Despite Revenue Shortfall

Rockwell Medical Misses Revenue Estimates but Narrows Loss in Q2 2025

Rockwell Medical Inc (NASDAQ:RMTI) reported its second-quarter 2025 financial results, revealing mixed performance relative to analyst expectations. The company posted a net loss of $1.5 million, or $0.05 per share, slightly better than the estimated loss of $0.051 per share. However, revenue fell short of expectations, coming in at $16.1 million compared to the projected $16.66 million—a 38% decline year-over-year.

Key Financial Highlights

• Revenue Decline: Sales dropped sharply from $25.8 million in Q2 2024 to $16.1 million, primarily due to the loss of its largest customer, which transitioned to another supplier.
• Gross Margin Stability: Despite lower sales, gross margin remained steady at 16%, consistent with the previous quarter and only slightly below the 18% reported in Q2 2024.
• Improved Adjusted EBITDA: The company reported an adjusted EBITDA loss of $0.2 million, a sequential improvement from Q1 2025’s $0.4 million loss but down from a $1.4 million gain in the prior-year quarter.
• Cash Position Strengthens: Cash and equivalents rose to $18.4 million, up from $17.3 million at the end of Q1, supported by $1.8 million in operating cash flow.

Market Reaction

Pre-market trading showed a decline of approximately -0.48%, reflecting investor disappointment over the revenue miss. However, the stock has gained 8.18% over the past week and 6.63% over the last two weeks, suggesting some optimism ahead of earnings. The muted reaction post-release indicates that while the EPS beat is a positive, concerns linger about top-line performance and customer concentration risks.

Operational Developments

Rockwell Medical has been actively securing new contracts to offset the customer loss, including agreements with:

• Innovative Renal Care (IRC), a major U.S. dialysis provider, for a three-year supply deal.
• A large rural health system and a South Florida inpatient dialysis provider, both with multi-year terms.
• Over 80% of customers are now under long-term contracts, providing revenue stability.

Guidance vs. Analyst Estimates

The company reaffirmed its full-year 2025 guidance, projecting:

• Net sales between $65M–$70M (analysts expect $69.6M).
• Gross margin of 16%–18%.
• Adjusted EBITDA between ($0.5M) and $0.5M.

This outlook aligns closely with consensus estimates, suggesting management expects a recovery in the second half.

Looking Ahead

While Rockwell Medical has made progress in stabilizing its business, the revenue shortfall highlights ongoing challenges. The company’s ability to replace lost sales with new contracts will be critical in meeting full-year expectations.

For more detailed earnings estimates and historical performance, visit Rockwell Medical’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.