Rockwell Medical Inc (NASDAQ:RMTI) Reports Q3 2025 Revenue Miss and Wider-Than-Expected Loss

ROCKWELL MEDICAL INC (NASDAQ:RMTI) reported its third quarter 2025 financial results, revealing significant revenue declines and a net loss that fell short of analyst expectations. The hemodialysis products manufacturer continues to navigate challenges from a major customer transition that has substantially impacted its top-line performance.

Financial Performance Versus Estimates

The company's third quarter results showed notable deviations from Wall Street expectations across key metrics. Revenue came in below estimates while the earnings per share loss was slightly wider than anticipated.

• Q3 2025 Revenue: $15.9 million versus analyst estimates of $16.6 million
• Q3 2025 EPS: -$0.05 per share compared to estimated -$0.046 per share
• Revenue Decline: 44% decrease from Q3 2024 revenue of $28.3 million
• Net Loss: $1.8 million compared to net income of $1.7 million in the same period last year

The company's gross margin compressed to 14% for the quarter, down from 22% in the prior year period, though management noted that excluding restructuring costs, gross margin would have been 18%. Adjusted EBITDA for the quarter was $50,000, representing a significant decline from the $2.8 million reported in the third quarter of 2024.

Market Reaction and Price Action

Investors responded negatively to the earnings release, with the stock trading down approximately 4.8% in pre-market activity. This immediate reaction reflects disappointment with both the revenue miss and the wider-than-expected loss. The pre-market decline adds to recent pressure on the stock, which has declined 12.5% over the past month, though it has shown relative stability over the past week with minimal change.

Operational Highlights and Business Update

Despite the challenging financial results, Rockwell Medical highlighted several operational achievements during the quarter. The company signed new long-term product purchasing agreements with university medical centers, kidney centers, and hospital systems, including one agreement with a dialysis center in southern Florida that has the potential to generate approximately $1 million in annualized net sales.

Management emphasized their ongoing efforts to right-size the organization and enhance operational efficiency while maintaining customer service levels. The company also expanded its product purchase agreement with the largest provider of dialysis in skilled nursing facilities in the United States, securing a three-year commitment with purchasing minimums for the company's liquid and dry acid and bicarbonate concentrates.

Financial Position and Guidance

Rockwell Medical maintained a solid liquidity position, with cash, cash equivalents, and investments available-for-sale increasing to $23.7 million at September 30, 2025, up from $18.4 million at June 30, 2025. This increase was primarily driven by the issuance of common stock under the company's ATM facility.

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

• Net Sales: $65.0 million to $70.0 million
• Gross Margin: 16% to 18%
• Adjusted EBITDA: ($0.5) million to $0.5 million

This guidance compares to analyst estimates for full-year 2025 sales of $69.7 million and an EPS loss of $0.18. For the fourth quarter of 2025, analysts are projecting sales of $17.5 million and an EPS loss of $0.046.

Strategic Positioning and Challenges

The company continues to face headwinds from the transition of its largest customer to another supplier, which has been the primary driver of the significant revenue decline. However, management expressed confidence in their long-term strategy, noting that more than 80% of their customers remain under long-term contracts. The company is focusing on targeted business development opportunities to expand its product portfolio and geographic footprint while maintaining expense discipline.

For detailed earnings estimates and future projections, view the complete earnings analysis for ROCKWELL MEDICAL INC (RMTI).

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in RMTI stock. Investors should conduct their own research and consult with a financial advisor before making investment decisions.