Rockwell Medical (NASDAQ:RMTI) reported first-quarter 2026 results that management said exceeded internal expectations for net sales, while the company outlined operational changes aimed at improving profitability and reiterated a push toward positive cash generation.
On the company’s earnings call, President and Chief Executive Officer Dr. Mark Strobeck said Rockwell has become “a sustainably profitable, stable company” on an adjusted EBITDA basis in recent years and is now working to further improve gross margin and profitability. He said the company’s goal is to achieve positive net income in the second half of 2026, subject to customary risks and uncertainties.
First-quarter results
Chief Financial Officer Jesse Neri said first-quarter net sales were $17.3 million, down 8% from the same period in 2025. The company said the year-over-year decline was tied to lower volumes from what had been its largest customer. Despite the decline, Neri said sales exceeded Rockwell’s expectations and were tracking toward the company’s full-year guidance.
Gross profit was $2.9 million, in line with the prior-year quarter. Gross margin improved slightly to 17% from 16% a year earlier, which Neri said reflected continued manufacturing efficiency gains.
Rockwell reported a net loss of $1.6 million in the first quarter, compared with a net loss of $1.5 million in the prior-year period. Adjusted EBITDA was negative $300,000, improving from negative $400,000 a year earlier. Neri said first-quarter adjusted EBITDA is historically affected by seasonal payroll tax and public company-related expenses.
Cash, cash equivalents and available-for-sale investments totaled $23.9 million as of March 31, down from $25 million at year-end. Neri said the roughly $1.1 million decrease reflected seasonal first-quarter items and a $500,000 payment tied to the company’s Evoqua acquisition. He said the final Evoqua payment was made in April.
Customer base and operating changes
Strobeck said Rockwell added several new customers during the quarter and renewed contracts with existing customers, improving price and product mix. He said most customer sales concentrations are now below 10%.
The company currently serves about 300 customers representing more than 1,400 facilities, including all five of the leading dialysis providers in the U.S., as well as university medical centers, community hospital systems and other renal care organizations. Rockwell also supplies hemodialysis concentrates to more than 30 countries outside the United States.
Management said the company is implementing changes intended to streamline manufacturing and distribution. Strobeck said Rockwell is activating two new automated liquid lines during the second quarter, which the company expects will increase output by approximately 50% and significantly reduce manufacturing cost per bottle.
Rockwell has also adjusted pricing to reflect the value of its products, Strobeck said. He estimated the operational and pricing changes will generate an additional $3 million of gross profit, with about half expected to be realized in 2026.
2026 guidance and longer-term targets
Rockwell issued additional 2026 guidance on the call. The company projected:
- Net sales of $70 million to $75 million;
- Gross margin of 18% to 22%;
- Adjusted EBITDA of $1 million to $2 million;
- Positive operating cash flow.
Strobeck said positive operating cash flow would mean the company expects to generate cash and eliminate the need to raise additional capital to fund operations. He also noted that Rockwell has met or exceeded guidance in each of the past three years since it began issuing forecasts.
Looking further ahead, Strobeck said Rockwell’s three-year strategy includes growing its profitable hemodialysis concentrates business, building a broader renal care product portfolio that fits within its existing commercial, manufacturing and distribution infrastructure, and pursuing innovations that may improve treatment options and outcomes for patients.
By 2029, Strobeck said the company believes it can be positioned to generate annual net sales above $100 million, with gross margin potentially approaching 30% and annual profitability in the range of $5 million to $10 million.
Expansion and customer questions
During the question-and-answer portion of the call, Maxim Group analyst Jeremy Pearlman asked about international expansion. Strobeck said Rockwell continues to see strong demand outside the U.S., particularly in Latin America and South America. He described the international distributor model as attractive because distributors are primarily responsible for distribution costs, and said margins are typically higher in that product category, though the company does not provide detailed margin breakdowns.
Pearlman also asked about Rockwell’s expansion in the western U.S. Strobeck said the company has transitioned roughly 30 customers into the Rockwell platform and is currently supplying them successfully. He said Rockwell is hiring drivers and establishing cross-docks in the region, which would put the company in a position to expand its western business.
On pricing, Strobeck said Rockwell is focused on receiving appropriate value for its products from new customers and is working with existing customers to adjust pricing to a more current framework. He said the company has not received pushback at this point.
Asked about DaVita, Strobeck said Rockwell continues to maintain a strong relationship with the dialysis provider and is supplying the facilities DaVita requested at the end of last year. He also said DaVita made a one-time large purchase in the second quarter, which Rockwell viewed as an indication that DaVita remains interested in working with the company as a supplier.
Strobeck closed the call by saying Rockwell remains focused on increasing revenue, expanding gross margin and generating sustainable profitability on an adjusted EBITDA and cash flow basis.
About Rockwell Medical (NASDAQ:RMTI)
Rockwell Medical, Inc is a Delaware‐domiciled biopharmaceutical company focused on the development and commercialization of therapies for patients with chronic kidney disease (CKD). The company’s mission centers on addressing common complications in CKD—namely iron deficiency and secondary hyperparathyroidism—through innovative treatment approaches designed for dialysis settings.
The company’s lead product, TRIFERIC®, is an iron replacement therapy approved by the U.S. Food and Drug Administration for use in hemodialysis patients.
