Nuwellis (NASDAQ:NUWE) reported higher first-quarter revenue and improved gross margin as management said the company began moving from a 2025 strategic reset into a more focused execution phase centered on its Aquadex therapy, pediatric growth and a broader cardiorenal platform.
Chairman, President and CEO John Erb said the first quarter of 2026 reflected progress on multiple fronts, including leadership changes, a capital raise, stronger commercial performance and the acquisition of Rendiatech. He characterized the quarter as “the next step” after a year of structural change and repositioning.
Revenue rises 26% as console and circuit sales increase
Nuwellis reported first-quarter revenue of $2.4 million, up 26% from $1.9 million in the prior-year quarter. CFO Carisa Schultz said the increase was driven by stronger sales of consoles and circuits.
The company sold 15 consoles during the quarter, including upgrades from the former FlexFlow systems to current SmartFlow systems, new consoles placed with pediatric accounts and new consoles placed with adult accounts. Circuit sales rose 15%, which management said reflected growth in the number of patients treated with Aquadex therapy.
Gross margin improved to 70.1% in the first quarter, up 14 percentage points from the prior-year period. Schultz attributed the improvement to better pricing, product mix and the company’s transition to contract manufacturing.
Operating expenses were approximately $6 million, compared with about $4.1 million in the prior-year quarter. Schultz said the increase was driven by higher sales headcount and compensation tied to increased sales activity. Net loss attributable to common shareholders was approximately $4.3 million.
As of March 31, 2026, Nuwellis had no debt and cash and restricted cash equivalents of approximately $2.2 million.
Company targets cash burn reduction
Erb said Nuwellis is continuing efforts to improve operating efficiency and extend its financial runway. The company is developing a cash burn reduction plan intended to reduce monthly cash burn by approximately 50% by the fourth quarter of 2026, while keeping resources aligned with areas showing the strongest commercial traction and strategic value.
Schultz said the company’s financial priorities remain focused on disciplined capital deployment, gross margin consistency, commercial execution and improving visibility into utilization and account growth.
During the quarter, Nuwellis completed an approximately $5 million private placement and warrant inducement transaction. Erb said the added capital is intended to support operations as the company continues executing its strategy.
Pediatrics remains a major growth category
Management highlighted pediatrics as one of the company’s clearest growth strategies. Erb said pediatrics now represents approximately 50% of total U.S. revenue, and the company’s pediatric footprint has expanded to 47 centers nationwide. Those centers include six of the top children’s hospitals as ranked by U.S. News & World Report, according to Erb.
Erb said the growth reflects increasing Aquadex utilization in leading pediatric centers and reinforces the relevance of precision fluid removal in a high-acuity patient population.
The company also announced during the quarter the issuance of a new U.S. patent supporting advanced safety design for pediatric extracorporeal therapy. Erb said the patent strengthens the intellectual property foundation for Vivian, Nuwellis’ pediatric continuous renal replacement therapy system in development.
“Pediatrics is both a commercial growth area today and a long-term strategic opportunity for the company,” Erb said. “It gives Nuwellis a clear area of differentiation, a strong clinical foothold, and a focused path for future innovation.”
Rendiatech acquisition expands cardiorenal platform
Nuwellis completed the acquisition of Rendiatech in March, adding automated kidney function monitoring capabilities to its product development portfolio. Erb said the acquisition complements Aquadex, which is designed to help clinicians remove excess fluid with precision.
During the question-and-answer session, Erb said Rendiatech had two products. One was a urine collection product used in critical care that had been marketed in the U.S. and internationally before Rendiatech entered bankruptcy. The second, which Erb described as the target of the acquisition, was a product in development intended to monitor kidney output.
Erb said Nuwellis has not yet introduced Rendiatech to the U.S. market. The company has brought inventory back into the U.S. from Israel and is now developing the kidney monitoring product. He said the planned product would provide bedside readings of urine analytes or electrolyte balances, including measures such as oxygen, calcium and potassium levels, rather than requiring samples to be sent to a lab.
Erb said Nuwellis expects to introduce the product to the U.S. market in 2027.
The company also appointed Dr. Stuart Goldstein as Director of Clinical Strategy. Erb described Goldstein as an internationally recognized adult critical care nephrologist and a pioneer in pediatric nephrology, with expertise in acute kidney injury, fluid overload and continuous renal replacement therapy in critically ill patients.
Sales coverage expands in targeted regions
Nuwellis expanded into a new South Texas territory during the quarter and brought back three experienced sales leaders. In response to an analyst question, Erb said the South Texas expansion was supported by the return of a former top sales representative, Libby, who previously helped build the New York territory into one of the company’s largest.
Erb said the company split a larger Texas-Oklahoma territory, allowing an existing representative to continue covering northern Texas while Libby covers the southern region from Houston.
He also identified the Northeast as the company’s strongest growth area, citing New York and the Washington-Philadelphia corridor, including pediatric account growth at Children’s Hospital of Philadelphia. Erb said a Western territory opened last year has also started well, particularly in pediatrics in the Seattle area, where Seattle Children’s is a large account for Nuwellis.
Erb closed the call by saying Nuwellis is “better positioned today than it was a year ago” and remains focused on Aquadex utilization, Rendiatech integration, pediatric strategy and financial discipline throughout 2026.
About Nuwellis (NASDAQ:NUWE)
Nuwellis (NASDAQ:NUWE) is a medical technology company focused on developing therapies and devices to manage fluid overload in patients with cardiorenal and cardiovascular conditions. The company’s core business revolves around designing, manufacturing and marketing the Aquadex™ FlexFlow® System, a gentle ultrafiltration device intended to remove excess fluid in patients with acute decompensated heart failure, cardiorenal syndrome and other fluid‐overload disorders. By providing an alternative to traditional diuretic therapy, Nuwellis aims to improve patient outcomes and reduce hospital stays.
The Aquadex FlexFlow System operates by drawing blood through a low‐shear filter and returning it to the patient, allowing precise control of fluid removal at the bedside outside of an intensive care setting.
