Rockwell Medical, Inc.

Q2 2026 net sales were $17.8 million, up 11% from $16.1 million in Q2 2025. Gross profit was $3.2 million versus $2.5 million a year ago, and gross margin improved to 18% from 16% in the prior-year quarter and 17% in Q1 2026. Net loss was $1.2 million, better than a $1.5 million net loss in Q2 2025. Adjusted EBITDA was negative $200,000, flat year over year. For the first half of 2026, net sales were $35.1 million, gross profit was $6.1 million, gross margin was about 17%, and net loss was $2.8 million. The company generated approximately $2.1 million of cash from operations in Q2 and ended the quarter with $24.8 million in cash, cash equivalents, and investments available for sale. Management reiterated full-year 2026 guidance for net sales of $70 million to $75 million, gross margin of 18% to 22%, adjusted EBITDA of $1 million to $2 million, and positive operating cash flow.

CEO Mark Strobeck framed the quarter as another step forward in a multi-year turnaround, emphasizing revenue growth, margin expansion, positive operating cash flow, and a stronger balance sheet. He highlighted customer diversification across about 300 customers, all 5 major U.S. dialysis providers, and more than 30 international markets, plus renewed agreements and pricing provisions that improve revenue visibility. He was upbeat on the West Coast opportunity and said the company is focused on structural improvements, not just short-term margin gains, with a longer-term goal of more than $100 million in annual net sales by 2029 and about 30% gross margin by 2029.

CFO Jesse Neri highlighted the hard numbers behind the quarter: $17.8 million in Q2 sales, $3.2 million of gross profit, 18% gross margin, a $1.2 million net loss, and negative $200,000 in adjusted EBITDA. He said the margin improvement came from lower manufacturing costs, operational efficiency initiatives, and automation investments, and noted the company continues to target full-year gross margin of 18% to 22%. Neri also stressed liquidity, citing roughly $2.1 million of operating cash flow in the quarter and a $24.8 million quarter-end cash balance, while reiterating full-year guidance unchanged.

Analysts focused on the West Coast expansion, contract duration/renewal timing, and whether product mix or onboarding costs could affect margins. Management said the West is a strategic priority, with Rockwell now consistently supplying a previously onboarded customer base and using that presence to win additional dialysis centers; it also said the incremental growth in the quarter carried a margin higher than the corporate average. On contracts, Mark said standard supply agreements are typically about 3 years, with discussions usually starting about 6 months before expiration. On the medical device opportunity, he said it appears to fit directly into the current portfolio, could address a large market, and would be funded entirely from the existing balance sheet without raising capital.