Rockwell Medical (NASDAQ:RMTI) reported higher second-quarter sales, expanding gross margin and positive operating cash flow, while reaffirming its full-year 2026 outlook. Management said growth was supported by new customers in the Western United States, increased purchasing from existing customers and pricing actions across parts of its product portfolio.
Net sales for the three months ended June 30 rose 11% to $17.8 million from $16.1 million a year earlier. For the first six months of 2026, sales were $35.1 million, unchanged from the comparable 2025 period. Chief Financial Officer Jesse Neri said first-half 2025 included higher purchasing volumes from DaVita, and that excluding DaVita, first-half 2026 sales increased more than 10% year over year.
Margins Improve as Automation Investments Take Hold
Second-quarter gross profit increased 30% to $3.2 million from $2.5 million in the prior-year period. Gross margin expanded to 18%, compared with 16% a year earlier and 17% in the first quarter of 2026.
For the first six months of the year, gross profit reached $6.1 million, compared with $5.5 million in the first half of 2025. First-half gross margin improved to 17% from approximately 16% a year earlier.
Neri attributed the improvement to lower manufacturing costs and operational-efficiency measures, including automation investments. President and Chief Executive Officer Dr. Mark Strobeck said the company activated two new automated liquid production lines, which are intended to expand manufacturing capacity, improve efficiency, reduce labor intensity and lower production costs.
Rockwell Medical is targeting gross margins of approximately 30% by 2029, according to Strobeck. He said that objective depends on a combination of higher volumes, pricing discipline, automation, manufacturing efficiency, distribution optimization and operating leverage.
The company recorded a second-quarter net loss of $1.2 million, narrowing from a $1.5 million loss in the second quarter of 2025 and a $1.6 million loss in the first quarter. Its first-half net loss was $2.8 million, compared with $3 million a year earlier. Adjusted EBITDA was negative $200,000 in the quarter, consistent with the prior-year period.
Western Expansion and Customer Agreements
Management highlighted expansion in the Western U.S. as a strategic growth priority. Strobeck said the company began taking over an existing customer base in the region earlier this year and is now supplying those customers regularly. The company is using that presence to pursue additional dialysis clinics and organizations in the market.
During the question-and-answer session, Neri said Western sales are more heavily weighted toward liquid products, which generally have a higher margin profile. Strobeck added that incremental growth in the region during the quarter carried margins above the corporate average.
Rockwell Medical said it serves approximately 300 customers, including all five major U.S. dialysis providers, and supplies products to more than 30 international markets. The company announced a new agreement with Heritage Dialysis and renewed its relationship with aQua Dialysis during the quarter.
Strobeck said the company’s standard supply agreements generally run for about three years and include established product pricing and price escalators that vary by product and volume. Rockwell typically begins renewal discussions about six months before an agreement expires, he said.
Cash Position, Guidance and Product Development
Rockwell Medical generated approximately $2.1 million in operating cash flow during the second quarter. Cash equivalents and investments available for sale totaled $24.8 million at quarter-end, up from $23.9 million at the end of the first quarter and generally consistent with its year-end 2025 position, despite investments in the business and final payments related to the Evoqua acquisition.
The company reiterated its 2026 guidance:
- 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.
Management also disclosed that it incurred a modest expense in the second quarter to evaluate and develop a medical-device opportunity that it believes would complement its renal-care portfolio. Strobeck said the company believes it could potentially become the only other U.S. supplier of that type of product if development, registration and distribution proceed. He said the initiative is being funded through the existing operating plan and balance sheet rather than through a capital raise.
Separately, Strobeck addressed Rockwell’s recently completed reverse stock split, saying it was undertaken to regain compliance with Nasdaq’s minimum bid price requirement, increase institutional investor interest and support customer confidence. He said the company has regained compliance with Nasdaq listing requirements and that the matter has been closed. The reverse split was not connected with, nor expected to be followed by, a capital raise, he said.
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.
