Rockwell Medical, Inc. Q4 FY2025 earnings call

• 2025 was a defining year where Rockwell navigated changes in customer base, purchasing volumes, and distribution footprint while maintaining adjusted EBITDA profitability for the second consecutive year. • Made significant operational changes to align infrastructure with demand, realizing benefits in Q4 2025 with one of the highest quarterly gross margins. • Customer mix became diverse, serving ~300 customers in the US including leading dialysis providers and over 30 countries outside the US. • Worked with Presenius, extended agreement with DaVita, expanded with Innovative Renal Care, DCI, and Concerto Renal Services. • Addressed 2024 hemodialysis concentrate supply chain disruption by scaling production, expanding logistics, adding 30 new customers in the West, and diversifying product portfolio with single-use bicarbonate cartridge. • Appointed new head of manufacturing and operations to drive further manufacturing efficiencies.

In 2025, net sales for the full year were $69.3 million, a 32% decrease from 2024. Gross profit for the full year was $11.7 million, down from $17.5 million in 2024. Gross margin for the full year 2025 was 17%, in line with 2024. Fourth quarter 2025 net sales were $18.3 million, 15% higher than the third quarter and a 26% decrease from the fourth quarter of 2024. Gross profit for the fourth quarter was $3.9 million, 70% greater than the third quarter and in line with the fourth quarter of 2024. Gross margin for the fourth quarter 2025 was 21%, one of the strongest quarters. Adjusted EBITDA for the full year 2025 was a positive $300,000 compared to a positive $5 million in 2024. Adjusted EBITDA for the fourth quarter 2025 was a positive $1 million. Cash, cash equivalents, and investments available for sale at year-end 2025 was $25 million, an increase from the end of Q3.

• Project 2026 business operations to generate adjusted EBITDA between $1 and $2 million and positive operating cash flow. • Currently in negotiations with several large customers, outcome could positively impact net sales and gross margin in 2026, with guidance on those metrics to be provided soon. • Over the next three years, focus on growing profitable leading hemodialysis concentrates business, building broader portfolio of renal care products, and seeking next advancements in renal care. • By 2029, aim to generate annual net sales above $100 million, with gross margins trending upward potentially approaching 30% range and annual profitability in $5 to $10 million range.

Q: Anthony Vendetti with Maxim Group asked about DaVita's volume levels and commitments for 2026, West Coast expansion goals, and at-home dialysis market.

A: As part of DaVita agreement, they provide forecast, currently purchasing slightly above projected volumes. West Coast expansion involves designing commercial strategy and working with Bbron. At-home market is establishing, ~10% of hemodialysis market, well positioned to take advantage as it grows.

Q: Ramsel Varaju with H.C. Wainwright asked about DaVita in longer-term projections, extension of relationship past 2026, and competitors.

A: Longer-term projections assume consistent volumes from DaVita. Anticipate DaVita will continue to work with them if they provide high-quality products. Competitive advantage is high-quality products, FDA compliant manufacturing, cost-effective transportation via Rockwell system, and dedicated customer service. Also asked about Western expansion prospects and longer-term gross margin trends.

A: Western expansion has acquired 30 customers, multi-million dollar revenue base, prospect of additional customer acquisition. Longer-term, gross margins expected to trend upward approaching 30% range through growing profitable business, building broader portfolio, and seeking advancements in renal care.