Rockwell Medical, Inc. Q1 FY2026 earnings call

• Transformed Rockwell nearly 4 years ago to be financially sound, profitable, and well-capitalized. Consistently grew gross margin and gross profit, achieved adjusted EBITDA profitability in last 2 years.
• High demand for liquid bicarbonate concentrates, net sales higher than expected in Q1 despite decrease from prior year due to largest customers' volume decline. Demonstrated gross margin improvement. Experienced sequential growth in gross margin, gross profit, adjusted EBITDA, and net income each month in Q1.
• Added new customers and renewed contracts with existing customers, customer mix is diverse. Serves ~300 customers in over 1,400 facilities in US and over 30 countries outside US. Pipeline is active and diversified.
• Spent effort on operational changes to streamline and enhance manufacturing and distribution efficiencies, activated two new automated liquid lines, made pricing adjustments.

Net sales for the first quarter were $17.3 million, an 8% decrease over the same period in 2025 but exceeded expectations. Gross profit was $2.9 million, in line with the same period in 2025. Gross margin was 17%, a slight improvement from 16% in 2025. Net loss for Q1 2026 was $1.6 million, slightly more than the $1.5 million net loss in the same period in 2025. Adjusted EBITDA for Q1 2026 was a negative $300,000, an improvement from negative $400,000 in the same period in 2025. Liquid bicarbonate concentrates had high demand, and the company added new customers and renewed contracts with existing ones. Customer mix is diverse with most sales concentrations under 10%. Serves ~300 customers in over 1,400 facilities in the US and over 30 countries outside the US. Activated two new automated liquid lines to increase output and reduce manufacturing cost per bottle, expecting these changes to positively impact results from Q2 2026 with an estimated $3 million additional gross profit, half to be realized in 2026.

• 2026 annual guidance: Net sales between 70 and $75 million, gross margin between 18 and 22%, adjusted EBITDA between $1 and $2 million, operating cash flow positive.
• Strategy over next three years: Grow profitable hemodialysis concentrates business, build broader portfolio of renal care products, pursue innovations in renal space. By 2029, aim for annual net sales above $100 million, gross margin potentially approaching 30%, annual profit in range of $5 to $10 million.

Q: You mentioned selling in 30 countries outside the U.S. Talk about other expansion opportunities and margin profile outside vs in U.S.

A: Strong demand outside US, particularly in Latin America and South America. Sell through distributors, margins typically higher in that category.

Q: Update on 30 new customers out west, expansion, and distribution point/factory.

A: Transitioned 30 customers into Rockwell platform, supplying successfully, hiring drivers and establishing cross-docs in the area, receiving calls from organizations in the West.

Q: About pricing, is it across entire customer Rolodex and any pushback?

A: Constantly evaluate product value. For new customers, focus on getting value; for existing customers, adjusting pricing. No pushback received so far.

Q: Update on negotiations with Vita, prior largest customer.

A: Maintain good relationship with DaVita, continuing to supply facilities asked to supply at end of last year, DaVita made one-time large purchase in Q2, indicating interest in continuing to work with them