ROCKWELL MEDICAL, INC. Q1 FY2025 earnings call

• Diversified customer base with leading hemodialysis providers and signed new contracts during the first quarter.
• Business performed according to plan with revenue and gross profit in line with expectations. Consolidated and automated manufacturing to reduce expenses and sustain gross margin.
• Monitored a cyberattack from the largest customer, disconnected systems to prevent impact, and are monitoring networks. Monitored tariffs, with ~90% revenue from US dialysis providers and negligible impact from tariffs.
• Launched single-use bicarbonate cartridge technology in February, starting to see traction. Actively pursuing business development opportunities to strengthen renal market position.

Net sales for the first quarter of 2025 were $18.9 million, a 17% decrease from $22.7 million in the same period of 2024. This decrease was due to the largest customer transitioning to another supplier, but they received a $900,000 one-time non-refundable payment for continuity of supply. Gross profit for Q1 2025 was $3 million, in line with the same period in 2024. Gross margin was 16%, an increase from 14% in Q1 2024. Net loss for Q1 2025 was $1.5 million, an improvement from $1.7 million in Q1 2024. Adjusted EBITDA for Q1 2025 was a negative $400,000. Cash, cash equivalents, and investments available for sale at March 31, 2025 were $17.3 million, down from $21.6 million at December 31, 2024, driven by timing of payments, collections, and seasonal items.

• Reiterated 2025 guidance: net sales between $65 million and $70 million, gross margin between 16% and 18%, adjusted EBITDA between negative $500,000 and positive $500,000.
• Ongoing discussions with largest customer for potential contract extension, likely at a smaller scale than previously. Confident in ability to improve guidance with new customers and business development.

• Cyberattack: Largest customer had a ransomware incident, Rockwell disconnected systems to prevent impact, monitoring ongoing.
• Tariffs: ~10% revenue from ex-US, one country impacted by US tariffs, negligible impact on total annualized revenue.

Q: Give sense on scenarios with largest customer and revenue cadence for remainder of 2025.

A: Discussions ongoing for smaller scale supply with largest customer. Revenue guidance not predictable yet, Q2 likely low point then build from there.

Q: Comment on at-home dialysis market and product offerings.

A: At-home market progressing, new product offering has higher margin, sales increasing in second half of 2025.

Q: Talk about international market expansion and West Coast.

A: Latin America is a big opportunity, considering establishing West Coast facility but no final decisions yet.

Q: Mitigating loss of largest customer with new customers.

A: Focus on expanding customer base in existing footprint, Latin America, and West, believe opportunity to replace lost revenue exists.