Cash flow quality remains highly erratic, highlighted by a significant disconnect between net income and operating cash flow, resulting in an OCF/NI ratio of -11.94 in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | -348K | 1.65M | -492K | 827K | -3.23M | -1.42M | -6.9M | -2.28M | -3.66M | -77K | -2.11M | -3.81M | -2.5M | -3.58M | -1.55M | -1.3M | -1.29M | -2.61M | -5.72M | -7.43M | -7.3M | -5.05M | -7.84M | -3.41M | -1.81M |
| Operating CF Margin % | - | 8.76% | -3.47% | 5.81% | -32.42% | -13.87% | -80.63% | -22.02% | -64.39% | -2.02% | -91.03% | -196.24% | -142.73% | -205.92% | -85.61% | -58.54% | -43.98% | -98.16% | -388.66% | -621.57% | -919.94% | -208.38% | -5663.76% | - | - |
| Operating CF Growth % | -287.01% | 434.35% | -159.49% | 125.57% | -128.23% | 79.47% | -203.3% | 37.85% | -4655.84% | 96.35% | 44.64% | -52.91% | 30.37% | -131.61% | -19.37% | -0.31% | 50.54% | 54.38% | 22.99% | -1.84% | -44.48% | 35.55% | -129.75% | -88.89% | - |
| Net Income | 776K | 1.19M | 74K | -1.57M | -4.55M | -3.87M | -4.53M | -3.18M | -3.33M | -809K | -3.03M | -3.09M | -7.37M | -3.7M | -3.26M | -2.36M | -1.93M | -2.03M | -6.34M | -26.36M | -8.01M | -5.47M | -7.6M | -5.64M | -2.42M |
| Depreciation & Amortization | 126K | 139K | 137K | 214K | 351K | 252K | 208K | 200K | 163K | 218K | 230K | 212K | 216K | 223K | 9K | 91K | 129K | 231K | 447K | 4.91M | 354.42K | 305.6K | 199.24K | 644.53K | 1.25M |
| Stock-Based Compensation | 210K | 296K | 153K | 1.05M | 952K | 1.26M | 779K | 1.33M | 985K | 772K | 597K | 489K | 429K | 575K | 443K | 256K | 92K | 108K | 155K | 885K | 474.74K | 374.53K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56K | 322K | 0 | -566K | 8K | 331K | 490K | 94K | 2.4M | 50K | 0 | -269K | -1.2M | -436.85K | -374.53K | 0 | 0 | 0 |
| Other Non-Cash Items | 531K | 429K | 698K | 648K | -213K | 56K | 129K | -105K | 45K | 135K | 677K | -270K | 4.28M | 53K | 82K | -2.15M | 48K | 18K | 269K | 14.31M | 484.15K | -178.11K | 793.76K | 1.94M | -813.79K |
| Working Capital Changes | -1.99M | -413K | -1.55M | 488K | 229K | 883K | -3.49M | -580K | -1.85M | -393K | -18K | -1.17M | -377K | -1.23M | 1.09M | 465K | 322K | -943K | 10K | 19K | -163.14K | 288.49K | -1.24M | -364.55K | 171.72K |
| Change in Receivables | -844K | -633K | -285K | -221K | 357K | -278K | -333K | 392K | -484K | -416K | -17K | -302K | 12K | 820K | 1.01M | -832K | 283K | -220K | 1K | -154K | 59.42K | -133.07K | 0 | 0 | 0 |
| Change in Inventory | -1.74M | -685K | -407K | 387K | 915K | 296K | -2.76M | -735K | -1.08M | -195K | 103K | -405K | -82K | -60K | -147K | 295K | -98K | 57K | -409K | 217K | 361.62K | -280.61K | -451.39K | -201.96K | 0 |
| Change in Payables | 614K | 259K | -220K | 133K | -593K | 908K | -538K | 119K | -130K | 268K | -76K | -176K | -190K | 59K | 904K | -357K | 171K | -702K | 138K | 2K | -113.81K | 660.12K | 0 | 0 | 0 |
| Cash from Investing | 0 | 0 | -50K | -75K | -137K | -85K | -239K | -151K | -991K | 0 | -45K | -13K | 0 | 3K | -612K | 0 | -30K | -21K | 4.6M | -2.04M | 1.59M | 1.1M | -6.9M | -453.98K | -30.78K |
| Capital Expenditures | 0 | 0 | -55K | -75K | -137K | -36K | -239K | -14K | 0 | 0 | -45K | -13K | 0 | 0 | -659K | 0 | -30K | -28K | -97K | -145K | -110.16K | -397.29K | -902.87K | -453.98K | -30.78K |
| CapEx % of Revenue | 0% | - | 0.39% | 0.53% | 1.37% | 0.35% | 2.79% | 0.14% | - | - | 1.94% | 0.67% | - | - | 36.47% | - | 1.02% | 1.05% | 6.59% | 12.12% | 13.88% | 16.39% | 652.34% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -137K | -991K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 5K | 0 | 0 | -49K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 47K | 0 | 0 | 0 | 3K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 285K | -5K | -5K | -79K | 34K | 237K | 11.22M | 2.02M | 7.05M | 1.99M | 1.19M | 3.79M | 3.2M | 4.12M | 503K | 2.72M | 572K | 1.34M | 0 | 12.68M | 5.2M | 1M | 14.28M | 7.65M | 1.8M |
| Debt Issued (Net) | -5K | -5K | -5K | -79K | -286K | -264K | -321K | -633K | 131K | 711K | 1.19M | 0 | -1.68M | 1.5M | 0 | -640K | 500K | 0 | 0 | 12.68M | 5.2M | 0 | 0 | 850K | 1.83M |
| Equity Issued (Net) | 290K | 0 | 0 | 0 | 163K | 501K | 11.45M | 1.99M | 3.78M | 1.18M | 0 | 1.34M | 4.87M | 2.77M | 0 | 3.19M | 0 | 1.25M | 0 | 0 | 1K | 1M | 14.63M | 6.8M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -73K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -349.95K | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 157K | 0 | 85K | 658K | 3.14M | 100K | 1K | 2.52M | 15K | -151K | 503K | 174K | 72K | 85K | 0 | 0 | 441 | 0 | 0 | 0 | -30K |
| Net Change in Cash | -63K | 1.64M | -547K | 673K | -3.34M | -1.28M | 4.08M | -415K | 2.39M | 1.92M | -973K | -36K | 705K | 532K | -1.62M | 1.43M | -764K | -1.3M | -1.14M | 3.2M | -493.54K | -2.97M | -402.08K | 3.88M | -37.11K |
| Free Cash Flow | -348K | 1.65M | -547K | 752K | -3.37M | -1.45M | -7.14M | -2.29M | -3.66M | -77K | -2.16M | -3.83M | -2.5M | -3.58M | -2.21M | -1.3M | -1.32M | -2.64M | -5.82M | -7.58M | -7.41M | -5.45M | -8.74M | -3.87M | -1.84M |
| FCF Margin % | -1.82% | 8.76% | -3.86% | 5.28% | -33.79% | -14.22% | -83.42% | -22.16% | -64.39% | -2.02% | -92.97% | -196.91% | -142.73% | -205.92% | -122.08% | -58.54% | -45% | -99.21% | -395.25% | -633.7% | -933.82% | -224.77% | -6316.09% | - | - |
| FCF Growth % | -177.85% | 400.73% | -172.74% | 122.31% | -132% | 79.66% | -211.88% | 37.47% | -4655.84% | 96.43% | 43.65% | -53.43% | 30.37% | -62.42% | -70.22% | 1.97% | 49.92% | 54.65% | 23.18% | -2.28% | -35.97% | 37.66% | -126.13% | -110.44% | - |
| FCF per Share | -0.03 | 0.15 | -0.05 | 0.07 | -0.33 | -0.15 | -0.79 | -0.30 | -0.53 | -0.01 | -0.40 | -0.99 | -0.94 | -1.55 | -1.77 | -1.35 | -5.70 | -12.43 | -27.46 | -87.19 | -108.29 | -79.95 | -356.64 | -436.68 | -207.51 |
| FCF Conversion (FCF/Net Income) | -0.45x | 1.38x | -6.65x | -0.53x | 0.44x | 0.35x | 1.45x | 0.67x | 1.08x | 0.10x | 0.70x | 1.24x | 0.34x | 0.97x | 0.47x | 0.55x | 0.67x | 1.29x | 0.90x | 0.28x | 0.91x | 0.92x | 1.03x | 0.61x | 0.75x |
| Interest Paid | 1K | 0 | 0 | 0 | 0 | 41K | 93K | 139K | 150K | 148K | 113K | 43K | 188K | 54K | 0 | 0 | 0 | 2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 79K | 22K | 5K | 4K | 7K | 11K | 5K | 6K | 2K | 18K | 5K | 2K | 6K | 1K | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
Based on the provided quarterly data, Nephros exhibits a significant disconnect between net income and operating cash flow, with the OCF/NI ratio swinging from a high of 4.19 in 2025Q2 to a negative 11.94 in 2026Q1, highlighting substantial volatility in the quality of reported earnings.
The frequent divergence between accounting profit and cash generation suggests that reported net income is heavily influenced by non-cash items or timing differences in revenue recognition. Investors should monitor whether this instability reflects genuine operational friction or merely the lumpy nature of hospital-based contract fulfillment.
As reported in financial statements, the company's free cash flow trajectory is highly inconsistent, oscillating between a peak of $994,000 in 2025Q2 and a cash burn of $1.7 million in 2026Q1, which underscores the difficulty in achieving sustainable cash flow self-sufficiency at the current scale.
The inability to maintain positive free cash flow suggests that the business model remains sensitive to operational timing and working capital requirements. This inconsistency warrants further investigation into whether the company can achieve consistent cash generation without recurring reliance on external capital or balance sheet adjustments.
According to recent SEC filings, working capital changes are the primary determinant of cash flow variability, evidenced by a $711,000 inflow in 2025Q2 followed by a $2.0 million outflow in 2026Q1, indicating that inventory and receivables management remains a significant challenge for the company's liquidity.
The dramatic shifts in working capital suggest that the company's cash position is highly vulnerable to the timing of large-scale hospital orders and subsequent collection cycles. This volatility implies that management may struggle to forecast cash needs accurately, potentially leading to periodic liquidity constraints during periods of rapid inventory build-up.
Based on reported figures, stock-based compensation remains a recurring expense, reaching $390,000 in 2023Q4, which effectively obscures the true cash cost of operations and suggests that the company's reported profitability may be overstated when accounting for the dilution and economic cost of employee equity grants.
The reliance on stock-based compensation as a component of the cost structure warrants caution, as it may be used to preserve cash at the expense of shareholder equity. Analysts should adjust for these non-cash charges to better understand the underlying cash-burn rate of the core medical filtration business.
Quick answers to the most common questions about buying NEPH stock.
Nephros, Inc. (NEPH) generated $1.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nephros, Inc. (NEPH) generated $1.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Nephros, Inc. (NEPH) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.