Rockwell Medical reported third‑quarter 2025 results on November 12, 2025, showing net sales of $15.9 million, a 44 % decline from $28.3 million in the same period last year. The company’s earnings per share were $‑0.05, beating the consensus estimate of $‑0.04 by $0.01, while revenue missed the consensus of $16.18 million by $0.28 million.
Gross profit fell to $2.3 million, a 64 % drop from $6.2 million in Q3 2024, and gross margin slipped to 14 % from 22 % year‑over‑year. Net sales were unchanged from Q2 2025, and gross margin fell from 16 % in Q2 to 14 % in Q3, indicating a sequential decline. Operating income swung to a $1.6 million loss from a $1.9 million profit in Q3 2024, and the company posted a net loss of $1.8 million.
Adjusted EBITDA turned positive at $50 thousand, the first full‑quarter positive figure in Rockwell’s history. The result reflects the profitability of the core concentrate business once one‑time restructuring costs are excluded, and it signals that the company’s cost‑control initiatives are beginning to pay off.
The sharp revenue decline is largely attributable to the loss of DaVita, Inc., the company’s largest customer, which accounted for 52 % of revenue in Q3 2024 but only 12 % in Q3 2025. Management said the transition has caused volume and margin compression, and the company is right‑sizing its organization to support long‑term growth. CEO Mark Strobeck noted that “we continue to fundamentally strengthen our contract portfolio with over 80 % of our customers operating under long‑term agreements,” underscoring the shift toward more stable revenue streams.
Looking ahead, Rockwell reiterated its 2025 guidance: net sales of $65–$70 million, gross margin of 16–18 %, and adjusted EBITDA ranging from a $0.5 million loss to a $0.5 million profit. The guidance reflects confidence that new long‑term contracts and a focus on higher‑margin product lines will offset the impact of the lost customer. CFO Jesse Neri added that “net sales for the third quarter were $15.9 million, which were in line with net sales for the second quarter and represent a 44 % decrease over net sales of $28.3 million for the same period in 2024.” Cash and cash equivalents rose to $23.7 million, providing liquidity for ongoing initiatives.
The market reacted with a 11.43 % drop in pre‑market trading, driven primarily by the revenue miss and the continued year‑over‑year decline. Analysts noted that while the company met EPS expectations and achieved a positive adjusted EBITDA, the top‑line weakness and the loss of a major customer remain significant concerns for investors.
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