RMTI

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 8:00 a.m. ET Chief Operating Officer - Heather Hunter President and Chief Executive Officer - Mark Strobeck Chief Financial Officer - Jesse Neri Need a quote from a Motley Fool analyst? Email [email protected] Operator: Thank you. Good morning and welcome to Rockwell Medical's second quarter 2026 results conference call and webcast. Please note, this event is being recorded. At this time, I would like to turn the conference call over to Heather Hunter, Chief Operating Officer at Rockwell Medical. Heather, please go ahead. Heather Hunter: Good morning, everyone, and thank you for joining us for this update on Rockwell Medical. Joining me on today's conference call are Dr.Mark Strobeck, Rockwell Medical's President and CEO, and Jesse Neri, Rockwell Medical's CFO. Before we begin, I would like to remind you that this conference call will contain forward-looking statements about Rockwell Medical within the meaning of the federal securities laws, including but not limited to the types of statements identified as forward-looking in our annual report on Form 10-K and our subsequent periodic reports filed with the SEC. These statements are subject to risks and uncertainties that could cause actual results to differ. Please note that these forward-looking statements reflect our opinions and expectations only as of today. Except as this concept is required by law, we specifically disclaim any obligation to update or revise these forward-looking statements in light of new information or future events. Factors that could cause actual results or outcomes to differ materially from those expressed in, or implied by, such forward-looking statements are discussed in greater detail in our periodic reports filed with the SEC. Rockwell Medical's quarterly report on Form 10-Q for the 3 months ended June 30, 2026, was filed prior to this call and provides a full analysis of the company's business strategy, as well as the company's second quarter 2026 results. The reconciliation of non-GAAP measures we discuss on today's call can also be found in today's press release. Our Form 10-Q and other reports filed with the SEC along with today's press release, our updated investor presentation, and a replay of today's call can be found on our website under the investor section. Now I will turn the call over to Rockwell Medical's President and CEO, Dr. Mark Strobeck. Mark Strobeck: Thank you, Heather, and good morning, everyone. Thank you for joining us today on Rockwell Medical's second quarter 2026 earnings conference call and webcast. The second quarter was another important step forward for Rockwell Medical. We delivered strong year-over-year growth, continued to expand gross margin, generated positive operating cash flow, strengthened our customer portfolio, and advanced the operational initiatives that we believe will continue to drive long-term shareholder value. As a result, we remain on track to achieve our full-year 2026 guidance while continuing to execute against our strategy for further growth in the years ahead. When I think about where Rockwell is today compared to just a few years ago, the difference is significant. Our focus over the last several years has been straightforward: to build a strong business, improve profitability, generate cash, diversify our customer base, increase operational efficiency, and establish a foundation capable of supporting long-term growth. Those objectives have driven nearly every strategic and operational decision we have made. Today we are seeing tangible evidence that those efforts are working. During the second quarter, net sales increased 11% compared to the prior year period, driven by continued customer growth, increased purchase activity from existing customers, and the impact of pricing actions implemented across portions of our portfolio. Gross profit increased and gross margin expanded to 18%, reflecting higher volumes and improved operating efficiency. We also generated positive cash flow from operations and ended the quarter with a strong cash position. These results demonstrate continued progress in the execution of our strategy and further improvement in our financial performance. Perhaps equally important, these results are not driven by 1 single customer, a 1-time initiative, or a short-term event. They're being generated through disciplined execution across the organization. A key component of our strategy has been creating a more diversified and durable revenue base. We currently serve approximately 300 customers, including all 5 major U.S. dialysis providers, while also supplying products to more than 30 international markets. Over time, we have worked deliberately to reduce customer concentration and increase the percentage of business conducted under longer-term agreements that provide greater visibility and predictability. The second quarter included additional progress on this front. We announced a new agreement with Heritage Dialysis, the renewal of our long-standing relationship with Aqua Dialysis. Both agreements reinforce our position as a trusted supplier and further strengthen the recurring nature of our revenue base. Importantly, these agreements also include annual pricing provisions that better align our products with the value we provide our customers. Our commercial momentum also continues to build in regions where we are investing significant effort. As a result, we continue to see meaningful growth in the western United States, as recently onboarded customers continue to transition business to Rockwell. These wins are particularly important because they demonstrate our ability to compete successfully in new geographies while leveraging existing manufacturing and distribution infrastructure. We continue to remain the leading supplier of liquid bicarbonate concentrates and 1 of the largest overall providers of hemodialysis concentrates in the United States. We believe our products and services provide meaningful value, and our customers continue to depend on us to deliver high-quality products reliably and consistently in an environment where supply continuity is critical. Another area where we are seeing encouraging progress is operational efficiency. We have invested substantial time and resources into improving our manufacturing footprint, streamlining operations, optimizing distribution, and implementing automation initiatives. Many of these projects required upfront investment and significant organizational focus. While they were designed to create long-term benefits, we are now beginning to see those benefits reflected in our financial results. One of the clearest examples is the successful activation of two new automated liquid production lines which increase our manufacturing capacity, improve efficiency, reduce labor intensity, and lower production costs. As utilization continues to grow, we expect these and future investments to continue to contribute to margin expansion and profitability improvements over the coming years. Our objective is not simply to improve margins for a quarter or 2. We are focused on creating structural advantages that support sustainable profitability over the long term. When we discuss our goal of achieving approximately 30% gross margins by 2029, that target is not based on a single initiative. It reflects multiple drivers working together, including higher volume, pricing discipline, increased automation, improved manufacturing efficiency, distribution optimization, and continued growth, operating leverage as the business grows. We believe the progress we delivered during the second quarter demonstrates that these initiatives are moving in the right direction. Beyond our core concentrates business, we are also focused on creating future growth opportunities that are closely aligned with our existing renal care platform. During the second quarter, we incurred a modest amount of expense related to the evaluation and development of a new medical device opportunity that we believe complements our current product portfolio and leverages the commercial relationships, manufacturing expertise, and market knowledge we have built over many years. Importantly, this is a measured investment that is being funded within our existing operating plan and does not alter our commitment to maintaining a strong balance sheet and positive operating cash flow. While it is still early in the process, we believe this opportunity offers an attractive way to expand our offerings while remaining focused on disciplined capital allocation and creating long-term shareholder value. We will provide additional updates as they become available. Looking ahead, our long-term growth strategy remains centered around 3 core pillars. First, we will continue growing our core hemodialysis concentrates business through customer acquisition, geographic expansion, enhanced customer retention, and disciplined pricing. Second, we intend to broaden our portfolio with complementary renal care products that can leverage our existing infrastructure. Third, we will continue to evaluate innovations that improve the patient experience and expand our portfolio within the broader renal care ecosystem. Together, these initiatives support our goal of generating annual net sales in excess of $100 million by 2029 while continuing to improve profitability and cash generation. Before I turn the call over to Jesse, I'd like to address our recently completed reverse stock split. We recognize that some investors may naturally compare this reverse stock split to actions taken during prior periods in the company's history, particularly those who have followed Rockwell for many years. However, it is important to recognize that the circumstances surrounding this reverse split are fundamentally different. The reverse stock split completed this year was undertaken to regain compliance with Nasdaq's minimum bid price requirement to increase interest from institutional investors and reassure customers' confidence in Rockwell. While market conditions and trading dynamics contributed to Rockwell's share price performance, the reverse split was not driven by the need to raise capital, the deterioration in our operating performance, liquidity concerns, financial concerns, or change in our business outlook. Unlike prior periods, this reverse split was not undertaken in connection with nor will be followed by a capital raise. At the time of the split, Rockwell has demonstrated continued revenue growth, improving profitability, positive operating cash flow, expanded margins, and a strengthened balance sheet. Since completing the reverse split, we have regained compliance with Nasdaq's listing requirements, and the matter has been closed. More importantly, today Rockwell is fundamentally stronger than it was several years ago. We have strengthened our balance sheet, improved profitability, expanded margins, diversified our customer base, generated positive operating cash flow, invested in automation, and established a clear strategic roadmap for future growth. We believe these accomplishments are what should define Rockwell Medical's, should be, or what should define today's Rockwell Medical. We also continue to believe there is a meaningful disconnect between our current market valuation and the progress being made within the business. While markets ultimately determine value, our responsibility is straightforward. Execute our strategy, meet our commitments, communicate transparently, and continue to build a business that generates sustainable long-term returns. We believe the best way to close that gap is through continued execution, and our team remains intensely focused on delivering results. As the second half of 2026 gets fully underway, we are encouraged by the momentum in the business. We believe our company is stronger operationally, healthier financially, and better positioned strategically than it has been in recent years. While there is still work to do, we are confident that the actions we have taken, combined with the opportunities ahead of us, position Rockwell Medical for continued growth and value creation. With that, I'll turn the call over to Jesse to review our second quarter 2026 financial results in more detail. Jesse Neri: Thank you, Mark. Good morning, everyone. Net sales for the 3 months ended June 30, 2026, were $17.8 million, representing an 11% increase compared to net sales of $16.1 million for the same period in 2025. The increase was primarily driven by sales to new customers in the western United States, increased purchasing from existing customers, and annual pricing actions implemented across our portfolio. For the 6 months ended June 30, 2026, net sales were $35.1 million, which was in line with net sales for the same period in 2025. While net sales for the 6-month comparative periods were consistent year-over-year, it is important to point out that the first half of 2025 sales included higher purchasing volumes from DaVita. Including DaVita, first half 2026 sales grew by more than 10% over the prior year. We also delivered sequential growth with Q2 2026 sales exceeding Q1, driven by increased purchases from existing customers. We believe that this trend provides a stronger indication of the direction of the business than the 6-month comparison alone. Turning to profitability, gross profit for the second quarter was $3.2 million compared to $2.5 million in the second quarter of 2025, representing a 30% year-over-year improvement. Gross margin increased to 18% compared to 16% during the same period last year and 17% in the first quarter of this year. For the 6 months ended June 30, 2026, gross profit was $6.1 million compared to $5.5 million during the prior year period. Gross margin improved to 17% compared to approximately 16% during the first half of 2025. We believe these results continue the positive margin trajectory we have discussed over the last several quarters and represent another step toward our full-year gross margin target of 18% to 22%. The increase in gross profit and gross margin reflects the benefit of lower manufacturing costs and operational efficiency initiatives implemented throughout the organization, including our most recent automation investments. These improvements are designed to create a more efficient cost structure and support long-term profitability. As production volumes increase and asset utilization continues to improve, we believe there remains additional opportunity for margin expansion over time. Moving down the income statement, our net loss for the second quarter was $1.2 million compared to a net loss of $1.5 million during the second quarter of 2025 and $1.6 million for the first quarter of 2026. For the first 6 months of 2026, net loss was $2.8 million compared to $3 million during the same period in 2025. While we are not yet at our ultimate profitability objectives, these results demonstrate continued progress toward improving overall operating performance. Adjusted EBITDA for the second quarter was a negative $200,000, consistent with the prior year period. For the 6-month period, adjusted EBITDA improved $200,000 compared to the first half of '25, the benefits of higher gross profit. As additional revenue and margin improvement initiatives take hold throughout the remainder of the year, we continue to expect adjusted EBITDA to improve and remain within our previously issued guidance range of $1 million to $2 million for the full year of 2026. Now let's discuss cash flow and liquidity. One of the most encouraging aspects of our second quarter performance was the continued strength of our balance sheet and the ability to generate cash from operations. During the second quarter, the company generated approximately $2.1 million of cash from operations. This performance contributed to a quarter-end balance of $24.8 million in cash, cash equivalents, and investments available for sale. Importantly, this cash balance increased from $23.9 million at the end of the first quarter and remained generally consistent with our year-end 2025 position, despite continued investments in the business and the final payments associated with the Evoqua acquisition. We have consistently stated that our primary financial objective is to achieve operating cash flow and position the business to fund its operations organically. The second quarter represents another important step toward that objective. We believe our strong cash position provides flexibility to support our growth initiatives, invest in operational improvements, pursue strategic opportunities, and continue to build long-term shareholder value. Based on our performance through the first half of the year and current business trends, we are reiterating our full year 2026 guidance. We continue to expect net sales between $70 million and $75 million, gross margin between 18% and 22%, and adjusted EBITDA between $1 million and $2 million, and positive operating cash flow. As Mark noted earlier, we have met or exceeded our stated expectations for 3 consecutive years. While we remain mindful of the dynamic environment in which we operate, we are encouraged by the momentum we are seeing across the business and remain focused on disciplined execution during the second half of the year. In closing, our financial performance this quarter reflects a business that is becoming stronger, more efficient, and more predictable. Net sales increased, margin expanded, operating cash flow strengthened, and our balance sheet remains healthy. We believe these results reinforce the effectiveness of our strategy and positions us well for continued progress as we move through the remainder of 2026. Now I will turn the call back over to Mark. Mark Strobeck: Thank you, Jesse. Operator, please open the phone lines for any questions. Operator: We will now begin the question and answer session. [Operator Instructions] Please stand by while we compile the roster. Your first question comes from Nicholas Sherwood with Maxim Group. Please go ahead. Mark Strobeck: Good morning. Nick, I think we lost you. No, we can't hear you. Nicholas Sherwood: Hello? Mark Strobeck: Hello, we can hear you now. Go ahead. Nicholas Sherwood: So in the past you've spoken about expanding more into the West Coast. Can you talk about how it's been going building up your operations in that market? Mark Strobeck: Yes. So I think as we've spoken about previously, it's been a strategic objective of ours to expand our operations more directly in the West Coast as you know as of right now there is really primarily one supplier of concentrates in the West and we think there is a significant market opportunity for us to access as we announced at the beginning of the year, we had begun to take over a customer base that existed out in the West platform, and have now begun to supply those on a consistent and regular basis. What that's doing is really opening up the opportunity for us and our sales force to go out and begin to start to talk to other customers in the West, letting them know that Rockwell is now present in that region, has a full suite of concentrates, that we manufacture and distribute and can now begin to start to supply them. We're seeing a lot of positive interactions out there. And we expect that business, that part of the business, to continue to grow. Nicholas Sherwood: Thank you for that detail. And then talking about contracts you've been signing with your partners, what do the renewal structures look like? Are these things that you'll be 2 to 3 year contracts? Will you be revisiting them with your partners well before they end a year before the end or like 6 months before the end? And like some of these renewal option mechanisms, when can these be triggered just so you can maybe have even more idea of consistent revenue timeline? Mark Strobeck: Yes. Our standard sort of supply agreement is approximately 3 years in length. It carries with it a set amount of prices for the products that they are purchasing. It has in it standard price escalators, depending on the products, depending on the volumes that they are purchasing and the increases that they expect over those years. And then typically, we begin discussing with those partners about 6 months in advance of the end of those agreements, you know, renewing those agreements, and, you know, given our performance, given their needs, you know, that's usually the right time for us to begin those discussions and then have translated into extensions of those agreements for longer periods. Nicholas Sherwood: Okay, understood. And then I know you said you'd provide more forthcoming details, but I'm going to ask a question about the medical device opportunity you mentioned earlier. Anyway, how should we think about how it's going to settle and, you know, compare with your current portfolio of products? Is this going to be something that's going to be easily bundled with your current products? Either enhance their efficacy or efficiency, or is this more of something where it's going to be depending on your partner? This is going to be something that's going to be applicable to them, and it'll also be able to be used with your current product base. Mark Strobeck: Yes, so as we've spoken about previously, we've been looking for opportunities for us to in particular fold into our existing product portfolio that we think targets a large enough market opportunity to make it worth the investment for us to develop, ultimately register, and begin to start to sell and distribute a product. We've looked at a number of different opportunities. And this is 1 that we feel very strongly about that the data supports that if we are able to develop this product, register it, and begin to distribute it, really targets a large opportunity, folds directly into the current portfolio of products that we make. We would be potentially the only other supplier of this type of product in the United States. And I think that offers a pretty significant opportunity for us. So with all of that analysis behind it, we took the decision to begin the process of developing that product. And as I mentioned in the discussion, this will be entirely funded by our balance sheet. We don't need to go out and raise additional funding to support this. We think we can do it based on our current operating plan. And that also makes it equally attractive to us. Nicholas Sherwood: Okay, yes, great. Thank you for all those details. I'll return to the queue. Operator: Your next question comes from Ram Selvaraju with H.C. Wainwright. Please go ahead. Unknown Analyst: Good morning. This is [ Katie ] on for Ram. Beyond the manufacturing costs and volume drivers you've called out, is there a product mix component to the West Coast growth and to your path towards the high end of the 18% to 22% margin guide? On top of that, what's the plan to keep growing that Western business from here? Jesse Neri: So in terms of the product mix, I could help that. The Western product is more skewed towards our liquid products, which as you know we are the leading manufacturer of. So that's generally, it's a higher margin profile, but in terms of customers, I'll turn it over to Mark. Mark Strobeck: Yes. And then I think as far as, you know, continuing to expand our customer base out in the West, you know part of that is you know I think educating you know dialysis centers that are present in the West that Rockwell is you know now present now manufacturing products and has a path to distribute those products in that region. So it's really us going out and starting to more aggressively meet with those clinics, whether it's a large clinic or it's a medium dialysis organization letting them know that there is an alternative out there to the single provider that they've been largely locked into having to buy products from, and that's our path to continue to grow. Obviously the success of our supply and the customers that we currently have is also starting to ripple through the marketplace. And so the combination of those 2, I think are going to be incredibly important and helpful for us to drive growth further in the West. Unknown Analyst: Great. If I could, 1 quick follow-on. For that incremental volume growth, I think you sort of alluded to it, does that carry a margin similar to the corporate average, or are you seeing any kind of dilution by the freight onboarding costs as this business matures? Mark Strobeck: So for the incremental growth that we've seen over the quarter, that is consistently higher than the corporate average. Operator: Great. Thank you. We have reached the end of the Q&A session. I will now turn the call back over to Dr. Strobeck for closing remarks. Mark Strobeck: As we conclude today's call, I want to reiterate that our focus remains unchanged. Growing revenue, expanding margins, generating positive cash flow, and creating long-term value for our shareholders. The results we've reported today reflect the progress we are making against those objectives, including revenue growth, improved profitability, and improved performance. continued operational efficiencies, and a strong cash position. While we remain focused on executing our strategy, we are confident that the actions we have taken combined with the opportunities ahead of us position Rockwell Medical for continued growth and value creation. We appreciate the continued dedication of our employees, the trust of our customers, and the support of our shareholders. We look forward to updating you on our progress in the quarters ahead. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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Net Sales for the second quarter 2026 were $17.8 million, an increase over net sales for the first quarter 2026 and an 11% increase over the same period in 2025 Gross Profit for the second quarter 2026 increased 30% over the same period in 2025 and Gross Margin expanded to 18% primarily driven by lower manufacturing costs and higher volume Generated $2.1 million of Cash Flow from Operations in the second quarter 2026, increasing cash position at June 30, 2026 to $24.8 million On track to achieve full-year guidance with emphasis on top line growth, improving gross margins and positive cash flow WIXOM, Mich., August 13, 2026--(BUSINESS WIRE)--Rockwell Medical, Inc. (the "Company") (Nasdaq: RMTI), a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products to dialysis providers worldwide, today announced financial and operational results for the three and six months ended June 30, 2026. "The momentum in our business continues to build. Our second quarter results reflect the outcome of the actions we have taken to strengthen our commercial position, improve operational efficiency, and enhance profitability," said Mark Strobeck, Ph.D., Rockwell Medical’s President and CEO. "We are a fundamentally stronger company today, with a growing customer base, improving margins, a solid cash position, and a clear path toward achieving our 2026 guidance. As we enter the second half of the year, we remain focused on executing our growth strategy, expanding profitability, generating positive cash flow, and delivering long-term value for shareholders." FINANCIAL HIGHLIGHTS Net Sales Net sales for the three months ended June 30, 2026 were $17.8 million, which represents an 11% increase over net sales of $16.1 million for the same period in 2025 primarily driven by additional sales to new customers in the Western United States and greater purchasing from our existing customers. Net sales for the six months ended June 30, 2026 were $35.1 million, representing a slight increase over the same period in 2025. Gross Profit Gross profit for the three months ended June 30, 2026 was $3.2 million, which represents an increase of 30% over $2.5 million for the same period in 2025 primarily driven by lower manufacturing costs and higher volume. Gross profit for the six months ended June 30, 2026 was $6.1 million, which represents an 11% increase over the same period in 2025. Gross Margin Gross margin for the three months ended June 30, 2026 was 18%, up from 16% for the same period in 2025. Gross margin for the six months ended June 30, 2026 was 17%, up from 16% for the same period in 2025. Net Income (Loss) Net loss for the three months ended June 30, 2026 was $1.2 million, which represents an improvement over a net loss of $1.5 million for the same period in 2025, and an improvement over a net loss of $1.6 million in the first quarter of 2026. Net loss for the six months ended June 30, 2026 was $2.8 million, which represents an improvement over a net loss of $3.0 million for the same period in 2025. Adjusted EBITDA Adjusted EBITDA for the three months ended June 30, 2026 was ($0.2) million, which was in-line with Adjusted EBITDA of ($0.2) million for the same period in 2025. Adjusted EBITDA for the six months ended June 30, 2026 was ($0.4) million, which represents an improvement compared to Adjusted EBITDA of ($0.7) million for the same period in 2025. Cash, Cash Equivalents and Investments Available-for-Sale Cash and cash equivalents and investments available-for-sale at June 30, 2026 was $24.8 million, which represents an increase over $23.9 million at the end of the first quarter 2026 and in line with the Company's cash position at year-end 2025. OPERATING HIGHLIGHTS In May 2026, the Company announced that it entered into a three-year product purchase agreement with Heritage Dialysis, with options to renew for three additional one-year periods. In May 2026, the Company announced that it renewed and extended its product purchase agreement with aQua Dialysis for two years with options to renew for two additional one-year periods. In June 2026, the Company announced a 1-for-10 reverse stock split of its issued and outstanding common stock to regain compliance with the Nasdaq Capital Market's $1.00 minimum bid price requirement. The reverse stock split became effective at 12:01am EDT on July 1, 2026. The Company's common stock continues to trade under the symbol "RMTI" on the Nasdaq Capital Market. The new CUSIP number following the reverse stock split is 774374409. All share and per-share amounts in this press release have been retrospectively adjusted to reflect the split for all periods presented. Subsequent to the end of the second quarter 2026, the Company announced that it received notice from Nasdaq that the Company regained compliance with the minimum bid requirement under Nasdaq Listing Rule 5550(a)(2). Nasdaq has closed the matter. 2026 GUIDANCE In 2026, Rockwell Medical continues to focus on growing revenue, improving operational efficiencies, and achieving sustained profitability. The Company is implementing pricing adjustments to better align product value with market dynamics, and is further streamlining and enhancing its operational efficiencies and distribution footprint to generate additional savings. Rockwell Medical reiterates its 2026 annual guidance as follows: WEBCAST DETAILS Date: Thursday, August 13, 2026 Time: 8:00 a.m. ET Webcast and Replay: www.RockwellMed.com/Results Speakers: Mark Strobeck, Ph.D. — President and Chief Executive Officer Jesse Neri — SVP, Chief Financial Officer Format: Discussion of second quarter 2026 financial and operational results followed by Q&A. NON-GAAP FINANCIAL MEASURES To supplement Rockwell Medical’s unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP"), this press release also includes references to Adjusted EBITDA, a non-GAAP financial measure that is defined as net income (loss) before net interest income (expense), net other income (expense), income tax expenses (benefit), depreciation and amortization, impairment charges, stock-based compensation expense, and other items that are considered unusual or not representative of underlying trends of our business, including but not limited to one-time severance costs, deferred revenue and inventory reserve amounts, if applicable for the periods presented. The Company has provided a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA. In addition, this press release includes a reference to Adjusted EPS, a non-GAAP financial measure that is defined as Adjusted EBITDA divided by the weighted average number of shares outstanding. The Company has also provided a reconciliation to EPS, or net income divided by the weighted average number of shares outstanding, which is the most directly comparable GAAP financial measure. Each of these adjusted measures is a non-GAAP financial measure. The Company has provided reconciliations to the GAAP measures at the end of this press release. Adjusted EBITDA and Adjusted EPS are key measures used by Rockwell Medical to understand and evaluate operating performance and trends, to prepare and approve its annual budget and to develop short- and long-term operating plans. The Company provides Adjusted EBITDA because it believes the metric is helpful in highlighting trends in its operating results because it excludes items that are not indicative of Rockwell Medical’s core operating performance. In particular, the Company believes that the exclusion of the items eliminated in calculating Adjusted EBITDA provides useful measures for period-to-period comparisons of Rockwell Medical’s business. This is also true for Adjusted EPS, which is derived from Adjusted EBITDA. Adjusted EBITDA and Adjusted EPS should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. Other companies, including companies in the same industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA and Adjusted EPS as tools for comparison. There are a number of limitations related to the use of these non-GAAP financial measures rather than the most directly comparable financial measure calculated in accordance with GAAP. When evaluating the Company’s performance, you should consider Adjusted EBITDA and Adjusted EPS alongside other financial performance measures, including net loss, EPS and other GAAP results. ABOUT ROCKWELL MEDICAL Rockwell Medical, Inc. (Nasdaq: RMTI) is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers worldwide. Rockwell Medical's mission is to provide dialysis clinics and the patients they serve with the highest quality products supported by the best customer service in the industry. Rockwell is focused on innovative, long-term growth strategies that enhance its products, its processes, and its people, enabling the Company to deliver exceptional value to the healthcare system and provide a positive impact on the lives of hemodialysis patients. Hemodialysis is the most common form of end-stage kidney disease treatment and is typically performed in freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing facilities, or a patient’s home. Rockwell Medical's products are vital to vulnerable patients with end-stage kidney disease, and the Company is relentless in providing unmatched reliability and customer service. Certified as a Great Place to Work® four years in a row (2023-2026) and named Fortune Best Workplaces in Manufacturing & Production™ in 2024 and 2025, Rockwell Medical is Driven to Deliver Life-Sustaining Dialysis Solutions™. For more information, visit www.rockwellmed.com. FORWARD-LOOKING STATEMENTS Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as, "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "could," "can," "would," "develop," "plan," "potential," "predict," "forecast," "project," "intend," "look forward to," "remain confident," "remain steadfast," "guidance," "working to," "goal" or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward looking statements. Such statements include without limitation statements relating to: our financial guidance, including projections regarding net sales, gross margin, Adjusted EBITDA and operating cash flow; and our expectations regarding the outcome of our focus on executing our growth strategy, expanding profitability, generating positive cash flow, and delivering long-term value for shareholders. While Rockwell Medical believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in Rockwell Medical's SEC filings), many of which are beyond our control and subject to change. Actual results could be materially different. Risks and uncertainties include but are not limited to those risks more fully discussed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025, as such description may be amended or updated in any subsequent reports filed with the SEC. Rockwell Medical expressly disclaims any obligation to update our forward-looking statements, except as may be required by law. Financial Tables Follow View source version on businesswire.com: https://www.businesswire.com/news/home/20260813588314/en/ Contacts Heather R. Hunter(248) [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance growth was driven by a combination of new customer acquisition in the Western U.S., increased volume from existing accounts, and disciplined pricing actions. Management attributed gross margin expansion to 18% to improved operating efficiency and the activation of two new automated liquid production lines. The company is deliberately reducing customer concentration by shifting toward longer-term agreements with annual pricing provisions to increase revenue predictability. Strategic expansion into the Western U.S. aims to challenge the regional monopoly of a single provider by leveraging existing manufacturing and distribution infrastructure. Operational improvements are focused on creating structural advantages, such as reduced labor intensity and lower production costs, rather than short-term gains. The recent reverse stock split was framed as a strategic move to regain Nasdaq compliance and attract institutional investors, rather than a response to financial distress. Management reiterated its goal of achieving approximately 30% gross margins and over $100 million in annual net sales by 2029. Future margin expansion is contingent on higher production volumes, increased asset utilization, and continued automation across the manufacturing footprint. The company is evaluating a new medical device opportunity intended to complement the existing renal care platform and leverage current commercial relationships. Full-year 2026 guidance assumes continued momentum in the Western U.S. and the realization of benefits from recent manufacturing investments. Strategic growth pillars include geographic expansion, broadening the renal care product portfolio, and evaluating innovations to improve the patient experience. The company incurred modest expenses for the development of a new medical device, which management emphasized is being funded entirely through existing cash flow. Management explicitly stated that the reverse stock split will not be followed by a capital raise, distinguishing it from the company's historical actions. The second quarter marked a return to positive operating cash flow of $2.1 million, which includes the impact of final payments for the Evoqua acquisition. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that Rockwell is now a consistent supplier in the West, providing an alternative to the region's previously sole provider. The expansion is focused on educating clinics that a full suite of manufactured concentrates is now locally available and distributable. Standard contracts are approximately 3 years in length and include fixed pricing with standard escalators based on volume and product type. Renewal discussions typically commence 6 months prior to contract expiration to ensure continuity and alignment with customer needs. The device targets a large market where Rockwell would potentially be only the second supplier in the United States. Management confirmed the project is fully funded by the current balance sheet and does not require external capital. Growth in the West is skewed toward liquid products, which carry a higher margin profile than the corporate average. Incremental growth from this region has been consistently higher than the overall corporate margin average.

This article first appeared on GuruFocus. Net Sales: $17.8 million for Q2 2026, an 11% increase year-over-year. Gross Profit: $3.2 million in Q2 2026, a 30% improvement from the prior year period. Gross Margin: Expanded to 18% in Q2 2026, up from 16% in Q2 2025 and 17% in Q1 2026. Net Loss: $1.2 million for Q2 2026, improved from a net loss of $1.5 million in Q2 2025. Adjusted EBITDA: Negative $200,000 for Q2 2026, consistent with the prior year period. Cash Flow from Operations: Generated approximately $2.1 million in Q2 2026. Cash Position: $24.8 million in cash equivalents and investments at quarter-end, up from $23.9 million at the end of Q1 2026. Full-Year 2026 Guidance: Reiterated net sales between $70 million and $75 million, gross margin between 18% and 22%, adjusted EBITDA between $1 million and $2 million, and positive operating cash flow. Warning! GuruFocus has detected 3 Warning Signs with RMTI. Is RMTI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rockwell Medical Inc (NASDAQ:RMTI) reported an 11% year-over-year increase in net sales for Q2 2026, driven by new customer growth and increased purchase activity. Gross margin expanded to 18% in Q2 2026, up from 16% in the prior year period, reflecting improved operational efficiency and higher volumes. The company generated approximately $2.1 million in positive operating cash flow during the quarter, ending with a strong cash balance of $24.8 million. Rockwell Medical Inc (NASDAQ:RMTI) successfully signed a new agreement with Heritage Dialysis and renewed its long-standing relationship with Aqua Dialysis, strengthening its recurring revenue base. The company is making significant progress in the Western United States, a key growth area, with new customers transitioning business and contributing to higher-margin liquid product sales. Management reiterated its full-year 2026 guidance, expecting net sales between $70 million and $75 million, gross margin between 18% and 22%, and positive operating cash flow. Rockwell Medical Inc (NASDAQ:RMTI) still reported a net loss of $1.2 million for Q2 2026, although this was an improvement from the $1.5 million loss in the prior year period. Adjusted EBITDA remained negative at -$200,000 for the second quarter, consistent with the prior year period. The company's six-month net sales were flat year-over-year, with growth only visible when excluding the impact of higher purchasing volumes from DaVita in the prior year. The company incurred expenses related to the evaluation and development of a new medical device opportunity, which represents a new area of investment risk. Management acknowledged a 'meaningful disconnect' between the company's current market valuation and its operational progress, indicating the stock price may not reflect the business's performance. The company had to complete a reverse stock split to regain compliance with NASDAQ's minimum bid price requirement, which can be viewed negatively by some investors. Q: Can you provide more details on the new medical device opportunity mentioned earlier? How should we think about it compared to your current product portfolio? Will it be bundled with existing products or used independently?A: Mark Strobeck (President and CEO): This opportunity was selected because it folds directly into our existing product portfolio and targets a large market. The data supports that if we develop, register, and distribute this product, we could potentially be the only other supplier of this type of product in the United States. Importantly, this development will be entirely funded by our balance sheet within our existing operating plan, so we do not need to raise additional capital to support it. Q: How is the expansion into the West Coast market progressing, and what is the strategy for building operations there?A: Mark Strobeck (President and CEO): The West Coast is a strategic objective as there is primarily only one supplier of concentrates in that region, creating a significant market opportunity. We have onboarded a customer base in the West and are now supplying them consistently. This presence allows our sales force to engage other customers, informing them that Rockwell is now a viable alternative with a full suite of manufactured and distributed concentrates. We are seeing positive interactions and expect this part of the business to continue growing. Q: What do the renewal structures for your customer contracts look like? Are they multi-year agreements, and when are renewal options triggered?A: Mark Strobeck (President and CEO): Our standard supply agreements are approximately three years in length with set pricing and standard price escalators based on products and volumes. We typically begin discussions with partners about six months before the agreement ends. Given our performance and their needs, these discussions have successfully translated into extensions for longer periods. Q: Beyond manufacturing costs and volume drivers, is there a product mix component to the West Coast growth and your path towards the high end of the 18% to 22% margin guide? What is the plan to keep growing that Western business?A: Jesse Neri (SVP Finance) and Mark Strobeck (President and CEO): The Western product mix is more skewed towards our liquid products, where we are the leading manufacturer, which generally carries a higher margin profile. To continue growing the customer base, we are educating dialysis centers in the West that Rockwell is now present and manufacturing products. We are aggressively meeting with clinics of all sizes to let them know there is an alternative to the single provider they have been locked into. The success of our current supply is also creating a positive ripple effect in the marketplace. Q: For the incremental volume growth, does it carry a margin similar to the corporate average, or is there dilution from freight and onboarding costs as this business matures?A: Mark Strobeck (President and CEO): The incremental growth seen over the quarter is consistently higher than the corporate average margin. Q: Can you elaborate on the financial results for the second quarter, specifically regarding net sales and the impact of the DaVita relationship?A: Jesse Neri (SVP Finance): Net sales for Q2 2026 were $17.8 million, an 11% increase year-over-year, driven by new customers in the Western U.S., increased purchasing from existing customers, and annual pricing actions. For the six-month period, sales were $35.1 million, in line with the prior year. However, the first half of 2025 included higher purchasing volumes from DaVita. Excluding DaVita, first half 2026 sales grew by more than 10% over the prior year, and we delivered sequential growth with Q2 sales exceeding Q1. Q: What were the key drivers of the gross margin expansion in the second quarter?A: Jesse Neri (SVP Finance): Gross margin expanded to 18% in Q2 2026, up from 16% in the prior year period and 17% in Q1 2026. This improvement reflects the benefit of lower manufacturing costs and operational efficiency initiatives, including our most recent automation investments. As production volumes increase and asset utilization improves, we believe there remains additional opportunity for margin expansion. Q: Can you provide an update on the company's cash flow and liquidity position?A: Jesse Neri (SVP Finance): The company generated approximately $2.1 million of cash from operations during the second quarter. This contributed to a quarter-end balance of $24.8 million in cash and investments, which increased from $23.9 million at the end of Q1 and remained consistent with year-end 2025, despite continued investments and final payments associated with the Avoca acquisition. This strong cash position provides flexibility to support growth initiatives and pursue strategic opportunities. Q: What is the company's full-year 2026 guidance?A: Jesse Neri (SVP Finance): Based on performance through the first half of the year and current business trends, we are reiterating our full-year 2026 guidance. We expect net sales between $70 million and $75 million, gross margin between 18% and 22%, adjusted EBITDA between $1 million and $2 million, and positive operating cash flow. Q: Can you address the recently completed reverse stock split and its context compared to prior periods?A: Mark Strobeck (President and CEO): The reverse stock split was undertaken to regain compliance with NASDAQ's minimum bid price requirement and to increase interest from institutional investors. Unlike prior periods, this was not driven by a need to raise capital, deterioration in operating performance, or liquidity concerns. At the time of the split, Rockwell had demonstrated continued revenue growth, improving profitability, positive operating cash flow, and a strengthened balance sheet. Since completing the split, we have regained compliance with NASDAQ's listing requirements, and the matter is closed. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Village Farms (VFF) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +200.00%. A quarter ago, it was expected that this greenhouse operator would post earnings of $0.02 per share when it actually produced earnings of $0.02, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Village Farms, which belongs to the Zacks Medical - Products industry, posted revenues of $63.98 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 13.99%. This compares to year-ago revenues of $59.9 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Village Farms shares have lost about 43% since the beginning of the year versus the S&P 500's gain of 13.3%. While Village Farms has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Village Farms was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $63.75 million in revenues for the coming quarter and $0.15 on $243.38 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Rockwell Medical (RMTI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This maker of products used in the treatment of kidney disease and anemia is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +66%. The consensus EPS estimate for the quarter has been revised 30% lower over the last 30 days to the current level. Rockwell Medical's revenues are expected to be $17.84 million, up 11% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Village Farms International, Inc. (VFF) : Free Stock Analysis Report Rockwell Medical, Inc. (RMTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Rockwell Medical (RMTI) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 13, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This maker of products used in the treatment of kidney disease and anemia is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +66%. Revenues are expected to be $17.84 million, up 11% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 30% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Rockwell Medical, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Rockwell Medical will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Rockwell Medical would post a loss of$0.1 per share when it actually produced a loss of -$0.40, delivering a surprise of -300.00%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Rockwell Medical doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Medical - Products industry, OrganiGram (OGI), is soon expected to post loss of $0.01 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +66.7%. This quarter's revenue is expected to be $67.66 million, up 32.3% from the year-ago quarter. The consensus EPS estimate for OrganiGram has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -100.00%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that OrganiGram will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rockwell Medical, Inc. (RMTI) : Free Stock Analysis Report Organigram Global Inc. (OGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 8% year-over-year revenue decline to volume reductions from their formerly largest customer, though Q1 results exceeded internal expectations. The company has transitioned to a diverse customer mix where most individual client concentrations are under 10%, reducing reliance on any single entity. Gross margin improvement to 17% was driven by enhanced manufacturing and distribution efficiencies despite lower overall sales volumes. Rockwell has established itself as the primary supplier of liquid bicarbonate in the United States, serving approximately 300 customers across 1,400 facilities. Operational changes initiated in Q1, including pricing adjustments and manufacturing streamlining, are designed to reduce the total cost to produce and distribute concentrates. The company is leveraging its status as a reliable supply chain partner to win new contracts from customers who prioritize quality and availability. Management aims to achieve positive net income in the second half of 2026 through continued operational modifications and efficiency gains. The activation of two new automated liquid lines in Q2 2026 is expected to increase output by approximately 50% while significantly lowering per-bottle manufacturing costs. Full-year 2026 guidance assumes net sales of $70 million to $75 million and positive operating cash flow, eliminating the need for additional capital raises. The company projects an additional $3 million in gross profit from recent operational changes, with approximately half expected to be realized within 2026. Long-term 2029 goals include exceeding $100 million in annual net sales and reaching gross margins approaching 30% through portfolio diversification and innovation. Seasonal payroll taxes and public company expenses historically result in slightly negative adjusted EBITDA during the first quarter. The company completed its final $500,000 payment associated with the Evoqua acquisition in April 2026. A onetime large purchase by DaVita in the second quarter indicates continued demand from their prior largest customer despite overall volume declines. Management highlighted that their adjusted EBITDA proxy excludes non-operating items and restructuring costs to focus on the core concentrates business performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management sees strong demand in Latin and South America, currently supplying over 30 countries. International margins are typically higher because products are sold through distributors who bear the primary costs of distribution. Rockwell has successfully transitioned 30 new customers in the West and is currently hiring drivers and establishing a cross-dock facility. The physical presence in the West is generating inbound interest from new organizations previously unable to access Rockwell products. The company is aggressively pursuing pricing that reflects the value of end-stage renal disease treatments for both new and existing contracts. Management reported no significant pushback from customers during these price renegotiations. Rockwell continues to supply DaVita facilities and maintains a positive relationship despite the shift in customer concentration. A large onetime purchase in Q2 suggests DaVita remains interested in utilizing Rockwell as a key supplier for the foreseeable future.

Image source: The Motley Fool. Thursday, May 7, 2026 at 8 a.m. ET President and Chief Executive Officer — Mark Strobeck Chief Financial Officer — Jesse Neri Head of Investor Relations — Heather Hunter Need a quote from a Motley Fool analyst? Email [email protected] Heather Hunter: Good morning, and thank you for joining us for this update on Rockwell Medical. Joining me on today's conference call are Dr. Mark Strobeck, Rockwell Medical's President and Chief Executive Officer; and Jesse Neri, Rockwell Medical's Chief Financial Officer. Before we begin, I would like to remind you that this conference call will contain forward-looking statements about Rockwell Medical within the meaning of the Federal Securities Laws, including, but not limited to, the types of statements identified as forward-looking in our annual report on Form 10-K and our subsequent periodic reports filed with the SEC. These statements are subject to risks and uncertainties that could cause actual results to differ. Please note that these forward-looking statements reflect our opinions and expectations only as of today. Except as required by law, we specifically disclaim any obligation to update or revise these forward-looking statements in light of new information or future events. Factors that could cause actual results or outcomes to differ materially from those expressed in or implied by such forward-looking statements are discussed in greater detail in our periodic reports filed with the SEC. Rockwell Medical's quarterly report on Form 10-Q for the 3 months ended March 31, 2026, was filed prior to this call and provide the full analysis of our business strategy as well as the company's first quarter 2026 results. The reconciliation of non-GAAP measures we discuss on today's call can also be found in today's press release, our Form 10-Q and other reports filed with the SEC along with today's press release are updated in investor presentation and a replay of today's call can be found on our website under the Investors section. Now I will turn the call over to Rockwell Medical's President and CEO Dr. Mark Strobeck. Mark Strobeck: Thank you, Heather, and good morning, everyone. Thank you for joining us today for Rockwell Medical's First Quarter 2026 Earnings Conference Call and Webcast. When we set out to transform Rockwell nearly four years ago, our goal was to establish Rockwell as a financially sound, profitable, well-capitalized company that was well positioned for future growth. We believed Rockwell could consistently generate cash. And with that cash, make investments in new product categories that would diversify our portfolio, further growing Rockwell. While it hasn't been a straight line over those four years, we have consistently grown our gross margin and gross profit, and in the last two years, we achieved profitability on an adjusted EBITDA basis, an important proxy on profitability for Rockwell as it removes noncash items, nonoperating items, restructuring costs and other items that are not part of our core concentrates business. Fast forward to today, Rockwell is a sustainably profitable, stable company. As we work to further expand our efforts around improved gross margin and profitability, we announced this morning that we are making additional changes to our operations, which I will expand upon shortly. With these additional changes, our goal is to achieve positive net income in the second half of 2026, subject to customary risks and uncertainties that could cause actual results to differ materially. Now let's review our financial and operational performance for the first quarter 2026. We continue to experience high demand for our products, particularly for our liquid bicarbonate concentrates as we have now become the primary supplier of liquid bicarbonate in the United States. Net sales were higher than expected in Q1. And although net sales were lower compared to the same period in 2025, that reduction was due to our then largest customers' volumes declining. In addition, we demonstrated gross margin improvement over the same period last year with comparable gross profit. We believe that this demonstrates improved efficiency in our manufacturing and distribution of our hemodialysis products. In fact, we experienced sequential growth each month during the first quarter of this year in gross margin, gross profit, adjusted EBITDA and net income. We expect that trend to continue in the coming months. During the first quarter, we added several new customers and renewed contracts with existing customers, improving price and product mix. Today, our customer mix is diverse with most customer sales concentrations under 10%. Rockwell currently serves approximately 300 customers, which represents more than 1,400 facilities, highlighted by all five of the leading dialysis providers in the United States, along with university medical centers, community hospital systems and other renal care organizations. In addition, we supply hemodialysis concentrates to more than 30 countries outside the United States. Our pipeline remains active and diversified across customer segments and geographies. We continue to see strong interest from customers who increasingly recognize the importance of quality and supply chain reliability for their hemodialysis products. We believe our diverse customer mix positions us well for sustainable growth and expansion. During the first quarter, we spent a considerable amount of effort setting into motion operational changes that we believe will further streamline and enhance our manufacturing and distribution efficiencies. These changes are designed to enhance profitability by further reducing the overall cost to make and distribute our products. For example, we are activating two new automated liquid lines this quarter, which we anticipate will generate an approximate 50% increase in our output and a significant reduction in our manufacturing cost per bottle. We have also made adjustments in our pricing, which reflect the value of our products. All of these changes will be in place and be reflected in our results starting in the second quarter, positively impacting our performance in 2026. In fact, we estimate that these modifications will result in an additional $3 million of gross profit, approximately half of which we expect to realize in 2026. For 2026, we continue to be focused on growing our business. We plan to grow revenue by adding new customers and expanding contracts with existing customers, improving our operational efficiencies and further enhancing our profitability. Today, we announced additional guidance beyond what we provided several weeks ago during our last earnings call. Rockwell Medical projected that our 2026 annual guidance will be as follows: Net sales will be between $70 million and $75 million. Gross margin will be between 18% and 22%. Our business will be profitable. We estimate adjusted EBITDA will be between $1 million and $2 million, and operating cash flow will be positive, meaning we will generate cash and eliminate our need to raise additional capital to fund our operations. As a reminder, we started issuing guidance three years ago and have met or exceeded expectations each of those three years. For 2026, as new opportunities arise, we anticipate that our projections have the potential to strengthen, reflecting Rockwell's ongoing adaptability and growth prospects. Looking ahead, we continue to focus on long-term value creation for our shareholders. Our strategy over the next three years is centered on three core elements: growing our profitable hemodialysis concentrates business, serving dialysis centers in the United States and around the world, building a broader portfolio of renal care products that integrate seamlessly into our existing commercial, manufacturing and distribution infrastructure, expanding our foothold within the renal space by pursuing innovations that can drive improved treatment options and outcomes for patients. By 2029, we believe that we will be well positioned to generate annual net sales above $100 million. Gross margin will continue to trend upward potentially approaching 30%, and our business will be profitable on an annual basis in the range of $5 million to $10 million. These are our goals, and we believe we have a clear path to achieve them. Now I will turn the call over to Jesse to review our first quarter 2026 financial results in more detail. Jesse Neri: Thank you, Mark. Good morning, everyone. Net sales for the first quarter were $17.3 million. While this represents an 8% decrease over net sales for the same period in 2025, our Q1 results exceeded our expectations and track toward our full year 2026 estimate of $70 million to $75 million. Gross profit for the first quarter 2026 was $2.9 million, in line with gross profit for the same period in 2025. Gross margin for the first quarter 2026 was 17%, representing a slight improvement over gross margin of 15% for the same period in 2025. This demonstrates that we continue to become more efficient at manufacturing our products. We expect gross margin for the full year 2026 to be between 18% and 22%. Net loss for Q1 2026 was $1.6 million, representing a slight increase over a net loss of $1.5 million for the same period in 2025. Adjusted EBITDA for the Q1 2026 was a negative $300,000, which was a slight improvement over adjusted EBITDA of negative $400,000 for the same period in 2025. Seasonal items associated with payroll tax and other public company-related expenses incurred in Q1 historically drive our adjusted EBITDA to be slightly negative. Cash, cash equivalents and investments available for sale at March 31, 2026, was $23.9 million compared to $25 million at year-end. The decrease in cash of approximately $1.1 million was driven by seasonal items historically incurred in the first quarter as well as a $500,000 payment associated with our Evoqua acquisition. The final Evoqua payment was made in April. Our cash balance continues to provide a stable foundation for our business while providing growing capital to pursue strategic objectives. Now I'll turn the call back over to Mark. Mark Strobeck: Thank you, Jesse. Operator, please open the phone lines for any questions. Operator: We will now begin the question-and-answer session. [Operator Instructions] Your first question comes from the line of Jeremy Pearlman with Maxim Group. Jeremy Pearlman: Just a couple of questions from us. Meaning you mentioned on the call that you had -- you were selling in 30 countries outside the U.S. Maybe talk a little bit about what other expansion opportunities are there? And what does the margin profile look like outside of the U.S. versus in the U.S. Mark Strobeck: Yes. Thanks, Jeremy. Yes, we continue to see strong demand for our products outside of the United States particularly in areas of Latin America and South America. For us, that product category is very attractive in part because we sell our products through distributors who are primarily responsible for the distribution or the cost of the distribution of those products. So our margins are typically higher in that product category. We don't -- we don't provide the details around that, but it's a very attractive business for us. Jeremy Pearlman: Okay. That's great. And then maybe while we're also talking about expansion, I know on the last call, you mentioned that you had 30 new customers, I think, roughly 30 new customers out West. I know that's also been on the radar for a while. Maybe any update on how that's going, if there's been any new customer wins, how -- at what point -- what inflection point do you think it'd be worthwhile to have its own distribution point or maybe even a factory out there? Mark Strobeck: Yes. So yes, we transitioned those 30 customers into the Rockwell platform. We are currently supplying those successfully. We're also in the process now of hiring drivers and establishing cross-dock out in that area. Once we're able to do that, we'll be in a position to be able to expand that business in the West. Now that we're out there, we're also receiving calls from organizations that are in the West, that are now looking to access products as they were otherwise unable to do so previously So yes, we're very happy with the progress we're making in that expansion. Jeremy Pearlman: Okay. Great. And then I know you mentioned that you took some pricing. Is that just on new customer wins? Or is that going to be across your entire customer [indiscernible]? And has there been any -- while you're renegotiating the prices, has there been any pushback or discussed at this point? Mark Strobeck: Yes. So we constantly evaluate the value of our products and the price that we charge for those, given the importance of those products have in the treatment of patients with end-stage renal disease. Yes, we are with new customers, I mean, certainly, we are very focused on making sure that we receive the value of what we produce. For existing customers, we are working with them to, again, adjust pricing that may be reflective of a more current and contemporary framework. We're very interested in making sure customers are making sure that they receive the value that they are interested in purchasing. And at this point, we've not achieved any pushback on that, and I think we'll continue to try to maximize that going forward. Jeremy Pearlman: Okay. That's great. And then just last question from us. You still -- I don't know if you're still in ongoing negotiations with DaVita, your prior largest customer. Is there any update on that? Or are you locked in for 2026? Or is there any opportunity or possibility that contract gets expanded or moved on into '27 or too early to tell? Mark Strobeck: Yes. So we continue to maintain a very good relationship with DaVita. We are continuing to supply the facilities that they've asked us to supply at the end of last year, and I feel very strongly that, that we'll be able to continue to do that going forward. DaVita did make a onetime large purchase this quarter -- in the second quarter, again, which indicates for us that they are very interested in continuing to work with us to supply them. Operator: [Operator Instructions] There appear to be no further questions at this time. I will turn the call back over to Dr. Strobeck. Mark Strobeck: Thank you for joining us today for an update on Rockwell Medical. Heather Hunter: Tracey, we'll take the call if it's still coming through, the question? Operator: I see that we do have Ram Selvaraju sitting here in the queue, he has disconnected. But if he comes back, we can put him back on. Mark Strobeck: Thank you for joining us today for an update on Rockwell Medical. We continue to drive increased efficiencies in our manufacturing processes and distribution network, driving down our operating costs. We continue to onboard new customers while renewing contracts with existing customers at favorable terms to Rockwell. We continue to pursue product diversification and business development opportunities that we believe have the potential to have a significant impact on our organization. For 2026 and beyond, we remain focused on increasing our revenue, expanding our gross margin and generating sustainable profitability on an adjusted EBITDA and cash flow basis. We are focused on growth that positively impacts our bottom line. We look forward to sharing more in the months to come. Thank you. Operator: This concludes today's call. Thank you all for attending. You may now disconnect. 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