Mon, May 12, 11:02 AM (42 days ago)
**Rockwell Medical, Inc. (RMTI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $18.9M, down 17% from $22.7M in Q1 2024, primarily due to a $5.9M reduction in DaVita volume, partially offset by price adjustments. - **Profit Margins:** Gross profit margin was 16% in Q1 2025, slightly down from 14% in Q1 2024. Operating loss was $1.4M, slightly higher than the $1.3M loss in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $3.5M, up from $2.4M in Q1 2024. Net cash used in investing activities was minimal, while net cash used in financing activities was $0.8M. **Earnings Changes:** - **Net Loss:** Net loss was $1.5M, slightly improved from $1.7M in Q1 2024. - **EPS:** Basic and diluted net loss per share was $0.04, improved from $0.06 in Q1 2024. **Trends and Uncertainties:** - **DaVita Transition:** DaVita, a major customer, is transitioning to another supplier, impacting Rockwell's revenue. - **Cost Containment:** Rockwell is implementing cost containment activities to manage expenses. - **Capital Raising:** The company may need to raise additional capital to sustain operations and execute its strategic plan. **Future Operations Impact:** - **Customer Acquisition:** Rockwell is focusing on acquiring new customers to offset the loss of DaVita business. - **Product Distribution:** The company has entered into a distribution services agreement to expand its product offerings. - **Financial Covenants:** Rockwell is in compliance with its loan agreement covenants but faces uncertainties due to global macroeconomic conditions. **Conclusion:** Rockwell Medical, Inc. faced challenges in Q1 2025 due to the transition of a major customer, impacting revenue and cash flow. The company is focusing on cost containment, customer acquisition, and potential capital raising to sustain operations and execute its strategic plan. Despite these challenges, Rockwell remains committed to its mission of providing high-quality hemodialysis products and services.