RMTI Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Fri, May 8, 2026 at 10:11 PM GMT+7 14 min read RMTI Image source: The Motley Fool. President and Chief Executive Officer — Mark Strobeck Head of Investor Relations — Heather Hunter Need a quote from a Motley Fool analyst? Email pr@fool.com 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. I

RMTI Q1 2026 Earnings Transcript

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RMTI Q1 2026 Earnings Transcript

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