Rockwell Medical (NASDAQ:RMTI) reported a 20% increase in third-quarter 2026 net sales as demand grew from new and existing hemodialysis customers, but its net loss widened amid expenses related to its pending acquisition of Vantive’s global hemodialysis business.
The company withdrew its full-year 2026 guidance, citing the proposed acquisition and related expenses incurred in the third quarter and expected in the fourth. Chief Financial Officer Jesse Neri said on the earnings call that Rockwell expects to provide company guidance sometime in March, after releasing its annual Form 10-K.
Sales Rise as Costs Pressure Margins
Third-quarter net sales totaled $19.1 million, up from the same period a year earlier. Neri attributed the increase primarily to sales to new customers in the West and higher purchasing volumes from existing customers, particularly the five largest U.S. dialysis providers, all of which are Rockwell customers.
Gross profit rose 37% to $3.1 million, while gross margin increased to 16% from 14% a year earlier. Neri said higher freight, material and supply costs weighed on the quarter’s margin, with increased diesel costs contributing to those pressures. The company is working to optimize its supply chain to mitigate them, he said.
Rockwell reported a third-quarter net loss of $2.3 million, compared with a loss of $1.8 million a year earlier. Neri said the loss was driven by approximately $800,000 in acquisition-related expenses. Adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, were negative $300,000, compared with positive $50,000 in the prior-year quarter.
For the nine months ended Sept. 30, net sales rose 7% to $54.2 million, and gross profit increased 18% to $9.3 million. The nine-month net loss was $5.1 million, compared with $4.8 million a year earlier.
Cash, cash equivalents and investments available for sale totaled $22.5 million at Sept. 30, down from $24.8 million at June 30. Neri said the decline primarily reflected increases in accounts receivable and prepaid expenses, as well as equipment purchases to further automate production lines.
Vantive Deal Would Expand Product Portfolio
President and CEO Mark Strobeck said the pending Vantive transaction would add hemodialysis machines, water treatment systems, consumables and technical services to Rockwell’s concentrates business. The deal also includes a one-million-square-foot manufacturing campus in Medolla, Italy.
The acquisition is expected to close in mid-2027, subject to customary closing conditions and regulatory approvals. Based on the businesses’ current revenue profiles, Rockwell expects the combined operation to generate annual revenue of $400 million to $450 million, approximately 90% of which is expected to be recurring.
Strobeck said integration planning has begun, with continuity of supply for both companies’ customers a priority. The transaction contemplates transition services and manufacturing and supply agreements with Vantive to support the handover of employees, customers, systems, manufacturing, product registrations and distribution.
Asked about potential efficiencies and cross-selling, Strobeck said Rockwell is assessing both businesses for synergies and has already discussed the broader prospective product portfolio with customers. He said customers had inquired about products ranging from bicarbonate cartridges to machines and blood tubing sets.
Kidney Care Plan Seen as Long-Term Opportunity
Strobeck also pointed to the U.S. Department of Health and Human Services’ recently announced Kidney Care National Plan, which he said focuses on preventing kidney failure, improving dialysis care and expanding patient choice, and reforming transplantation.
He said the plan’s emphasis on competition, innovation and access to care—including home-based dialysis—could present a long-term opportunity for Rockwell as the care model evolves. Rockwell currently serves approximately 300 customers and supplies products to more than 30 international markets through third-party distributors, according to Strobeck.
About Rockwell Medical (NASDAQ:RMTI)
Rockwell Medical, Inc. is a healthcare company focused on developing, manufacturing and commercializing products used in the treatment of patients with end-stage renal disease (ESRD) who receive hemodialysis. The company supplies products intended to support anemia management and other aspects of dialysis care. Its principal pharmaceutical product is Triferic, an iron replacement therapy designed to deliver iron to hemodialysis patients through the dialysate. Rockwell Medical also markets Triferic AVNU, an intravenous formulation administered during hemodialysis.
