Strategic growth in the middle of the operational challenges

• Revenue: 1.9 million US dollars, an increase of 3% compared to the previous year.

• Gross marge: 56%, after 64.1% in the previous year.

• Operating costs: 4.1 million US dollars, a reduction of 31% compared to the previous year.

• Net lust: $ 3 million or $ 0.69 per share compared to USD 3.8 million or $ 24.11 per share in the previous year.

• Cash and cash equivalent: 2.6 million US dollars on March 31, 2025.

• Pediatric sales growth: 38% increase from year compared to the year.

• Heart failure sales growth: 28% increase year compared to the previous year.

• Income from intensive care: decline: 25% decrease a year.

• SG & A editions: 3.6 million US dollars, a reduction of 22% compared to the previous year.

• F&E editions: 550,000 US dollars, compared to 1.3 million US dollars in the previous year.

Appearance date: May 13, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Nuwellis Inc (Nasdaq: Nuwe) recorded an increase in sales of 3% compared to the previous year for the first quarter of 2025, which is due to an increase in the use of consumption materials and higher sales with the US consoles.

• Pediatric and heart failure segments showed significant growth, whereby the income rose by 38% or 28% compared to the previous year.

• The company has made progress in reimbursement coverage, whereby the Aquadex therapy receives a new outpatient reimbursement of CMS, which increases the reimbursement fee of the facility by almost four times.

• Nuwellis Inc (Nasdaq: Nuwe) has reduced the operating costs by 31% compared to the first quarter of 2024, which reflects disciplined cost management.

• The company is expanding its outpatient strategy and is aimed at a market chance of $ 773 million, which is expected to drive the future top line growth.

• The sales with intensive care decreased by 25% compared to the previous year, especially because of a large customer who generated excess inventory in the previous quarter.

• The gross margin decreased from 64.1% to 56% in the same period of the previous year, which was affected by unfavorable production variations and a lower fixed overhead absorption.

• International sales decreased and partially exposed the growth of the US turnover.

• The company ended the quarter with 2.6 million US dollars in cash and cash equivalents, which indicates limited liquidity.

• Nuwellis Inc (Nasdaq: Nuwe) is still in dealing with logistical challenges for the implementation of outpatient clinics, which can delay sales growth in this segment.

Q: If pediatric sales have increased by 38% compared to the previous year, the turnover of adults fell back due to lower international sales or was there also lower domestic sales? A: John Erb, non-managing board chairman, said that the decline in intensive care was primarily due to its largest customer building inventory in the fourth quarter of last year, which led to a reduced purchases in the first quarter. They started to be killed in the second quarter, and the business volume for intensive care is expected to return to the normal level.