RMTI Q3 2026 earnings call transcript, November 12, 2026

Thank you for joining us today for Rockwell Medical's third quarter, 2026 earnings conference call and webcast. We are excited to welcome Laura, who recently joined. This is our new executive director of investor relations. Laura brings to Rockwell more than 30 years experience in investor relations and capital markets, especially within the healthcare sector. Laura now leads our investor relations function and will serve as a key liaison between Rockwell Medical and our shareholders, analysts, prospective investors, and the broader investment community. This morning, our remarks are organized around three key topics. One, the continued execution. of our plan for our core hemodialysis business. Two, the future impact of our pending acquisition of Bantib's global hemodialysis business. And three, the potential opportunity inherent in the new U.S. Health and Human Services Kidney Care National Plan. During the third quarter of 2026, we continue to grow our core hemodialysis concentrates business through customer acquisition, geographic expansion, enhanced customer retention, and discipline pricing. This resulted in net sales of $19.1 million for the third quarter of 2026, which represented a 20% increase over the same period in 2025. During his remarks, Jesse will review our third quarter of 2026 financial results in greater detail. The hemodialysis market continues to evolve as several industry participants adjust their product portfolios and operations.

Additionally, there have been publicly disclosed... FTA recalls involving certain dialysis products manufactured by other suppliers. Against that backdrop, we continue to focus on being a reliable supplier and delivering high quality products. We believe this focus on quality and reliability continues to support our customer relationships and net sales growth. It's how we win business and how we keep it. During the third quarter, we saw increased demand from our existing customers including the top five major dialysis providers in the United States. As a result, we maintain solid upward momentum across our business driven by robust market demand and disciplined execution. Today, we serve approximately 300 customers while also supplying products to more than 30 international markets through third-party distributors. We continue to have productive discussions with some of our largest customers regarding opportunities to expand our existing relationships and increase product volumes. We will provide updates when appropriate. The second topic we would like to discuss is the Vantiv acquisition. Last week, we announced that we entered into an equity and asset purchase agreement with Vantiv Limited, under which we will acquire Vantiv's hemodialysis concentrates, hemodialysis machines, water treatment systems, and related consumables and technical services business. In addition, we will acquire Vantiv's state-of-the-art 1 million square foot manufacturing campus in Medola, Italy. This acquisition will broaden our

Vantiv's state-of-the-art 1 million square foot manufacturing in Medola, Italy. This acquisition will be available in the United States of the United States of the United States of the United States of the United States of the United States of the United States of the United States. portfolio within the hemodialysis sector beyond concentrates, and will also add established international customer relationships, distribution capabilities, technical expertise, and a global manufacturing footprint. Together, these capabilities will expand the scale, scope, and strategic reach of Rockwell Medical, creating a more diversified global hemodialysis platform with the ability to serve customers across a broad range of products and geographies. This acquisition is transformational for us. By bringing these two businesses together, we have the opportunity to form one of the world's leading hemodialysis medical device manufacturers and suppliers with a scale and global presence that would otherwise take years to build organically. Upon closing, we estimate that the combined business will bring together a global workforce of more than 1,000 employees across more than 36 countries. Based on the current revenue profile of the two businesses we expect. the combined business to generate annual revenue between 400 and 450 million dollars approximately 90% of which is expected to be reoccurring. Between signing and closing which remains subject to customary closing conditions and regulatory approvals and is currently expected to occur in mid 2027 our priorities are clear. The transaction contemplates a transition services agreement and manufacturing and supply agreement with Vantip.

to support the orderly transition of the business, especially with respect to employees, customers, systems, processes, manufacturing, product registrations and distribution. We plan to work closely with Vantip and focus on continuity of supply, along with support for customers, patients and employees throughout the transition. At the same time, we will be preparing Rockwell Medical to operate as a larger, more global organization following closing. We look forward to keep you updated as we continue to make progress. Lastly, I want to touch on the Kidney Care National Plan announced last month by HHS. The plan is built around three priorities. One, preventing kidney failure. Two, improving dialysis care and expanding patient choice. And three, reforming transplantation. Specifically citing the announcement, the plan identifies where federal action can improve kidney care across the entire spectrum of kidney disease, eliminate regulatory barriers to support innovation in a well-functioning kidney market and deliver greater choice and superior outcomes to patients in the United States. For Rockwell, the most compelling aspect of this announcement is the plan's continued focus on restoring competition in dialysis care. HHS describes a market weakened by decades of regulation that too often protects incumbents rather than patients. And the plan sets out to remove barriers that inhibit competition and innovation and to reduce barriers.

to entry for new providers and treatments. The plan emphasizes innovation, patient choice, and access to dialysis care, including home-based care. We view this as a positive step for both patients and providers. Additionally, we believe this presents a long-term opportunity for Rockwell Medical as the care model evolves because our products support chemo dialysis wherever patients receive care, whether in freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing facilities. Or a patient's home. Our role within this ecosystem is straightforward. Be where the patients are, whether that is at home or in the clinic. We provide reliable service, high-quality products, and continuity of supply to the customers and patients who depend on us for our life-saving chemo dialysis products so that patients have more choices in how and where they receive care. Our core concentrates business together with the broader capabilities we expect to add through the Vantive transaction to present an opportunity. to strengthen our ability to fulfill that role across a larger and more diverse hemodialysis sector. This initiative leverages our core strengths and we fully support HHS in the endeavor to revitalize American kidney care. With that, I'll now turn the call over to Jesse.

It's important to note that the gross margin was also negatively impacted during the third quarter by higher freight, material, and supply costs, all of which were driven in part by increased diesel costs. We continue to optimize our revenue and increase our revenue and increase from 14% for the same period in 2025. Our supply chain to mitigate the impact of these cost pressure variables on our operating performance. Moving down the income statement, our net loss for the third quarter was $2.3 million, which was driven by approximately $800,000 in acquisition-related expenses, compared to a net loss of $1.8 million for the same period in 2025. For the nine months ended September 30, 2026, net loss was $5.1 million, compared to $4.8 million. for the same period in 2025. Adjusted EBITDA for the third quarter, 2026, was a negative $300,000, compared to adjusted EBITDA of $50,000 for the same period in 2025. For the nine-month period of 2026, adjusted EBITDA was negative $700,000, compared to a negative $600,000 for the same period in 2025. Cash, cash equivalents, and- Investments available for sale at September 30th, 2026, was $22.5 million, which represents a decrease from $24.8 million at June 30th, 2026. The decrease in cash was primarily driven by normal increases in accounts receivable and prepaid expenses, as well as equipment purchases to further automate our production lines.

We have withdrawn all full-year 2026 guidance, including net sales- cost margin, adjusted EBITDA, and operating cash flow in consideration of the pending Vantip HD business acquisition and related expenses incurred during the third quarter and related expenses expected to be incurred during the fourth quarter of 2026. Now I'll turn the call back over to Mark.

Your first question comes from the line of Ram Selvaraju with HC Wainwright. Your line is open. Please go ahead.

There are no further questions.

You may now disconnect.