Rockwell Medical, Inc.

Hello, everyone. Thank you for joining us and welcome to Rockwell Medical's first quarter 2026 results conference call and webcast. Please note this event is being recorded. At this time, I would like to turn the conference over to Heather Hunter, Chief Operating Officer at Rockwell Med. Heather, please go ahead.

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 Meary, 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 FCC. 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 three months ended March 31, 2026, was filed prior to this call and provides a full analysis of our business strategy as well as the company's first quarter 2026 results. The reconciliation of non-GAAP measures we discussed 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, our updated investor presentations, And a replay of today's call can be found on our website under the investor section. Now I will turn the call over to Rockwell Medical's president and CEO, Dr. Mark Strovaks.

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 non-cash items, non-operating 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 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. In addition, we supply hemodialysis concentrates to more than 30 countries outside the United States. Our pipeline remains active and diversified across customer segments and geographies. We continue to see strong interest from customers who increasingly recognize the importance of quality and supply chain reliability for their hemodialysis products. We believe our diverse customer mix positions us well for sustainable growth and expansion. During the first quarter, we spent a considerable amount of effort setting into motion operational changes that we believe will further streamline and enhance our manufacturing and distribution efficiencies. These changes are designed to enhance profitability by further reducing the overall cost to make and distribute our products. For example, we are activating two new automated liquid lines this quarter, which we anticipate will generate an approximate 50% increase in our output and a significant reduction in our manufacturing cost per bottle. We have also made adjustments in our pricing, which reflect the value of our product. All of these changes will be in place and be reflected in our results starting in the second quarter, positively impacting our performance in 2026. In fact, we estimate that these modifications will result in an additional $3 million of gross profit, approximately half of which we expect to realize in 2026. For 2026, we continue to be focused on growing our business. We plan to grow revenue by adding new customers and expanding contracts with existing customers. improving our operational efficiencies, and further enhancing our profitability. Today, we announced additional guidance beyond what we provided several weeks ago during our last earnings call. Rockwell Medical projects that our 2026 annual guidance will be as follows. Net sales will be between 70 and $75 million. Gross margin will be between 18 and 22%. Our business will be profitable. We estimate adjusted EBITDA will be between $1 and $2 million, and operating cash flow will be positive, meaning we will generate cash and eliminate our need to raise additional capital to fund our operations. As a reminder, we started issuing guidance three years ago and have met or exceeded expectation each of those three years. For 2026, as new opportunities arise, we anticipate that our projections have the potential to strengthen. reflecting Rockwell's ongoing adaptability and growth prospects. Looking ahead, we continue to focus on long-term value creation for our shareholders. Our strategy over the next three years is centered on three core elements. Growing our profitable hemodialysis concentrates business, serving dialysis centers in the United States and around the world, building a broader portfolio of renal care products that integrate seamlessly into our existing commercial manufacturing and distribution infrastructure, expanding our foothold within the renal space by pursuing innovations that can drive improved treatment options and outcomes for patients. By 2029, we believe that we will be well-positioned to generate annual net sales above $100 million. Gross margin will continue to trend upward, potentially approaching 30%, and our business will be profitable on an annual basis in the range of $5 to $10 million. These are our goals, and we believe we have a clear path to achieve them. Now I will turn the call over to Jesse to review our first quarter 2026 financial results in more detail.