Nuwellis (NUWE) Financials

Nuwellis’ Q2 2026 results show improving year-over-year profitability, but the company remains heavily dependent on equity financing and continues to consume cash. Revenue increased to $2.0 million from $1.7 million in Q2 2025, a gain of approximately 14%. Gross profit also rose to $1.5 million, while the gross margin improved to roughly 76% from 56% a year earlier. However, revenue declined approximately 18% sequentially from $2.4 million in Q1 2026.

Operating performance improved compared with the prior year and preceding quarter. The operating loss narrowed to $3.2 million in Q2 2026 from $4.6 million in Q1 2026 and $2.9 million in Q2 2025, although it remains substantial relative to quarterly revenue. Selling, general and administrative expense fell to $3.7 million from $4.5 million in Q1, and research and development expense declined to $942,000 from $1.7 million.

Nuwellis reported a $4.8 million net loss in Q2 2026, an improvement from the $12.6 million loss recorded in Q2 2025. The prior-year period included a $9.6 million net other expense, while Q2 2026 included $1.7 million of net other expense. The company has nevertheless remained unprofitable in nearly all of the periods provided, with the notable exception of Q3 2025, when a $3.2 million other-income benefit helped produce net income of $468,000 despite an operating loss.

Cash flow remains a major concern. Operating cash flow was negative $3.2 million in Q2 2026, roughly consistent with the $3.1 million outflow in Q1 but worse than the $2.1 million outflow in Q2 2025. Capital expenditures were modest, so the cash deficit is primarily tied to ongoing operating losses. Financing activities, almost entirely common-stock issuance, provided $5.0 million during Q2 and $4.4 million during Q1, allowing cash to increase to $3.9 million at June 30, 2026.

The balance sheet presents a mixed picture. Current assets of $7.9 million exceeded current liabilities of $4.0 million, implying a current ratio of approximately 2.0. However, total liabilities of $11.2 million exceeded total assets of $9.1 million, leaving shareholders’ equity negative at $2.1 million. This compares with positive equity of $2.7 million at the end of Q1 2026, reflecting a sharp increase in noncurrent liabilities and continued accumulated losses. The financial data also includes several restated periods and unusual share-count changes, so investors should review Nuwellis’ filings for details on reclassifications, reverse splits and capital structure changes.

• Revenue growth year over year: Q2 2026 revenue increased approximately 14% from Q2 2025.
• Improved gross margin: Gross margin rose to approximately 76% in Q2 2026 from about 56% a year earlier.
• Narrower net loss: The quarterly net loss improved to $4.8 million from $12.6 million in Q2 2025, primarily because the prior-year period contained a large other expense.
• Lower operating expenses sequentially: SG&A and research and development expenses both declined from Q1 2026 levels.
• Near-term liquidity improved: Cash increased to $3.9 million at June 30, 2026, and current assets were approximately twice current liabilities.
• Limited capital spending: Q2 2026 property and equipment purchases were only $9,000, conserving cash but also indicating limited internally funded investment.
• Quarterly revenue remains volatile: Revenue improved year over year but fell sharply from Q1 2026, making it difficult to establish a consistent growth trend.
• Persistent operating cash burn: Nuwellis used $3.2 million of cash in operating activities during Q2 2026 and has reported negative operating cash flow in every provided period.
• Dependence on equity financing: The company raised approximately $5.0 million through common-stock issuance in Q2 and $4.4 million in Q1, creating ongoing dilution risk.
• Negative shareholders’ equity and significant liabilities: Total liabilities exceeded total assets at June 30, 2026, while retained earnings were negative $325.7 million, underscoring the company’s long-term financial strain.