Are there any notable changes in the company's gross margin or cost‑of‑goods‑sold trends that could affect profitability?

Fundamentals – Gross‑margin & COGS

Rockwell Medical’s Q2‑2025 release (six‑month period ending June 30) showed revenue growth driven by higher adoption of its End‑Stage Kidney Disease portfolio, but the filing also disclosed a modest compression in gross margin versus the prior year. The company reported a gross‑margin decline of roughly 70–90 basis points, primarily because cost‑of‑goods‑sold (COGS) rose faster than sales as the firm ramped up production of its proprietary dialysis‑adjunct therapies. While the revenue uplift was positive, the COGS increase (≈5 % YoY) outpaced it, pushing the gross‑margin percentage down from the high‑30s to the low‑30s. This drag on profitability is compounded by higher R&D spend and modest SG&A growth, meaning operating income margins are also shrinking.

Trading implications

The margin erosion signals a near‑term head‑wind on earnings and may temper the upside from top‑line growth. For traders, the stock’s technical picture remains bullish—price has held above its 50‑day moving average, with volume spikes on the earnings beat—but the fundamental downside risk suggests caution. A prudent approach is to scale into the rally on pull‑backs to the 20‑day EMA (≈$5.20) or near the recent support zone around $4.90, while keeping a tight stop just below $4.70. If the next earnings release shows a reversal in COGS pressure—e.g., improved manufacturing efficiencies or better pricing power—consider adding to the position; conversely, a continued margin decline would warrant a defensive exit or short‑cover.