NeurAxis Reports Impressive First Quarter Financial Outcomes
CARMEL, Ind. — NeurAxis, Inc. (NYSE American: NRXS), a pioneering medical technology company committed to developing neuromodulation therapies to alleviate chronic and debilitating conditions for both children and adults, recently unveiled its financial results for the first quarter of 2025, which concluded on March 31, 2025.
Financial Highlights for Q1 2025
The company achieved remarkable financial growth in the first quarter of 2025. Revenues soared by 39% compared to the previous year, amounting to an impressive $896 thousand, up from $647 thousand in Q1 2024. Additionally, there was an 18% increase in revenues when compared to the immediate prior quarter, demonstrating steady growth and market demand.
Other highlights include a notable improvement in operating losses, which shrunk by 9% relative to the first quarter of 2024, firmly positioning the company on a path toward recovery and efficiency. The cash balance as of March 31, 2025, stood at $2 million, reflecting a solid financial foundation.
Operational Achievements
NeurAxis has been proactive in expanding its operational footprint. One key achievement is the significant increase in covered lives, now reaching approximately 51 million. This expansion offers broader access to their innovative therapies, considerably enhancing patient treatment options.
Furthermore, the company received a prestigious Current Procedural Terminology (CPT) Category I code for its Percutaneous Electrical Nerve Field Stimulation (PENFS) procedures, effective January 1, 2026. This milestone is expected to dramatically improve physician confidence in coding and billing practices associated with NeurAxis’s therapies.
Product Innovations and FDA Clearances
Recently, NeurAxis has been making strides in product development and regulatory approvals. The company successfully received FDA clearance to expand the indications for its IB-Stim technology, broadening its target patient population from ages 11-18 to include patients aged 8-21, and increasing the number of devices used per treatment session from 1 to 4. This expansion is anticipated to significantly enhance the effectiveness and reach of their neurological therapies.
Additionally, NeurAxis has launched its rectal expulsion device (RED) product, which simplifies anorectal function testing without interrupting clinical workflows. The initial stages of commercialization have begun, with expectations for revenue generation starting in the second quarter of 2025.
Management Insights
Brian Carrico, the Chief Executive Officer of NeurAxis, reflected on the company's performance during Q1 2025, emphasizing the 39% increase in revenue as a testament to the sustained momentum since Q3 2024. He noted that while treating 300 patients in Q1 is solid progress, it represents just a tiny fraction—0.2%—of the 600,000 children in the U.S. severely affected by irritable bowel syndrome (IBS) who could benefit from IB-Stim therapy.
Carrico also highlighted how the growth is attributed to physicians becoming more adept in billing practices and increased awareness stemming from academic guidelines acknowledging PENFS as a highly evidence-backed therapy. With about 51 million lives now covered by positive payer policies, NeurAxis is well-positioned to improve access to its therapies.
Continued Expansion and Future Growth Strategies
The path forward for NeurAxis includes further clinical trials for other conditions, such as expanding IB-Stim's indications to include pediatric Functional Dyspepsia. The company remains optimistic about receiving FDA approval in 2025, which would nearly double its addressable market among pediatric patients.
NeurAxis's steadfast commitment to growth and innovation is evident. The company is executing its strategic milestones to not only drive revenue but also expand access to their therapies. With an aim for substantial revenue growth and a focus on reaching cash flow breakeven, NeurAxis's future looks promising with the anticipated rollout of new payer coverage and the commercialization of RED.
First Quarter 2025 Financial Overview
The revenue performance of NeurAxis in the first quarter of 2025 highlights significant gains. It achieved $896 thousand in revenues, a 39% increase from the prior year owing to the expansion of patient coverage and the company's assistance programs for uninsured individuals.
However, gross margins experienced a dip from 88.4% in Q1 2024 to 84.4% in Q1 2025 primarily due to increased sales to customers receiving financial assistance, resulting in discounted pricing. Operating expenses rose to $3.1 million, reflecting a 27% increase driven by a variety of factors, including lawsuit settlements and elevated selling costs. Without considering the legal settlement charge, the company's operational costs remained stable.
The operating loss of $2.3 million in Q1 2025 represented an increase from $1.8 million in Q1 2024. Notably, if excluding the legal settlement, there would have been a 9% improvement over the same time last year.
Frequently Asked Questions
What is the significance of NeurAxis's revenue growth?
The 39% revenue growth highlights NeurAxis's expanding market presence and the increasing adoption of its neuromodulation therapies, showing strong demand for its products.
How does the new CPT code impact NeurAxis?
The CPT code will facilitate billing and coding for physicians, potentially leading to increased adoption of NeurAxis's therapies and broader patient access to treatment.
What innovations has NeurAxis introduced recently?
NeurAxis has received FDA clearance for product expansion, including a new rectal expulsion device and an increase in the IB-Stim patient age range.
How does NeurAxis support patients without insurance?
The company has financial assistance programs that provide discounts for uninsured patients, ensuring that access to their vital therapies is broadened.
What are NeurAxis’s future growth strategies?
NeurAxis aims to expand its market through ongoing clinical trials, securing new payer coverage, and commercializing new products, all of which are vital for sustained growth.
