NeurAxis Achieves 22% Revenue Growth in Third Quarter
NeurAxis, Inc. (“NeurAxis,” or the “Company”) (NYSE American: NRXS), based in Carmel, is making waves in the medtech industry with its innovative approach to neuromodulation therapies targeting chronic ailments. In a recent announcement, the Company revealed that its revenues surged by 22% in the third quarter, reflecting an increase from $667 thousand in the same period last year to $811 thousand.
Financial Highlights from Q3 2025
This inspiring growth was attributed to several key factors:
- Year-over-year revenue increase of 22% to $811 thousand.
- Operational costs, however, rose as NeurAxis expanded its sales and marketing activities, resulting in a 27% increase in operating loss compared to the previous year.
- The cash balance stood strong at $4.4 million as of September 30, showing a solid financial position enhanced by an additional $2.8 million raised shortly after through equity offerings.
Key Operational Developments
NeurAxis has also achieved significant operational milestones:
- The company received its first FDA clearance for treating pain associated with Functional Dyspepsia, spotlighting its commitment to addressing complex health issues.
- It garnered crucial recommendations from major academic societies for its Percutaneous Electrical Nerve Field Stimulation (PENFS) technology used in treating Functional Abdominal Pain stemming from Irritable Bowel Syndrome. This technology is the only one of its kind approved for pediatric patients, further strengthening its coverage among insurers.
- The recent FDA approval not only extends the use of its devices but significantly broadens its market, allowing treatment for more patients aged 8-21 and increasing the number of devices per patient from 2 to 4.
- NeurAxis has expanded its reach to support around 55 million covered lives, enhancing the accessibility of its treatments.
- A new Current Procedural Terminology (CPT) Category I code has been assigned for PENFS procedures, effective January 1, 2026, paving the way for better reimbursement streams.
CEO's Insights on Future Prospects
Brian Carrico, the CEO of NeurAxis, expressed optimism regarding the Company’s future. He emphasized the importance of recent FDA clearances and the upcoming CPT Category I code, which he believes will pave the way for robust revenue growth in the coming year. Carrico noted that with the increased commitment to treatment access and the expansion of the IB-Stim treatment to more patients, NeurAxis is poised for significant progress.
Financial Overview and Challenges
The financial results reflect both impressive growth and challenges faced by the Company:
Despite the revenue increase, the gross margin has seen a slight decline due to discounts related to its financial assistance program for those without insurance. The gross margin fell to 83.3% from 85.4% as the business balances scaling operations with continued support for all patients.
Operating expenses rose to $2.8 million, driven largely by increased marketing investments as NeurAxis prepares for broader insurance coverage effective in 2026. The net loss for Q3 stood at $2.1 million, slightly higher than $1.8 million recorded during the same period last year, indicating the pressures of scaling up operations.
Upcoming Events and Further Engagement
NeurAxis plans to host a conference call to discuss these results in further detail. Stakeholders are invited to join the call or attend via the live webcast available through the Company's Investor Relations section. This engagement will help maintain transparent communication regarding its performance, strategies, and future opportunities.
Contact Information
For those interested in more details, NeurAxis, Inc. can be reached at info@neuraxis.com. Investors looking for deeper insights can contact Lytham Partners and reach Ben Shamsian at 646-829-9701 or via email at shamsian@lythampartners.com.
Frequently Asked Questions
What is NeurAxis, Inc. known for?
NeurAxis focuses on developing neuromodulation therapies for chronic conditions, particularly those affecting children and adults.
How much did NeurAxis grow in revenue this quarter?
The Company experienced a 22% revenue growth, amounting to $811 thousand in Q3 2025.
What operational milestones has NeurAxis achieved?
NeurAxis received several FDA clearances for its treatments and expanded its insurance coverage, reaching approximately 55 million covered lives.
What challenges did NeurAxis face in this quarter?
The Company faced increased operating costs, which led to a larger operating loss despite revenue growth.
How can investors learn more about NeurAxis?
Investors can access more information via the Company's Investor Relations webpage or contact investor relations directly.
