electroCore(ECOR) - 2025 Q1 - Quarterly Results

Q1 2025 Financial Results and Business Update electroCore reports strong Q1 2025 revenue growth, improved operational metrics, and strategic NeuroMetrix acquisition Recent Highlights and Management Commentary Q1 2025 revenue increased 23% to $6.7 million, driven by strategic acquisition and improved operational efficiency - Closed the acquisition of NeuroMetrix, Inc., which contributed approximately $170,000 in unaudited Quell net sales in Q1 2025[1] - Management noted that increased G&A expenses of $665,000 were due to seasonal factors, severance, and one-time costs from the NeuroMetrix transaction[2] - The CEO stated that the NeuroMetrix acquisition positions the company as a significant player in non-invasive bioelectronic technology with a more diversified product line[2] Q1 2025 Financial Performance Q1 2025 net sales grew 23% to $6.7 million, with stable gross margins but increased operating expenses leading to a net loss Q1 2025 Revenue by Channel (in thousands) | Channel | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Rx gammaCore™ – VA | $4,721 | $3,875 | 22% | | Rx gammaCore – U.S. Commercial | $289 | $433 | -33% | | Outside the United States | $513 | $449 | 14% | | Truvaga™ | $1,106 | $385 | 187% | | Total Before TAC-STIM™ | $6,629 | $5,142 | 29% | | TAC-STIM | $90 | $301 | -70% | | Total Revenue | $6,719 | $5,443 | 23% | - Gross profit increased to $5.7 million with a gross margin of 85%, compared to $4.6 million and 84% margin in Q1 2024[6] - Total operating expenses rose to $9.5 million from $8.4 million in Q1 2024, mainly due to increased investment in selling and marketing and higher R&D headcount[6][7][8] Q1 2025 Profitability Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Loss | $(3.9) million | $(3.5) million | | GAAP Loss Per Share | $(0.47) | $(0.53) | | Adjusted EBITDA Net Loss | $(3.1) million | $(3.2) million | - Cash, cash equivalents, restricted cash, and marketable securities totaled approximately $8.0 million at March 31, 2025, down from $12.2 million at December 31, 2024[12] Full Year 2025 Outlook Company projects full-year 2025 revenue of $30.0 million and anticipates meaningful contribution from NeuroMetrix acquisition - Expects full-year 2025 total revenue to be approximately $30.0 million[13] - Projects net cash used for the next three quarters to be between $3.8 million and $4.3 million[13] - Anticipates that NeuroMetrix will provide meaningful revenue by the year ending December 2025[13] Financial Statements Detailed financial statements for Q1 2025 show operational results, balance sheet position, and non-GAAP reconciliations Condensed Consolidated Statements of Operations Q1 2025 statement shows $6.7 million net sales, $5.7 million gross profit, and a GAAP net loss of $3.9 million Q1 2025 Statement of Operations (in thousands, except per share data) | | Three months ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net sales | $6,719 | $5,443 | | Gross profit | $5,706 | $4,555 | | Total operating expenses | $9,528 | $8,404 | | Loss from operations | $(3,822) | $(3,849) | | Net loss | $(3,855) | $(3,506) | | Net loss per share - Basic and Diluted | $(0.47) | $(0.53) | Condensed Consolidated Balance Sheet Information As of March 31, 2025, total assets were $16.0 million, total liabilities $11.7 million, and total equity $4.4 million Balance Sheet Highlights (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $3,777 | $3,450 | | Total assets | $16,041 | $20,471 | | Total liabilities | $11,676 | $12,927 | | Total equity | $4,365 | $7,544 | Reconciliation of GAAP to Non-GAAP Measures Reconciliation adjusts Q1 2025 GAAP net loss of $3.9 million to an Adjusted EBITDA net loss of $3.1 million Reconciliation of GAAP Net Loss to Adjusted EBITDA Net Loss (in thousands) | | Three months ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | GAAP net loss | $(3,855) | $(3,506) | | Depreciation and amortization | $155 | $206 | | Stock-based compensation | $540 | $484 | | Severance and other related charges | $180 | - | | Non-recurring one-time charges | $145 | - | | Other adjustments | $(171) | $(347) | | Adjusted EBITDA net loss | $(3,054) | $(3,163) | - The company uses Adjusted EBITDA as a non-GAAP measure to provide a useful indicator of its core operating performance, excluding non-cash charges and certain unpredictable expenses[23][24] Supplemental Information Provides details on the Q1 2025 earnings call and standard forward-looking statement disclosures Conference Call Information Management hosted a conference call on May 7, 2025, to discuss Q1 2025 financial results - A conference call to discuss Q1 2025 results was scheduled for May 7, 2025, at 4:30 PM EDT[14] Forward-Looking Statements Standard safe harbor statement cautions on forward-looking statements and directs to SEC filings for risk factors - The report contains forward-looking statements concerning business prospects, clinical development, revenue guidance, and the impact of the NeuroMetrix acquisition[17] - Investors are advised that actual results could differ from projections and are directed to the risk factor disclosures in the company's SEC filings[17]