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NeurAxis Reports Strong Second Quarter 2025 Financial Results Driven by a 46% Growth in Revenues
Globenewswireยท 2025-08-12 11:00
Core Insights - NeurAxis, Inc. reported strong revenue growth in Q2 2025, with revenues increasing 46% year-over-year to $894 thousand, compared to $612 thousand in Q2 2024 [8][9] - The company achieved significant operational milestones, including FDA clearance for expanded indications and a new CPT code for reimbursement, which are expected to drive future revenue growth [6][7] Financial Highlights - Revenues for Q2 2025 were $894 thousand, a 46% increase from $612 thousand in Q2 2024 [8][9] - Operating expenses decreased by 10% year-over-year to $2.5 million in Q2 2025 from $2.7 million in Q2 2024 [11] - Operating loss improved by 22% to $1.7 million in Q2 2025 from $2.2 million in Q2 2024 [12] - Net loss decreased by 42% to $1.7 million in Q2 2025 from $2.9 million in Q2 2024 [13] - Cash balance as of June 30, 2025, was $6 million, bolstered by a $5 million equity financing round [14] Operational Highlights - The company is approaching a major inflection point with national insurance coverage, as a new CPT code for IB-Stim is set to take effect on January 1, 2026 [6] - NeurAxis secured FDA clearance to expand IB-Stim's indication to include pediatric Functional Dyspepsia, significantly increasing its total addressable market [7] - The company expanded its total covered lives to approximately 53 million [8] Management Commentary - CEO Brian Carrico expressed optimism about the company's trajectory, highlighting strong revenue growth and the focus on expanding insurance coverage and commercializing IB-Stim [4] - The company is confident in achieving breakeven in 2026 based on strong top-line momentum and strategic positioning [9]
Neuraxis(NRXS) - 2025 Q1 - Earnings Call Transcript
2025-05-12 14:02
Financial Data and Key Metrics Changes - Revenue in Q1 2025 was $896,000, up 39% compared to $647,000 in Q1 2024 [26] - Unit sales increased approximately 46% due to growth from patients with full insurance reimbursement coverage and the company's financial assistance program [26] - Gross margin in Q1 2025 was 84.4%, down from 88.4% in Q4 2024, attributed to a higher growth rate of discounted financial assistance patients [27][28] - Operating loss for Q1 2025 was $2,300,000, an increase of 25% compared to a $1,800,000 loss in Q1 2024 [30] Business Line Data and Key Metrics Changes - Significant growth of 40% in Q3 2024, 43% in Q4 2024, and 39% in Q1 2025 for IV stem technology [9] - 300 patients were treated in Q1 2025, an annualized rate of 1,200 patients, representing only 0.2% of the 600,000 severely affected children in the U.S. [18] - The rectal expulsion device (RED) received FDA clearance and is currently in a soft launch phase [16][21] Market Data and Key Metrics Changes - Total covered lives increased from 4 million a year ago to approximately 51 million today [11] - The company expects to see increased orders following the publication of independent guidelines by the academic society [33][34] Company Strategy and Development Direction - The company is focused on achieving cash flow breakeven and profitability through increased insurance coverage and the effective date of the category one CPT code on January 1, 2026 [25][20] - The strategy includes leveraging strong published data to drive insurance expansion and sustainable revenues [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding continued revenue growth due to the expected increase in insurance policy coverage and the category one CPT code [21][25] - The company is cautiously optimistic about the timeline for receiving guidelines and subsequent policy coverage from payers [33][35] Other Important Information - The company settled a lawsuit for $750,000, which will be paid in equal monthly installments starting January 2026 [42] - The legal settlement is viewed positively as it mitigates further risks and legal fees [42][43] Q&A Session Summary Question: When do you expect the guidelines to be published? - Guidelines are expected to be published by the end of the month, with orders anticipated to increase based on policy coverage from those guidelines [33][34] Question: How do you see your operating expenses in the near and medium term? - Operating expenses are expected to increase as investments in sales and marketing are necessary, but as a percentage of sales, they are expected to decrease [36][37] Question: Can you provide more color on RED and its launch? - The response to the RED soft launch has been stronger than expected, with a significant need for the technology noted [38][40] Question: Can you provide details on the legal settlement? - The legal settlement from 2019 will be paid in installments starting January 2026, and it is seen as a positive step for the company [41][42]