Core Insights - electroCore, Inc. reported net sales of $7.4 million for Q2 2025, representing a 20% increase compared to Q2 2024, and year-to-date net sales of $14.1 million, a 22% increase compared to the first half of 2024 [4][8] - The company successfully closed the acquisition of NeuroMetrix, Inc. and completed the integration ahead of schedule, while also reducing cash usage to approximately $614,000 in Q2 2025 [3][8] Financial Performance - For Q2 2025, gross profit was $6.4 million, yielding an 87% gross margin, compared to $5.3 million and 86% gross margin in Q2 2024 [4] - Total operating expenses for Q2 2025 were approximately $9.9 million, up from $7.9 million in Q2 2024, driven by increased selling, general, and administrative expenses [6][9] - GAAP net loss for Q2 2025 was $3.7 million, or a loss of $0.44 per share, compared to a net loss of $2.7 million, or a loss of $0.38 per share, in Q2 2024 [11][22] Revenue Breakdown - The increase in net sales was primarily attributed to higher sales of prescription products sold to the U.S. Department of Veterans Affairs (VA) and growth in nonprescription wellness products, including Truvaga™ and TAC-STIM [4][8] - Prescription gammaCore sales to the VA increased by 13% year-over-year, while sales of Truvaga™ surged by 74% in Q2 2025 compared to Q2 2024 [5][8] Cash Position and Outlook - As of June 30, 2025, the company had cash, cash equivalents, restricted cash, and marketable securities totaling $7.4 million, down from $12.2 million at the end of 2024 [14] - For the full year 2025, the company expects total revenue to be approximately $30.0 million and net cash usage to be between $3.9 million and $4.4 million [15]

Company Overview - electroCore is a commercial-stage bioelectronic medicine and wellness company focused on multiple indications[6] - The company has FDA clearance for the prevention and treatment of primary headache in adults and adolescents[13] - The company has FDA authorization for symptoms of Fibromyalgia[13] Financial Performance and Projections - The company's revenue has a 5-year CAGR of 58%[7] - Revenue increased from $5.5 million in 2021 to $25.2 million in 2024[12] - Revenue is projected to reach $30 million in 2025[12] - Gross margins are approximately 85%[13] Market Opportunity - The total addressable market (TAM) for VA channel is $2.9 billion[15] - The total addressable market (TAM) for US commercial channel is $101 million[15] - The total addressable market (TAM) for Health & Wellness channel is $33 billion[15] - The total addressable market (TAM) for TAC-STIM is $9.7 billion[15] - $20 billion is spent annually out-of-pocket for chronic pain treatments[14]

Financial Data and Key Metrics Changes - In the first quarter of 2025, the company reported revenue of $6.7 million, a 23% increase compared to $5.4 million in the first quarter of 2024 [7][23] - Gross margins improved to 85% in Q1 2025 from 84% in Q1 2024 [7][24] - GAAP net loss for Q1 2025 was $3.9 million, compared to a net loss of $3.5 million in Q1 2024 [26] - Cash and cash equivalents totaled approximately $8 million as of March 31, 2025, down from approximately $12.2 million at the end of 2024 [27] Business Line Data and Key Metrics Changes - Prescription gammaCore VA revenue grew 22% to $4.7 million in Q1 2025 from $3.9 million in Q1 2024 [8] - TRUVEGA net sales reached approximately $1.1 million, a 187% increase from the previous year [10] - Revenue from channels outside the United States increased to $513,000 in Q1 2025 from $449,000 in the same period last year [14] Market Data and Key Metrics Changes - The VA Hospital Administration estimates around 600,000 patients are treated for headaches in the VA system, with a significant number of fibromyalgia patients also identified [9] - The company has dispensed gammaCore devices to approximately 9,500 veterans, representing about 1.6% of the total addressable headache market within the VA system [9] Company Strategy and Development Direction - The company is transforming into a broader bioelectronic technology firm, with a focus on medical devices and wellness products [5] - The acquisition of the Quell product line from Neurometrics Inc. is a key component of this transformation [5][17] - The company plans to evaluate market access through third-party payer systems and hospital networks for its prescription product suite [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to sequential growth in core prescription channels and highlighted the strong demand for gammaCore in the VA channel [30] - The company anticipates that operating metrics will improve as revenues grow and one-time expenses decrease [30] - Management expects to achieve cash neutrality with quarterly revenue of about $9 million by the end of 2025 or early 2026 [17] Other Important Information - The company incurred additional one-time expenses for severance related to internal restructuring and the acquisition of Neurometrics [15] - The company plans to launch TRUVEGA in the UK and Canada later in 2025 [14] Q&A Session Summary Question: What are the expected margins for Quell by the end of the year? - Management is optimistic that overhead absorption will be better than the previous structure, aiming for margins above 60% but cannot provide precise estimates yet [40][41] Question: Any concerns about tariff exposure for Quell components? - Management believes there is minimal tariff exposure as most components are sourced domestically, with some from Southeast Asia [42] Question: How should growth be modeled for top-line revenues? - Management expects mid to high single-digit sequential growth in the VA channel, potentially accelerating into the teens as new products are added [50] Question: What is the expected contribution from the new acquisitions? - Material revenue contributions from Sparrow are expected to be more of a 2026 story, while Quell is anticipated to generate revenue once manufacturing is validated [61][63] Question: What are the plans for R&D spending? - R&D expenses are expected to remain steady, focusing on sales support and data related to PTSD and traumatic brain injury [65]

Financial Data and Key Metrics Changes - In the first quarter of 2025, the company reported revenue of $6.7 million, a 23% increase compared to $5.4 million in the same quarter of 2024 [22][6] - Gross margins improved to 85% in Q1 2025 from 84% in Q1 2024 [6][23] - GAAP net loss for Q1 2025 was $3.9 million, compared to a net loss of $3.5 million in Q1 2024 [24][26] - Cash and cash equivalents totaled approximately $8 million as of March 31, 2025, down from approximately $12.2 million at the end of 2024 [26] Business Line Data and Key Metrics Changes - Prescription gammaCore VA revenue grew 22% to $4.7 million in Q1 2025 from $3.9 million in Q1 2024 [7] - TRUVEGA net sales reached approximately $1.1 million, a 187% increase from the previous year [10] - Revenue from channels outside the United States increased to $513,000 in Q1 2025 from $449,000 in the same period last year [14] Market Data and Key Metrics Changes - The VA Hospital Administration estimates around 600,000 patients are treated for headaches in the VA system, with a significant number of fibromyalgia patients also identified [8][9] - The company has dispensed gammaCore devices to approximately 9,500 veterans, representing about 1.6% of the total addressable headache market within the VA system [9] Company Strategy and Development Direction - The company is transforming into a broader bioelectronic technology firm, focusing on medical devices and wellness products, with the acquisition of the Quell product line from Neurometrics being a key component [4][5] - The company aims to leverage established distribution channels, particularly in the VA hospital system, to accelerate the adoption of new products like Quell and Sparrow [20][32] - Plans to launch TRUVEGA in the UK and Canada later in 2025 are underway [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to sequential growth in core prescription channels and highlighted the positive momentum in both VA and direct-to-consumer channels [27][28] - The company anticipates that operating metrics will improve as revenues grow and one-time expenses decrease [28][33] - Management expects to achieve cash neutrality with quarterly revenue of about $9 million by the end of 2025 or early 2026 [16] Other Important Information - The company incurred additional one-time expenses for severance related to internal restructuring and the acquisition of Neurometrics [15] - The contribution margin of incremental revenue is approximately 65% with the current product mix [16] Q&A Session Summary Question: What are the expected margins for Quell by the end of the year? - Management indicated that while precise estimates are not available yet, they are optimistic that margins will be well above 60% once manufacturing is restarted [38][39] Question: How does cash look after the Neurometrics acquisition? - Cash levels are expected to remain similar to those reported as of March 31, with the acquisition costs primarily covered by cash on Neurometrics' balance sheet [43] Question: What is the growth outlook for top-line revenues? - Management expects mid to high single-digit sequential growth in the VA channel, potentially accelerating into the teens as new products are introduced [48] Question: How is the company expanding its sales efforts in the VA hospital system? - The company is adding headcount to its sales function to increase support in the VA hospital system, with a focus on new products [50][52] Question: What are the early results from selling TRUVEGA on Amazon? - Initial sales through Amazon have been promising, with a few hundred units sold, and the company is optimistic about future growth [56][57]

Core Insights - electroCore, Inc. reported first quarter 2025 net sales of $6.7 million, a 23% increase compared to $5.4 million in the same period of 2024 [3][6] - The company closed the acquisition of NeuroMetrix, which is expected to enhance its position in the non-invasive bioelectronic technology market [2][6] - The CEO highlighted a 29% growth in total revenue excluding TAC-STIM, indicating strong performance in core product lines [2][6] Financial Performance - Gross profit for the first quarter of 2025 was $5.7 million, representing an 85% gross margin, compared to $4.6 million and 84% gross margin in the first quarter of 2024 [4][18] - Total operating expenses increased to approximately $9.5 million from $8.4 million in the first quarter of 2024, driven by higher selling, general, and administrative expenses [5][6] - The GAAP net loss for the first quarter of 2025 was $3.9 million, or a loss of $0.47 per share, compared to a net loss of $3.5 million, or a loss of $0.53 per share, in the first quarter of 2024 [8][18] Revenue Breakdown - Sales of prescription gammaCore to the U.S. Department of Veterans Affairs (VA) reached $4.7 million, a 22% increase from $3.9 million in the prior year [4] - International sales grew by 14%, with total sales outside the United States amounting to $513,000 [4] - Truvaga wellness products saw significant growth, with sales increasing by 187% to $1.1 million compared to $385,000 in the first quarter of 2024 [4] Guidance and Outlook - For the full year 2025, the company expects total revenue to be approximately $30 million, with net cash used for the next three quarters projected between $3.8 million and $4.3 million [12] - The acquisition of NeuroMetrix is anticipated to contribute meaningful revenue by the end of 2025, expanding the company's product offerings [12]

Financial Data and Key Metrics Changes - Revenue for 2024 was $25,200,000, up 57% from $16,000,000 in 2023, driven by increased sales of prescription gammaCore devices and non-prescription Truvega products [9][28] - Gross margins improved to 85% in 2024 from 83% in 2023, with total operating expenses rising to approximately $33,600,000 from $32,500,000 in the previous year [10][28] - The net loss for 2024 was $11,900,000, a significant improvement from $18,800,000 in 2023, with adjusted EBITDA net loss decreasing to $9,000,000 from $15,400,000 [30][31] Business Line Data and Key Metrics Changes - Sales in the VA channel grew 85% to $17,800,000 in 2024 from $9,600,000 in 2023, with fourth-quarter sales increasing 47% to $4,600,000 [13] - Truvega net sales reached $2,800,000 in 2024, a 174% increase over 2023, with fourth-quarter sales approximately $1,200,000, a 271% increase year-over-year [14] - TaxSim sales for human performance were $1,200,000 in 2024, down from $1,700,000 in 2023, with revenue from this product line being difficult to predict due to the DoD acquisition process [18] Market Data and Key Metrics Changes - The company has approximately 30,000,000 covered lives in the U.S. for its products, with the VA hospital system being the largest customer [11] - Revenue from channels outside the U.S. was flat at $1,900,000 for 2024, with most revenue generated from the UK through NHS-funded gammaCore sales [20] Company Strategy and Development Direction - The company aims to become a leader in the bioelectronic health and wellness sector, with plans to leverage the acquisition of NeuroMetrix to enhance its product offerings [21][23] - The strategy includes expanding the Truvega brand through e-commerce and exploring new channels, including influencers and affiliates [16][35] - The company is focused on maintaining gross margins in the mid-80s while navigating potential impacts from trade policies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term prospects, citing continued revenue growth in core business lines and the potential for new product introductions [32] - The company is aware of macroeconomic disruptions affecting VA hospital customers but has not seen direct impacts on business cadence [34] - Future growth is expected from prescription gammaCore sales, direct-to-consumer initiatives, and new product acquisitions [39] Other Important Information - The company ended 2024 with approximately $12,200,000 in cash, a significant increase from $10,600,000 in 2023, and plans to maintain discipline around operating expenses [31][38] - The acquisition of NeuroMetrix is expected to close in the second quarter of 2025, which will provide additional growth opportunities [22][39] Q&A Session Summary Question: Plans for selling the Quell product post-acquisition - Management plans to integrate Quell into existing sales channels and provide training to the sales team after the acquisition closes [45][46] Question: Update on the Jerns channel - Management acknowledged slower traction but noted an increase in prescribers and optimism for future growth [55][59] Question: Comparison of Kaiser channel to VA system - Management indicated that the Kaiser system is more challenging to penetrate but once established, it offers a sticky business opportunity [65][67] Question: Confidence in achieving mid-80s gross margin - Management expressed confidence in maintaining mid-80s gross margins in 2025, with potential impacts from new product mixes in the future [89] Question: Capital adequacy and funding needs - The company has sufficient cash to execute its plans and does not anticipate needing to raise additional capital in the near term [95]