Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $811,000, up 22% compared to $677,000 in Q3 2024, marking the fifth consecutive quarter of double-digit growth [19][17] - Gross margin in Q3 2025 was 83.3%, down from 85.4% in Q3 2024, attributed to higher discounting and stronger unit growth in lower-margin programs [20][21] - Operating loss in Q3 2025 was $2.1 million, a 27% increase compared to a $1.7 million loss in Q3 2024 [25] Business Line Data and Key Metrics Changes - The company achieved a 22% revenue growth in Q3 2025, driven by a 38% increase in unit deliveries, primarily from the financial assistance program [19][20] - The RED device is seeing good physician interest, but its adoption is slower due to changes in practice flow and habits [14][48] Market Data and Key Metrics Changes - The company now has approximately 55 million covered lives, indicating positive payer momentum [7] - The new Category 1 CPT code, effective January 1, 2026, is expected to streamline coding and reimbursement, significantly impacting market access [10][11] Company Strategy and Development Direction - The company is focused on expanding access through medical policy coverage and accelerating utilization of IB-STIM, with a strong emphasis on pediatric coverage [5][6] - The strategy includes mobilizing a coalition for payer engagement and prioritizing children's hospitals for treatment [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the gradual improvement of policy changes and prior authorization processes, expecting continued revenue growth [6][9] - The company is preparing for a significant transition in 2026 with the new CPT code, which is anticipated to enhance revenue predictability [33][35] Other Important Information - The company raised an additional $2.8 million in October 2025 through an equity offering, improving its liquidity position [26][50] - The company is committed to treating all patients regardless of income level or insurance coverage, which is reflected in its financial assistance program [20] Q&A Session Summary Question: How is the company tracking success and incentivizing the team for expected volume inflection? - The company has a strong sales force with a commission structure that incentivizes prioritization of accounts with good insurance coverage [31][32] Question: Any updates on engagement with payers for national coverage? - Management believes payers are aware of the new CPT code and are responsive, with a comprehensive approach being taken for engagement [38][39] Question: Can you quantify additional commercial investment and its impact on SG&A growth? - Marketing expenses have more than doubled as the company targets payers specifically, with expectations for continued higher marketing costs into 2026 [40][41]
Neuraxis(NRXS) - 2025 Q3 - Earnings Call Transcript