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NeurAxis Stock Down Following Q2 Earnings Despite Revenue Growth
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Shares of NeurAxis, Inc. (NRXS - Free Report) have lost 0.8% since the company reported its earnings for the quarter ended June 30, 2025. This compares unfavorably with the S&P 500 Index’s 1.2% gain during the same period. Over the past month, NeurAxis stock has lost 11.7%, while the broader index advanced 2.5%.
NRXS’ Revenue and Earnings Performance
NeurAxis reported second-quarter 2025 revenues of $0.9 million, a 46.2% increase from $0.6 million in the prior-year quarter. Unit sales were up 58% year over year, driven by greater adoption of the company’s IB-Stim device and participation in its financial assistance program. Despite the revenue growth, gross margin narrowed to 83.6% from 88% in the same period of 2024, reflecting deeper discounting for patients without insurance and expired Rectal Expulsion Device (RED) inventory.
On the expense side, operating expenses fell 10.2% to $2.5 million from $2.7 million, largely because of the absence of one-time costs tied to severance, consulting and advisory services in 2024, as well as lower investor relations and insurance costs. This led to an operating loss of $1.7 million, narrower than the $2.2 million loss a year earlier. Despite this top-line growth, NeurAxis posted a net loss of $1.7 million, or $0.22 per share, narrower than the $2.9 million loss, or $0.42 per share, recorded in the second quarter of 2024.
NeurAxis’ Other Key Business Metrics
Cash and liquidity improved meaningfully. NRXS closed the quarter with $5.9 million in cash, bolstered by a $5 million equity-only financing round and $1 million raised through warrant exercises. Cash used in operations was $3.1 million for the first half of 2025 compared with $2.9 million in the year-ago period, reflecting higher inventory purchases and incentive plan payouts.
Gross margin compression remains a near-term issue, primarily due to discounting in its patient assistance program and limited insurance coverage. However, management expects margins to recover as more patients gain access through commercial reimbursement once the new permanent Category I CPT code becomes effective on Jan. 1, 2026.
CEO Brian Carrico emphasized that NeurAxis is approaching “a major inflection point with national insurance coverage” following the assignment of the CPT code and the inclusion of IB-Stim in clinical practice guidelines from leading academic societies. Carrico highlighted that these developments should expand patient access, drive broader reimbursement at full commercial rates, and support sustainable revenue growth.
NRXS also secured FDA clearance to extend IB-Stim’s indication to treat pediatric functional dyspepsia with nausea symptoms, nearly doubling its addressable market. Additionally, IB-Stim is now approved for patients aged 8–21, expanding beyond the earlier 11–18 age range.
Factors Influencing NeurAxis’ Performance
Revenue growth in second-quarter 2025 was fueled by higher adoption across hospitals and clinics, but limited insurance coverage meant that a significant portion of sales came through discounted channels. This dynamic, while supportive of patient access, weighed on gross margins.
Cost discipline helped offset margin pressure, with operating expenses reduced by eliminating non-recurring items and bringing certain services in-house. The net result was a narrower operating loss and net loss compared with 2024.
NRXS’ Guidance
Although NeurAxis did not issue explicit numerical guidance, executives reiterated confidence in achieving breakeven in 2026. This outlook hinges on broader payer adoption of IB-Stim following guideline endorsements and the permanent CPT code, both of which are expected to drive stronger reimbursement rates and higher revenue per device. Management signaled continued revenue growth in the second half of 2025, aided by further insurance policy adoption and early traction for RED.
NeurAxis’ Other Developments
During the quarter, NeurAxis secured several regulatory and commercial milestones. These included FDA clearance for RED, a device designed to simplify anorectal function testing in chronic constipation patients, and FDA clearance expanding IB-Stim indications. Additionally, the company terminated its NSS-2 Bridge license with Masimo on July 1, 2025, regaining rights to associated intellectual property for $200,000 payable in two installments.
On the corporate front, NeurAxis completed an equity raise, issuing 1.54 million common shares for $5 million, and saw continued warrant exercises, both of which strengthened its balance sheet.
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NeurAxis Stock Down Following Q2 Earnings Despite Revenue Growth
Shares of NeurAxis, Inc. (NRXS - Free Report) have lost 0.8% since the company reported its earnings for the quarter ended June 30, 2025. This compares unfavorably with the S&P 500 Index’s 1.2% gain during the same period. Over the past month, NeurAxis stock has lost 11.7%, while the broader index advanced 2.5%.
NRXS’ Revenue and Earnings Performance
NeurAxis reported second-quarter 2025 revenues of $0.9 million, a 46.2% increase from $0.6 million in the prior-year quarter. Unit sales were up 58% year over year, driven by greater adoption of the company’s IB-Stim device and participation in its financial assistance program. Despite the revenue growth, gross margin narrowed to 83.6% from 88% in the same period of 2024, reflecting deeper discounting for patients without insurance and expired Rectal Expulsion Device (RED) inventory.
On the expense side, operating expenses fell 10.2% to $2.5 million from $2.7 million, largely because of the absence of one-time costs tied to severance, consulting and advisory services in 2024, as well as lower investor relations and insurance costs. This led to an operating loss of $1.7 million, narrower than the $2.2 million loss a year earlier. Despite this top-line growth, NeurAxis posted a net loss of $1.7 million, or $0.22 per share, narrower than the $2.9 million loss, or $0.42 per share, recorded in the second quarter of 2024.
NeurAxis’ Other Key Business Metrics
Cash and liquidity improved meaningfully. NRXS closed the quarter with $5.9 million in cash, bolstered by a $5 million equity-only financing round and $1 million raised through warrant exercises. Cash used in operations was $3.1 million for the first half of 2025 compared with $2.9 million in the year-ago period, reflecting higher inventory purchases and incentive plan payouts.
Gross margin compression remains a near-term issue, primarily due to discounting in its patient assistance program and limited insurance coverage. However, management expects margins to recover as more patients gain access through commercial reimbursement once the new permanent Category I CPT code becomes effective on Jan. 1, 2026.
Neuraxis, Inc. Price, Consensus and EPS Surprise
Neuraxis, Inc. price-consensus-eps-surprise-chart | Neuraxis, Inc. Quote
NRXS’ Management Commentary
CEO Brian Carrico emphasized that NeurAxis is approaching “a major inflection point with national insurance coverage” following the assignment of the CPT code and the inclusion of IB-Stim in clinical practice guidelines from leading academic societies. Carrico highlighted that these developments should expand patient access, drive broader reimbursement at full commercial rates, and support sustainable revenue growth.
NRXS also secured FDA clearance to extend IB-Stim’s indication to treat pediatric functional dyspepsia with nausea symptoms, nearly doubling its addressable market. Additionally, IB-Stim is now approved for patients aged 8–21, expanding beyond the earlier 11–18 age range.
Factors Influencing NeurAxis’ Performance
Revenue growth in second-quarter 2025 was fueled by higher adoption across hospitals and clinics, but limited insurance coverage meant that a significant portion of sales came through discounted channels. This dynamic, while supportive of patient access, weighed on gross margins.
Cost discipline helped offset margin pressure, with operating expenses reduced by eliminating non-recurring items and bringing certain services in-house. The net result was a narrower operating loss and net loss compared with 2024.
NRXS’ Guidance
Although NeurAxis did not issue explicit numerical guidance, executives reiterated confidence in achieving breakeven in 2026. This outlook hinges on broader payer adoption of IB-Stim following guideline endorsements and the permanent CPT code, both of which are expected to drive stronger reimbursement rates and higher revenue per device. Management signaled continued revenue growth in the second half of 2025, aided by further insurance policy adoption and early traction for RED.
NeurAxis’ Other Developments
During the quarter, NeurAxis secured several regulatory and commercial milestones. These included FDA clearance for RED, a device designed to simplify anorectal function testing in chronic constipation patients, and FDA clearance expanding IB-Stim indications. Additionally, the company terminated its NSS-2 Bridge license with Masimo on July 1, 2025, regaining rights to associated intellectual property for $200,000 payable in two installments.
On the corporate front, NeurAxis completed an equity raise, issuing 1.54 million common shares for $5 million, and saw continued warrant exercises, both of which strengthened its balance sheet.