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NRXS Stock Declines Post Q3 Earnings Despite Continued Revenue Growth
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Shares of NeurAxis, Inc. (NRXS - Free Report) have lost 8.6% since the company reported results for the quarter ended Sept. 30, 2025, underperforming the S&P 500 Index’s 1.7% decline over the same period. The stock has also struggled over the past month, plunging 36.4% against the S&P 500’s 0.1% growth.
NRXS’ Earnings Snapshot
NeurAxis reported third-quarter 2025 revenues of $0.8 million, up 21.7% from $0.7 million a year earlier, marking its fifth straight quarter of double-digit expansion. Unit deliveries climbed 38% year over year, reflecting increased volume from the company’s financial assistance program, which offers discounted devices to patients lacking insurance coverage. However, operating loss widened to $2.1 million from $1.7 million a year earlier, as higher selling expenses — up 125.3% year over year — outpaced revenue gains.
Gross margin slipped to 83.3% from 85.4%, reflecting greater discounting and expired inventory charges associated with the Rectal Expulsion Device (RED) device. Net loss totaled $2.1 million compared with $1.8 million in the prior-year quarter.
NeurAxis’ Other Key Business Metrics
NeurAxis exited the quarter with $4.4 million in cash and strengthened its liquidity position in October 2025 by raising an additional $2.8 million through an at-the-market equity offering and warrant exercises. Management noted that free cash flow burn remained consistent at approximately $1.5 million for the quarter, with higher inventory purchases supporting expected demand once reimbursement improves.
On the margin front, NRXS reiterated that the lower average selling prices associated with financial assistance patients should normalize once expanded insurance coverage enables conversion to full reimbursement.
Executives emphasized that the third quarter of 2025 helped lay the foundation for what they expect will be a major scaling phase beginning in 2026. CEO Brian Carrico highlighted the impending Jan. 1, 2026, effective date for a new Current Procedural Terminology (CPT) Category I code, which is expected to streamline billing, provide work RVUs for physicians and significantly reduce administrative hurdles that currently limit IB-Stim adoption. Management also underscored accelerating payer engagement, supported by newly published clinical practice guidelines, favorable evidence assessments and outreach to large insurers. These efforts aim to achieve broader national medical policy coverage over the next several quarters.
Factors Influencing NeurAxis’ Headline Numbers
Revenue growth in the quarter was driven largely by rising patient volume, particularly within the financial assistance program, as well as the soft launch of the RED product line. However, the higher concentration of discounted sales diluted margins. Operating expenses rose meaningfully, led by increased commissions tied to higher sales activity, targeted advertising aimed at payers and preparatory commercial spending ahead of the new CPT code launch.
Research and development (R&D) expenses rose 3.6% year over year as NeurAxis continued investing in clinical programs tied to its newly expanded FDA indications. General and administrative costs increased 7.2% year over year due to the introduction of a long-term incentive plan and system-related spending.
NRXS’ Guidance and Outlook
While NeurAxis did not issue formal numerical guidance, management expressed confidence that revenue growth will continue in the fourth quarter of 2025, supported by strong momentum among providers. Executives emphasized that 2026 should benefit from higher reimbursement clarity and broader patient access, though they cautioned that policy changes will likely unfold gradually. Forecasting for early 2026 remains focused on states and hospitals that already possess favorable insurance policies, while conversion in non-covered areas will become clearer after the Category I CPT code takes effect. NeurAxis also plans to increase marketing and R&D investments in 2026 to support expanding indications and potential adult-market opportunities.
NeurAxis’ Other Developments
During the quarter, NRXS achieved several regulatory and commercial milestones. These included FDA clearances expanding IB-Stim’s indication to adults and to a broader adolescent age range, as well as clearance of the RED device for anorectal function testing.
NeurAxis also secured academic society guideline recommendations for its Percutaneous Electrical Nerve Field Stimulation technology, expanded total covered lives to approximately 55 million and received assignment of the new Category I CPT code effective Jan. 1, 2026. Collectively, these developments significantly broaden NeurAxis’ addressable market and enhance long-term reimbursement prospects.
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NRXS Stock Declines Post Q3 Earnings Despite Continued Revenue Growth
Shares of NeurAxis, Inc. (NRXS - Free Report) have lost 8.6% since the company reported results for the quarter ended Sept. 30, 2025, underperforming the S&P 500 Index’s 1.7% decline over the same period. The stock has also struggled over the past month, plunging 36.4% against the S&P 500’s 0.1% growth.
NRXS’ Earnings Snapshot
NeurAxis reported third-quarter 2025 revenues of $0.8 million, up 21.7% from $0.7 million a year earlier, marking its fifth straight quarter of double-digit expansion. Unit deliveries climbed 38% year over year, reflecting increased volume from the company’s financial assistance program, which offers discounted devices to patients lacking insurance coverage. However, operating loss widened to $2.1 million from $1.7 million a year earlier, as higher selling expenses — up 125.3% year over year — outpaced revenue gains.
Gross margin slipped to 83.3% from 85.4%, reflecting greater discounting and expired inventory charges associated with the Rectal Expulsion Device (RED) device. Net loss totaled $2.1 million compared with $1.8 million in the prior-year quarter.
NeurAxis’ Other Key Business Metrics
NeurAxis exited the quarter with $4.4 million in cash and strengthened its liquidity position in October 2025 by raising an additional $2.8 million through an at-the-market equity offering and warrant exercises. Management noted that free cash flow burn remained consistent at approximately $1.5 million for the quarter, with higher inventory purchases supporting expected demand once reimbursement improves.
On the margin front, NRXS reiterated that the lower average selling prices associated with financial assistance patients should normalize once expanded insurance coverage enables conversion to full reimbursement.
Neuraxis, Inc. Price, Consensus and EPS Surprise
Neuraxis, Inc. price-consensus-eps-surprise-chart | Neuraxis, Inc. Quote
NRXS’ Management Commentary
Executives emphasized that the third quarter of 2025 helped lay the foundation for what they expect will be a major scaling phase beginning in 2026. CEO Brian Carrico highlighted the impending Jan. 1, 2026, effective date for a new Current Procedural Terminology (CPT) Category I code, which is expected to streamline billing, provide work RVUs for physicians and significantly reduce administrative hurdles that currently limit IB-Stim adoption. Management also underscored accelerating payer engagement, supported by newly published clinical practice guidelines, favorable evidence assessments and outreach to large insurers. These efforts aim to achieve broader national medical policy coverage over the next several quarters.
Factors Influencing NeurAxis’ Headline Numbers
Revenue growth in the quarter was driven largely by rising patient volume, particularly within the financial assistance program, as well as the soft launch of the RED product line. However, the higher concentration of discounted sales diluted margins. Operating expenses rose meaningfully, led by increased commissions tied to higher sales activity, targeted advertising aimed at payers and preparatory commercial spending ahead of the new CPT code launch.
Research and development (R&D) expenses rose 3.6% year over year as NeurAxis continued investing in clinical programs tied to its newly expanded FDA indications. General and administrative costs increased 7.2% year over year due to the introduction of a long-term incentive plan and system-related spending.
NRXS’ Guidance and Outlook
While NeurAxis did not issue formal numerical guidance, management expressed confidence that revenue growth will continue in the fourth quarter of 2025, supported by strong momentum among providers. Executives emphasized that 2026 should benefit from higher reimbursement clarity and broader patient access, though they cautioned that policy changes will likely unfold gradually. Forecasting for early 2026 remains focused on states and hospitals that already possess favorable insurance policies, while conversion in non-covered areas will become clearer after the Category I CPT code takes effect. NeurAxis also plans to increase marketing and R&D investments in 2026 to support expanding indications and potential adult-market opportunities.
NeurAxis’ Other Developments
During the quarter, NRXS achieved several regulatory and commercial milestones. These included FDA clearances expanding IB-Stim’s indication to adults and to a broader adolescent age range, as well as clearance of the RED device for anorectal function testing.
NeurAxis also secured academic society guideline recommendations for its Percutaneous Electrical Nerve Field Stimulation technology, expanded total covered lives to approximately 55 million and received assignment of the new Category I CPT code effective Jan. 1, 2026. Collectively, these developments significantly broaden NeurAxis’ addressable market and enhance long-term reimbursement prospects.