Shares of NeurAxis, Inc. (NRXS Quick QuoteNRXS - Free Report) have gained 4.6% since the company reported results for the quarter ended Dec. 31, 2025, against a 0.8% decline in the S&P 500 over the same period. Over the past month, the stock has rallied sharply, gaining 38.5% against the S&P 500’s 5.1% decline.

NeurAxis’ Earnings Snapshot

NeurAxis reported fourth-quarter 2025 revenues of $968,000, up 27% year over year from $761,000, marking its sixth consecutive quarter of double-digit growth. The revenue increase was driven by a 35% rise in unit deliveries, supported by higher volumes from fully reimbursed patients and the introduction of the RED device. Gross margin declined 100 basis points to 85.4% from 86.4% in the fourth quarter of 2024, reflecting inventory-related charges and a lower-margin RED product mix.

Selling, general and administrative expenses in the fourth quarter of 2025 rose 20% year over year to $2.5 million from $2.1 million, driven by higher sales commissions, marketing investments and incentive compensation tied to growth initiatives. NRXS reported a net loss of $1.7 million, compared with $1.4 million in the prior-year quarter, primarily due to higher operating expenses tied to commercial expansion efforts.

For the full year, revenues grew 32.9% to $3.6 million from $2.7 million, while net loss narrowed to $7.8 million from $8.2 million, indicating improved operating leverage despite continued investment.

NRXS’ Commercial Execution and Key Business Metrics

NeurAxis’ performance continues to be closely tied to the commercialization of its IB-Stim device and expanding reimbursement coverage. During the quarter, the company added approximately 45 million covered lives through a major insurer, contributing to a total of more than 100 million covered lives. Management highlighted that patient submissions increased significantly following the implementation of a Category I CPT code effective Jan. 1, 2026, which standardizes reimbursement for the therapy.

Operationally, NRXS emphasized that adoption is strongest in hospitals with three elements in place — full insurance coverage, a physician champion and dedicated clinic time. Conversely, partial insurance coverage remains a barrier to broader utilization, underscoring the importance of continued payer expansion.

Factors Influencing NeurAxis’ Performance

Revenue growth in the quarter was driven primarily by a favorable mix shift toward fully reimbursed patients, which improved average selling prices relative to discounted financial assistance programs. However, this benefit was partially offset by investments in commercialization, including higher sales commissions, marketing efforts tied to the CPT code rollout and increased headcount.

Gross margin compression was attributed to inventory reserves and the growing contribution of the RED device, which carries lower margins than IB-Stim. Additionally, operating expenses rose due to compensation-related costs, including a new long-term incentive plan and increased spending on infrastructure and compliance systems.

NRXS’ Management Commentary

Management characterized 2025 as a milestone year, citing regulatory achievements, expanded FDA indications, and improved reimbursement infrastructure as foundational to future growth. The introduction of the Category I CPT code was highlighted as a critical turning point, shifting NRXS from access creation to execution.

Executives expressed confidence that NeurAxis is entering the early stages of a multi-year growth cycle, supported by expanding payer coverage, increasing patient utilization, and a scaling commercial organization. Early first-quarter trends were described as stronger than expected, particularly in revenue progression and operational fundamentals.

NeurAxis’ Outlook and Growth Drivers

NeurAxis expects continued revenue growth driven by two primary levers — expanding insurance coverage and scaling its commercial footprint. Management noted that reimbursement remains the most critical factor, as payers typically require formal medical policy coverage beyond CPT coding alone.

NRXS is actively engaging with large insurers and expects gradual improvements in policy coverage and prior authorization processes through the first half of 2026. Additionally, investments in sales, marketing and medical education are expected to support broader adoption across children’s hospitals and new channels such as the Veterans Affairs system.

NRXS’ Other Developments

During the quarter, NeurAxis secured a Federal Supply Schedule (FSS) contract, enabling access to the U.S. Department of Veterans Affairs healthcare system, which serves nearly 7 million patients annually. The company is also pursuing expansion into adult indications through a randomized controlled trial with the Cleveland Clinic, aimed at supporting future reimbursement coverage.

Additionally, NRXS achieved expanded FDA clearance for IB-Stim, including broader age indications and increased treatment duration, further enlarging its addressable market.