Shares of NeurAxis, Inc. (NRXS Quick QuoteNRXS - Free Report) have gained 2.5% since the company reported earnings for the quarter ended March 31, 2026, outperforming the S&P 500 Index’s 1.3% increase over the same period. Over the past month, the stock advanced 13.5%, also ahead of the S&P 500’s 7.3% rise.

NeurAxis’ Earnings Snapshot

NeurAxis reported first-quarter 2026 revenues of $1.6 million, up 79.5% year over year from $0.9 million, driven primarily by increased insurance reimbursement coverage following the Jan. 1 implementation of the Category I CPT code for Percutaneous Electrical Nerve Field Stimulation or PENFS. Net loss improved to $1.8 million, or a loss of 18 cents per share, from $2.3 million, or 33 cents per share, in the year-ago quarter. Gross profit rose 83.8% to $1.4 million from $0.8 million, while gross margin expanded to 86.4% from 84.4% in the first quarter of 2025.

NRXS operates as a single-reportable segment centered on its IB-Stim device business.

NRXS’ Strong Reimbursement Trends and Adoption Metrics

Management highlighted several key operational metrics that reflected improving reimbursement dynamics and adoption trends. Average selling price for IB-Stim devices increased 33% year over year to $1,017 from $766, reflecting a favorable shift toward fully reimbursed procedures and away from discounted financial assistance programs.

Unit deliveries increased between 32% and 35% year over year, depending on the metric cited, supported by broader insurance coverage and increased physician adoption. NeurAxis reported 66 ordering accounts during the quarter, up from 56 in the prior-year period, while revenue per ordering account climbed 53% to $24,000 from $16,000 per account year over year.

The company also noted a substantial improvement in internal prior authorization approval rates. For hospitals using NeurAxis’ authorization support system, approval rates increased to 32% during the quarter from 12% throughout 2025.

Covered lives remained stable at approximately 101 million, including a major national insurer policy covering around 45 million members.

NeurAxis’ Management Commentary

Chief Executive Officer Brian Carrico described the quarter as a “proof of concept” period following implementation of the Category I CPT code. According to management, NRXS gained clearer visibility into the drivers of successful adoption, particularly the importance of written insurance coverage, physician champions and dedicated clinic time within children’s hospitals.

Carrico emphasized that the CPT code alone does not guarantee reimbursement but serves as a foundational component for broader payer adoption. Management said commercialization efforts are now concentrated in markets with strong payer coverage and high utilization potential rather than broad nationwide expansion.

To support growth, NeurAxis plans to strengthen its commercial infrastructure through additional sales, marketing and market-access hires. The company is also testing a regional coverage model aimed at increasing physician engagement and improving account execution through more frequent in-person interactions.

Factors Driving NRXS’ Financial Performance

Revenue growth was primarily fueled by increased sales to fully reimbursed patients as insurance coverage broadened after the CPT code became effective. Management said NRXS’ largest insurer relationship, secured in late 2025, contributed meaningfully to the increase in average selling price and gross margin.

Selling expenses rose 64.8% year over year to $0.8 million from $0.5 million as NeurAxis expanded sales and marketing personnel and paid higher commissions tied to stronger sales volume. Research and development expenses declined 15.5% to $99,567 from $117,867, partly due to proceeds received for devices used in clinical studies. General and administrative expenses decreased 9.3% to $2.2 million from $2.4 million, largely because the prior-year quarter included a one-time legal settlement charge.

Operating loss narrowed year over year to $1.7 million from $2.3 million.

Liquidity also improved during the quarter. Cash and cash equivalents totaled $7.1 million as of March 31, 2026, compared with $4.9 million at the end of 2025. NRXS subsequently raised an additional $2.1 million through its at-the-market equity facility and warrant exercises.

NeurAxis also reported first-quarter 2026 cash burn of $1.2 million, an improvement from $1.6 million in the prior-year period, as revenue growth and improved gross margins helped reduce operating cash outflows.

NeurAxis’ Outlook and Growth Priorities

Management did not issue formal financial guidance but expressed confidence in continued growth momentum throughout 2026. NRXS expects reimbursement mix improvements to continue benefiting revenue quality and gross margins in future quarters.

NeurAxis reiterated that expanding medical policy coverage among major commercial payers remains its highest strategic priority. The company also expects the Veterans Affairs (VA) healthcare system to become an increasingly meaningful growth channel over time following its recently awarded federal supply schedule contract.

Management acknowledged that broader adult market expansion outside the VA system will likely require additional clinical evidence. To support future reimbursement opportunities, NRXS has partnered with Cleveland Clinic and Stanford University on a randomized controlled trial evaluating IB-Stim in adult patients with functional dyspepsia.

NRXS’ Other Developments

During the quarter, NeurAxis continued advancing several strategic initiatives. The company highlighted expanded FDA clearance for IB-Stim, including broader patient age eligibility and an increase in recommended treatment duration from three to four devices per patient. It also received the first FDA clearance for treating abdominal pain associated with functional dyspepsia and nausea symptoms in patients aged eight years and older.

Separately, the company continued implementing a previously announced settlement related to litigation in Maryland. NeurAxis recorded a liability associated with the settlement but noted that the one-time legal charge affected prior-year comparisons rather than current-quarter results.