Helius Medical Technologies Reports 76% Revenue Decline and $9.8 Million Net Loss in Q2 2025

Helius Medical Technologies, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $43,000, a decrease of 76% compared to $182,000 in the same period of 2024. For the first half of 2025, the company generated $92,000 in revenue, down from $317,000 in the prior year. The decline in revenue was primarily attributed to reduced sales volumes of the PoNS device in the U.S. and Canada, following the termination of a temporary cash pay pricing model and a breach of agreement by a distribution partner. The company recorded a net loss of $9.8 million for the quarter, compared to a loss of $1.6 million in the previous year, and a total loss of $13.7 million for the first half of 2025, up from $4.1 million in 2024.

In terms of operational metrics, Helius reported a gross loss of $53,000 for the second quarter, contrasting with a gross profit of $64,000 in the same quarter of 2024. The company's selling, general, and administrative expenses remained relatively stable at $2.4 million, while research and development expenses decreased slightly to $822,000. The company’s cash and cash equivalents increased to $6.1 million as of June 30, 2025, compared to $1.1 million at the end of 2024, primarily due to financing activities, including a public offering that generated $9.1 million in gross proceeds.

Strategically, Helius has made several significant moves, including the completion of a reverse stock split at a ratio of 1-for-50, effective July 1, 2025, aimed at regaining compliance with Nasdaq listing requirements. The company also successfully raised capital through various offerings, including a private placement of promissory notes and common stock, which collectively generated approximately $1.3 million. Additionally, Helius has been actively pursuing reimbursement approvals for its PoNS device, achieving several approvals from major healthcare payers, which is expected to enhance market access.

Looking ahead, Helius faces substantial challenges, including the need for ongoing capital to support its operations and commercialization efforts. The company has indicated that it expects to continue incurring operating losses and cash outflows until it can generate sufficient revenue to cover its costs. Helius plans to utilize its current cash reserves and proceeds from sales of the PoNS device to fund operations, but it acknowledges the necessity of raising additional capital to sustain its business beyond mid-2026. The company is also focused on expanding its clinical trials and product offerings, particularly in the stroke rehabilitation market, with plans to submit for FDA authorization by the end of 2025 or early 2026.