NeurAxis, Inc. reported its financial results for the third quarter of 2025, revealing a net loss of $2.1 million, an increase from a loss of $1.8 million in the same period last year. For the nine months ending September 30, 2025, the company recorded a net loss of $6.1 million, a decrease from $6.8 million in the prior year. The company's revenue for the third quarter reached $811,414, marking a 21.7% increase from $666,625 in the same quarter of 2024. Year-to-date revenue also saw a significant rise, totaling $2.6 million compared to $1.9 million in the previous year, driven by increased sales of its IB-Stim device and the launch of the Rectal Expulsion Device (RED).
The company's gross profit for the third quarter was $675,927, up from $569,575 in the prior year, although the gross margin decreased from 85.4% to 83.3%. This decline was attributed to higher discounting in financial assistance programs for uninsured patients and expired inventory related to the RED device. Selling expenses surged by 125.3% to $762,548, primarily due to increased commissions and marketing costs aimed at expanding the adoption of the IB-Stim device, which is set to receive a new Current Procedural Terminology (CPT) code effective January 1, 2026.
NeurAxis has made strategic moves to enhance its product offerings and market presence. The company terminated its licensing agreement for the NSS-2 Bridge device with Masimo Corporation, regaining rights to the associated trademark and patents. This decision is expected to allow NeurAxis to pursue further development and marketing of the device independently. The company also reported an increase in its employee headcount, reflecting its commitment to expanding its operational capabilities.
As of September 30, 2025, NeurAxis had total assets of $5.8 million, up from $4.8 million at the end of 2024. The company maintained a working capital surplus of $1.8 million and cash reserves of $4.4 million. However, it continues to face challenges in achieving profitability, with management acknowledging the need for widespread insurance coverage for its products as a critical factor for future revenue generation. The company is focused on securing purchase orders and expanding its customer base while navigating the complexities of the healthcare market.
Looking ahead, NeurAxis anticipates ongoing operating losses as it invests in research and development for new indications and works to enhance its market position. The company is committed to improving its internal controls and financial reporting processes, addressing identified weaknesses to ensure compliance with regulatory requirements. NeurAxis remains optimistic about its growth potential, contingent on successful product adoption and insurance reimbursement strategies.
About Neuraxis, INC
Neuraxis, Inc. develops neuromodulation medical devices targeting pediatric and adult gastrointestinal and neurological conditions. Its core products include FDA-cleared non-invasive nerve stimulation systems for functional abdominal pain, IBS, and related disorders. The company leverages proprietary patents, clinical research, and strategic licensing to provide evidence-based, non-drug therapies that improve patient outcomes, primarily serving hospitals, clinics, and healthcare providers in the US and globally.
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