NeurAxis Reports 79.5% Revenue Growth to $1.6 Million in Latest Quarter

NeurAxis, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2026. The company achieved net sales of $1.6 million, a substantial increase of 79.5% compared to $895,655 in the same period last year. This growth is attributed to increased sales volume driven by broader insurance reimbursement coverage for its IB-Stim device, which received a Category I CPT code effective January 1, 2026. Despite the rise in revenue, NeurAxis reported a net loss of $1.76 million, an improvement from the $2.28 million loss recorded in the prior year, reflecting a 22.7% reduction in losses.

The company's gross profit also saw a notable increase, rising 83.8% to $1.39 million, with gross margins improving from 84.4% to 86.4%. This improvement is primarily due to higher sales from customers with full insurance reimbursement, which offset increased manufacturing costs. Selling expenses rose by 64.8% to $824,336, driven by commissions related to the higher sales volume and the addition of sales personnel. Research and development expenses decreased by 15.5% to $99,567, while general and administrative expenses fell by 9.3% to $2.21 million, largely due to a one-time charge in the previous year.

Operationally, NeurAxis reported a total of 11,450,045 shares of common stock outstanding as of March 31, 2026, up from 10,652,812 shares at the end of 2025. The company also increased its cash reserves to $7.08 million, compared to $4.97 million at the end of the previous fiscal year, bolstered by proceeds from stock issuances and warrant exercises. The working capital surplus improved to $5.33 million, reflecting better cash management and increased accounts receivable from device sales.

Looking ahead, NeurAxis aims to expand its market presence and product offerings, focusing on securing insurance coverage for its devices and pursuing FDA clearances for additional indications. The company acknowledges the challenges of achieving profitability, as it continues to incur losses and relies on a combination of sales, debt, and capital stock issuance to fund operations. Management has expressed confidence in its strategy but recognizes the need for ongoing efforts to enhance operational efficiency and financial stability.

In summary, NeurAxis, Inc. is navigating a period of growth with increased sales and improved financial metrics, while also addressing the challenges of sustaining operations and achieving profitability in a competitive market. The company remains focused on expanding its product offerings and securing broader insurance coverage to drive future revenue growth.