NeurAxis, Inc. ((NRXS)) has held its Q1 earnings call. Read on for the main highlights of the call.
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NeurAxis, Inc. recently held its earnings call, revealing a cautiously optimistic outlook. The company showcased strong revenue growth and strategic advancements in insurance coverage and regulatory achievements. However, challenges persist, particularly in insurance coverage and financial impacts from legal settlements, creating a balanced yet hopeful sentiment.
Consistent Revenue Growth
NeurAxis reported a remarkable 39% increase in revenue for the first quarter of 2025 compared to the same period in 2024. This marks the third consecutive quarter of double-digit growth, underscoring the company’s robust financial performance and strategic execution.
Expansion of Insurance Coverage
The company achieved significant progress in expanding its insurance coverage, increasing the number of covered lives from 4 million to 51 million over the past year. This expansion is a critical step in enhancing accessibility and driving future revenue growth.
Category I CPT Code Achievement
NeurAxis received a Category I CPT code, effective January 1, 2026, which is expected to simplify billing processes and boost revenue. This achievement marks a pivotal milestone in the company’s operational strategy.
FDA Approvals and Product Expansion
The company expanded the IB-Stim label to include treatment for patients aged 8 to 21 and received FDA clearance for the RED device, a rectal expulsion device. These approvals are set to broaden NeurAxis’ market reach and product offerings.
High Gross Margin
Despite facing challenges, NeurAxis maintained a high gross margin of 84.4% in the first quarter of 2025. This reflects the company’s operational efficiency and ability to manage costs effectively.
Legal Settlement Expenses
NeurAxis incurred a one-time legal settlement charge, which impacted its operating expenses. This financial burden highlights the challenges the company faces in managing unforeseen legal costs.
Continued Challenges with Insurance Coverage
While progress has been made, NeurAxis still faces hurdles with comprehensive insurance coverage, which remains a barrier to revenue growth. The company noted that financial assistance sales are 65% below the list price, indicating ongoing challenges in this area.
Operating Loss Increase
The company’s operating loss increased by 25% compared to the first quarter of 2024, primarily due to the legal settlement charge. This increase underscores the financial challenges NeurAxis is navigating.
Forward-Looking Guidance
NeurAxis provided an optimistic forward-looking guidance, emphasizing strong financial performance and growth prospects. The company anticipates continued revenue acceleration with the implementation of the Category I CPT code in 2026 and aims for cash flow breakeven by leveraging strong data and endorsements. The FDA clearance for the RED device and IB-Stim label expansion are expected to open new market opportunities, while strategic cost management and sales growth remain focal points for achieving profitability.
In summary, NeurAxis’ earnings call reflected a cautiously optimistic sentiment, highlighting significant achievements in revenue growth and strategic milestones. Despite challenges, particularly in insurance coverage and legal expenses, the company remains focused on expanding its market presence and achieving financial stability.