NeurAxis, Inc. ((NRXS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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NeurAxis, Inc. recently held its earnings call, revealing a mixed sentiment characterized by strong revenue growth and significant milestones, yet tempered by ongoing challenges. The company celebrated FDA indication expansions and strategic payer engagement, but faced hurdles with reimbursement and operating expenses. The sentiment was cautiously optimistic, buoyed by strategic plans for 2026, yet mindful of financial and market access challenges.
Revenue Growth
NeurAxis, Inc. reported a remarkable 22% increase in revenue for Q3 2025 compared to the previous year, marking the fifth consecutive quarter of double-digit growth. This consistent upward trend underscores the company’s robust financial performance and its ability to capitalize on market opportunities.
Successful Milestones Achieved
The company achieved significant milestones with the FDA’s expansion of indications to include functional abdominal pain and functional dyspepsia, along with associated nausea symptoms for both children and adults. This expansion is expected to enhance NeurAxis’s market presence and drive further growth.
Strong Payer Engagement
NeurAxis has engaged comprehensively with major payers, focusing on expanding policy coverage, particularly for pediatric use. This strategic engagement is crucial for broadening the company’s market access and ensuring sustainable growth.
Positive Gross Margin
Despite some declines from previous years, NeurAxis maintained a positive gross margin of 83.3% for 2025, demonstrating resilience in its financial operations. This margin reflects the company’s ability to manage costs effectively while navigating market challenges.
Strategic Commercial Plan for 2026
Looking ahead, NeurAxis is preparing for the broad adoption of IV Stem with a new Category One CPT code, effective January 1, 2026. This strategic move is anticipated to enhance reimbursement and drive adoption, positioning the company for significant growth.
Cash Position Improved
The company’s cash position improved significantly, with $4.4 million on hand as of September 2025, bolstered by an additional $2.8 million raised in October 2025. This financial strengthening provides a solid foundation for future investments and strategic initiatives.
Reimbursement Challenges
NeurAxis continues to face challenges with reimbursement due to the lack of national policy coverage and a permanent CPT code. These limitations restrict access to the full addressable market, posing a hurdle to the company’s growth ambitions.
Gross Margin Decline
The gross margin experienced a decline from 85.4% in 2024 to 83.3% in 2025, attributed to higher discounting and expired inventory charges. This decline highlights the need for strategic adjustments to maintain profitability.
Increased Operating Expenses
Operating expenses rose by 25% to $2.8 million, leading to a higher net loss compared to 2024. This increase is primarily due to intensified sales and marketing efforts and investments in research and development.
RED Device Uncertainty
There is uncertainty surrounding the reimbursement for the RED device with the new CPT code, which may impact its revenue potential in the private market. This uncertainty necessitates careful strategic planning to mitigate potential risks.
Forward-Looking Guidance
During the earnings call, NeurAxis’s leadership provided extensive guidance on the company’s strategic focus and financial outlook. The anticipated implementation of a new Category One CPT code on January 1, 2026, is expected to catalyze significant market expansion and revenue growth. Despite a 27% increase in operating loss, the company remains optimistic about achieving cash flow breakeven as adoption accelerates in 2026.
In summary, NeurAxis, Inc.’s earnings call reflected a cautiously optimistic sentiment, with strong revenue growth and strategic milestones balanced by challenges in reimbursement and operating expenses. The company’s forward-looking guidance suggests a promising future, driven by strategic initiatives and market expansion plans.