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NeuroOne Medical Technologies (NMTC)
NASDAQ:NMTC
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NeuroOne Medical Technologies
(NASDAQ:NMTC)
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Rating:48Neutral
Price Target:
$0.67
▼(-5.35% Downside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak financial quality—deep ongoing losses and significant cash burn—despite improving gross margin and low leverage. Technicals also lean negative with the stock trading below major moving averages. Guidance and operational/clinical progress provide some support, but liquidity runway and near-term profitability pressure keep the overall score below average.
Positive Factors
Improving gross margin & scale
Sustained improvement to ~55% gross margin alongside scaled revenue ($8.7M TTM) indicates structural progress in unit economics and manufacturing/price mix. If maintained, this margin profile supports future operating leverage and a clearer path to profitability as revenues grow and fixed costs are absorbed.
Low leverage / clean balance sheet
Minimal debt and positive equity give durable financial flexibility versus highly levered peers. Low interest burden preserves cash for R&D and commercialization investments, and a conservative capital structure reduces financial distress risk as the company scales clinical programs and seeks partnerships.
Regulatory clearance & product adoption
FDA 510(k) clearance and early clinical adoption for the 1RF systems are durable competitive assets: regulatory approval lowers commercialization barriers, real-world clinical success builds referral momentum, and traction supports longer-term uptake, partnerships, and potential licensing opportunities.
Negative Factors
Persistent cash burn
Material negative operating and free cash flow reflect that core operations do not yet self-fund growth. Continued burn increases dependency on external financing, which can dilute shareholders or interrupt R&D/commercial plans, and constrains runway for multi-year clinical programs and market expansion.
Near-term runway risk
A ~45% quarter-over-quarter cash decline to $3.6M with funding only through FY2026 is a structural liquidity concern. It forces prioritization of projects, may delay launches or trials, and makes planned commercialization and registry milestones contingent on securing further capital or accelerating revenue materially.
Deep, persistent losses & revenue volatility
Heavy net losses and volatile revenue (driven by lumpy license receipts and recent YoY declines) show the business has not achieved stable, predictable profitability. This structural volatility complicates forecasting, increases financing needs, and makes it harder to demonstrate sustainable unit economics to partners and payors.
NeuroOne Medical Technologies (NMTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.36M
Dividend YieldN/A
Average Volume (3M)532.45K
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth250.35%
EPS Growth83.06%
CountryUS
Employees17
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.03
Shares Outstanding50,525,993
10 Day Avg. Volume702,340
30 Day Avg. Volume532,447
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)5.04
Price to Sales (P/S)2.95
P/FCF Ratio-12.22
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue3.54
Enterprise Value/Gross Profit6.45
Enterprise Value/Ebitda-4.52
Forecast
1Y Price Target
$3.00Price Target Upside322.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NeuroOne Medical Technologies Business Overview & Revenue Model
Company DescriptionNeuroOne Medical Technologies (NMTC) is a medical device company focused on developing innovative solutions for neurological disorders, specifically targeting conditions such as epilepsy and chronic pain. The company operates within the healthcare sector, primarily specializing in advanced electrode technology and implantable devices designed for brain monitoring and stimulation. NMTC's core products include its ultra-thin and flexible electrode arrays, which are intended to improve the treatment outcomes for patients undergoing neurological procedures.
How the Company Makes MoneyNeuroOne Medical Technologies generates revenue primarily through the sale of its medical devices, particularly its electrode technology used in neurosurgical procedures. The company may also earn income from licensing agreements, collaborations with larger medical device firms, and partnerships with research institutions. Additionally, NMTC could benefit from reimbursement models established by healthcare providers for the use of its products in clinical settings. Significant partnerships with hospitals and neurology clinics could further enhance its market reach and contribute to consistent revenue generation.
NeuroOne Medical Technologies Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral — The call highlighted multiple operational and clinical achievements (accelerated programs, regulatory clearance, strong early clinical outcomes, product adoption, and meaningful fiscal 2026 revenue guidance of at least $10.5M). However, these positives are offset by near-term financial headwinds including a year-over-year revenue decline driven by the absence of prior license revenue, a drop in gross margin, a swing to a net loss, and a substantial reduction in cash on hand with funding only assured through fiscal 2026 unless milestones are met. The company shows promising commercial and development momentum but faces tangible liquidity and margin pressures that moderate the overall outlook.Q1-2026 Updates
Positive Updates
Fiscal 2026 Revenue Guidance
Company projects fiscal 2026 sales of at least $10.5M, representing a minimum 17% increase versus fiscal 2025.
Sequential Revenue Growth
Product revenue of $2.9M in Q1 FY2026 increased 5.5% sequentially from $2.7M in the prior quarter.
1RF Brain Ablation Adoption
Number of ablations performed in Q1 FY2026 was nearly half of all ablations since launch, indicating rapid penetration and adoption of the 1RF brain ablation system; positive clinical anecdotes shared (e.g., professional pianist resuming career). Registry planned with first patient enrollment target by end of Q3.
Trigeminal Nerve System Clinical Success
1RF trigeminal nerve ablation received FDA 510(k) clearance (Aug 2025). Limited commercial launch: 9 patients treated across 3 centers in 2026 with all reported pain free to date; first two patients at University Hospitals Cleveland reported pain relief. Limited launch expected to complete by 2026; in diligence discussions with strategics for potential licensing.
Accelerated Drug Delivery Program
Drug delivery program accelerated; devices expected to be available for investigational clinical studies or animals in Q3 FY2026 (~6 months ahead of prior schedule). Advisory board of oncology experts being organized and active discussions with pharma/biotech partners underway.
Back Pain Programs Progress
14‑gauge needle program: long-term animal study to start next month in preparation for first human implant; basivertebral nerve ablation program: multiple advisory board meetings held, product requirements validated, and strategic diligence ongoing.
Cost Discipline in SG&A
Selling, general & administrative expense decreased 7.7% year-over-year to $1.9M (from $2.0M), indicating some operating cost control.
No Debt and Strategic Board Addition
Company reported no outstanding debt as of 12/31/2025 and appointed Jason Mills (formerly EVP Strategy, Penumbra) to the board to support business development and strategic efforts.
Negative Updates
Year-over-Year Product Revenue Decline
Product revenue declined to $2.9M in Q1 FY2026 from $3.3M in Q1 FY2025, a decrease of approximately 12.1% year-over-year (prior year included Zimmer’s initial stocking order).
Absence of License Revenue
License revenue was $0 in Q1 FY2026 versus $3.0M in Q1 FY2025 (100% decrease), contributing materially to the year-over-year revenue shortfall.
Gross Margin Pressure
Product gross profit fell to $1.6M (54.2% margin) from $1.9M (58.9% margin) year-over-year — a decline of $0.3M in gross profit (≈15.8% lower) and a 4.7 percentage-point reduction in gross margin (≈8.0% relative decline in margin).
Net Loss vs. Prior Net Income
Reported net loss of $1.4M (loss of $0.03 per share) in Q1 FY2026 versus net income of $1.8M (earnings $0.06 per share) in Q1 FY2025 — an earnings swing of $3.2M driven largely by the absence of prior license revenue.
Significant Cash Decline and Runway Risk
Cash and cash equivalents decreased to $3.6M as of 12/31/2025 from $6.6M as of 09/30/2025, a decline of approximately 45.5%, and management states the company is funded through fiscal 2026 (potentially longer if milestones are hit), indicating limited near-term liquidity/runway risk.
Working Capital Contraction
Working capital fell to $6.8M from $7.9M sequentially (≈13.9% decrease), reflecting some tightening of short-term financial flexibility.
R&D Spend Increase and Slight Operating Expense Rise
Research & development expense increased to $1.4M from $1.2M year-over-year (+16.7%), and total operating expenses rose modestly to $3.3M from $3.2M (+3.1%), which could press near-term results as development activities accelerate.
Company Guidance
Management reiterated FY2026 revenue guidance of at least $10,500,000 (a minimum 17% increase vs. FY2025) and said the company is funded through FY2026, noting cash and cash equivalents of $3.6M as of 12/31/2025 (down from $6.6M on 9/30/2025), working capital of $6.8M (vs. $7.9M) and no debt as of 12/30/2025. Q1 metrics included product revenue of $2.9M (vs. $3.3M YoY, up 5.5% sequentially from $2.7M), no license revenue (vs. $3.0M prior), product gross profit of $1.6M (54.2% of revenue; $1.9M/58.9% prior; up 2.6% sequentially from $1.5M), total operating expenses of $3.3M (R&D $1.4M; SG&A $1.9M, down 7.7% YoY) and a net loss of $1.4M, or $0.03 per share (vs. net income $1.8M, $0.06 per share prior). Management expects SG&A to be roughly flat for the balance of the year while R&D may fluctuate, plans to have drug‑delivery devices available for investigational/animal use in Q3 FY2026 (about six months earlier than previously expected), aims to enroll the first registry patient by the end of Q3, and to complete the limited trigeminal launch in 2026.NeuroOne Medical Technologies Financial Statement Overview
Summary
Revenue has scaled to $8.7M TTM with gross margin improving to ~55%, but profitability remains very weak (TTM net margin ~-78%) and TTM revenue is down ~4%. Cash flow is a major risk with materially negative operating and free cash flow (~-$6.2M to -$6.3M) despite low balance-sheet leverage (debt-to-equity ~0.02).Income Statement
Revenue scaled meaningfully over the last few years, reaching $8.7M in TTM (Trailing-Twelve-Months), with gross margin improving to ~55% (vs. negative gross margin in 2021–2022 and ~31% in 2024). However, profitability remains weak: TTM net margin is deeply negative (~-78%) and operating results are still loss-making, indicating the cost structure is not yet aligned with the current revenue base. Momentum also softened in the latest period with TTM revenue down ~4%.28
Negative
Balance Sheet
The balance sheet looks relatively conservative from a leverage standpoint, with very low debt versus equity in TTM (Trailing-Twelve-Months) (debt-to-equity ~0.02) and positive equity (~$6.4M). That said, returns remain negative (TTM return on equity is materially below zero), reflecting ongoing losses and raising the risk of future dilution or balance-sheet erosion if losses persist.64
Positive
Cash Flow
Cash generation remains a clear pressure point: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both meaningfully negative (about -$6.2M to -$6.3M), indicating continued cash burn. While free cash flow has improved versus prior periods, the company is still reliant on external funding unless operating performance improves, and the current cash flow profile does not yet demonstrate self-funding operations.22
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.72M | 12.10M | 3.45M | 1.95M | 171.17K | 178.15K |
| Gross Profit | 4.78M | 8.14M | 1.08M | 456.52K | -70.79K | -97.75K |
| EBITDA | -6.83M | -3.01M | -11.84M | -11.76M | -9.91M | -9.80M |
| Net Income | -6.83M | -3.61M | -12.32M | -11.86M | -10.00M | -9.95M |
Balance Sheet | ||||||
| Total Assets | 8.58M | 10.79M | 5.37M | 8.10M | 12.82M | 7.94M |
| Cash, Cash Equivalents and Short-Term Investments | 3.56M | 6.57M | 1.46M | 5.32M | 11.14M | 6.90M |
| Total Debt | 110.37K | 266.81K | 260.16K | 184.40K | 202.90K | 315.67K |
| Total Liabilities | 2.18M | 3.71M | 4.55M | 1.85M | 3.22M | 1.38M |
| Stockholders Equity | 6.40M | 7.07M | 822.01K | 6.25M | 9.60M | 6.55M |
Cash Flow | ||||||
| Free Cash Flow | -6.26M | -2.92M | -11.13M | -13.27M | -7.79M | -8.67M |
| Operating Cash Flow | -6.16M | -2.84M | -11.01M | -12.89M | -7.52M | -8.60M |
| Investing Cash Flow | -98.08K | -81.74K | -120.20K | 2.65M | -3.24M | -67.08K |
| Financing Cash Flow | 8.69M | 8.33M | 7.27M | 7.40M | 12.02M | 11.53M |
NeuroOne Medical Technologies Technical Analysis
Negative
0.71
Price Trends
0.79
Negative
0.79
Negative
0.77
Negative
Market Momentum
-0.03
Positive
38.76
Neutral
12.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMTC, the sentiment is Negative. The current price of 0.71 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.79, and below the 200-day MA of 0.77, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 12.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NMTC.
NeuroOne Medical Technologies Risk Analysis
NeuroOne Medical Technologies disclosed 51 risk factors in its most recent earnings report. NeuroOne Medical Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NeuroOne Medical Technologies Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $63.24M | -8.27 | -14.85% | ― | -13.79% | -132.21% | |
52 Neutral | $48.06M | -3.44 | -337.84% | ― | 27.90% | 1.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $34.36M | -4.30 | -91.34% | ― | 250.35% | 83.06% | |
45 Neutral | $13.52M | -0.20 | -148.93% | ― | ― | 15.03% | |
42 Neutral | $23.79M | -1.26 | ― | ― | ― | ― |
* Healthcare Sector Average
NMTC
NeuroOne Medical Technologies
0.68
-0.45
-39.82%
SRTS
Sensus Healthcare
3.82
-1.37
-26.40%
ECOR
Electrocore
6.66
-10.56
-61.32%
MODD
Modular Medical
0.49
-0.55
-52.95%
RBOT
Vicarious Surgical
2.15
-11.52
-84.27%
IINN
Inspira Technologies Oxy BHN
0.58
-0.33
-36.11%
NeuroOne Medical Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
NeuroOne Appoints Jason R. Mills to Board
Positive
Dec 22, 2025
On December 18, 2025, NeuroOne’s board expanded from four to five members and appointed Jason R. Mills as a Class I director, with his committee roles on the Compensation and Nominating & Corporate Governance Committees effective January 1, 2025, a move publicly announced on December 22, 2025. Mills, currently Executive Vice President of Strategy at Penumbra and a former award-winning med-tech equity research analyst, brings deep industry, strategic and capital markets experience that NeuroOne’s leadership believes will support its clinical and corporate objectives and help broaden its reach as it seeks to advance and commercialize its neurological disorder treatment technologies; on the same day, the company also posted an updated corporate presentation to its investor website to support ongoing communications with the market.
The most recent analyst rating on (NMTC) stock is a Hold with a $0.68 price target. To see the full list of analyst forecasts on NeuroOne Medical Technologies stock, see the NMTC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.