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NeurAxis, Inc. (NRXS)
:NRXS
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NeurAxis, Inc.
(NRXS)
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Rating:48Neutral
Price Target:
$4.00
▼(-8.05% Downside)
The score is held back primarily by substantial ongoing losses and persistent cash burn, despite strong gross margins and an improving balance sheet. Technicals show an established uptrend but with overbought momentum risk. The earnings call adds support via growth traction and a 2026 reimbursement catalyst, while valuation is constrained by negative earnings and no dividend.
Positive Factors
Strong Gross Margins
Sustained ~84% gross margins indicate durable pricing power and low variable cost for device sales and consumables. This margin cushion supports reinvestment in commercialization and R&D as adoption scales, reducing the capital needed per incremental dollar of revenue.
FDA Indication Expansion
Regulatory expansion into functional abdominal pain and dyspepsia broadens the addressable market across pediatric and adult patients. Durable clinical indications increase long-term adoption by providers and strengthen reimbursement arguments, supporting sustained revenue growth over multiple years.
Reimbursement Catalyst & Payer Engagement
A Category One CPT code plus active payer engagement is a structural market-access catalyst that can materially expand covered lives and utilization. Durable improvement in reimbursement would reduce adoption friction, enabling scalable commercial uptake and more predictable revenue streams.
Negative Factors
Ongoing Cash Burn
Consistent negative operating and free cash flow signals reliance on external financing to fund operations. Over the medium term this constrains strategic flexibility, raises dilution or refinancing risk, and pressures the timeline to achieve breakeven as commercialization investments continue.
Deep Unprofitability
Very large operating and net losses indicate the business is not yet self-sustaining; returns on equity remain deeply negative. Persistent unprofitability limits internal capital for growth, increases sensitivity to funding markets, and raises execution risk until margins normalize with scale.
Reimbursement Uncertainty
Absent broad national coverage today, payer uncertainty constrains addressable market and adoption cadence. Even with a future CPT code, timing and policy adoption vary by payer; prolonged coverage gaps could delay commercialization, constrain revenue realization and prolong cash burn.
NeurAxis, Inc. (NRXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.34M
Dividend YieldN/A
Average Volume (3M)55.04K
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth36.89%
EPS Growth43.58%
CountryUS
Employees21
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.24
Shares Outstanding10,652,812
10 Day Avg. Volume34,967
30 Day Avg. Volume55,039
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)7.86
Price to Sales (P/S)6.05
P/FCF Ratio-2.65
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue12.62
Enterprise Value/Gross Profit14.97
Enterprise Value/Ebitda-5.70
Forecast
1Y Price Target
$8.00Price Target Upside83.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.92
Revenue Forecast (FY)$3.97M
NeurAxis, Inc. Business Overview & Revenue Model
Company DescriptionNeurAxis, Inc. operates as a neuromodulation therapy device company in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome healthcare companies primarily hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.
How the Company Makes MoneyNeurAxis generates revenue primarily through the sale of its medical devices and therapeutic solutions, which are often covered by insurance providers. Key revenue streams include direct sales to hospitals and clinics, partnerships with healthcare systems, and licensing agreements for its proprietary technologies. Additionally, the company may receive funding through governmental grants and research subsidies aimed at advancing its product development. Strategic collaborations with pharmaceutical companies and research institutions also contribute to its earnings, as they often involve shared development costs and royalties on future sales.
NeurAxis, Inc. Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 14, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and successful milestones, including FDA indication expansions and strategic payer engagement. However, challenges remain with reimbursement, operating expenses, and uncertainty around the RED device. The sentiment is bolstered by strategic planning for 2026 with the new CPT code, but tempered by ongoing financial and market access challenges.Q3-2025 Updates
Positive Updates
Revenue Growth
Q3 2025 revenue increased by 22% year over year, marking the fifth consecutive quarter of double-digit growth.
Successful Milestones Achieved
Achieved FDA indication expansion to functional abdominal pain and functional dyspepsia with associated nausea symptoms for both children and adults.
Strong Payer Engagement
Engagement with major payers is deemed comprehensive, with a focus on policy coverage expansion for pediatric use.
Positive Gross Margin
Gross margin for 2025 was 83.3%, showing resilience despite some declines from previous years.
Strategic Commercial Plan for 2026
Plans for broad adoption of IV Stem with new Category One CPT code effective January 1, 2026, promising improved reimbursement and adoption.
Cash Position Improved
Cash on hand was $4,400,000 as of September 2025, improved by an additional $2,800,000 raised in October 2025.
Negative Updates
Reimbursement Challenges
Current lack of national policy coverage and permanent CPT code limits access to the full addressable market.
Gross Margin Decline
Gross margin declined from 85.4% in 2024 to 83.3% in 2025 due to higher discounting and expired inventory charges.
Increased Operating Expenses
Total operating expenses increased by 25% to $2,800,000, leading to a higher net loss compared to 2024.
RED Device Uncertainty
Uncertainty around new CPT code reimbursement for the RED device, which may impact revenue potential in the private market.
Company Guidance
During the NeurAxis, Inc. Third Quarter 2025 Financial Results Conference Call, CEO Brian Carrico and CFO Timothy Robert Henrichs provided extensive guidance on the company’s strategic focus and financial outlook. The company reported a 22% revenue increase to $811,000, marking the fifth consecutive quarter of double-digit growth. They highlighted the impending implementation of a new category one CPT code on January 1, 2026, as a catalyst for significant market expansion and revenue growth. Currently, NeurAxis has approximately 55 million covered lives and is actively engaging with payers to secure broader insurance coverage, particularly for pediatric patients. The company is also preparing for potential growth in adult markets with IV Stem, despite potential reimbursement challenges. Operating expenses increased by 25% to $2.8 million, attributed to heightened sales and marketing efforts and research and development investments. Despite a 27% increase in operating loss to $2.1 million, the company remains optimistic about the upcoming CPT code's impact on revenue, aiming for cash flow breakeven as adoption accelerates in 2026.NeurAxis, Inc. Financial Statement Overview
Summary
Despite very strong gross margins (~84%) and modest revenue growth, results are dominated by deep operating and net losses and ongoing negative free cash flow. The balance sheet looks improved with low leverage and positive equity, but sharply negative returns and continued cash burn remain major constraints.Income Statement
NRXS shows solid pricing power with very strong gross margins (TTM (Trailing-Twelve-Months) ~84%), and revenue is growing (TTM ~4.5% vs. ~9% in 2024). However, the company remains deeply unprofitable: operating losses are more than the size of revenue (TTM operating margin about -161%) and net losses remain very large (TTM net margin about -224%). Losses have improved versus 2023, but profitability remains the central weakness.34
Negative
Balance Sheet
Leverage appears manageable with low debt relative to equity (TTM debt-to-equity ~0.11; 2024 ~0.23), and equity has improved materially from negative levels in 2021–2023 to positive in 2024 and TTM—an important step-up in balance sheet stability. The key concern is that returns on equity are still sharply negative (TTM roughly -340%), reflecting ongoing heavy losses that could pressure capital over time despite the currently modest debt load.56
Neutral
Cash Flow
Cash generation remains weak: operating cash flow and free cash flow are meaningfully negative across all periods (TTM operating cash flow about -$6.3M; free cash flow about -$6.3M). While free cash flow trends improved versus 2024, the business is still consuming cash, and cash outflows are broadly in line with reported net losses—indicating limited internal funding capacity until losses narrow further.28
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.36M | 2.69M | 2.46M | 2.68M | 2.72M | 1.93M |
| Gross Profit | 2.84M | 2.32M | 2.16M | 2.39M | 2.25M | 1.45M |
| EBITDA | -7.45M | -7.90M | -9.23M | -4.33M | -2.95M | -3.61M |
| Net Income | -7.54M | -8.24M | -14.63M | -4.78M | -3.03M | -3.73M |
Balance Sheet | ||||||
| Total Assets | 5.78M | 4.76M | 509.50K | 1.48M | 760.48K | 2.79M |
| Cash, Cash Equivalents and Short-Term Investments | 4.38M | 3.70M | 78.56K | 253.70K | 320.86K | 1.90M |
| Total Debt | 478.43K | 473.40K | 224.26K | 598.82K | 439.27K | 311.49K |
| Total Liabilities | 3.49M | 2.69M | 1.91M | 7.05M | 1.59M | 1.15M |
| Stockholders Equity | 2.28M | 2.07M | -1.40M | -5.57M | -825.66K | 1.64M |
Cash Flow | ||||||
| Free Cash Flow | -6.28M | -6.13M | -6.77M | -2.36M | -2.24M | -4.17M |
| Operating Cash Flow | -6.26M | -6.10M | -6.69M | -2.30M | -2.23M | -4.14M |
| Investing Cash Flow | -25.29K | -27.78K | -71.78K | -61.20K | -1.39K | -27.72K |
| Financing Cash Flow | 10.40M | 9.74M | 6.59M | 2.29M | 661.10K | 6.05M |
NeurAxis, Inc. Technical Analysis
Positive
4.35
Price Trends
3.78
Positive
3.32
Positive
2.91
Positive
Market Momentum
0.13
Positive
50.31
Neutral
19.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRXS, the sentiment is Positive. The current price of 4.35 is below the 20-day moving average (MA) of 4.64, above the 50-day MA of 3.78, and above the 200-day MA of 2.91, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 19.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NRXS.
NeurAxis, Inc. Risk Analysis
NeurAxis, Inc. disclosed 54 risk factors in its most recent earnings report. NeurAxis, Inc. reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NeurAxis, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $202.09M | -2.28 | ― | ― | ― | -323.61% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $32.98M | -0.63 | -87.18% | ― | ― | 38.42% | |
48 Neutral | $46.34M | -4.25 | -3071.15% | ― | 36.89% | 43.58% | |
47 Neutral | $24.72M | -3.19 | -83.34% | ― | -6.51% | 58.31% |
* Healthcare Sector Average
NRXS
NeurAxis, Inc.
4.35
1.85
74.00%
IGC
IGC Pharma
0.25
-0.05
-18.15%
NERV
Minerva Neurosciences
4.22
1.83
76.57%
PASG
Passage Bio
9.11
-2.54
-21.80%
LIMN
Liminatus Pharma
2.05
-9.56
-82.34%
KLTO
Klotho Neurosciences
0.22
-0.14
-39.23%
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.