NeurAxis, Inc. (NRXS)
:NRXS
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NeurAxis, Inc.
(NRXS)
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Rating:46Neutral
Price Target:
$6.50
▼(-9.97% Downside)
Action:Reiterated
Date:06/13/26
The score is held down primarily by persistent losses and cash burn despite strong gross margins and revenue growth. Technical signals are weak-to-neutral (negative MACD; price below short-term averages), and valuation is constrained by a negative P/E and no dividend. The earnings call adds some support via accelerating commercial KPIs and margin/ASP improvement, but payer coverage/prior-authorization constraints and the remaining path to breakeven keep overall risk elevated.
Positive Factors
High gross margins and rising ASP
Sustained ~85%+ gross margins and rising average selling price indicate strong unit economics and favorable payer pricing. These durable margins mean incremental revenue largely flows to the margin line, improving scalability as volumes grow and supporting longer‑term profitability once fixed costs are absorbed.
Negative Factors
Persistent negative operating cash flow
Consistent negative operating and free cash flow shows the business is still consuming capital rather than generating it. That structural cash burn requires ongoing external financing or material revenue ramp to sustain operations and limits runway, creating execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and rising ASP
Sustained ~85%+ gross margins and rising average selling price indicate strong unit economics and favorable payer pricing. These durable margins mean incremental revenue largely flows to the margin line, improving scalability as volumes grow and supporting longer‑term profitability once fixed costs are absorbed.
Read all positive factors
NeurAxis, Inc. (NRXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$88.55M
Dividend YieldN/A
Average Volume (3M)55.04K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth45.88%
EPS Growth34.17%
CountryUS
Employees21
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.80
Shares Outstanding12,384,405
10 Day Avg. Volume34,967
30 Day Avg. Volume55,039
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)12.13
Price to Sales (P/S)11.55
P/FCF Ratio-6.38
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue17.84
Enterprise Value/Gross Profit20.98
Enterprise Value/Ebitda-10.73
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.59
Revenue Forecast (FY)$9.75M
NeurAxis, Inc. Business Overview & Revenue Model
Company Description
NeurAxis, Inc. (NRXS) is an American company specializing in neuromodulation therapy devices. Its primary offering is IB-Stim, a percutaneous electrical nerve field stimulation system engineered to alleviate functional abdominal pain associated wi...
How the Company Makes Money
NeurAxis makes money primarily by selling and obtaining reimbursement for its neuromodulation therapy devices and related treatments, with IB-Stim as its commercial product. Revenue is generated when IB-Stim units are prescribed and used in clinic...
NeurAxis, Inc. Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 17, 2026
Earnings Call Sentiment Neutral
The call presented clear early commercial progress: strong sequential and year-over-year growth, higher ASP and gross margins, improving KPIs, and early VA traction. However, substantial challenges remain—incomplete and uneven payer coverage, modest prior authorization approvals, continued operating losses, an upcoming sizable non-cash stock charge, and a large revenue gap to reach cash-flow breakeven. Management’s tone was optimistic and execution-focused, but the company remains dependent on accelerating payer policy adoption and deepening usage within priority accounts.Positive Updates
Strong Revenue Growth
Q1 FY2026 revenue was $1.6M versus $896K in Q1 FY2025, an 80% year-over-year increase and the strongest quarterly revenue in company history.
Negative Updates
Incomplete Payer Coverage and Access Variability
Management emphasized that the CPT code alone does not ensure coverage; written medical policy coverage across an account's payer mix (ideally 50–70%+) is required and many payers/state Medicaid fee schedules have not fully implemented CPT 64567, delaying launches and limiting scale.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 FY2026 revenue was $1.6M versus $896K in Q1 FY2025, an 80% year-over-year increase and the strongest quarterly revenue in company history.
Read all positive updates
Company Guidance
Management's guidance emphasized continued momentum from Q1 while flagging near‑term investments and one-time charges: Q1 results validated demand (revenue $1.6M, +80% YoY; unit deliveries +32%; ASP $1,017, +33%; gross margin 86.4%, +200 bps) and they expect further ASP and margin improvement as coverage expands, but noted an operating loss of $1.7M (net loss $1.8M) on operating expenses of $3.1M (selling $824k, +65%; R&D $100k; G&A $2.2M); cash on hand was $7.1M at March 31 (≈$8M after $2.1M in ATM/warrant proceeds), free cash outflow was $1.2M in Q1 (vs $1.6M prior) and management now expects quarterly cash burn to decline toward ~$1M or less for the rest of the year, while a ~75% variable margin implies cash‑flow breakeven at roughly $15M of revenue (about $9M incremental above the Q1 annualized ~$6.4M); key operational KPIs to be reported quarterly include covered lives (~101M), prior‑authorization approval rate (32% in Q1 vs 12% in 2025), ordering accounts (66 vs 56, +18%) and revenue per ordering account ($24k vs $16k, +53%); they also warned of a one‑time Q2 stock‑compensation charge in excess of $4M (largely non‑cash) and expect selling & marketing to increase as they add targeted hires to scale pediatric and VA commercialization.NeurAxis, Inc. Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
58
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.28M | 3.57M | 2.69M | 2.46M | 2.68M | 2.72M |
| Gross Profit | 3.64M | 3.01M | 2.32M | 2.16M | 2.39M | 2.25M |
| EBITDA | -7.12M | -7.67M | -7.90M | -9.23M | -4.33M | -2.95M |
| Net Income | -7.28M | -7.80M | -8.24M | -14.63M | -4.78M | -3.03M |
Balance Sheet | ||||||
| Total Assets | 8.75M | 6.40M | 4.76M | 509.50K | 1.48M | 760.48K |
| Cash, Cash Equivalents and Short-Term Investments | 7.08M | 4.97M | 3.70M | 78.56K | 253.70K | 320.86K |
| Total Debt | 353.52K | 416.61K | 473.40K | 224.26K | 598.82K | 439.27K |
| Total Liabilities | 3.00M | 3.00M | 2.69M | 1.91M | 7.05M | 1.59M |
| Stockholders Equity | 5.75M | 3.40M | 2.07M | -1.40M | -5.57M | -825.66K |
Cash Flow | ||||||
| Free Cash Flow | -6.07M | -6.46M | -6.13M | -6.77M | -2.36M | -2.24M |
| Operating Cash Flow | -6.06M | -6.43M | -6.10M | -6.69M | -2.30M | -2.23M |
| Investing Cash Flow | -113.15K | -131.15K | -27.78K | -71.78K | -61.20K | -1.39K |
| Financing Cash Flow | 11.25M | 7.83M | 9.74M | 6.59M | 2.29M | 661.10K |
NeurAxis, Inc. Technical Analysis
Positive
7.22
Price Trends
7.43
Negative
6.67
Positive
4.92
Positive
Market Momentum
-0.19
Negative
50.46
Neutral
55.64
Neutral
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 7.22 is above the 20-day moving average (MA) of 7.04, below the 50-day MA of 7.43, and above the 200-day MA of 4.92, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 55.64 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $88.55M | -10.75 | -185.74% | ― | 45.88% | 34.17% | |
44 Neutral | $27.52M | -3.99 | -94.51% | ― | ― | ― | |
44 Neutral | $208.25M | -0.47 | 359.80% | ― | ― | -3629.03% | |
42 Neutral | $17.93M | -0.48 | -135.04% | ― | ― | 42.29% |
* Healthcare Sector Average
NRXS
NeurAxis, Inc.
7.15
4.61
181.50%
IGC
IGC Pharma
0.27
-0.03
-9.27%
NERV
Minerva Neurosciences
4.47
2.70
152.54%
PASG
Passage Bio
5.59
-2.23
-28.52%
LIMN
Liminatus Pharma
0.12
-14.31
-99.18%
NeurAxis, Inc. Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
NeurAxis Stockholders Approve Directors and Equity Compensation Plans
Positive
Jun 12, 2026
On June 10, 2026, Neuraxis, Inc. held its annual meeting of stockholders in Carmel, Indiana, where approximately 73.51% of voting power was represented, and shareholders elected six directors to one-year terms and ratified the appointment of Rosen...
Private Placements and FinancingRegulatory Filings and Compliance
NeurAxis Expands At-The-Market Equity Offering Capacity
Positive
Apr 22, 2026
NeurAxis, Inc. disclosed that on August 29, 2025, it entered into an at-the-market equity offering agreement with Craig-Hallum Capital Group LLC, enabling the company to sell up to $6.27 million of common stock under an effective shelf registratio...
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.