NeurAxis (NRXS) investor relations material

Executive summary

• Q1 2026 revenue reached $1.61 million, up 80% year-over-year, marking the strongest quarterly revenue in company history, driven by expanded insurance coverage and CPT code adoption.

• Gross margin expanded to 86.4% from 84.4% in Q1 2025, with operating loss narrowing by 24% and net loss improving by 23% year-over-year.

• Demand is strong where access barriers are reduced, with commercial focus on pediatric markets, children's hospitals, and the VA channel.

• The company remains in a growth stage, focused on expanding insurance coverage, FDA indications, and commercial execution.

• Auditors expressed substantial doubt about the company's ability to continue as a going concern due to ongoing losses and reliance on external funding.

Financial highlights

• Revenue for Q1 2026 was $1.61 million, up from $896,000 in Q1 2025 (80% growth year-over-year), with gross profit rising to $1.39 million.

• Gross margin improved to 86.4% from 84.4% in Q1 2025.

• Operating expenses were $3.1 million, up 3% year-over-year; selling expenses rose 65%, R&D fell 16%, and G&A declined 9%.

• Operating loss was $1.74 million (down 24% year-over-year); net loss was $1.76 million (down 23%).

• Cash on hand at March 31, 2026 was $7.1 million, with an additional $2.1 million raised post-quarter through equity and warrant exercises.

Outlook and guidance

• Expect continued revenue and gross margin growth as payer coverage expands and CPT code adoption deepens.

• Cash burn projected to decline further, with quarterly burn expected at $1 million or less for the remainder of 2026.

• Cash flow break-even estimated at ~$15 million in annual revenue, assuming current SG&A and margin rates.

• Selling and marketing expenses expected to increase with new hires and commercial initiatives.

• The company expects continued operating losses as it pursues insurance coverage expansion and FDA clearance for new indications.