NeurAxis (NRXS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.6 million, up 80% year-over-year, marking the strongest quarterly revenue in company history, driven by expanded insurance coverage and the Category I CPT code for PENFS effective January 1, 2026.

• Gross margin expanded by 200 basis points to 86.4% year-over-year, with operating loss and net loss improving by 24% and 23% respectively, reflecting higher sales and improved profitability metrics.

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

• The company remains in a growth stage, focused on expanding insurance coverage, FDA indications, and clinical evidence for neuromodulation devices.

• 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 grew 80% year-over-year to $1.6 million in Q1 2026, with IB-Stim unit deliveries up 32–35%.

• Gross profit increased to $1.39 million, with gross margin improving to 86.4% from 84.4%.

• Operating expenses rose 3% to $3.1 million, mainly due to higher selling expenses, while operating loss narrowed by 24% to $1.74 million.

• Net loss improved to $1.76 million from $2.28 million year-over-year.

• Cash on hand was $7.1 million at quarter-end, improving to ~$8 million post-quarter via equity and warrant exercises.

Outlook and guidance

• Positive revenue and gross margin trends expected to continue as payer coverage expands and clinical evidence grows.

• Cash burn rate projected to decline to $1 million or less per quarter for the remainder of 2026.

• Cash flow break-even estimated at ~$15 million in annual revenue, assuming current cost structure 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.