NeurAxis, Inc. reported fourth‑quarter and full‑year 2025 results that saw revenue rise 33% to $3.6 million, driven by a 27% increase in Q4 revenue to $968,000. The company beat consensus revenue estimates by $102,000, or 11.9%, as demand for its core IB‑Stim neuromodulation therapy grew across both commercial and government channels.
Gross margin slipped to 85.4% from 86.4% in Q4 2024, a 1‑percentage‑point decline that the company attributes to higher discounting in its financial‑assistance program and the launch of the lower‑margin RED device. The RED device, cleared in 2025, added volume but compressed margin because its cost of goods sold is higher than that of the flagship IB‑Stim product.
Operating loss widened to $1.7 million, up 17% from $1.5 million in Q4 2024. “Excluding the legal settlement, the Company’s operating loss was flat year over year despite its investment in selling expenses that were offset by higher gross profit from increased sales volume,” the company said. A one‑time legal settlement expense and higher sales commissions contributed to the loss increase.
Cash balance at year‑end was $5.0 million, while quarterly operating cash burn was $1.43 million. The liquidity picture remains tight as the company continues to invest in sales and marketing to capture the new reimbursement landscape, but the burn rate signals ongoing pressure to improve cash flow as it scales.
Management highlighted the transition from a Category III to a Category I CPT code effective January 1 2026, which is expected to shift sales from discounted financial‑assistance programs to full‑reimbursement revenue. “We believe NeurAxis has entered a new phase of its growth trajectory. With the Category I CPT code now in effect with positive policy coverage for more than 100 million covered lives, the foundation for scalable adoption of IB‑Stim is firmly in place, and the opportunity in front of us is significantly easier for the market to understand,” CEO Brian Carrico said. The company also noted that the RED device launch in 2025 contributed to volume growth, but its lower margin profile will be mitigated in 2026 as the CPT code transition takes effect.
Market reaction was muted, with the stock falling 8.73% in pre‑market trading and 9.2% to $6.35 in after‑hours. Investors focused on the widening net loss and declining gross margin, which outweighed the revenue beat and the positive outlook from the CPT code change.
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