4Q25 Financial Highlights
Revenues increased 27% year over year to $968 thousand in 4Q25.
Operating loss increased 17% year over year, primarily due to higher selling expenses directly related to increased sales volume and compensation expenses to facilitate growth.
Cash balance was $5.0 million as of December 31, 2025.
FY2025 Financial Highlights
Revenues for FY2025 increased 33% year over year to $3.6 million.
Operating loss increased 9% year over year, primarily due to a one-time non-recurring legal settlement. 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.
Recent Operational Highlights
Category I CPT® code assignment to report Percutaneous Electrical Nerve Field Stimulation (PENFS) procedures is now in effect, completing a successful commercial milestone for the Company's proprietary technology, IB-Stim®.
Awarded a Veterans Affairs Federal Supply Schedule (FSS) contract, officially designating NeurAxis as a federal contractor and creates a clear commercial pathway into the Veterans Affairs health system, which serves nearly 7 million patients annually.
Awarded the first-ever FDA clearance for the treatment of abdominal pain in functional dyspepsia (FD), with associated nausea symptoms, in patients 8 years of age and older, expanding the total addressable market for IB-Stim.
Secured key academic society guidelines recommendation for treatment of functional abdominal pain (FAP) in irritable bowel syndrome (IBS) in pediatrics. NeurAxis's PENFS technology is the only FDA-cleared or approved treatment recommended in the pediatrics guidelines, enabling momentum for large-scale insurance coverage for IB-Stim.
Received and expanded FDA clearance for the age and treatment time per patient for IB-Stim:
The age range expanded from 8-21 years to 8 years and older.
The recommended treatment per patient increased from 3 devices to 4 devices, one device per week, for 4 consecutive weeks.
Management Commentary
Brian Carrico, Chief Executive Officer of NeurAxis, commented: "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.
Our highest priority remains expanding medical policy coverage across the payer landscape, as each additional coverage win meaningfully increases patient access and reduces friction for providers. In parallel, our internal prior-authorization team continues to expand, helping hospital partners streamline reimbursement and increase confidence in adopting IB-Stim.
The early part of 2026 has been focused on deploying our commercial strategy, learning from real-world utilization, and identifying the key drivers that accelerate adoption. With those insights now in hand and the reimbursement framework established, we believe we are positioned at the beginning of a multi-year growth cycle, with our focus squarely on disciplined execution and scaling utilization nationwide."
Fourth Quarter and Fiscal Year 2025 Financial Results
Revenues in the fourth quarter of 2025 were $968 thousand, up 27% compared to $761 thousand in the fourth quarter of 2024. Unit sales increased approximately 35% due to growth from patients with full insurance reimbursement and the Company's launch of the RED device in 2025, a screening tool for chronic constipation. The fourth quarter of 2025 marked a shift in mix from discounted financial assistance to full reimbursement sales as the Company transitioned from a Category III CPT code to a Category I CPT code effective January 1, 2026.
Revenue in fiscal year 2025 was $3.6 million, an increase of 33% compared to $2.7 million in fiscal year 2024. Unit sales increased approximately 44% with growth from the financial assistance programs outpacing that of patients with full insurance coverage, supplemented by new RED device sales.
Gross margin in the fourth quarter of 2025 of 85.4% declined 100 basis points compared to 86.4% in the fourth quarter of 2024 due to higher discounting in the financial assistance program to patients with lower income levels and the lower margin profile of the RED device.
Gross margin in fiscal year 2025 of 84.2% declined 130 basis points compared to 86.5% in fiscal year 2024 due to higher growth from and discounting of the Company's financial assistance programs and charges related to expired RED inventory.
Selling, general and administrative expenses in the fourth quarter of 2025 were $2.5 million, an increase of 20% compared to $2.1 million in the fourth quarter of 2024. The increase was due to higher commission directly attributable to higher sales volume quarter over quarter and stock compensation costs associated with the introduction of a long-term incentive plan in 2025, which did not exist in 2024.
Selling, general, and administrative expenses in fiscal year 2025 were $10.8 million, an increase of 14% compared to $9.5 million in fiscal year 2024. The increase was due to a one-time, non-recurring legal settlement, hiring of key sales and marketing personnel, incremental marketing costs focused on health insurance carriers, and the introduction of a long-term incentive plan in 2025, which did not exist in 2024.
Operating loss in the fourth quarter of 2025 was $1.7 million, an increase of 17% compared to $1.5 million in the fourth quarter of 2024.
Operating loss in fiscal year 2025 was $7.8 million, an increase of 9% compared to the $7.2 million for the full year of 2024.
Net loss in the fourth quarter of 2025 was $1.7 million, an increase of 18% compared to $1.4 million in the fourth quarter of 2024, primarily due to the higher operating loss.
Net loss for the full year 2025 was $7.8 million, a decrease of 5% compared to $8.2 million for the full year of 2024, primarily due to the absence of one-time, non-recurring 2024 settlements related to a convertible note dispute and certain pre-IPO Series A Preferred Stock shareholder claims, partially offset by the higher operating loss.
Cash on hand as of December 31, 2025, was $5.0 million. As of December 31, 2025, the Company had $148 thousand and $10 thousand of short-term and long-term debt, respectively. Cash used in operations in fiscal year 2025 of $6.4 million was $335 thousand higher than in fiscal year 2024 primarily due to the payment of the 2024 short-term incentive program in 2025 and higher inventory purchases as the Company prepared for the transition of its IB-Stim device from a Category ...
