Key Takeaways:
NeurAxis Inc. (NYSE American: NRXS) reported record first-quarter revenue of $1.6 million, an 80 percent year-over-year increase that beat analyst expectations, driven by wider insurance coverage for its key medical device.
"The first quarter marked a transformational period for NeurAxis, representing our first full quarter operating with the Category I CPT code for PENFS in effect," Brian Carrico, Chief Executive Officer of NeurAxis, said. "This provided our clearest view to date into the key drivers of adoption, and where we will focus our resources."
The medical technology company's results showed a clear beat on the top line, while the net loss narrowed. The company did not disclose forward-looking guidance in the press release.
The primary driver for the revenue surge was the January 1, 2026, activation of a Category I CPT code for the company's flagship product, IB-Stim. This device uses percutaneous electrical nerve field stimulation (PENFS) to treat functional abdominal pain in patients with irritable bowel syndrome (IBS). The new code led to broader reimbursement from payers, increasing the number of devices sold at full price.
Gross margin for the quarter improved to 86.4 percent from 84.4 percent in the same period last year. The company’s operating loss decreased 24 percent to $1.74 million, and its net loss shrank 23 percent to $1.76 million from $2.28 million a year earlier.
The results stand in contrast to some other neuromodulation device makers like CVRx Inc. (NASDAQ: CVRX), which saw slower European growth in its recent quarterly report. While analysts maintain an "Outperform" rating on Neuraxis with an average price target of $11.00, implying a 34 percent upside from its current price of $8.20, GuruFocus estimates suggest a potential downside with a fair value of $2.87.
The improved revenue and margin profile demonstrate growing adoption of NeurAxis's technology by physicians and payers. For the full year 2026, analysts expect revenue to reach $9.60 million with a net loss of $0.56 per share.
This article is for informational purposes only and does not constitute investment advice.
