0001493152-26-022384
SEC filingRevenue accelerated 79.5% to $1.6M from higher IB-Stim unit volume with full insurance reimbursement, expanding gross profit 83.8% to $1.4M at 86.4% margin and narrowing operating losses 24.2% to -$1.7M despite ongoing investments.
Revenue increased 79.5% to $1.6M in Q1 FY2026 from $895.7K in the prior year quarter, primarily due to higher unit volume of IB-Stim devices from customers with full insurance reimbursement coverage. This growth reflects the impact of progressing reimbursement dynamics, including the Category I CPT code, which enables broader access to insured patients and shifts away from discounted programs. The revenue expansion demonstrates operational leverage as sales agreements with customers, based on purchase orders and standard terms, capture increasing demand for the neuromodulation therapy.
Gross profit rose 83.8% to $1.4M from $756.2K, pushing gross margin to 86.4% from the prior period. Management attributes this to higher unit volumes from fully reimbursed customers, which outpaced any offsets from third-party manufacturing costs for device components. Gross margins are influenced by several factors, including the average selling price of IB-Stim devices, production volumes, order flows, changes in customer mix, and ongoing cost-reduction strategies. Management uses gross profit and margin to evaluate operational efficiency and guide resource allocation, calculating it as net sales less cost of goods sold divided by net sales. This expansion positions NeurAxis to compound profitability as insurer acceptance broadens and production scales.
Operating income improved 24.2% to -$1.7M from -$2.3M, with operating margin at -108.3%, as the topline surge partially offset elevated operating expenses tied to scaling reimbursement infrastructure and business development. Net income followed suit, narrowing 22.7% to -$1.8M, with diluted EPS at -$0.18 versus -$0.33 year-over-year—a 45.5% improvement. These reductions in per-share losses reflect the efficiency gains from revenue momentum, even as the company invests in pursuing widespread insurance coverage for IB-Stim and RED devices alongside FDA clearances for additional indications.