Shares of NeurAxis, Inc. NRXS have lost 8.6% since the company reported its earnings for the quarter ended June 30, 2026, compared with a 0.3% rise of the S&P 500 Index over the same period. Over the past month, NRXS shares have lost 10%, while the S&P 500 has gained 2.2%.
NeurAxis’ Earnings Snapshot
NeurAxis reported second-quarter 2026 revenues of $1.9 million, up 115.7% from $0.9 million a year earlier, marking its strongest quarterly revenue performance to date. Loss per share narrowed to $0.19 from $0.22 in the prior-year quarter.
However, net loss widened to $2.1 million from $1.7 million, while operating loss widened to $2.1 million from $1.7 million. IB-Stim unit deliveries rose 60% year over year.
NRXS does not report separate operating segments.
NRXS’ Other Key Business Metrics
The IB-Stim average selling price increased 28% to $992 per device from $778 a year earlier, reflecting a shift toward patients covered by full-reimbursement insurance and away from discounted financial-assistance programs. Gross margin consequently expanded 230 basis points to 85.9% from 83.6%.
For the first six months of 2026, average selling price increased 30% to $1,003, while internal prior-authorization approval improved to 31% from 12%. Ordering accounts rose 16% to 88, and average revenue per ordering IB-Stim account increased 68% to $40,000 from $24,000.
Liquidity remained an important metric. NeurAxis ended June with $8.3 million in cash, while second-quarter free cash outflow was $1 million. Its year-to-date average quarterly burn rate was $1.1 million compared with roughly $1.5 million in 2025. Management said that NRXS had not used its at-the-market facility since May.
NeurAxis’ Management Commentary
CEO Brian Carrico said that the quarter reinforced both demand for PENFS and the importance of payer coverage, physician engagement and operational capacity in driving utilization. Management continues to view insurance coverage as the principal driver of scalable growth and reported progress with two large commercial payers that do not currently have medical-policy coverage. NRXS remains cautiously optimistic that additional coverage decisions could arrive in the second half of 2026 or early 2027.
NeurAxis is concentrating commercial resources in markets with favorable coverage rather than expanding broadly. Management said successful accounts generally combine meaningful payer coverage, a physician champion and dedicated clinic capacity or workflow. The company also continues to operate with more than 100 million covered lives.
Factors Influencing NRXS’ Results
The Category I CPT code for PENFS, effective Jan. 1, 2026, and increased payer coverage were major contributors to higher unit volumes, selling prices and gross margin.
However, operating costs increased as NeurAxis invested in commercialization and clinical development. Selling expenses rose 61.3% to $861,387, research and development (R&D) expenses increased 138.2% to $274,344, and general and administrative expenses increased 45.6% to $2.6 million. Higher sales volume, additional sales and marketing personnel, clinical studies, headcount, compensation and advisory expenses contributed to the increases.
NeurAxis’ Outlook
Management did not provide formal revenue or earnings guidance. It expects the favorable reimbursement mix to continue supporting gross margins, although monthly revenue may fluctuate and the timing of payer decisions remains uncertain.
Management expects cash burn and expenses to rise in the second half as NeurAxis adds personnel and increases R&D spending to accelerate growth. The company continues to target eventual cash-flow breakeven, dependent on sustained revenue growth and operating leverage.
NRXS’ Other Developments
During the quarter, NeurAxis reorganized and expanded its commercial infrastructure. Sales was placed under a full-time vice president effective May 1, while marketing was elevated to a vice-president role. The company also added digital marketing, medical science liaison and clinical-adoption personnel.
NRXS also decided in the second quarter to expand its Veterans Affairs (VA) effort using 10 independent territory representatives, each targeting one to three VA hospitals. Management expects the representatives to be trained and selling by Sept. 15, with the results informing a potentially broader VA expansion in early 2027.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Neuraxis, Inc. (NRXS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
