NeurAxis, Inc.

Q2 2026 revenue was $1.928 million, up 116% from $894,000 in Q2 2025. Year-to-date revenue was $3.6 million, up 98% from $1.8 million. Gross margin was 85.9% in Q2 2026 versus 83.6% a year ago, and 86.1% year to date versus 84.0% last year. Q2 EPS improved to a loss of $0.19 from a loss of $0.22, and year-to-date EPS improved to a loss of $0.37 from a loss of $0.56. Cash on hand at June 30, 2026 was $8.3 million, free cash outflow was $1 million in Q2 and $2.3 million year to date, and average quarterly burn was about $1.1 million versus about $1.5 million in 2025. The company did not provide formal next-quarter or full-year revenue guidance, but it said it expects additional payer coverage in the second half of 2026 or early 2027, continued gross margin expansion from the reimbursement mix shift, and higher SG&A and cash burn in the second half as it hires and invests for growth.

Brian Carrico framed the quarter as proof that the company now understands what drives adoption under the Category 1 CPT code and can be more disciplined in commercial deployment. He emphasized that insurance coverage is the key gatekeeper for scalable growth and said the company is focusing resources on states with better coverage rather than expanding broadly. His tone was confident and urgent, with repeated comments that the company is “not treating anyone” close to its potential and that more payer wins could unlock both existing and new demand.

Tim Henrichs highlighted that Q2 marked the eighth straight quarter of double-digit year-over-year revenue growth and the strongest quarterly revenue in company history. He tied the margin improvement to the shift away from discounted financial assistance toward full reimbursement payers, with gross margin at 85.9% in Q2 and 86.1% year to date. He also outlined spending pressure from additional sales, marketing, clinical, market access and R&D hires, while noting cash on hand of $8.3 million, free cash outflow of $1 million in Q2, and a lower average quarterly burn of about $1.1 million year to date, though he expects burn to rise in the second half as the company accelerates growth efforts.

Analysts pressed management on the two large payer discussions, the pace of sequential growth, the revenue potential of the VA rollout, OpEx leverage, and whether the company still expects to reach free cash flow breakeven this year. Carrico said the payer conversations are direct and firsthand, and that he is confident because decision-makers are now engaged; he also said Q3 is still uncertain but Q4 should show more sequential growth. On the VA, he said the company is launching with 10 1099 reps and will later disclose more about expected territory performance. Henrichs said OpEx is not rising as fast as sales on a year-to-date basis, but acknowledged burn may tick up in the second half due to deliberate hiring and market access spending; he also said the going-concern issue remains until breakeven but should improve with additional coverage.