Neuraxis Inc Q4 Revenue Up 27% While Gross Margin Dips to 85.4%
Neuraxis Q4 2025 revenue rose 27% year-over-year to six straight quarters of double-digit growth, while gross margin slipped to 85.4% from 86.4% due to inventory reserves. The company posted a $1.7 million net loss up 18% and noted prior authorization submissions jumped tenfold but approvals lag, potentially delaying future revenue.
1. Q4 Revenue Growth and Margin Decline
Neuraxis reported Q4 2025 revenue increased 27% year-on-year, marking the sixth consecutive quarter of double-digit growth. Gross margin declined to 85.4% from 86.4%, driven by reserves for excess and obsolete inventory and the introduction of lower-margin product lines.
2. Net Loss and Expense Trends
The company posted a net loss of $1.7 million, an 18% rise compared to Q4 2024, reflecting increased operating expenses. Management plans to invest in R&D and selling expenses in 2026 but anticipates expense growth will lag revenue gains to improve leverage.
3. Prior Authorization Submissions and Approval Rates
Prior authorization submissions have surged nearly tenfold following the Category 1 CPT code implementation, yet approval rates remain subdued. Continued approval delays may defer revenue recognition until hospitals complete clinic setups and authorization processes.
4. Veterans Affairs Program and Hospital Rollouts
The VA program has garnered initial orders from several facilities, prompting plans to expand dedicated staffing for VA and children’s hospital sales. Hospitals are scheduling IV STEM treatments into September, though staffing and committee approvals remain rollout challenges.