NeurAxis Stock Gains Post Q4 Earnings and Revenue Growth

Core Insights - NeurAxis, Inc. (NRXS) reported a 43% year-over-year revenue growth in Q4 2024, driven by increased unit sales and stronger adoption of its IB-Stim therapy [2][8] - The company achieved a net loss reduction from $5.3 million in Q4 2023 to$1.5 million in Q4 2024, primarily due to the absence of a significant debt extinguishment charge from its 2023 IPO [3][9] - NeurAxis is targeting cash flow breakeven at annual revenues between $10 million and$12 million, with expectations of continued revenue growth into 2025 [7] Revenue Growth and Margin Stability - Q4 2024 revenues reached $761 thousand, up from$531 thousand in the same quarter last year, with full-year revenues increasing by 9.2% to $2.7 million [2] - Gross margin remained stable at 86.4$1.5 million from $1.6 million year-over-year [3][4] - The increase in unit sales was attributed to growing insurance reimbursement and the company's financial assistance program, despite lower average selling prices [4][8] Key Business Metrics - NeurAxis treated over 1,000 pediatric patients in the past year, highlighting the potential for accelerated revenue growth as insurance coverage improves [5] - The company expanded its insurance coverage from 4 million to 51 million covered lives, which is expected to enhance market penetration [6] Management Commentary - CEO Brian Carrico noted that the fourth quarter marked a transformational year for NeurAxis, with key milestones including CPT Category I code approval effective January 2026 [6] - CFO Tim Henrichs indicated that revenue growth momentum has continued into Q1 2025, reinforcing the company's financial targets [7] Guidance and Outlook - NeurAxis did not provide formal financial guidance but expressed confidence in achieving accelerated revenue growth through 2025, particularly with the introduction of the Rectal Expulsion Device (RED) [11] - The company anticipates expanded FDA indications, which could potentially double its pediatric addressable market [11] Other Developments - NeurAxis received FDA 510(k) clearance for RED, a test for diagnosing evacuation disorders, which is expected to accelerate adoption due to existing reimbursement codes [13] - The company also secured FDA clearance to expand the IB-Stim label to a broader age range, significantly increasing market potential [14]