NeurAxis, Inc. (NRXS), a growth-stage medical technology company developing neuro modulation therapies to address chronic and debilitating conditions in children and adults, reported financial results for the second quarter ended June 30, 2025.Revenues increased 46% year-over-year, to $894,086, on par with the prior quarter, but missing Kingswood Capital’s estimate of $967,250 by 8.1%. EPS of ($0.22) fell short of our estimate of ($0.20) mainly due lower than expected gross margin and higher than expected general & administrative expenses.

In our view, NeurAxis is significantly de-risked on the product development side and has largely become a commercial execution story. Management has been building the required sales infrastructure as the team remains focused on expanding written insurance policy coverage. Simultaneously, NeurAxis is generating good will among patients and providers as it continues to treat all patients regardless of their financial position.

We lowered our price target from $5.50 to $4.75 due to higher-than-anticipated share count but remain bullish and reiterate our Buy rating on the stock.