Shares of NeurAxis, Inc. (NRXS), a growth-stage medical technology company developing neuromodulation therapies to address chronic and debilitating conditions in children and adults, gained 16% after the company reported financial results for the first quarter ended March 31, 2025.

Revenues increased 39% year-over-year, to $895,655, exceeding Kingswood Capital’s estimate of $725,000 by 23.5%. EPS of ($0.33) fell short of our estimate of ($0.24) mainly due to a one-time legal settlement in the amount of $750,000.

Considering NeurAxis’s third consecutive quarter of double digit revenue growth, we have adjusted our FY 2025 revenue forecast from $3.66 to $4.06 million but are leaving our FY2026 revenue estimate and price target unchanged.

In our view, NeurAxis is significantly de-risked on the product development side and has mainly become a commercial execution story with multiple near-term milestones driving growth and creating forward momentum. We reiterate our Buy rating on the stock.