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    NMTC
    Earnings call· Jun 2026(Q3 FY26)

    NEUROONE MEDICAL TECHNOLOGIES Q3 FY26 earnings call NMTC

    Aug 13, 2026 Source

    Executive summary

    NeuroOne Q3 FY26 — Strong Revenue Growth, ISO Certification, and Pipeline Progress

    NeuroOne delivered a strong quarter with double-digit revenue growth and significant gross margin expansion, driven by its OneRF Brain Ablation System. The company achieved a major milestone with ISO 13485 certification, opening doors for international expansion with Zimmer Biomet and independent partners. While manufacturing delays impacted full-year revenue recognition, the company is addressing this with plans for a second manufacturing site and continues to advance its StereoCED drug delivery system and BVNA back pain program through strategic collaborations and regulatory pathways.

    Highlights

    5
    • Product revenue for OneRF Brain Ablation System grew 16% year-over-year to $2.0 million.

    • Product orders increased 43% year-over-year to $2.7 million.

    • Gross margins expanded to 59.9% from 53.9% year-over-year due to favorable product mix.

    • Received ISO 13485 certification, enabling international market entry.

    • Lead investor increased holdings from 7.4% to 12.5%.

    Concerns

    3
    • Fiscal year 2026 recognized revenue guidance narrowed to $9.2 million-$10.5 million, down from a potential $11.2 million in orders, due to manufacturing delays.

    • Cash and cash equivalents decreased to $2.0 million as of June 30, 2026, from $6.6 million as of September 30, 2025.

    • Net loss increased to $2.0 million in Q3 FY26 from $1.5 million in Q3 FY25.

    Guidance & targets

    2
    CategoryTargetConfidence
    Fiscal Year 2026 Product Orders
    approximately $11.2 million
    high materiality
    High
    Fiscal Year 2026 Recognized Revenue
    between $9.2 million to $10.5 million
    high materiality
    Medium

    Operational metrics

    15
    Product Revenue
    $2.0 million16% year-over-year increase
    Q3 FY26

    Driven by higher sales of OneRF products.

    Product Orders
    $2.7 million43% year-over-year growth
    Q3 FY26

    Product orders exceeded recognized revenue during the quarter.

    Product Gross Margin
    59.9%up from 53.9% year-over-year
    Q3 FY26

    The increase in gross profit percentage was due to a more favorable sales mix.

    Lead Investor Holdings
    12.5%increased from 7.4%
    post Q3 FY26

    More recently, following the end of the quarter, the lead investor increased their holdings.

    US Market for Trigeminal Neuralgia Disposables
    $40 million
    current

    The majority of these cases are performed in approximately 30 centers.

    Research and Development Expense
    $1.4 millioncompared to $1.2 million in Q3 FY25
    Q3 FY26

    Increase in R&D expense year-over-year.

    Selling, General and Administrative Expense
    $2.2 millioncompared to $1.6 million in Q3 FY25
    Q3 FY26

    The increase was driven by increased headcount and sales and marketing costs.

    Gain from Fair Value Change in Warrant Liability
    $0.4 million
    Q3 FY26

    The net loss in the third quarter of fiscal 2026 was favorably impacted by this gain.

    Cash and Cash Equivalents
    $2.0 millioncompared to $6.6 million as of September 30, 2025
    as of June 30, 2026

    Balance at the end of the quarter.

    Accounts Receivable
    $1.1 million
    as of June 30, 2026

    Expected to be converted to cash in Q4 FY26 based on normal collection patterns.

    At-the-Market (ATM) Offering Program
    $0.4 million
    Q3 FY26

    Amount raised during the third quarter.

    At-the-Market (ATM) Offering Program (Subsequent)
    $1.0 million
    July 13, 2026

    Raised subsequent to quarter end, representing the second ATM utilization in calendar 2026.

    Working Capital
    $3.7 millioncompared to $7.9 million as of September 30, 2025
    as of June 30, 2026

    Working capital balance at quarter end.

    Debt Outstanding
    $0
    as of June 30, 2026

    The company had no debt outstanding.

    Product Backlog
    $1.7 million
    as of June 30, 2026

    Product orders exceeded recognized revenue during the quarter, resulting in a backlog.

    Industry KPIs

    5
    MetricValueDetails
    FCF conversion leverage guidance$0USD
    Segment franchise organic growth16%%
    Sales force commercial capacity buildLeveraging current personnel
    Indicated addressable patient population$40 millionUSD
    Pivotal trial clinical evidence milestonesMeaningful seizure reduction

    Deals & partnerships

    3
    Zimmer BiometDistribution partner for OneRF Brain Ablation System and other products in international markets.

    Working closely to enter international geographies that optimize existing customer relationships and have favorable economics, following ISO 13485 certification.

    University of MinnesotaCollaboration for preclinical research on StereoCED in epilepsy.

    First animal studies are scheduled to begin this month, with data expected this fall to support future clinical development.

    Mayo ClinicCollaboration for preclinical research on StereoCED in diffuse midline glioma.

    First animal studies are scheduled to begin this month, with data expected this fall to support future clinical development.

    Risks & headwinds

    3
    Manufacturing Delays & Product BacklogQ4 calendar 2026 (for clearing backlog), early 2027 (for new site online)

    FY26 recognized revenue guidance of $9.2 million-$10.5 million, compared to $11.2 million in product orders. $1.7 million backlog as of June 30, 2026.

    Mitigation: Working to expedite manufacturing; qualifying a second, larger manufacturing site expected online in early 2027 to increase capacity and reduce lead times.

    Cash BurnOngoing

    Cash and cash equivalents decreased from $6.6 million (Sep 30, 2025) to $2.0 million (Jun 30, 2026).

    Mitigation: Raised $0.4 million via ATM in Q3 FY26 and another $1.0 million post-quarter end (July 13, 2026).

    Regulatory Timelines for New ProductsH2 calendar 2027

    BVNA FDA clearance submission expected in H2 calendar 2027, with management noting 'no guarantees' despite past 510(k) success.

    Mitigation: Leveraging existing OneRF generator and ablation electrode; reconfirming 510(k) path based on prior successful submissions.

    What to watch in Q4 FY26

    4

    Second Manufacturing Site Qualification

    Early 2027
    CurrentIn progress
    TargetOnline

    Why it matters

    Essential for increasing capacity, reducing lead times, and resolving product backlog, directly impacting revenue recognition.

    Moving forward, we are working towards the qualification of a second manufacturing site, which will increase capacity and potentially reduce lead times.

    Q&A highlights

    7

    What type of epilepsy (focal/general), study size, and timeline for the University of Minnesota collaboration?

    The study is for focal epilepsy, and preclinical testing is expected in the next quarter. If successful, it would move to a Phase I human study.

    So at the University of Minnesota, it pertains to focal. And the first step in the process is for them to actually conduct preclinical testing on the therapy they've developed. And that will happen literally expectedly most likely in the next quarter.

    asked by Jeffrey Cohen · answered by David Rosa

    2 min read6 chapters

    Detailed Narrative

    01

    International Expansion

    NeuroOne achieved ISO 13485 certification, a critical milestone for entering international markets with its OneRF Brain Ablation, OneRF Trigeminal Neuralgia Ablation, and Evo Cortical/sEEG diagnostic product lines. The company plans to collaborate with its distribution partner, Zimmer Biomet, to target geographies with favorable economics and existing customer relationships, while exploring independent partnerships for other regions. The process involves varying requirements, from documentation to clinical data, depending on the specific geography.

    02

    OneRF Brain Ablation System Clinical Validation

    The Journal of Neurosurgery published a retrospective observational study from the Mayo Clinic in Jacksonville, Florida, validating the use of NeuroOne's OneRF Brain Ablation System. The study demonstrated that procedures could be safely performed in patients with implanted neuromodulation devices without interference, leading to meaningful seizure reduction. This clinical evidence expands the treatable patient population and supports the system's efficacy.

    03

    OneRF Trigeminal Nerve Ablation System Commercialization

    A recent patient success story, featured on Cleveland 19 News, highlighted the life-changing potential of the OneRF Trigeminal Nerve Ablation System, with the patient reporting to be pain-free after treatment. The U.S. market for disposables (excluding hardware) is estimated at $40 million, primarily concentrated in approximately 30 centers. NeuroOne plans to expand commercialization by leveraging existing personnel and engaging independent distributors, anticipating a short learning curve to minimize support costs.

    04

    StereoCED Drug Delivery System Progress

    NeuroOne's StereoCED robotic-assisted platform is designed to improve brain-delivered therapeutics by enabling efficient, reproducible, and scalable delivery. It aims to significantly reduce procedure times through simultaneous multi-trajectory delivery, leveraging existing neurosurgical equipment. The company anticipates StereoCED will be ready for investigational human clinical studies by the end of September, with preclinical animal studies starting this month in collaboration with the University of Minnesota and Mayo Clinic.

    05

    BVNA Back Pain Management Program

    The company completed user design requirements and initiated preclinical testing for its Basivertebral Nerve Ablation (BVNA) System for back pain. The strategy involves leveraging the existing OneRF generator and ablation electrode while outsourcing access tools. NeuroOne reconfirmed that the regulatory path is likely a 510(k) submission, with an expected FDA clearance submission in the second half of calendar 2027, building on past success with 510(k) clearances.

    06

    Manufacturing and Supply Chain

    NeuroOne is actively working to expedite manufacturing to address a $1.7 million product backlog as of June 30, 2026, with the goal of clearing it by the end of the fourth calendar quarter of 2026. To increase capacity and reduce lead times, the company is qualifying a second, larger manufacturing site, which is expected to become operational in the first part of 2027. This initiative aims to improve efficiency and meet growing product demand.

    AI-generated summary of the company’s earnings call. Not investment advice.