NeuroOne Fiscal Q3 2026 Earnings: Gross Margin Expands as Net Loss Widens

NeuroOne Medical Technologies (Nasdaq: NMTC) reported fiscal Q3 2026 product revenue of $1.97 million, up 16% from $1.70 million a year earlier, while diluted EPS was $(0.28) versus $(0.19). Product gross margin rose 6.0 percentage points to a record 59.9%, but higher SG&A and R&D spending pushed the net loss to $2.01 million from $1.50 million.

Core earnings data

Revenue growth for the quarter ended June 30, 2026 primarily reflected higher sales of OneRF products. A more favorable mix of higher-margin products lifted gross profit faster than revenue, although the improvement was outweighed by increased operating expenses.

All share and per-share amounts were retroactively adjusted for NeuroOne’s one-for-six reverse stock split, which began trading on a split-adjusted basis on April 16, 2026.

Gross-margin gains were outweighed by expense growth

Product gross profit increased by approximately $268,000, supported by revenue growth and a more favorable product mix. Operating expenses, however, rose by approximately $805,000, causing the operating loss to widen despite the higher gross margin.

SG&A expenses increased to $2.18 million from $1.62 million. NeuroOne attributed the increase to additional headcount, sales and marketing costs, professional fees, and other operating costs. R&D expenses rose to $1.43 million from $1.18 million due to the timing of product development activities.

The $2.42 million operating loss was partly offset below the operating line by a $406,000 favorable change in the fair value of warrant liabilities, resulting in a net loss of $2.01 million.

Business and product developments

New product orders received during the quarter reached $2.7 million, up 43% year over year and above the $2.0 million of recognized product revenue. This difference contributed to a backlog of $1.7 million as of June 30. NeuroOne had received $11.2 million of product orders for fiscal 2026, making manufacturing completion and shipment timing important to converting demand into reported revenue.

Higher OneRF product sales were the main driver of quarterly revenue growth. Beyond current sales, NeuroOne continued preparing additional platforms and markets:

• The company received ISO 13485:2016 certification after quarter-end, supporting planned international commercialization, although individual countries may impose additional requirements.
• NeuroOne expects StereoCED to become available by the end of fiscal 2026 for animal research and FDA IDE-approved studies. Mayo Clinic and the University of Minnesota selected the platform for research involving pediatric brain tumors and drug-resistant epilepsy, respectively.
• The company was evaluating distributors for the OneRF Trigeminal Nerve Ablation System and scheduling evaluations at additional centers.
• NeuroOne remained in discussions with a potential strategic partner to develop access tools for its basivertebral nerve ablation system.

These initiatives broaden the company’s potential product applications, but most have not yet produced quantified commercial contributions in the disclosed results.

Liquidity and balance sheet

Cash and cash equivalents declined to $2.05 million as of June 30, 2026, from $6.57 million at the September 30, 2025 fiscal year-end. Working capital decreased to $3.7 million from $7.9 million over the same period, while the company had no outstanding debt.

Inventory was relatively stable at $2.29 million, compared with $2.23 million at fiscal year-end, and accounts receivable declined to $1.10 million from $1.26 million.

NeuroOne raised $0.4 million through its at-the-market offering during the quarter and had raised $8.4 million in gross proceeds under the program through June 30. After quarter-end, it raised another $1.0 million by issuing 400,346 shares. The additional capital supported liquidity, but the continued use of equity financing increased the number of outstanding shares.

Risks investors need to watch

• Order conversion and manufacturing execution: Product orders exceeded recognized revenue, leaving a $1.7 million backlog. Manufacturing or shipment delays could postpone revenue recognition even if demand remains intact.
• Expense growth relative to gross profit: The increase in operating expenses was roughly three times the increase in gross profit, causing operating and net losses to widen.
• Liquidity and equity financing: Cash and working capital declined substantially from fiscal year-end. Continued losses may require additional capital, while issuing shares through the ATM program can dilute existing shareholders.
• Product mix and gross margin: The record gross margin reflected a favorable mix of higher-margin products. A shift in sales mix could reduce this benefit.
• Commercialization and regulatory execution: ISO certification supports international expansion, but country-specific requirements remain. StereoCED and the basivertebral nerve ablation program also require further research, regulatory, partnership, or commercialization progress.

Summary

NeuroOne’s fiscal Q3 revenue and product gross margin improved as OneRF sales increased and product mix became more favorable. However, faster growth in SG&A and R&D expenses widened the company’s losses, while cash and working capital continued to decline. The main issues ahead are converting the growing order backlog into shipments, controlling operating costs, and advancing newer platforms without placing excessive pressure on liquidity.