NeuroOne Medical Technologies Corporation (NMTC) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals several concerns: a decrease in product and license revenue, increased net loss, and reduced cash reserves. While there are positive clinical outcomes and ongoing strategic partnerships, the company's avoidance of specific operational details and reliance on Zimmer for sales and marketing raise uncertainties. The Q&A section highlights operational risks, market penetration challenges, and competitive pressures. Despite some positive product developments, the overall sentiment is negative due to financial underperformance and unclear future guidance.
Key Financial Performance
Product Revenue $2.9 million in Q1 fiscal 2026, down from $3.3 million in Q1 fiscal 2025 (a decrease due to Zimmer's initial stocking in Q1 fiscal 2025). Sequentially, revenue increased 5.5% from $2.7 million in Q4 fiscal 2025.
License Revenue $0 in Q1 fiscal 2026, compared to $3 million in Q1 fiscal 2025 (decrease due to the absence of license revenue from the expanded exclusive distribution agreement with Zimmer in Q1 fiscal 2025).
Product Gross Profit $1.6 million or 54.2% of revenue in Q1 fiscal 2026, compared to $1.9 million or 38.9% of revenue in Q1 fiscal 2025 (improvement in gross profit margin). Sequentially, gross profit increased 2.6% from $1.5 million in Q4 fiscal 2025.
Operating Expenses $3.3 million in Q1 fiscal 2026, compared to $3.2 million in Q1 fiscal 2025 (slight increase).
Research and Development Expense $1.4 million in Q1 fiscal 2026, compared to $1.2 million in Q1 fiscal 2025 (increase due to accelerated program development).
Selling, General and Administrative Expense $1.9 million in Q1 fiscal 2026, down 7.7% from $2 million in Q1 fiscal 2025 (decrease due to cost management).
Net Loss $1.4 million or $0.03 per share in Q1 fiscal 2026, compared to net income of $1.8 million or $0.06 per share in Q1 fiscal 2025 (change due to absence of $3 million license revenue in Q1 fiscal 2025).
Cash and Cash Equivalents $3.6 million as of December 31, 2025, compared to $6.6 million as of September 30, 2025 (decrease due to operational expenses).
Working Capital $6.8 million as of December 31, 2025, compared to $7.9 million as of September 30, 2025 (decrease due to reduced cash reserves).
Debt Outstanding $0 as of December 31, 2025 (no change).
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
OneRF brain ablation system: Sales increased sequentially, with nearly half of all ablations performed since launch occurring in Q1 2026. A registry is being established to capture outcomes, with enrollment expected by the end of Q3 2026.
OneRF trigeminal nerve ablation system: Limited commercial launch initiated, with 9 patients treated across 3 centers, all reporting pain relief. The system offers advantages over traditional systems by reducing patient discomfort. Discussions are ongoing for potential licensing.
Drug delivery program: Program accelerated, with devices expected for commercial use and investigational studies by Q3 2026. Advisory board of oncology experts being organized to guide applications for brain tumor therapies. Discussions with pharma and biotech companies for potential collaborations are ongoing.
Lower back pain management programs: Progress on two technologies: a percutaneously placed pad electrode (animal study planned) and a base vertebral nerve ablation system (advisory board meetings held). Both technologies are in discussions for potential partnerships.
International expansion: Working towards ISO 13485 certification as a step towards international commercialization.
Revenue growth: Projected fiscal 2026 revenue of at least $10.5 million, a 17% increase from fiscal 2025. Q1 2026 product revenue was $2.9 million, up 5.5% sequentially.
Cost management: Selling, general, and administrative expenses decreased by 7.7% year-over-year in Q1 2026.
Strategic partnerships: Ongoing diligence discussions with strategic organizations for licensing and partnerships across multiple technologies.
Leadership appointment: Jason Mills appointed to the Board of Directors, bringing expertise in strategy and business development.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Revenue Dependency on Initial Stocking Orders: The company's revenue in Q1 fiscal 2026 was lower compared to Q1 fiscal 2025 due to the absence of initial stocking orders, which had boosted prior year revenues. This indicates a dependency on such orders for revenue spikes.
Limited Commercial Launch Challenges: The limited commercial launch of the OneRF trigeminal nerve ablation system is still in its early stages, with only 9 patients treated across 3 centers. This limited scale could delay broader adoption and revenue generation.
Regulatory and Certification Hurdles: The company is working towards ISO 13485 certification to commercialize internationally. Delays or failure in obtaining this certification could hinder international market entry.
Cash Flow and Funding Risks: Cash and cash equivalents decreased from $6.6 million to $3.6 million within one quarter. Although the company is funded through fiscal 2026, any delays in achieving key milestones could strain financial resources.
Strategic Partnership Uncertainty: The company is in diligence discussions with strategic partners for multiple technologies. Delays or failures in forming these partnerships could impact commercialization and revenue growth.
Operational and Development Risks: The company is accelerating its drug delivery program and other development projects. However, these initiatives carry risks of delays, technical challenges, and increased R&D expenses.
Market Penetration Challenges: Despite positive outcomes, the adoption of new technologies like the OneRF brain ablation system and trigeminal nerve ablation system is still in progress, which could slow revenue growth.
Economic and Competitive Pressures: The company faces competitive pressures in the medical technology space, which could impact its market share and pricing strategies.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Projections: The company is projecting fiscal year 2026 sales to be at least $10.5 million, representing a minimum 17% increase from fiscal year 2025.
OneRF Brain Ablation System: The company is establishing a registry to capture patient outcomes and aims to enroll the first patient by the end of the third fiscal quarter of 2026. Additionally, there is an opportunity for international commercialization, with efforts underway to receive ISO 13485 certification.
OneRF Trigeminal Nerve Ablation System: The limited commercial launch is expected to be completed by the end of Q2 fiscal 2026. Discussions are ongoing with a strategic partner to potentially license this technology.
Drug Delivery Program: The program has been accelerated, with devices expected to be available for commercial use and investigational clinical studies by Q3 fiscal 2026, approximately six months earlier than planned. An advisory board of oncology experts is being organized to guide the system's use for brain tumor therapies. Discussions with pharma and biotech companies are ongoing for potential use in animal and investigational human studies for gene and cell therapies.
Lower Back Pain Management Programs: For the percutaneously placed pad electrode system, a long-term animal study is planned to begin next month, with preparations for the first human implant underway. For the base vertebral nerve ablation system, product requirements have been validated, and manufacturing partners for access tools are being identified. Discussions with strategic partners for both technologies are ongoing.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Could you talk about trigeminal and provide details on the number of physicians or centers involved, and interest from Zimmers or others?
A:The 9 cases were conducted at 3 centers, with one center led by Dr. Grewal who recently passed away. All patients were reportedly pain-free, showcasing the technology's advantage of requiring only a single placement of the device. Discussions with strategic partners, including Zimmer, are ongoing, but the company is prepared to commercialize the technology independently if necessary.
Q:Could you provide clarity on the number of physicians or centers where the consumer is present domestically?
A:The company does not have information on the number of centers or physicians. However, it was noted that nearly half of all patients treated since launch were treated in the first fiscal quarter.
Q:Would you expect OpEx to remain flat for the rest of the year?
A:SG&A expenses are expected to remain flat, while R&D expenses may fluctuate depending on project phases. The drug delivery project has been accelerated, leading to near-term expenses that will taper off later.
Q:Will animal studies for drug delivery and spinal cord pick up in Q2 and Q3?
A:Yes, these studies will pick up slightly in Q2 and Q3.
Q:What clinical feedback has been received from neurologists or surgical teams using the installed products?
A:The device has been successful in reducing or eliminating seizures. Feedback highlights ease of use, with procedures being performed bedside rather than in operating rooms. A registry has been started to capture long-term results.
Q:Is there a specific region in the U.S. where the technology is seeing the most traction and adoption?
A:The company does not have this information.
Q:What are the sales and marketing expectations for 2026?
A:Zimmer is responsible for all marketing and sales costs as per the 2020 agreement. The company provides training and field support.
Q:Was the revenue breakdown for Q1 predominantly restocking or additional purchases by Zimmer?
A:Most of the revenue was from restocking, continuing from the initial stocking order in fiscal 2025.
Q:Review of Unclear Management Responses
A:Management avoided providing direct answers to questions about the number of physicians or centers domestically, specific regions in the U.S. with the most traction, and detailed revenue breakdowns beyond restocking.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Boston Scientific
Canaccord Genuity
Clinic Jacksonville
Director Canaccord
Directors Executive
Executive Vice
Florida experience
Genuity role
Inc Boston
Jacksonville Florida
Managing Director
Meeting system
Mills Directors
NeuroOne debt
OneRF brain
OneRF product
Penumbra
animal study
application
basis
booth
career
development opportunity
diligence discussion
expert
license distribution
organization
pain nerve
sale
share income
stocking
technology development
therapy brain
use
NMTC Transcript
NeuroOne Medical Technologies Corporation (NMTC) Q1 2026 Earnings Call Transcript
Unknown2-17
The earnings call reveals several concerns: a decrease in product and license revenue, increased net loss, and reduced cash reserves. While there are positive clinical outcomes and ongoing strategic partnerships, the company's avoidance of specific operational details and reliance on Zimmer for sales and marketing raise uncertainties. The Q&A section highlights operational risks, market penetration challenges, and competitive pressures. Despite some positive product developments, the overall sentiment is negative due to financial underperformance and unclear future guidance.
NeuroOne Medical Technologies Corporation (NMTC) Q4 2025 Earnings Call Transcript
Positive12-17
The earnings call reveals strong financial performance with significant improvements in gross margins and a reduced net loss. The strategic plan outlines ambitious growth prospects, including new product developments and market expansions. Although some uncertainty exists around partnerships and timelines, the overall sentiment is optimistic with increased revenue guidance and improved financial health. The Q&A section did not highlight any major concerns, supporting a positive outlook. Given these factors, a positive stock price movement is likely over the next two weeks.
NeuroOne Medical Technologies Corporation (NMTC) Q3 2025 Earnings Call Transcript
Positive8-14
The earnings call reveals strong financial performance, with significant revenue and margin growth, reduced expenses, and improved net loss. The partnership with Zimmer Biomet and international expansion plans are promising. Despite management's cautious stance on 2026 guidance, the optimistic FY 2025 outlook and strategic partnerships suggest a strong positive sentiment. The Q&A session highlights potential growth areas and addresses concerns, further solidifying the positive outlook. Given the context and potential for expansion, a strong positive stock price movement is expected, likely exceeding 8%.
NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) Q2 2025 Earnings Call Transcript
Positive5-14
The earnings call highlights strong financial performance, including record revenue and gross margins, a significant partnership with Zimmer Biomet, and improved net loss figures. The Q&A reveals reliance on Zimmer for revenue and some uncertainty regarding non-Zimmer revenue, but overall sentiment remains positive due to the partnership's potential and no debt. The capital raise ensures financial stability, and the addition of a Chief Medical Advisor indicates strategic growth. Despite some risks and uncertainties, the overall outlook is positive, likely resulting in a stock price increase of 2% to 8%.
NMTC Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
