NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) reported financial results for the third quarter of fiscal year 2026, showcasing a 16% year-over-year increase in product revenue to $2.0 million. The company also achieved a record product gross margin of 59.9%, up from 53.9% in the same period last year, reflecting a favorable sales mix and operational efficiencies.
Despite the revenue growth, product orders outpaced shipments, with $2.7 million in new orders received during the quarter, a 43% increase year-over-year. This brought the backlog to $1.7 million as of June 30, 2026. For the full fiscal year, NeuroOne has received product orders totaling $11.2 million, and the company expects recognized revenue to range between $9.2 million and $10.5 million, depending on manufacturing and shipment timelines. Management is working closely with manufacturing partners to maximize shipments and reduce backlog.
One of the key highlights of the quarter was the receipt of ISO 13485:2016 certification, which enables the company to commercialize its products internationally. This certification is a major milestone that signals adherence to internationally recognized quality management standards, opening near-term commercial opportunities in global markets. The company plans to selectively target international markets for its OneRF® Ablation System and other products.
In addition to operational achievements, NeuroOne published a white paper titled "StereoCED™ - A Scalable Platform for CNS Drug Delivery," which details the potential of its drug delivery platform to reduce procedure times and address barriers to commercial delivery of brain therapeutics. This comes at a pivotal time as the first potential blockbuster intraparenchymal brain-delivered therapy could receive FDA approval as early as 2027. The StereoCED™ platform is expected to be available for animal research and FDA IDE approved studies by the end of fiscal year 2026.
The company also announced collaborations with the Mayo Clinic and the University of Minnesota to advance studies using the StereoCED™ platform. The Mayo Clinic study, funded by CURE Childhood Cancer, will evaluate a novel treatment for pediatric diffuse midline glioma, while the University of Minnesota study will test next-generation epilepsy therapies. These collaborations underscore the potential of NeuroOne's technology in addressing challenging neurological conditions.
Financially, NeuroOne reported a net loss of $2.0 million, or $0.23 per basic share, for the third quarter, compared to a net loss of $1.5 million, or $0.19 per basic share, in the prior-year quarter. Operating expenses increased to $3.6 million from $2.8 million, driven by higher selling, general, and administrative costs related to headcount and sales initiatives. As of June 30, 2026, the company had cash and cash equivalents of $2.0 million, with no debt outstanding.
Subsequent to quarter-end, NeuroOne raised an additional $1.0 million through its at-the-market offering program, bringing total gross proceeds from the ATM program to $9.4 million. Additionally, the company's lead investor increased its ownership from 7.4% to 12.5% of outstanding common stock, reflecting confidence in the company's direction.
Looking ahead, NeuroOne is preparing for the launch of its StereoCED™ platform, expanding commercialization of its OneRF® Trigeminal Nerve Ablation System, and advancing discussions with a potential strategic partner for its basivertebral nerve ablation system. The company was also added to the Russell Microcap Index, enhancing its visibility among investors.
Dave Rosa, CEO of NeuroOne, commented, "This quarter marked another period of revenue growth and improved margins, driven by strong demand for our products. We are excited about the upcoming launch of StereoCED™ and our international expansion plans. Our technology continues to make a difference in patients' lives, which is our ultimate motivation."
