NeuroOne Medical Technologies (NASDAQ:NMTC) reported a 72% year-over-year increase in second-quarter fiscal 2026 product revenue, driven by higher sales of its OneRF products, while management highlighted progress across brain ablation, facial pain, drug delivery and back pain programs.
Chief Executive Officer Dave Rosa said product revenue for the OneRF Brain Ablation System rose to $2.4 million in the quarter, compared with $1.4 million in the second quarter of fiscal 2025. For the first six months of fiscal 2026, product revenue was $5.3 million, up 13% from $4.7 million in the prior-year period, Chief Financial Officer Ron McClurg said.
OneRF Brain Ablation System Drives Revenue Growth
Rosa said NeuroOne believes there is growth potential for the OneRF Brain Ablation System in both domestic and international markets. Domestically, he said the company is developing a webinar to highlight clinical experience with the device and broaden awareness among neurologists and neurosurgeons.
On international expansion, Rosa said NeuroOne completed the Stage 2 audit of its Minnesota facility for ISO 13485 certification and remains “bullish” on receiving certification in the latter part of 2026. He said the certification is a key step toward enabling international distribution of NeuroOne products.
During the question-and-answer session, Rosa said the initial plan is to enter international markets with Zimmer Biomet in geographies covered by the companies’ agreement. He added that NeuroOne may work with other distributors in regions where Zimmer does not have distribution rights. Rosa said the company is working with Zimmer on a final list of initial territories and would prefer to target geographies that accept FDA clearance without additional requirements.
Rosa also noted a peer-reviewed case series published during the quarter, which he said validates physician feedback that real-time temperature monitoring during sEEG-guided radiofrequency ablation is an important feature when performing brain ablations in patients with drug-resistant epilepsy. The OneRF Brain Ablation System was also highlighted at Zimmer Biomet’s booth at the American Association of Neurological Surgeons meeting in San Antonio.
Facial Pain Device Advances in Limited Market Release
Rosa said NeuroOne has completed 16 cases using its OneRF Trigeminal Nerve Ablation System for the treatment of trigeminal neuralgia, a facial pain condition, following FDA 510(k) clearance and a limited market release. He said all patients were reportedly pain-free after the procedure.
Rosa said the device is designed to be placed once because it includes multiple contacts, unlike traditional ablation systems that typically require multiple probe placements. He said the approach can reduce patient discomfort and shorten treatment times.
In response to an analyst question, Rosa said neurosurgeons at current sites are scheduling multiple facial pain cases in a day, adding that the procedures are easier to schedule than brain ablation cases because patients already know they are coming in for an ablation. He said the company still expects to partner with another company for commercialization, but until an agreement is finalized, NeuroOne will continue opening centers itself.
Asked how NeuroOne is driving physician adoption, Rosa said the company is targeting centers that already have NeuroOne’s generator, noting that the same surgeons performing brain ablation procedures also perform facial pain procedures. He said the company is emphasizing the reported pain-free outcomes to date and the comfort advantages of a single device placement.
Drug Delivery and Back Pain Programs Progress
Rosa said NeuroOne remains on track to make its drug delivery system commercially available in the second half of fiscal 2026 for use in investigational clinical studies or animal studies. He said the company is evaluating distributors for commercialization because NeuroOne does not currently have a direct sales force.
During the Q&A session, Rosa said remaining work includes completing sterilization testing, validation and packaging, a process he said usually takes about three months. Once completed, the product could begin shipping for animal use and approved human investigational device exemption studies.
Rosa also highlighted NeuroOne’s collaboration with the Department of Neurology’s Division of Epilepsy at the University of Minnesota Medical School to advance a study evaluating next-generation epilepsy therapies using the drug delivery platform. He said other health systems have also approached the company.
For NeuroOne’s basivertebral nerve ablation system, Rosa said the company completed user design requirements and began preclinical testing. He said NeuroOne’s strategy is to leverage its existing OneRF generator, temperature accessory and ablation electrode while outsourcing access tools through outside vendors or potential distribution partners.
Rosa said the company also concluded a chronic animal study for its Spinal Cord Stimulation Percutaneous Paddle Lead Program and identified opportunities to enhance performance. The system was displayed at the North American Neuromodulation Society meeting, where Rosa said physicians showed interest. In response to an analyst question, Rosa said NeuroOne has not yet issued a timeline for the program and expects to provide more detail in the next one to two quarters as it evaluates enhancements.
Financial Results and Balance Sheet
McClurg said NeuroOne had no license revenue in the second quarter or first six months of fiscal 2026, compared with $3 million of license revenue in the first six months of fiscal 2025 from the expanded exclusive distribution agreement with Zimmer Biomet.
Product gross profit was $1.3 million, or 53.8% of product revenue, in the second quarter, compared with $0.8 million, or 55.6% of product revenue, in the prior-year quarter. For the first six months of fiscal 2026, product gross profit was $2.9 million, or 54.0% of product revenue, compared with $2.7 million, or 57.9% of product revenue, in the prior-year period.
Total operating expenses were $3.4 million in the second quarter, compared with $3.5 million in the same quarter last year. Research and development expense was $1.5 million, unchanged from the prior-year quarter, while selling, general and administrative expense was $1.9 million, also unchanged.
Net loss in the second quarter was $2.1 million, or $0.25 per basic and diluted share, compared with a net loss of $2.3 million, or $0.44 per basic and diluted share, in the same quarter of fiscal 2025. For the first six months of fiscal 2026, net loss was $3.5 million, or $0.42 per basic share and $0.44 per diluted share, compared with a net loss of $0.5 million, or $0.09 per basic and diluted share, in the prior-year period. McClurg said the prior-year six-month result reflected the $3 million of license revenue recognized in the first quarter of fiscal 2025.
As of March 31, 2026, NeuroOne had $2.8 million in cash and cash equivalents, compared with $6.6 million as of Sept. 30, 2025. The company also had $2.4 million in accounts receivable, which McClurg said should convert to cash in the third quarter based on normal collection patterns. Working capital was $5.7 million, compared with $7.9 million at Sept. 30, and the company had no debt outstanding.
Corporate Updates and Guidance
Rosa said NeuroOne appointed David Wambeke as chief business officer to lead the drug delivery program, oversee investor relations and support business development. He also said Wambeke purchased 1 million shares of NeuroOne common stock on a pre-split basis.
The company also regained compliance with Nasdaq’s minimum bid price requirement after completing a 1-for-6 reverse split of its common stock. Rosa said NeuroOne was also pleased to learn that a new high-net-worth investor acquired approximately 7.4% of its outstanding common stock in the open market.
NeuroOne also announced that McClurg will retire as CFO effective June 30, 2026, and remain a senior advisor through year-end. Chris Volker, the company’s current chief operating officer, will become CFO effective July 1, 2026.
During the Q&A session, Rosa said the company’s product revenue guidance for fiscal 2026 remains unchanged at $10.5 million. He said the outlook does not include contributions from drug delivery or facial pain. Rosa said drug delivery commercialization is expected late in the fiscal year and that facial pain revenue will depend on how quickly the company can finalize a commercialization agreement.
About NeuroOne Medical Technologies (NASDAQ:NMTC)
NeuroOne Medical Technologies Corp. is a medical device company focused on developing advanced neural interface technologies for diagnostic and therapeutic applications in neurosurgery and neurology. The company’s core mission is to improve patient outcomes through next-generation electrode systems that enable high-resolution neural recording and targeted stimulation. By leveraging proprietary thin-film microelectrode arrays, NeuroOne aims to offer clinicians unprecedented single-unit precision during brain mapping procedures.
The company’s flagship platform, the EVO™ system, integrates thin-film neural electrodes with intraoperative monitoring hardware and software.
