NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) announced financial results for the third quarter of fiscal year 2026, showing a 16% increase in product revenue to $2.0 million compared to $1.7 million in the same period last year. The company also reported record product gross margins of 59.9%, up from 53.9% in the prior-year quarter, and a 29% increase in product gross profit to $1.2 million.
The company received $2.7 million in new product orders during the quarter, a 43% increase year-over-year, which outpaced recognized revenue and contributed to a backlog of $1.7 million as of June 30, 2026. For the full fiscal year 2026, NeuroOne has received product orders totaling $11.2 million, and expects recognized revenue to range between $9.2 million and $10.5 million, depending on manufacturing completion and shipment timing.
“This quarter marked another period of revenue growth compared to 2025, with product revenue increasing 16% year-over-year to $2.0 million,” said Dave Rosa, CEO of NeuroOne. “Importantly, this growth is improving margins – product gross margins reached a record 59.9%, driven by a 29% increase in product gross profit to $1.2 million compared to the prior year period. Even more encouraging is that new product orders of $2.7 million during the quarter meaningfully outpaced revenue recognized during the quarter, growing our backlog to $1.7 million.”
Operationally, NeuroOne achieved ISO 13485:2016 certification, a key milestone for international commercialization. The certification enables the company to market its products across different countries, though additional requirements may apply. This development supports the company's plans for global expansion.
In a notable clinical advancement, the Journal of Neurosurgery published an article by Mayo Clinic in Jacksonville, Florida, evaluating NeuroOne's OneRF® Brain Ablation System in patients with implanted neuromodulation devices. The study concluded that the procedure can be performed safely without interfering with existing hardware and provided meaningful seizure reduction, expanding the treatable patient population.
NeuroOne also provided updates on its StereoCED™ drug delivery platform, which is expected to be available for animal research and FDA IDE approved studies by the end of fiscal year 2026. The company released a white paper highlighting the platform's potential to address key barriers in CNS drug delivery, especially as the first potential blockbuster intraparenchymal brain-delivered therapy could receive FDA approval as early as 2027.
Collaborations with Mayo Clinic and the University of Minnesota are advancing research into pediatric diffuse midline glioma and drug-resistant epilepsy, respectively, using the StereoCED platform. Additionally, the company is in advanced discussions with a tier-one strategic partner for its basivertebral nerve ablation system.
Financially, total operating expenses increased to $3.6 million in the quarter, up from $2.8 million in the same period last year, driven by higher SG&A and R&D costs. Net loss widened to $2.0 million, or $0.23 per basic share and $0.28 per diluted share, compared to a net loss of $1.5 million in the prior-year quarter. As of June 30, 2026, cash and cash equivalents totaled $2.0 million, down from $6.6 million at the start of the fiscal year, with no debt outstanding. The company raised $0.4 million through its at-the-market offering during the quarter and an additional $1.0 million subsequent to quarter-end.
The company was added to the Russell Microcap Index in June 2026, reflecting its growing market presence. NeuroOne continues to focus on transforming surgical diagnosis and treatment of neurological disorders, with ongoing development in drug delivery, basivertebral nerve ablation, and spinal cord stimulation.
