NeuroOne Medical Technologies reported a 105% increase in product revenue to $1.7 million in fiscal Q3 2025, while product gross margin expanded to 53.9% from 34.1%, an improvement of nearly 20 percentage points as commercialization of its neurological technology portfolio accelerated. The uploaded earnings release covers the quarter ended June 30, 2025.
The gross-profit increase outpaced revenue growth. Quarterly product gross profit rose to approximately $900,000 from $300,000, reflecting both higher sales and substantially better margin economics.
Operating costs moved in the opposite direction. Total quarterly operating expenses declined 9% to $2.8 million, while SG&A fell to $1.6 million from $1.9 million. R&D expense was approximately unchanged from the prior-year quarter.
That combination of higher revenue, higher gross margin and lower operating spending significantly reduced the quarterly loss. Net loss improved to $1.5 million, or $0.03 per share, from $2.8 million, or $0.10 per share.
The improvement was also visible over the first nine months of fiscal 2025. Product revenue doubled to $6.4 million from $3.2 million, while nine-month product gross profit increased to approximately $3.6 million from $900,000.
NeuroOne also recorded $3 million of license revenue during the first nine months, separate from product revenue, related to its expanded exclusive distribution agreement with Zimmer Biomet.
Nine-month operating expenses fell to approximately $9.5 million from $10 million, while net loss narrowed sharply to $2 million from $9 million. The result shows that the improved quarter was part of a broader year-to-date reduction in losses rather than an isolated three-month change.
The OneRF Ablation System was one of the company’s major commercial and clinical drivers. NeuroOne reported that the first patient treated with OneRF had reached one year of seizure freedom and that other early patients were experiencing seizure freedom or significant reductions in seizures. The company cautioned that an individual patient’s experience may not be representative of all outcomes.
NeuroOne was also working to broaden the platform beyond epilepsy. It filed a 510(k) submission for its OneRF Trigeminal Nerve Ablation System and was developing a basivertebral nerve ablation application targeting lower-back pain.
A separate sEEG-based drug-delivery program generated its first order from a biopharmaceutical company planning to test the system in preclinical research. NeuroOne also completed an animal study involving a miniaturized version of the drug-delivery platform.
The company strengthened its balance sheet through an oversubscribed $8.2 million capital raise completed with institutional investors in April 2025. At June 30, NeuroOne had approximately $8 million of cash, $8.7 million of working capital and no outstanding debt.
Following the quarter, NeuroOne continued to expect fiscal 2025 product revenue growth of 132% to 190% compared with fiscal 2024 and raised its anticipated full-year product gross margin to between 50% and 53%, compared with 31% in fiscal 2024.
The combination of 105% quarterly product revenue growth, a nearly 20-percentage-point increase in gross margin and lower operating expenses represented a substantial improvement in NeuroOne’s operating model as it expanded the OneRF platform and pursued additional neurological applications.
