NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) reported financial results for the third quarter of fiscal year 2026, showing a 16% year-over-year increase in product revenue to $2.0 million. The company also announced that product orders during the quarter totaled $2.7 million, a 43% increase from the prior-year period, and exceeded recognized revenue, resulting in a backlog of $1.7 million as of June 30, 2026.
The company received $11.2 million in product orders for fiscal year 2026, with recognized revenue expected to range from $9.2 million to $10.5 million, depending on manufacturing completion and shipment timing. NeuroOne is working closely with manufacturing partners to maximize shipments, and any unshipped orders will contribute to backlog.
Product gross profit increased 29% to $1.2 million, driving product gross margins to a record 59.9%, up from 53.9% in the same quarter last year. This margin expansion was attributed to a more favorable sales mix toward higher-margin products.
In operational highlights, NeuroOne received ISO 13485:2016 certification, which enables the company to commercialize its products across different countries, marking a major step toward international expansion. The certification demonstrates adherence to an internationally recognized quality management system.
The Journal of Neurosurgery published a study by the Mayo Clinic in Jacksonville, Florida, evaluating the use of NeuroOne's OneRF® Brain Ablation System in patients with implanted neuromodulation devices. The study concluded that the procedures could be performed without interfering with existing hardware and provided meaningful seizure reduction, expanding the pool of treatable patients.
NeuroOne expects its StereoCED™ drug delivery platform to be available by the end of fiscal year 2026 for animal research and FDA IDE approved studies. The company released a white paper highlighting the platform's potential to reduce procedure time and address barriers to commercial delivery of brain therapeutics. This comes as the first potential blockbuster intraparenchymal brain-delivered therapy could receive FDA approval as early as 2027.
The company has expanded its drug delivery program through collaborations with the Mayo Clinic and the University of Minnesota. The Mayo Clinic collaboration supports a CURE Childhood Cancer-funded research program for pediatric diffuse midline glioma (DMG), while the University of Minnesota study will evaluate next-generation epilepsy therapies using the StereoCED™ platform.
NeuroOne is also advancing discussions with a tier-one potential strategic partner for its basivertebral nerve ablation system to treat lower back pain. The company was added to the Russell Microcap Index as part of the June 2026 reconstitution.
CEO Dave Rosa commented, "This quarter marked another period of revenue growth compared to 2025, with product revenue increasing 16% year-over-year to $2.0 million. 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."
Net loss for the quarter was $2.0 million, or $0.23 per basic share, compared to a net loss of $1.5 million, or $0.19 per basic share, in the prior-year quarter. As of June 30, 2026, cash and cash equivalents totaled $2.0 million, and the company had no debt outstanding. Working capital stood at $3.7 million.
Subsequent to quarter end, the company's lead investor increased ownership from 7.4% to 12.5% of outstanding common stock. Additionally, on July 13, 2026, the company raised $1.0 million through its at-the-market offering program.
