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EI

electroCore, Inc. (ECOR)·Q3 2025 Earnings Summary

Executive Summary

  • electroCore delivered record Q3 2025 revenue of $8.689M (+33% YoY; +18% QoQ) with gross margin of 86%, powered by VA channel strength and early Quell Fibromyalgia traction; FY25 revenue guidance was raised to $31.5–$32.5M .
  • Revenue beat S&P Global consensus by ~10% ($8.689M vs $7.876M), while GAAP EPS of -$0.40 was in line; adjusted EBITDA loss improved YoY to -$2.043M; EBITDA was better than consensus (actual -$2.766M vs -$3.050M)* .
  • Management pivoted to prioritize growth: delaying positive adjusted EBITDA to 2H 2026 (from prior target end-2025), raising OpEx in sales and marketing, and scaling Quell into VA; YE25 cash expected ~$10.5M; Q4 net cash usage guided to $2.0–$2.5M .
  • Near-term catalysts: VA penetration expansion (195 facilities, +29 YoY), managed care contract enabling gammaCore Sapphire access, Quell VA adoption, and wellness channel momentum (Truvaga affiliates/media), partially offset by copycat litigation and lumpy TAC-STIM military demand .

What Went Well and What Went Wrong

What Went Well

  • Record revenue with strong margin: “In Q3 2025, revenue reached a record $8.7M… Gross margins remain strong at 86%” (mid-80s modeled going forward) .
  • Quell Fibromyalgia exceeding expectations: “Launch… has exceeded our revenue expectations,” with Q3 Quell revenue of $595K and VA revenue of $530K .
  • Wellness channel re-accelerated: Truvaga revenue $1.674M, ROAS ~1.80, returns ~11–12%, >19,000 handsets sold and >1.6M app sessions; affiliates/media broadened reach .

What Went Wrong

  • Profitability timeline pushed out: Company-wide positive adjusted EBITDA deferred to 2H 2026 vs prior “end of 2025” cash flow target; OpEx stepped up (+$2.1M YoY) .
  • GAAP net loss widened to -$3.405M (-$0.40 per share) on CVR royalty liability re-estimation and Avenue convertible interest; other expense ~$0.521M .
  • Military TAC-STIM revenue small and lumpy ($140K in Q3), with Q4 orders halted due to government shutdown; 2026 forecast a conservative ~$400K .

Financial Results

P&L Summary vs Prior Quarters

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$6.719 $7.381 $8.689
Gross Profit ($USD Millions)$5.706 $6.442 $7.470
Gross Margin %85% 87% 86%
GAAP EPS ($)-$0.47 -$0.44 -$0.40
Adjusted EBITDA ($USD Millions)-$3.054 -$2.378 -$2.043

YoY Comparison (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025
Revenue ($USD Millions)$6.554 $8.689
Gross Margin %84% 86%
GAAP EPS ($)-$0.31 -$0.40
Adjusted EBITDA ($USD Millions)-$2.066 -$2.043

Actuals vs S&P Global Consensus

MetricQ3 2025 Consensus*Q3 2025 Actual
Revenue ($USD)$7,875,600*$8,689,000
GAAP EPS ($)-$0.40*-$0.40
EBITDA ($USD)-$3,050,000*-$2,766,000 (Adj EBITDA recon basis)

Segment/Channel Breakdown (Q3 2025)

ChannelQ3 2025
Prescription Devices ($USD)$6,810,000
Health & Wellness Products ($USD)$1,879,000
Total Net Sales ($USD)$8,689,000
Quell Total Revenue ($USD)$595,000
Quell VA Revenue ($USD)$530,000
Truvaga Revenue ($USD)$1,674,000

KPIs

KPIValue
VA facilities purchasing gammaCore195
Prior-year VA facilities166
gammaCore devices dispensed (cumulative)12,000
Estimated VA headache patients~600,000
Truvaga ROAS~1.80
Truvaga return rate~11–12%
Truvaga handsets sold (cumulative)>19,000
Truvaga app sessions (cumulative)>1.6M
TAC-STIM revenue (Q3 2025)~$140,000

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)FY 2025~$30.0M $31.5M–$32.5M Raised
Net Cash Usage ($USD)Q4 2025N/A~$2.0M–$2.5M New
Year-End Cash ($USD)12/31/2025N/A~$10.5M New
Quarterly revenue needed for positive adj EBITDAOngoing~$12M (Aug call) ~$12M Maintained
First positive adjusted EBITDATimingEnd-2025 target (prior board expectation) 2H 2026 Lowered/Deferred
Cash usage ($USD)9M 2026N/A~$5M to fund operations New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
VA channelQ1: VA drove growth; Q2: VA returned to normalized growth 195 VA facilities (+29 YoY); deeper utilization; strong in TX/Southeast/West Coast; new geographies greenfield Strengthening
Quell integrationQ1: NURO acquisition closed; ~$170K unaudited Quell sales Exceeded expectations; $595K total, $530K VA; rapid adoption in rheumatology/pain/polytrauma Accelerating
Managed care accessQ2: preparing for broader U.S. channels DME (Joerns) added gammaCore Sapphire to large managed care contract; removing frictions Opening new path
Wellness/TruvagaQ1–Q2: Truvaga growth; affiliates in place $1.674M; ROAS ~1.80; media/affiliates push; next-gen app development Momentum improving
AI/softwareN/APartnering with Stratigy (EU) to build AI-integrated apps; personalization/recurring revenue potential Building capability
Regulatory/ChinaN/ARoyalty-based China license, CFDA pathway led by investor; potential data backflow to U.S. Optionality (long-dated)
Litigation/copycatsN/APulsetto/Pulseo litigation; patent/trademark claims; focus on winning Risk being addressed
Military (TAC-STIM)Q2: TAC-STIM receivable reserve; lumpy $140K Q3; Q4 halt due to shutdown; 2026 ~$400K forecast Lumpy/uncertain

Management Commentary

  • “We are investing now in people, marketing, and product to accelerate growth… delaying company-wide profitability as measured by adjusted EBITDA until the back half of 2026” — CEO Dan Goldberger .
  • “The launch of prescription Quell Fibromyalgia has exceeded our expectations… allowing our field sales team to offer a growing suite of bioelectronic self-administered therapies” — CEO Dan Goldberger .
  • “We acquired the Quell portfolio… at a minimal upfront cost… This acquisition diversifies our offering within the VA and meaningfully mitigates product risk in that channel” — Chairman Dr. Thomas Errico .
  • “We’re strengthening our VA hospital sales channel by adding talent… and developing a parallel channel to a large managed care system” — CEO Dan Goldberger .
  • “We partnered with Stratigy… to build software that complements Truvaga and Quell… potentially generating new recurring revenue streams” — Chairman Dr. Errico .

Q&A Highlights

  • Quell channel history and adoption: Quell Fibromyalgia previously sold off-contract at 4–5 VA hospitals; training post-acquisition enabled faster-than-expected uptake driven by safety profile and unmet need in fibromyalgia .
  • Truvaga clinical trial: One investigator-initiated long COVID trial triggered a $500K one-time Truvaga order (limited protocol visibility) .
  • Managed care specifics: Large managed care contract now includes gammaCore Sapphire; Quell introduction planned after traction; Kaiser name intentionally avoided .
  • Military/TAC-STIM: Q3 revenue ~$140K; Q4 paused due to government shutdown; 2026 forecast ~$400K; upside possible but timing uncertain .
  • China commercialization: Licensee-led CFDA pathway; in-country manufacturing; royalty model; potential to migrate clinical data back to U.S. indications .
  • Product breakouts: Q3 Quell revenue $595K; Truvaga revenue $1.674M .

Estimates Context

  • Q3 2025 revenue beat consensus by ~$0.813M (+10.3%); GAAP EPS matched consensus; EBITDA better than expected by ~$0.284M* .
  • Q4 2025 consensus implies further sequential growth: revenue ~$9.024M; EPS -$0.392; management’s raised FY25 guidance supports estimate upward risk in devices and wellness* .
  • With OpEx investment ramp and back-half 2026 profitability target, Street models likely raise 2025 revenue but maintain 2026 margins cautious until visibility on managed care uptake and Quell scale*.

Note: *Values retrieved from S&P Global.

S&P Global Consensus Detail

MetricQ3 2025Q4 2025
Revenue Consensus Mean ($USD)$7,875,600*$9,023,600*
Primary EPS Consensus Mean ($)-$0.40*-$0.392*
EBITDA Consensus Mean ($USD)-$3,050,000*-$3,350,000*
Revenue – # of Estimates5*5*
Primary EPS – # of Estimates5*5*

Key Takeaways for Investors

  • Strong top-line beat and raised FY25 guide signal durable demand in VA and early validation of Quell integration; monitor continued hospital additions and utilization depth .
  • Profitability push-out to 2H 2026 reframes the near-term: expect elevated OpEx and marketing; focus on gross margin sustainability in mid-80s to underwrite growth .
  • Managed care contract is a key 2026 catalyst for gammaCore; watch timing of Quell’s introduction and prescriber friction removal through Joerns .
  • Wellness traction (Truvaga affiliates/media and next-gen app) adds DTC leverage and potential recurring software revenue; monitor ROAS, returns, and channel mix .
  • Litigation and TAC-STIM volatility are watch items; litigation outcome could protect pricing and brand, while military orders remain lumpy and policy-dependent .
  • International optionality (Belgium reimbursement, China license) adds long-term tailwinds with minimal capital outlay domestically; track execution and timelines .
  • Near-term trading: momentum on revenue/gross margin and guidance raise vs. valuation sensitivity to delayed EBITDA break-even; medium-term thesis hinges on VA/managed care scaling and Quell uptake .