Executive Summary

Q2 FY2025 revenue and EPS exceeded S&P Global consensus: revenue $1.39M vs $1.27M consensus and EPS -$0.07 vs -$0.09, driven by improved product gross margins and disciplined OpEx; sequential revenue decline was expected following Q1 Zimmer stocking orders . Revenue Consensus Mean (Q2 FY2025): $1.27M*; Primary EPS Consensus Mean: -$0.09*; Actuals: revenue $1.3866M and EPS -$0.07 .
Product gross margin expanded to 55.6% from 28.3% YoY, reflecting better transfer pricing under the Zimmer Biomet agreement and manufacturing mix; net loss improved to $2.27M from $2.86M YoY .
Guidance maintained: FY2025 product revenue $8–$10M and product gross margin 47–51%; potential incremental 2025 revenue upside if OneRF Trigeminal Nerve Ablation receives 510(k) clearance (not in guidance) .
Funding de-risked: April equity raise netted ~$8.2M; company expects to be fully funded through at least FY2026; pro forma cash $9.4M at April-end, no debt .

What Went Well and What Went Wrong

What Went Well

Significant margin expansion: product gross margin 55.6% vs 28.3% YoY on improved transfer prices and scale under Zimmer distribution .
Strategic execution: 510(k) submission for OneRF Trigeminal Nerve Ablation filed ahead of schedule; potential to start generating revenue late CY2025 if cleared (not included in guidance) .
Clinical validation and go-to-market: majority of patients treated are seizure-free; first patient approaching/at one year of seizure freedom; Zimmer training completed and product exhibited at AANS, supporting adoption momentum .

Quotes

“The second quarter of fiscal 2025 was highlighted by our significant operational progress with our commercial OneRF Ablation System technology platform…” — CEO Dave Rosa .
“We are reiterating our fiscal year 2025 guidance… product revenue $8–$10 million… product gross margin 47%–51%…” — Management .

What Went Wrong

Sequential revenue decline: Q2 product revenue $1.39M vs Q1 $3.27M due to completion of initial Zimmer stocking orders in Q1; management had pre-guided to a Q2 dip .
Operating expenses ticked up YoY for the quarter (R&D $1.51M vs $1.27M), though 1H OpEx -4% YoY; underscores need for continued cost discipline as revenue ramps .
Liquidity pre-raise was tight (Q2 cash $1.32M), necessitating dilution; April raise strengthened the balance sheet but increased share count (49.8M shares at 6/30 vs 30.8M at 9/30/24) .

Financial Results

Quarterly performance vs prior year, prior quarter, and consensus

Metric	Q2 FY2024	Q1 FY2025	Q2 FY2025	Consensus (Q2 FY2025)
Revenue ($USD Millions)	$1.3773	$6.2742 (incl. $3.0M license)	$1.3866	$1.2700*
Product Revenue ($USD Millions)	$1.3773	$3.2742	$1.3866	$1.2700*
License Revenue ($USD Millions)	$0.0000 (no license)	$3.0000	$0.0000 (no license)	—
Product Gross Margin %	28.3%	58.9%	55.6%	—
Product Gross Profit ($USD Millions)	$0.3904	$1.9269	$0.7711	—
Total Operating Expenses ($USD Millions)	$3.2765	$3.2157	$3.4511	—
Net Income (Loss) ($USD Millions)	$(2.8551)	$1.7853	$(2.2706)	—
Basic & Diluted EPS ($)	$(0.11)	$0.06	$(0.07)	$(0.09)*

Liquidity and capital

Metric	9/30/2024	12/31/2024	3/31/2025	4/30/2025 (Pro Forma)
Cash & Equivalents ($USD Millions)	$1.46	$1.13	$1.32	$9.40 (incl. April raise)
Working Capital ($USD Millions)	$2.40	$4.10	$2.00	—
Debt	$0	$0	$0	$0
April 2025 Equity Raise	—	—	—	~$8.2M net proceeds; priced at $0.50/share (gross $8.0M)

KPIs and cost structure

Metric	Q2 FY2024	Q1 FY2025	Q2 FY2025
R&D Expense ($USD Millions)	$1.274	$1.172	$1.511
SG&A Expense ($USD Millions)	$2.003	$2.043	$1.940
Warrant Liability (Period-End, $USD Millions)	—	$1.751	$1.361

Segment breakdown: Not applicable; the company reports product revenue and license revenue only .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Product Revenue	FY2025	$8.0–$10.0M (excludes $3.0M license)	$8.0–$10.0M (excludes $3.0M license)	Maintained
Product Gross Margin %	FY2025	47%–51%	47%–51%	Maintained
Trigeminal Nerve Ablation contribution	CY2025	Not included	Not included (potential late 2025 if cleared)	Maintained (qualitative)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY2024, Q1 FY2025)	Current Period (Q2 FY2025)	Trend
OneRF Brain Ablation outcomes & adoption	12 patients treated; strong seizure reduction; ICD-10-PCS code effective Oct 1, 2024; initial shipments/training with Zimmer	Majority of patients seizure-free; first patient reaching ~one year seizure freedom; Zimmer training at national sales mtg; exhibited at AANS	Positive clinical validation and commercialization momentum
Zimmer Biomet partnership & commercialization	Expanded exclusive distribution; initial stocking orders in Q1; improved transfer pricing	Sequential revenue decline expected in Q2 post-stocking; ramp expected through year	Execution on planned rollout; revenue cadence normalizing
Trigeminal Nerve Ablation (facial pain)	Planned 510(k) submission 1H 2025; potential 2025 revenue not in guidance	510(k) submitted ahead of schedule (April 2025); potential late-2025 revenue if cleared (not in guidance)	Accelerated; de-risked timing
OUS expansion / ISO 13485	—	Initiated ISO 13485 certification process to support OUS commercialization	New growth vector initiated
sEEG-based Drug Delivery	Design freeze; preclinical progress	Presented at Neurological Disorders Summit; ongoing partner discussions	Advancing platform; partner interest
Cost discipline & margins	FY2024 OpEx down; Q1 margins 58.9%	Q2 product GM 55.6%; OpEx up YoY for quarter but 1H down 4% YoY	Sustained margin progress; near-term R&D step-up

Management Commentary

“We believe there is a potential to generate revenues from trigeminal nerve ablation as soon as late calendar year 2025 if cleared by the FDA.” — CEO Dave Rosa .
“We are reiterating our fiscal year 2025 guidance… product revenue to be in the range of $8 million to $10 million… product gross margin… 47% to 51%.” — Management .
“As we talked about on our last quarterly call, we expected product revenue to decline sequentially in the fiscal second quarter, given we completed the initial stocking order to Zimmer in December… We still expect revenues to ramp through the end of the fiscal year…” — CFO Ron McClurg .
“We… completed an oversubscribed capital raise… totaling $8.2 million in net proceeds… we believe this cash will fully fund NeuroOne through at least the end of fiscal year 2026.” — Management .

Q&A Highlights

Guidance composition: FY2025 revenue guide excludes $3.0M Zimmer license recognized in Q1 .
Revenue mix: “Almost entirely from Zimmer Biomet” in FY2025; ~6% from early centers in 1H; go-forward largely Zimmer .
Liquidity: Pro forma cash ~$9.4M at April-end post raise .
Clinical/registry: New Chief Medical Advisor to help advance a patient outcomes registry and publications as first patient reaches one-year seizure freedom .

Estimates Context

Q2 FY2025 results vs S&P Global consensus: revenue $1.3866M vs $1.2700M consensus (beat ~9%); EPS -$0.07 vs -$0.09 consensus (beat $0.02). Actuals from company filings; consensus from S&P Global. Revenue Consensus Mean (Q2 FY2025): $1.27M*; Primary EPS Consensus Mean: -$0.09* .
Likely estimate revisions: Positive for margins given sustained >50% product GM and reiterated FY margin guide; revenue cadence back-half weighted as Zimmer rollout progresses, consistent with management commentary .

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

Beat-and-raise setup later in year: Q2 beat on revenue and EPS with FY guidance maintained; 2H revenue ramp expected as Zimmer rollout expands, setting up potential upside if pipeline catalysts land .
Margin expansion is real: Product GM at 55.6% (vs 28.3% YoY) supported by improved transfer prices and scale; FY guide implies durability (47–51%) .
De-risked balance sheet: ~$8.2M net raise and no debt extend runway through at least FY2026; supports commercialization and regulatory milestones .
Near-term catalyst: FDA decision on OneRF Trigeminal Nerve Ablation (submitted April) with potential late 2025 revenue if cleared; not in guidance, so clearance could be a positive surprise .
Clinical narrative resonates: Majority of treated patients seizure-free; first patient ~one-year seizure freedom—compelling for adoption and reimbursement discussions .
Watch operating cadence: Q2 sequential revenue decline was expected post-stocking; focus on Zimmer-driven center adds, training, and evidence generation (registry/publications) for sustained growth .
Longer-term optionality: Drug delivery and spinal programs progressing; OUS pathway initiated via ISO 13485—both provide multi-year TAM expansion .

APPENDIX: Additional Context and Source Highlights

Other Q2-relevant press releases

Capital raise priced April 4, 2025: 16.0M shares at $0.50 (gross $8.0M) .
Chief Medical Advisor appointment (May 12, 2025): Dr. Parag G. Patil to support clinical strategy and physician education .
Media feature (April 14, 2025): Pediatric patient case study highlighted nationally (Fox News) with seizure-free outcome .

Cross-period trend notes

Q1 FY2025: Record product revenue ($3.27M) and GM (58.9%); Zimmer license $3.0M recognized; guidance introduced/maintained .
Q4 FY2024: Zimmer distribution expansion announced; ICD-10-PCS code effective Oct 1, 2024; positioned for FY2025 revenue/margin step-up .

S&P Global estimates note: Values marked with * were retrieved from S&P Global.

NEUROONE MEDICAL TECHNOLOGIES Corp (NMTC)·Q2 2025 Earnings Summary