Executive Summary

Q3 FY2025 delivered strong execution with product revenue of $1.70M (+105% y/y) and product gross margin of 53.9% (+1,980 bps y/y), while net loss narrowed to $1.50M or $(0.03) per share . Versus Q2, revenue grew ~22% from $1.39M as the OneRF launch expanded .
Estimates context: Revenue modest miss ($1.70M vs $1.82M consensus*) while EPS beat (−$0.03 vs −$0.05 consensus*). Results reflect improved cost structure and scaling post Zimmer distribution; estimates coverage remains thin (1 estimate) for Q3*. Values retrieved from S&P Global.
Guidance: FY2025 product revenue maintained at $8–$10M; product gross margin raised to 50–53% (from 47–51%), citing ongoing cost reductions and scaling .
Near-term catalysts: FDA 510(k) clearance received on Aug 18 for OneRF Trigeminal Nerve Ablation; limited commercial launch targeted for Q4 CY2025, creating an incremental revenue opportunity alongside brain ablation . Balance sheet strengthened via oversubscribed $8.2M raise; management reiterates funding through at least FY2026 .

What Went Well and What Went Wrong

What Went Well

Material operating leverage: gross margin expanded to 53.9% (from 34.1% y/y); OpEx down 9% y/y, supporting a narrower net loss .
Strategic progress and clinical validation: CEO highlighted “dramatic improvements in revenue” and strong patient outcomes including first OneRF brain ablation patient surpassing one-year seizure freedom, reinforcing platform value .
Regulatory and pipeline momentum: 510(k) submission for trigeminal nerve ablation filed ahead of schedule, and subsequently cleared on Aug 18; initial order received for sEEG-based drug delivery from a large biopharma—expanding TAM beyond current epilepsy use case .

What Went Wrong

Top-line mixed vs expectations: Q3 revenue of $1.70M missed consensus by ~7%, though EPS outperformed on cost control. Values retrieved from S&P Global.
Limited estimates depth: Only one analyst estimate for Q3 and two for forward quarters, limiting visibility and potentially elevating volatility in consensus*. Values retrieved from S&P Global.
Commercial scale still early: International sales yet to start and ISO13485 certification still in process; trigeminal nerve ablation commercialization slated for a limited launch in Q4 CY2025 (timing execution risk) .

Financial Results

Quarterly P&L (USD)

Metric	Q1 2025	Q2 2025	Q3 2025
Product Revenue ($)	$3,274,167	$1,386,550	$1,696,050
Product Gross Margin (%)	58.9%	55.6%	53.9%
Total Operating Expenses ($)	$3,215,682	$3,451,077	$2,801,435
Net Income (Loss) ($)	$1,785,322	$(2,270,607)	$(1,500,868)
Diluted EPS ($)	$0.06	$(0.07)	$(0.03)

Notes: Q3 y/y comps included in release: product revenue +105% y/y ($0.8M prior-year Q3), gross margin 53.9% vs 34.1% y/y, EPS $(0.03) vs $(0.10) y/y .

Estimates vs Actuals

Period	Revenue Actual ($)	Revenue Consensus ($)	Delta	EPS Actual ($)	EPS Consensus ($)	Delta
Q2 2025	1,386,550	1,270,000*	+9%	(0.07)	(0.09)*	+0.02
Q3 2025	1,696,050	1,820,000*	−7%	(0.03)	(0.05)*	+0.02

Values retrieved from S&P Global. Coverage: Q3 2025 had 1 estimate for revenue and EPS*.

Balance Sheet & Liquidity KPIs

Metric	Q1 2025 (12/31/24)	Q2 2025 (3/31/25)	Q3 2025 (6/30/25)
Cash & Cash Equivalents ($)	$1,134,350	$1,320,251	$8,039,683
Working Capital ($)	$4,100,000	$2,000,000	$8,700,000
Debt	$0	$0	$0

Other Highlights (Operational/Strategic)

Raised $8.2M net in April; reiterates funding through at least FY2026 .
Zimmer Biomet expanded distribution agreement; $3.0M license revenue recognized in first nine months FY2025 (not in product revenue) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Product Revenue	FY2025	$8.0–$10.0M (Q1 reiterated)	$8.0–$10.0M (Q3)	Maintained
Product Gross Margin	FY2025	47%–51% (Q1/Q2)	50%–53% (Q3)	Raised

Management reiterated expectation to be funded through at least FY2026 based on Zimmer minimums .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
OneRF Brain Ablation commercialization	Initial stocking order; 5 centers; ICD-10-PCS code effective Oct 1, 2024	Continued training/education with Zimmer; planning post-market registry; strong patient outcomes	Building
Trigeminal Nerve Ablation (pain)	510(k) submission planned/then filed ahead of schedule	FDA 510(k) submission reiterated (then cleared Aug 18); limited launch targeted for Q4 CY2025	Accelerating
Spinal Cord Stimulation (SCS)	Acute animal study complete; partner discussions ongoing	Chronic animal study launched; potential first-in-human early 2026 if positive	Advancing
sEEG-based Drug Delivery	Preclinical/feasibility work; partner interest	First external order from large biopharma; bench → animal testing plan described	Expanding
International (ISO 13485)	Initiating ISO 13485 process	ISO 13485 program underway; no OUS sales yet	Early, enabling
Guidance & Margins	FY25 product revenue $8–$10M; margin 47–51%	FY25 revenue reiterated; margin raised to 50–53%	Improving margin outlook
Balance Sheet	No debt; funding through FY2026 anticipated post raise	No debt; reiterates funding through FY2026	Stable/extended runway

Management Commentary

“We showed dramatic improvements in revenue—which increased 105% year over year—as well as gross profit, which increased to 53.9%.” — Dave Rosa, CEO .
“We submitted our 510(k) application to the FDA for our OneRF Trigeminal Nerve Ablation System ahead of schedule and expect to receive a response shortly.” (subsequently cleared Aug 18) .
“We are reiterating our fiscal year 2025 guidance… and are also increasing our product gross margin expectations to be between 50–53% versus our previous guidance of 47–51%.” — Dave Rosa .

Q&A Highlights

Drug delivery development path: initial bench testing followed by animals and ultimately a future human trial if results warrant .
Trigeminal nerve ablation market: ~150k U.S. patients; same neurosurgeons performing brain ablations often perform facial pain procedures—logical cross-sell into existing OneRF sites .
SCS program: targeting lower back pain (L3–S1) with larger-coverage electrode; chronic animal study ongoing; first-in-man targeted early 2026 if positive .
2026 outlook: no public forecast yet; confidence underpinned by Zimmer minimum purchase commitments embedded in the amended contract .

Estimates Context

Q3 FY2025: Revenue $1.70M vs $1.82M consensus* (miss); EPS $(0.03) vs $(0.05) consensus* (beat). Coverage was one estimate for both metrics*. Values retrieved from S&P Global.
Q2 FY2025: Revenue $1.39M vs $1.27M consensus* (beat); EPS $(0.07) vs $(0.09) consensus* (beat). Values retrieved from S&P Global.

Key Takeaways for Investors

Margin story intact and strengthened: FY2025 product gross margin raised to 50–53%; Q3 delivered 53.9% as scale and cost actions flow through .
Revenue ramp progressing with OneRF rollout; near-term incremental catalyst from newly cleared trigeminal nerve indication with limited launch in Q4 CY2025 .
Platform expansion (SCS, drug delivery) broadens optionality; early external validation via biopharma order supports longer-term TAM expansion .
Funding runway extended through at least FY2026 and zero debt reduce financing overhang; execution focus shifts to commercialization milestones .
Estimate dynamics: thin coverage implies higher volatility around prints; Q3’s EPS beat vs a small revenue miss underscores emerging operating leverage*. Values retrieved from S&P Global.
Watch list: pace of OneRF center adds/usage, ISO 13485 progress for OUS entry, Zimmer channel productivity, and 2026 color tied to Zimmer minimums and potential additional partnerships .

Appendix: Additional Source Documents

Q3 FY2025 8-K and press release with full financials and guidance .
Q3 FY2025 earnings call transcript (prepared remarks and Q&A) .
Q2 FY2025 8-K press release with prior-quarter financials and guidance .
Q1 FY2025 8-K press release with first-quarter financials and operational progress .
FDA 510(k) clearance press release for OneRF Trigeminal Nerve Ablation (Aug 18, 2025) .

NEUROONE MEDICAL TECHNOLOGIES Corp (NMTC)·Q3 2025 Earnings Summary