Third quarter 2026
Filed Nov 4, 2026Third quarter 2026 net sales of $9.7 million, an increase of 12% over $8.7 million in the third quarter of 2025; net loss of $1.3 million decreased 61% from prior year.
Net sales, gross profit and gross margin increased, while GAAP net loss and Adjusted EBITDA net loss improved materially. The company also raised its full-year revenue outlook to $39 million to $42 million, although liquidity declined and the company disclosed going-concern, financing, regulatory and operating-covenant risks.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $9.69M | – | approximately 12% |
| Cost of goods sold, three months ended September 30GAAP | 1,117 | – | – |
| Gross profit, three months ended September 30GAAP | 8,573 | – | $1.1 million |
| Gross margin, three months ended September 30GAAP | 88.5% | – | – |
| Research and development expense, three months ended September 30GAAP | 431 | – | – |
| Selling, general and administrative expense, three months ended September 30GAAP | 9,698 | – | – |
| Total operating expenses, three months ended September 30GAAP | 10,129 | – | – |
| Loss from operations, three months ended September 30GAAP | (1,556) | – | – |
| Interest and other income, three months ended September 30GAAP | (465) | – | – |
| Interest expense, three months ended September 30GAAP | 370 | – | – |
| Other expense, three months ended September 30GAAP | 4 | – | – |
| Total other expense, three months ended September 30GAAP | (91) | – | – |
| Loss before income taxes, three months ended September 30GAAP | (1,465) | – | – |
| Benefit from income taxes, three months ended September 30GAAP | 126 | – | – |
| Net loss, three months ended September 30GAAP | −$1.34M | – | 61% |
| Net loss per share of common stock – Basic and Diluted, three months ended September 30GAAP | $ (0.13) | – | – |
| Weighted average common shares outstanding – Basic and Diluted, three months ended September 30GAAP | 9,954 | – | – |
| Adjusted EBITDA net loss, three months ended September 30non-GAAP | −$680K | – | 67% |
| Net sales, nine months ended September 30GAAP | $28.72M | – | – |
| Cost of goods sold, nine months ended September 30GAAP | 3,610 | – | – |
| Gross profit, nine months ended September 30GAAP | 25,114 | – | – |
| Research and development expense, nine months ended September 30GAAP | 1,989 | – | – |
| Selling, general and administrative expense, nine months ended September 30GAAP | 32,769 | – | – |
| Total operating expenses, nine months ended September 30GAAP | 34,758 | – | – |
| Loss from operations, nine months ended September 30GAAP | (9,644) | – | – |
| Interest and other income, nine months ended September 30GAAP | (557) | – | – |
| Interest expense, nine months ended September 30GAAP | 1,009 | – | – |
| Other expense, nine months ended September 30GAAP | 20 | – | – |
| Total other expense, nine months ended September 30GAAP | 472 | – | – |
| Loss before income taxes, nine months ended September 30GAAP | (10,116) | – | – |
| Benefit from income taxes, nine months ended September 30GAAP | 447 | – | – |
| Net loss, nine months ended September 30GAAP | −$9.67M | – | – |
| Net loss per share of common stock – Basic and Diluted, nine months ended September 30GAAP | $ (1.02) | – | – |
| Weighted average common shares outstanding – Basic and Diluted, nine months ended September 30GAAP | 9,441 | – | – |
| Adjusted EBITDA net loss, nine months ended September 30non-GAAP | −$4.76M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| United States – Rx, three months ended September 30Continued growth in U.S. prescription sales in the U.S. Department of Veterans Affairs. | $7.95M | – | approximately 25% |
| General Wellness, three months ended September 30The company shifted during the quarter to de-emphasize low-return revenue in its consumer channel. | 1.04M | – | – |
| Outside the United States, three months ended September 30 | 521 | – | – |
| TAC-STIM, three months ended September 30 | 133 | – | – |
| In-License / Other, three months ended September 30 | 40 | – | – |
| United States – Rx, nine months ended September 30The VA continued to be the company’s largest growth driver. | $22.82M | – | 34% |
| General Wellness, nine months ended September 30 | 3.94M | – | – |
| Outside the United States, nine months ended September 30 | 1.53M | – | – |
| TAC-STIM, nine months ended September 30 | 360 | – | – |
| In-License / Other, nine months ended September 30 | 80 | – | – |
| Quell product line, third quarter of 2026Quell was acquired in May 2025 as part of the acquisition of NeuroMetrix, Inc. | $1.2M | – | approximately 102% |
| Quell Fibromyalgia sold into the VA, three months ending September 30, 2026VA channel growth. | approximately $1.1 million | – | approximately 111% |
| Quell Fibromyalgia sold into the VA, nine months ending September 30, 2026VA channel growth. | $3.4M | – | 391% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 and Select 2027 Outlook outlook
- RevenueFull-year 2026 revenue outlook: $39 million to $42 million
- NotePreliminary 2027 revenue guidance: 30% to 40% revenue growth over full year 2026 revenue
- NoteExpects to achieve its first quarter with positive Adjusted EBITDA by the end of 2027
What drove it
- The $1.0 million increase in net sales was primarily driven by Quell Fibromyalgia products acquired from NURO in May 2025 and Rx gammaCore sold to the VA.
- Gross-margin expansion was primarily due to a favorable product mix.
- Research and development expense decreased primarily due to the timing of open positions, professional fees and development costs.
- Sales and marketing increased $0.3 million primarily to support the $1.0 million increase in net sales, while general and administrative expense decreased $0.2 million primarily from lower professional fees.
- GAAP net loss improved with higher gross profit, a modest decrease in total operating expenses, an approximately $0.4 million gain related to settlement of indemnification claims, and a $0.1 million income-tax benefit.
- Return on advertising spend improved 8% in third quarter 2026 over the same period in 2025.
- Beginning in August 2026, the company transitioned all prescription product sales to the VA and Department of Defense through the Lovell distribution agreement.
Concerns
- The company reported total stockholders’ deficit of (2,508) (in thousands) at September 30, 2026.
- The company disclosed risks regarding its ability to continue as a going concern and raise additional capital.
- The company disclosed that its Loan and Security Agreement with Avenue requires it to meet operating covenants and restricts operating and financial flexibility.
- The company disclosed risk that expected cost savings from the revised sales incentive compensation structure and the Lovell arrangement may not materialize.
- Quell CIPN label expansion remains subject to FDA clearance, and the company disclosed FDA Form 483 and potential warning-letter or regulatory-action risks.
- The company disclosed risks associated with leadership changes and with attracting, retaining, training and ramping its sales force.
What to watch
- Execution against the revised full-year 2026 revenue outlook of $39 million to $42 million.
- The expansion and productivity of representatives selling gammaCore and Quell into VA accounts.
- The effect of moving VA and Department of Defense prescription sales through Lovell, including the expected reduction of approximately 3% of general and administrative expense in transaction fees.
- FDA action on the October 2026 510(k) premarket notification for Quell for chronic chemotherapy-induced peripheral neuropathy.
- Progress toward the company's expectation of its first quarter with positive Adjusted EBITDA by the end of 2027.
- Liquidity, additional-capital needs and compliance with Avenue operating covenants.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 6,306 (in thousands); December 31, 2025: $ 7,035 (in thousands)
- Marketable securities at September 30, 2026: 1,196 (in thousands); December 31, 2025: 4,576 (in thousands)
- Total cash, cash equivalents, and marketable securities at September 30, 2026: approximately $7.5 million; December 31, 2025: approximately $11.6 million
- Total assets at September 30, 2026: 17,258 (in thousands); December 31, 2025: 18,667 (in thousands)
- Current liabilities at September 30, 2026: 10,780 (in thousands); December 31, 2025: 11,348 (in thousands)
- Total liabilities at September 30, 2026: 19,766 (in thousands); December 31, 2025: 20,376 (in thousands)
- Total stockholders’ deficit at September 30, 2026: (2,508) (in thousands); December 31, 2025: (1,709) (in thousands)
Analysis
electroCore reported third-quarter net sales of $9.7 million, compared with $8.7 million in the prior-year period. The release attributed the $1.0 million increase primarily to Quell Fibromyalgia products acquired from NURO in May 2025 and Rx gammaCore sales to the VA. United States Rx revenue was $7,952 (in thousands), and the company said U.S. Rx revenue grew approximately 25% in the quarter. Quell product-line sales were $1.2 million and grew approximately 102%.
Profitability improved materially. Gross profit was 8,573 (in thousands), compared with 7,470 (in thousands), and gross margin increased to 88.5% from 86.0%, primarily due to favorable product mix. Total operating expenses declined to 10,129 (in thousands) from 10,354 (in thousands), with lower research and development expense and lower general and administrative expense partially offset by a $0.3 million increase in sales and marketing. Loss from operations was (1,556) (in thousands), versus (2,884) (in thousands).
GAAP net loss was $ (1,339) (in thousands), compared with $ (3,405) (in thousands), and net loss per diluted share was $ (0.13), compared with $ (0.40). Beyond improved gross profit and lower operating expenses, the release identified an approximately $0.4 million indemnification-claims settlement gain within interest and other income and a $0.1 million income-tax benefit as contributors to the improvement. Non-GAAP Adjusted EBITDA net loss was $ (680) (in thousands), compared with $ (2,043) (in thousands).
Commercial execution remained centered on the VA. Approximately 17,700 VA patients have received a gammaCore device, representing approximately 3.0% penetration of the estimated addressable VA headache market. The company said orders flowing through Lovell increased from 57% in June 2026 to 91% by the end of September 30, 2026. It expects the procurement transition to reduce approximately 3% of general and administrative expense in transaction fees associated with direct sales. The company also reported that return on advertising spend improved 8% year over year while it de-emphasized low-return consumer-channel revenue.
The company revised its full-year 2026 revenue outlook to $39 million to $42 million and introduced preliminary 2027 revenue growth guidance of 30% to 40% over full-year 2026 revenue. It also expects its first quarter with positive Adjusted EBITDA by the end of 2027. Balance-sheet attention remains important: total cash, cash equivalents and marketable securities were approximately $7.5 million at September 30, 2026, compared with approximately $11.6 million at December 31, 2025, while total stockholders’ deficit was (2,508) (in thousands).
Management, verbatim
This quarter reflects the early stages of a more efficient commercial organization.
Joshua Lev, Co-Chief Executive Officer, President, and Chief Financial Officer
This quarter we delivered record net sales of $9.7 million, up approximately 12% from a year ago, while spending less to do it, leading to the lowest operating loss in our history.
Joshua Lev, Co-Chief Executive Officer, President, and Chief Financial Officer
We are deliberately prioritizing profitable, sustainable long-term growth over short-term results, which underpins our confidence in accelerating revenue growth and an inflection point in positive Adjusted EBITDA in 2027.
Joshua Lev, Co-Chief Executive Officer, President, and Chief Financial Officer
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Capital expenditures
- Debt balance
- Share repurchases
- Dividends
- Quarterly sequential comparisons for financial-statement metrics
- Full-year 2026 gross margin guidance
- Full-year 2026 operating-expense guidance
- Full-year 2026 tax-rate guidance
- Previous-release outlook needed for versus-prior-guidance comparisons
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.