electroCore (ECOR 3.25%), a medical device company focused on non-invasive bioelectronic therapies, released its second quarter 2025 financial results on August 6, 2025. The release showed GAAP quarterly revenue of $7.381 million, narrowly surpassing analyst expectations of $7.24925 million (GAAP), and a record for the company. However, the GAAP net loss per share was $0.44, wider than the expected GAAP loss of $0.325 per share. Higher operating costs, notably in sales, marketing, and bad debt provisions, contributed to the GAAP earnings miss. While the period set a new high for GAAP net sales, rising costs and continued dependence on government contracts present ongoing challenges.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.44) | ($0.33) | ($0.38) | 15.8% |
| Revenue (GAAP) | $7.4 million | N/A | $6.1 million | 21% |
| Gross Profit | $6.4 million | $5.3 million | 20.8% | |
| Adjusted EBITDA Net Loss | ($2.4 million) | ($1.9 million) | (26.3%) | |
| Cash, Cash Equivalents & Marketable Securities | $7.4 million(as of June 30, 2025) | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
electroCore specializes in non-invasive neuromodulation devices for chronic pain syndromes. Its flagship product, gammaCore, is a handheld vagus nerve stimulator designed to reduce symptoms of headache and migraine, and is cleared by the United States Food and Drug Administration (FDA) for multiple indications.
Revenue is highly concentrated in the government sector through the Department of Veterans Affairs (VA) and related federal contracts, together accounting for 70.6% of 2024 sales. The company is expanding its product mix, most recently with the acquisition of the NeuroMetrix Quell line (pain management devices for fibromyalgia and other nerve pain). It continues to develop consumer-focused wellness products, such as Truvaga (a general wellness device for stress and sleep) and TAC-STIM (targeted at performance and relaxation). Key to future success are securing and maintaining federal contracts, diversifying into new commercial and direct-to-consumer channels, and sustaining innovation through research and development.
Quarter Highlights and Financial Developments
The company delivered record GAAP revenue of $7.4 million in Q2 2025, up 20% year-over-year (GAAP) and slightly ahead of consensus estimates (GAAP revenue). VA business grew 13% year-over-year (GAAP), recovering after a slowdown and aided by the renewal of the Federal Supply Schedule contract for another five years. This renewal adds a measure of revenue stability, as the new FSS contract is effective for at least five years through 2030.
Total revenue from Truvaga, the direct-to-consumer wellness device, was $994,000 (GAAP). This represented $994,000 for the three months ended June 30, 2025, up 74% from the prior year quarter. Commercial uptake of gammaCore outside of the VA was softer: U.S. non-VA sales dropped 17% to $394,000 as some customers shifted from prescription purchases to the Truvaga brand. International revenue (GAAP) held nearly flat. In the military wellness space, TAC-STIM sales rose 229% year over year, although this line still contributed under $200,000 and remains variable.
The integration of the Quell pain management portfolio, gained through the recent NeuroMetrix acquisition, was completed ahead of schedule. Rx Quell products for the VA channel contributed $114,000, with another $48,000 coming from early commercial sales. While still in early launch stages, these products are expected to increase their impact across coming quarters as production shifts to electroCore facilities.
Gross margins (GAAP) remained high at 87%, reflecting effective pricing and product cost management. Still, costs grew: Selling, General, and Administrative expenses (GAAP) reached $9.4 million, including a $548,000 bad debt charge linked to TAC-STIM and stepped-up marketing and expansion efforts. Research and development spending was $511,000, lower than the prior year due to timing but expected to rise in the second half of 2025. Management reports that increased investment will target product pipeline progression and pending regulatory applications, such as an FDA indication for post-traumatic stress disorder (PTSD).
Product Portfolio and Channel Details
gammaCore, a non-invasive vagus nerve stimulator for headache and migraine, continues to anchor VA sales. Within commercial prescription channels, sales declined as certain patients opted for Truvaga, a handheld device positioned for wellness and stress support sold direct to consumers. Truvaga revenue nearly tripled year-over-year in Q1 2025, supported by new distribution on platforms such as Amazon and growing digital marketing spend. Company reports indicate most Truvaga purchases are now made through its own online store, but affiliate, influencer, and business-to-business experiments are ongoing.
Quell, recently acquired from NeuroMetrix, includes both prescription products targeting fibromyalgia and over-the-counter options for nerve pain.
TAC-STIM, a wellness device marketed for performance and alertness, contributed a small but variable revenue stream, particularly in military trials and pilot deployments. A major contract loss or slowdown in federal purchasing could impact this stream, and the company highlighted the lumpy and unpredictable nature of orders in this category. A significant one-time bad debt charge related to TAC-STIM weighed on profitability, underlining the risks of expanding into new procurement markets.
Across product groups, the pipeline is supported by a patent portfolio of more than 215 active filings. While no negative regulatory actions were reported, new indications are pending. Company investment in research and development is set to increase, focusing on broadening device applications and supporting new market launches.
Outlook and Upcoming Drivers
Management projects full-year 2025 revenue of approximately $30.0 million and expects cash use for the remainder of 2025 to be in the $3.9 million to $4.4 million range. The $7.2 million raised via term debt after quarter-end (August 4, 2025) has improved short-term liquidity, offsetting the decline in cash balances. No guidance was issued on segment or product-level revenue, margin trends, or timeframes to profit and cash flow break-even, though management noted that meaningful positive cash flow would require further scaling of revenue beyond current levels, modeling that the business could be cash neutral with quarterly revenue of about $9 million, compared to $6.7 million reported for Q1 2025.
Investors will want to monitor sales growth in new channels like direct-to-consumer Truvaga and commercial Quell. Progress in regulatory clearance for new indications, especially PTSD, could open valuable new markets if approvals are achieved in a timely manner. Cash levels continue to require attention, as ongoing net losses and high operating expense place a premium on controlling costs and ramping commercial adoption.
ECOR does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
