electroCore (NASDAQ:ECOR) Issues Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• electroCore beat quarterly EPS estimates, reporting a loss of $0.33 per share versus the expected $0.42 loss, while revenue reached $9.45 million, slightly below forecasts.
• Revenue grew 28% year over year to about $9.5 million, led by Quell, gammaCore and Truvaga. Management raised 2026 revenue-growth guidance to more than 30% and expects a path to positive adjusted EBITDA in the third quarter of 2027 without a dilutive equity raise.
• Quell sales surged roughly 700% to $1.3 million, but competition and higher advertising costs are pressuring Truvaga, while FDA observations may delay a Quell rebrand and direct-to-consumer relaunch. Shares rose 20.7% to $8.09 following the results.

electroCore (NASDAQ:ECOR - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.33) earnings per share for the quarter, topping the consensus estimate of ($0.42) by $0.09, FiscalAI reports. electroCore had a negative net margin of 39.96% and a negative return on equity of 1,956.38%. The firm had revenue of $9.45 million for the quarter, compared to analysts' expectations of $9.49 million.

Here are the key takeaways from electroCore's conference call:

• Revenue grew 28% year over year to $9.5 million, driven by VA prescription sales of gammaCore and Quell, along with Truvaga growth. Management raised 2026 revenue guidance to more than 30% growth.
• Operating performance improved, with GAAP net loss narrowing to $3.1 million and adjusted EBITDA loss improving 26% year over year to $1.8 million. Management believes the commercial restructuring creates a path to positive adjusted EBITDA in the third quarter of 2027 without a dilutive equity raise.
• Quell was a major growth driver, with second-quarter sales up approximately 700% year over year to $1.3 million. The company is expanding Quell utilization across existing VA accounts and is targeting an FDA submission by year-end for chemotherapy-induced peripheral neuropathy.
• electroCore doubled its sales regions, added 17 independent representatives covering 29 VA medical centers, and is expanding into the Department of Defense, federal workers’ compensation, first responders, and other federal channels. Moving federal supply schedule sales to Lovell Government Services is expected to reduce related costs by roughly 3% of general and administrative expenses and transaction fees.
• Truvaga faced rising competition and advertising costs, with direct cost per click increasing roughly 30% and media efficiency declining. In addition, FDA observations regarding patient-complaint processes will delay a potential Quell 2.0 rebrand and direct-to-consumer relaunch, while VA account concentration remains a risk after a facility staffing issue shifted approximately $145,000 of revenue into the third quarter.

electroCore Stock Up 20.7%

Shares of NASDAQ:ECOR traded up $1.39 during trading on Friday, reaching $8.09. 213,989 shares of the company traded hands, compared to its average volume of 67,392. The firm has a fifty day simple moving average of $7.69 and a 200 day simple moving average of $6.99. The firm has a market cap of $72.97 million, a P/E ratio of -4.87 and a beta of 0.92. electroCore has a 1-year low of $4.16 and a 1-year high of $10.49.

Insiders Place Their Bets

In related news, Director Thomas J. Errico purchased 9,992 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were acquired at an average cost of $5.99 per share, with a total value of $59,852.08. Following the completion of the purchase, the director owned 360,071 shares of the company's stock, valued at $2,156,825.29. The trade was a 2.85% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Joshua S. Lev sold 6,667 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $9.00, for a total value of $60,003.00. Following the sale, the chief financial officer owned 84,889 shares of the company's stock, valued at approximately $764,001. This represents a 7.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 7.80% of the company's stock.

Institutional Investors Weigh In On electroCore

Large investors have recently made changes to their positions in the company. NewEdge Advisors LLC raised its holdings in electroCore by 857.9% during the first quarter. NewEdge Advisors LLC now owns 161,955 shares of the company's stock valued at $1,083,000 after buying an additional 145,047 shares in the last quarter. DRW Securities LLC acquired a new stake in shares of electroCore in the fourth quarter worth about $264,000. Cubist Systematic Strategies LLC bought a new stake in shares of electroCore during the 1st quarter worth about $153,000. Jane Street Group LLC boosted its stake in shares of electroCore by 114.4% during the 1st quarter. Jane Street Group LLC now owns 36,726 shares of the company's stock worth $246,000 after acquiring an additional 19,599 shares in the last quarter. Finally, Two Sigma Investments LP boosted its stake in shares of electroCore by 20.8% during the 3rd quarter. Two Sigma Investments LP now owns 24,603 shares of the company's stock worth $122,000 after acquiring an additional 4,231 shares in the last quarter. Institutional investors own 26.74% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of electroCore in a research report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, electroCore currently has an average rating of "Hold" and a consensus target price of $18.00.

electroCore Company Profile

electroCore, Inc is a commercial-stage bioelectronic medicine company headquartered in Rockaway, New Jersey. The company specializes in the development and commercialization of non-invasive vagus nerve stimulation (nVNS) therapies designed to address a variety of neurological and inflammatory conditions. Established in 2006, electroCore has focused its efforts on translating neuromodulation science into a compact, patient-administered treatment device.

The company's lead product, gammaCore®, is a handheld, battery-powered device that delivers nVNS through the skin to the cervical branch of the vagus nerve.

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