electroCore Targets 2027 EBITDA Profit as VA, Quell and CIPN Opportunities Expand

Key Points

• electroCore is targeting adjusted EBITDA profitability in the second half of 2027 while seeking to reduce sales and marketing costs to 40%–50% of revenue. The company reported approximately $32 million in 2025 revenue and a $40 million annualized run rate in the first half of 2026.
• The company plans to expand beyond its VA customer base into federal workers’ compensation, active-duty military facilities and TRICARE. Its gammaCore device currently reaches only about 3% of the estimated 600,000-patient VA headache population, indicating substantial expansion potential.
• Quell revenue rose to about $1.3 million in the most recent quarter after being integrated into the VA sales force, and electroCore has filed for FDA clearance to use it for chemotherapy-induced peripheral neuropathy. If approved, Quell could become the only device or pharmaceutical specifically indicated for CIPN.

Joshua Lev, co-CEO, president and CFO of electroCore NASDAQ: ECOR, said the commercial-stage bioelectronic health and wellness company is seeking to broaden its federal-market presence, expand product indications and reach adjusted EBITDA profitability in the second half of 2027.

Speaking at an investor conference, Lev said electroCore markets both prescription medical devices and general wellness products built around bioelectronic technologies. Its principal prescription device, gammaCore, is a handheld, non-invasive vagus nerve stimulation device cleared by the FDA for several primary headache indications, including migraine and cluster headache.

Lev said the company has grown revenue at a compounded annual rate of roughly 50% over the past five years, reaching approximately $32 million in full-year 2025 revenue. Revenue totaled $19 million during the first half of 2026, which he characterized as an annualized run rate of about $40 million. Gross margins have increased from the low-70% range to the mid- to high-80% range, he added.

Federal-market expansion

About 70% of electroCore’s revenue currently comes from the Department of Veterans Affairs, according to Lev. He said the company added Mike Fox as co-CEO and chief operating officer in April 2026 following the retirement of its former CEO. Fox has experience commercializing medical devices and selling into federal markets, Lev said.

The company aims to expand beyond the VA into federal workers’ compensation, active-duty military medical facilities and TRICARE. Lev said gammaCore’s non-pharmaceutical and non-opioid profile has been important to its VA sales efforts.

ElectroCore has sold products to about 150 of the roughly 170 VA Medical Centers that have their own budgets, Lev said. However, he estimated that the company has reached only about 3% of an approximately 600,000-patient VA headache population. He said the VA market is fragmented, with about 1,300 locations involved in prescribing, and projected that electroCore could make a “significant dent” in the market over the next two years.

Lev also pointed to Kaiser Permanente, where electroCore secured formulary and contract access in late 2025. He said Kaiser Permanente covers 12.5 million lives, compared with 9.5 million covered lives in the VA system.

Quell growth and CIPN filing

In May 2025, electroCore acquired NeuroMetrix and its Quell Fibromyalgia device. Lev described Quell as an FDA-approved fibromyalgia product that uses a closed-loop form of transcutaneous electrical nerve stimulation, rather than vagus nerve stimulation.

At the time of the acquisition, Quell generated about $50,000 per month in revenue, Lev said. After electroCore placed the product with its VA sales force, the business grew by approximately 30% sequentially and produced about $1.3 million in revenue during the most recent quarter, according to Lev. The company currently sells Quell into roughly 30% of its accounts, leaving more than 70 accounts not yet reached, he said.

ElectroCore also announced that it filed a 510(k) submission with the FDA for Quell in chemotherapy-induced peripheral neuropathy, or CIPN. Lev said the company previously received Breakthrough Device Designation for the indication and initially submitted a De Novo application. The FDA advised the company to pursue the 510(k) pathway instead, he said.

Lev said no product, device or pharmaceutical is currently indicated specifically for CIPN. He estimated that approximately 500,000 to 700,000 people in the U.S. could experience the condition annually, including an estimated 15,000 to 20,000 patients in the VA system. If cleared, he said Quell would be the only device or pharmaceutical specifically approved for the indication.

Wellness and military products

The company also sells Truvaga, a direct-to-consumer general wellness device marketed for sleep, relaxation and stress support. Lev said electroCore generated approximately $2.4 million from Truvaga in 2024 and about $5 million in 2025. The company intends to pursue more profitable growth in that business rather than maximize its growth rate, as its contribution margins are lower than those of the medical-device business, he said.

ElectroCore’s TAC-STIM product was developed with the Air Force Research Laboratory for active-duty military use in cognitive enhancement and human performance. Lev said the product is a military-specification version of the company’s wellness technology and is designed to be durable and simple to operate.

Lev cited studies involving drone pilots and Defense Language Institute participants that examined non-invasive vagus nerve stimulation. He said the studies suggested improvements in sleep, mood, target identification duration, language learning and retention, though he did not provide additional study details.

Profitability target and capital position

ElectroCore’s strategic priorities include new product indications, commercial diversification and operating efficiency, Lev said. The company aims to reduce sales and marketing expenses from about 60% of revenue to a range of 40% to 50%, which he described as more typical for companies in its sector.

When asked about breakeven, Lev reiterated the company’s target of becoming adjusted EBITDA positive in the second half of 2027. He said electroCore was not currently seeking capital and had approximately $7.5 million of debt that is scheduled to begin amortizing in March 2027.

About electroCore (NASDAQ:ECOR)

electroCore, Inc NASDAQ: ECOR is a commercial-stage medical device company focused on bioelectronic medicine and non-invasive vagus nerve stimulation (nVNS). Its technology is designed to stimulate the vagus nerve through the neck without requiring surgery or implanted components.

The company's primary prescription product is gammaCore, a handheld nVNS device used for the acute treatment of pain associated with migraine and episodic cluster headaches in adults. electroCore also markets consumer-oriented products, including Truvaga, a handheld vagus nerve stimulation device positioned for general wellness applications.

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