electroCore (ECOR) investor relations material

Executive summary

• Achieved record Q3 2025 net sales of $8.7 million, up 33% year-over-year, driven by VA channel growth, wellness product expansion, and the successful integration of the Quell Fibromyalgia/NURO acquisition.

• Gross margin improved to 86% from 84% in Q3 2024, reflecting favorable product mix and operational efficiency.

• Strategic focus shifted to long-term growth, prioritizing investments in product expansion, sales, marketing, and AI-driven wellness applications.

• Board expanded with expertise from Microsoft and Google; royalty-based partnership for China commercialization established with no capital outlay.

• Operating expenses increased due to higher investment in sales, marketing, R&D, and professional fees.

Financial highlights

• Q3 2025 net sales were $8.7 million (up from $6.6 million in Q3 2024); nine-month sales reached $22.8 million.

• Gross profit for Q3 2025 was $7.5 million (86% margin), up from $5.5 million (84% margin) in Q3 2024.

• Adjusted EBITDA net loss was $2 million, an improvement from $2.1 million loss last year; GAAP net loss was $3.4 million ($0.40/share), up from $2.5 million ($0.31/share) due to acquisition-related expenses and interest.

• Cash balance at quarter-end was $13.2 million, with a forecast of $10.5 million at year-end 2025.

• Operating expenses for Q3 2025 were $10.4 million, up from $8.1 million in Q3 2024.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $31.5–$32.5 million.

• Positive adjusted EBITDA expected in the second half of 2026, requiring $12 million in quarterly revenue.

• Q4 2025 net cash usage expected between $2.0 and $2.5 million; about $5 million in cash expected to be used in the first nine months of 2026 before operations become self-funding.

• Management believes current liquidity is sufficient to fund operations for at least the next 12 months, but significant risks and uncertainties remain.