Nexalin Technology (NXL) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 increased 163% year-over-year to $70,588, driven by a large shipment to China and ongoing licensing/treatment fees; six-month revenue rose 6% to $111,603.

• Operating loss for Q2 2025 was $1.62 million, up 25% year-over-year; net loss for the quarter was $1.58 million, or $(0.10) per share.

• Cash and cash equivalents at June 30, 2025 were $431,320, with $5.36 million in short-term investments; accumulated deficit reached $88.2 million.

• The company continues to focus on regulatory approval and commercialization of Gen-2 SYNC and Gen-3 HALO neurostimulation devices in the U.S. and internationally.

Financial highlights

• Gross profit for Q2 2025 was $47,750 (68% margin), compared to $19,593 (73%) in Q2 2024; six-month gross profit was $75,207 (67% margin).

• Operating expenses for Q2 2025 rose 27% year-over-year to $1.67 million, mainly due to higher stock-based compensation, R&D, and SG&A.

• Other income for Q2 2025 was $39,871, up from $13,819, primarily from gains on short-term investments.

• Net cash used in operations for the first half of 2025 was $2.34 million; net cash provided by financing activities was $4.65 million from equity sales.

Outlook and guidance

• Management expects continued operating losses and negative cash flows as development and regulatory activities continue through 2025 and beyond.

• The company’s ability to continue as a going concern depends on generating revenue from joint ventures and obtaining U.S. regulatory approval, or raising additional capital.