Exhibit
99.1
electroCore
Announces Third Quarter 2026 Financial Results
Third
quarter 2026 net sales of $9.7 million, an increase of 12% over $8.7 million in the third quarter of 2025
Net
loss of $1.3 million decreased 61% from prior year with Adjusted EBITDA net loss improving 67% from prior-year period
Company
to host a conference call and webcast today, November 4, 2026, at 4:30 pm EST
ROCKAWAY,
NJ, November 4, 2026 (GLOBE NEWSWIRE) — electroCore, Inc. (Nasdaq: ECOR) (“electroCore” or the “Company”),
a bioelectronic technology company, today announced financial results for the third quarter ended September 30, 2026. The Company reported
quarterly revenue of $9.7 million, an increase of approximately 12% year-over-year, driven by continued growth in U.S. prescription sales
in the U.S. Department of Veterans Affairs (“VA”), with GAAP net loss improving by $2.0 million to $1.3 million or 61% from
prior year and Adjusted EBITDA loss improving by nearly $1.4 million to $0.7 million or 67%, ahead of expectations.
“This
quarter reflects the early stages of a more efficient commercial organization,” said Joshua Lev, Co-Chief Executive Officer, President,
and Chief Financial Officer of electroCore. “This quarter we delivered record net sales of $9.7 million, up approximately 12% from
a year ago, while spending less to do it, leading to the lowest operating loss in our history. More importantly, we have evidence that
the transformation is working. We are deliberately prioritizing profitable, sustainable long-term growth over short-term results, which
underpins our confidence in accelerating revenue growth and an inflection point in positive Adjusted EBITDA in 2027.”
Recent
Operational Highlights
Record
Top Line and Bottom Line Performance
The
Company delivered record net sales of $9.7 million, up approximately 12% from a year ago, and the lowest operating loss in its history.
GAAP net loss improved by $2.0 million to $1.3 million or 61% from prior year and Adjusted EBITDA loss improved by nearly $1.4 million
to $0.7 million or 67%, ahead of expectations.
Veterans
Affairs Channel Continues to Drive Prescription Growth
The
VA continued to be the Company’s largest growth driver in the third quarter. U.S. Prescription (Rx) revenue grew approximately
25% in the third quarter and 34% in the first nine months over the same periods last year. Approximately 17,700 VA patients have received
a gammaCore device, representing approximately 3.0% penetration of the estimated addressable VA headache market. Sales of the Quell product
line were $1.2 million in the third quarter of 2026, growing approximately 102% and approximately 369% in the first nine months of 2026
over the comparable periods in 2025. Quell was acquired in May 2025 as part of the acquisition of NeuroMetrix, Inc. Revenue from Quell
Fibromyalgia sold into the VA was approximately $1.1 million and $3.4 million for the three months and nine months ending September 30,
2026, respectively, representing approximately 111% and 391% increases over the comparable periods in 2025.
Continued
Focus on Truvaga Efficiency
The
Company made a deliberate shift in the quarter to de-emphasize low-return revenue in our consumer channel and continued making meaningful
improvements in marketing efficiency despite a more competitive and costly advertising environment. Return on advertising spend improved
8% in third quarter 2026 over the same period in 2025, demonstrating our strategic shift in the second quarter of 2026 to allocate spending
toward higher-converting audiences and channels, prioritizing efficiency over broader awareness and prospecting.
Early
Signs of a More Productive Commercial Channel
The
Company continues making structural changes to the commercial organization. The Company has identified and hired new sales leadership,
filling out sales management in two Area Vice Presidents across the country, as well as two new Regional Sales Directors in October with
a third soon to follow. We currently expect these to be the last material changes to the commercial organization as part of the Company’s
executive leadership transformation, promoting greater accountability in smaller geographic territories, while supporting a more efficient
cost structure.
Early
signs of the newly trained representatives have been promising. Since June, the representatives we added have averaged approximately
$210,000 a month in VA revenue in Q3’26, a 30% increase versus the $160,000 a month those territories produced before. Their September
2026 revenue was 62% higher than June 2026. New patient starts per account have increased to 3.4 per account by month three for the newly
added 1099s due to the leadership change, as compared to 0.3 from the previously onboarded 1099s.
The
distribution of new accounts and depth of new accounts is expected to support revenue diversification. In June 2026, our top 15 VA accounts
made up 54% of VA revenue, decreasing to 51% in the third quarter of 2026. During the same period, our top 30 accounts made up 73% of
VA revenue, decreasing to 71% in the second and third quarters of 2026, respectively.
The
Company has shifted its direct sales to the VA from its federal supply schedule to sales through the distribution agreement with Lovell
Government Services (“Lovell”), and beginning in August 2026, the Company implemented a change to transition all prescription
product sales to the VA and Department of Defense through the Lovell distribution agreement. In June 2026, 57% of orders flowed through
Lovell, and by the end of September 30, 2026, that number increased to 91% of orders. This change simplified how the Company’s
products move through federal procurement is expected to reduce approximately 3% of general and administrative expense in transaction
fees associated with direct sales.
Beyond
the VA, the Company continued engagement within Kaiser Permanente Georgia and remains optimistic about the broader potential for Quell
Fibromyalgia.
Progress
Towards New Indications
In
October 2026, following a meeting with the FDA at which the FDA recommended that the Company submit a 510(k) premarket notification rather
than the De Novo classification request the FDA had previously recommended, the Company submitted a 510(k) premarket notification to
the FDA seeking clearance of Quell for the treatment of chronic chemotherapy-induced peripheral neuropathy (“CIPN”). The
submission represents the first step toward a potential new indication for Quell that, if cleared by the FDA, could open new call points
for Quell and expand the Company’s presence into the oncology market.
Third
Quarter 2026 Financial Results
For
the three months ended September 30, 2026, electroCore reported net sales of $9.7 million compared to $8.7 million during the same period
in 2025, an increase of approximately 12% over the prior year. The increase of $1.0 million was primarily driven by growth in net sales
of Quell Fibromyalgia products acquired from NURO in May 2025 and Rx gammaCore, which are sold to the VA. During the remainder of 2026,
the Company intends to generate the majority of its sales in the VA channel through the Company’s agreement with Lovell.
| | |
Three months ended
September 30, | |
| Channel: | |
2026 | | |
2025 | |
| United States – Rx | |
$ | 7,952 | | |
$ | 6,348 | |
| General Wellness | |
| 1,044 | | |
| 1,686 | |
| Outside the United States | |
| 521 | | |
| 450 | |
| TAC-STIM | |
| 133 | | |
| 183 | |
| In-License / Other | |
| 40 | | |
| 22 | |
| Total Net Sales | |
$ | 9,690 | | |
$ | 8,689 | |
| | |
Nine months ended
September 30, | |
| Channel: | |
2026 | | |
2025 | |
| United States – Rx | |
$ | 22,820 | | |
$ | 17,051 | |
| General Wellness | |
| 3,938 | | |
| 3,799 | |
| Outside the United States | |
| 1,526 | | |
| 1,418 | |
| TAC-STIM | |
| 360 | | |
| 454 | |
| In-License / Other | |
| 80 | | |
| 67 | |
| Total Net Sales | |
$ | 28,724 | | |
$ | 22,789 | |
Gross
profit increased by $1.1 million to $8.6 million for the three months ended September 30, 2026 compared to the three months ended September
30, 2025. The increase in gross profit is attributable to the increased net sales. Gross margin increased to 88.5% from 86.0% for the
three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase in gross margin was primarily
due to a favorable product mix.
Research
and development expense was $0.4 million in the third quarter of 2026, compared to $0.7 million in the third quarter of 2025. The decrease
was primarily due to the timing of open positions, professional fees and development costs.
Selling,
general and administrative expense was $9.7 million for the three months ended September 30, 2026, compared to $9.7 million in the prior
year period. Sales and marketing increased $0.3 million from the prior year primarily driven by expenses that supported the $1.0 million
increase in net sales.
General
and administrative expense decreased $0.2 million from the prior year. The decrease was primarily attributable to a reduction in professional
fees in the third quarter of 2026.
Total
operating expenses in the three months ended September 30, 2026 were $10.1 million, compared to $10.4 million in the three months ended
September 30, 2025.
GAAP
net loss in the third quarter of 2026 was $1.3 million, compared to $3.4 million in the third quarter of 2025. The decrease in GAAP net
loss was primarily attributed to higher gross profit associated with the increase in net sales, coupled with a modest decrease in total
operating expenses, a gain included in Interest and other income of approximately $0.4 million related to the settlement of claims for
indemnification, and $0.1 million benefit from income taxes which consisted of a favorable adjustment to our UK tax provision following
a change in our transfer pricing policy. Net loss per share for the third quarter of 2026 was $0.13, compared to $0.40 in the third quarter
of 2025.
Adjusted
EBITDA net loss in the third quarter of 2026 was $0.7 million, compared to an Adjusted EBITDA net loss of $2.0 million in the third quarter
of 2025, an improvement of approximately $1.4 million, or 67%, year-over-year.
Adjusted
EBITDA net loss is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measure” below for additional information
and a reconciliation to GAAP net loss.
Total
cash, cash equivalents, and marketable securities at September 30, 2026, was approximately $7.5 million, compared to approximately $11.6
million at December 31, 2025.
Full
Year 2026 and Select 2027 Outlook
The
Company is revising its full-year 2026 revenue outlook to a range of $39 million to $42 million, from its prior guidance of greater than
30% revenue growth.
The
Company is also introducing preliminary 2027 revenue guidance of 30% to 40% revenue growth over full year 2026 revenue and expects to
achieve its first quarter with positive Adjusted EBITDA by the end of 2027. This preliminary outlook reflects the Company’s expectations
regarding the continued expansion of representatives selling both gammaCore and Quell into VA accounts, improved accountability associated
with smaller territories, replicating operating leverage nationally, and potential label expansion of Quell for CIPN, which remains subject
to FDA clearance. The Company expects to refine this guidance range and provide additional commentary as appropriate in the future. A
reconciliation of forward-looking Adjusted EBITDA to the most directly comparable GAAP measure is not provided because the timing and
magnitude of certain reconciling items cannot be reasonably predicted without unreasonable effort.
Webcast
and Conference Call Information
electroCore’s
management team will host a webcast and conference call today, November 4, 2026, beginning at 4:30 PM EST.
Investors
interested in listening to the conference call, or webcast may dial 877-407-8835 for domestic callers or +1 201-689-8779 for international
callers, using Conference ID: 13763480, or click through the following webcast link.
An
archived webcast of the event will be available on the “Investors” section of the Company’s website at: www.electrocore.com.
About
electroCore, Inc.
electroCore,
Inc. and its subsidiaries (“electroCore” or the “Company”) is a bioelectronic technology company whose mission
is to improve health and quality of life through innovative non-invasive bioelectronic technologies. The Company’s leading prescription
products are gammaCore non-invasive vagus nerve stimulation, or nVNS, indicated for the treatment of primary headache conditions, and
Quell Fibromyalgia. The Company also commercializes its handheld and personal-use Truvaga and TAC-STIM™ nVNS products, which utilize
bioelectronic technologies to promote general wellness and human performance.
For
more information, visit www.electrocore.com.
Forward-Looking
Statements
This
press release and other written and oral statements made by representatives of electroCore may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to,
statements about, electroCore’s business prospects and clinical and product development plans; its pipeline or potential markets
for its technologies; the timing, outcome and impact of regulatory, clinical and commercial developments; business prospects around its
prescription gammaCore product, general wellness Truvaga and TAC-STIM products, Quell products, and other potential new products and
markets; the expansion and ramp-up of the Company’s salesforce; the ability to successfully hire, train and ramp up electroCore’s
sales force and achieve expected sales productivity, the timing and outcome of the 510(k) submission; the Company’s response to
FDA Form 483 correspondence; revenue guidance for the full year of 2026, a preliminary guidance range for full year 2027 revenue growth,
and select Adjusted EBITDA guidance for 2027; the Company’s ability to continue as a going concern; the Company’s ability
to raise additional capital; and the Company’s liquidity position, respectively, and other statements that are not historical in
nature, particularly those that utilize terminology such as “anticipates,” “will,” “expects,” “believes,”
“designed,” “intends,” and other words of similar meaning, derivations of such words and the use of future dates.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among
others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development
plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore, TAC-STIM,
Truvaga, and Quell, the risk the Company may not be able to maintain its listing on the Nasdaq Capital Market, the risk that expected
cost savings from the revised sales incentive compensation structure and the Lovell arrangement will not materialize, FDA regulatory
matters that may affect the Quell product line, including the risk that the FDA may not clear electroCore’s pending 510(k) submission
on a timely basis or at all, the risk that the FDA may not find electroCore’s response to the most recent Form 483 inspectional
observations adequate, which could result in a warning letter or other regulatory action, risks associated with ongoing leadership changes,
including management transitions and the ability to attract and retain key personnel, the terms of electroCore’s Loan and Security
Agreement with Avenue, which require electroCore to meet certain operating covenants and place certain restrictions on its operating
and financial flexibility, the risk that the terms of any new debt financing could further restrict electroCore’s ability to operate
its business, electroCore’s results of operations and financial performance, the inherent uncertainty in forecasting future revenue
and Adjusted EBITDA net loss, including the amount and timing of items excluded from that measure; changes to the Company’s non-GAAP
financial measures or their calculation, which could affect period-to-period comparability and the timing of the Company’s achievement
of positive Adjusted EBITDA, inflation and currency fluctuations, and any expectations electroCore may have with respect thereto, competition
in the industry in which electroCore operates and overall economic and market conditions. Any forward-looking statements are made as
of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons
why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult
all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents
electroCore files with the SEC available at www.sec.gov including its Quarterly Report on Form 10-Q and Annual Report on Form 10-K.
Contact
ECOR
Investor Relations
(973)
302-9253
investors@electrocore.com
ELECTROCORE,
INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of Operations
(unaudited)
(in
thousands, except per share data)
| | |
Three Months Ended September 30, | | |
Nine Months Ended September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Net sales | |
$ | 9,690 | | |
$ | 8,689 | | |
$ | 28,724 | | |
$ | 22,789 | |
| Cost of goods sold | |
| 1,117 | | |
| 1,219 | | |
| 3,610 | | |
| 3,171 | |
| Gross profit | |
| 8,573 | | |
| 7,470 | | |
| 25,114 | | |
| 19,618 | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | |
| Research and development | |
| 431 | | |
| 662 | | |
| 1,989 | | |
| 1,815 | |
| Selling, general and administrative | |
| 9,698 | | |
| 9,692 | | |
| 32,769 | | |
| 28,015 | |
| Total operating expenses | |
| 10,129 | | |
| 10,354 | | |
| 34,758 | | |
| 29,830 | |
| Loss from operations | |
| (1,556 | ) | |
| (2,884 | ) | |
| (9,644 | ) | |
| (10,212 | ) |
| Other (income) expense: | |
| | | |
| | | |
| | | |
| | |
| Interest and other income | |
| (465 | ) | |
| (62 | ) | |
| (557 | ) | |
| (213 | ) |
| Interest expense | |
| 370 | | |
| 208 | | |
| 1,009 | | |
| 218 | |
| Other expense | |
| 4 | | |
| 375 | | |
| 20 | | |
| 762 | |
| Total other expense | |
| (91 | ) | |
| 521 | | |
| 472 | | |
| 767 | |
| Loss before income taxes | |
| (1,465 | ) | |
| (3,405 | ) | |
| (10,116 | ) | |
| (10,979 | ) |
| Benefit from income taxes | |
| 126 | | |
| - | | |
| 447 | | |
| 48 | |
| Net loss | |
$ | (1,339 | ) | |
$ | (3,405 | ) | |
$ | (9,669 | ) | |
$ | (10,931 | ) |
| Net loss per share of common stock – Basic and Diluted | |
$ | (0.13 | ) | |
$ | (0.40 | ) | |
$ | (1.02 | ) | |
$ | (1.31 | ) |
| Weighted average common shares outstanding – Basic and Diluted | |
| 9,954 | | |
| 8,445 | | |
| 9,441 | | |
| 8,351 | |
ELECTROCORE,
INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheet Information
(unaudited)
(in
thousands)
| | |
September 30, 2026 | | |
December 31, 2025 | |
| Cash and cash equivalents | |
$ | 6,306 | | |
$ | 7,035 | |
| Marketable securities | |
| 1,196 | | |
| 4,576 | |
| Total assets | |
| 17,258 | | |
| 18,667 | |
| Current liabilities | |
| 10,780 | | |
| 11,348 | |
| Total liabilities | |
| 19,766 | | |
| 20,376 | |
| Total stockholders’ deficit | |
| (2,508 | ) | |
| (1,709 | ) |
Use
of Non-GAAP Financial Measure
The
Company is presenting Adjusted EBITDA net loss because it believes this measure is a useful indicator of its operating performance. Management
uses this non-GAAP measure principally as a measure of the Company’s core operating performance and believes that this measure
is useful to investors because it is frequently used by the financial community, investors, and other interested parties to evaluate
companies in the Company’s industry. The Company also believes that this measure is useful to its management and investors as a
measure of comparative operating performance from period to period. Additionally, the Company believes its use of non-GAAP Adjusted EBITDA
net loss from operations facilitates management’s internal comparisons to historical operating results by factoring out potential
differences caused by gains and charges not related to its regular, ongoing business, including, without limitation, non-cash charges
and certain large and unpredictable charges such as restructuring expenses.
The
Company defines Adjusted EBITDA net loss as GAAP net loss, adjusting to exclude non-operating gains/losses, depreciation and amortization,
stock-based compensation expense, inventory reserve changes, accounts receivable reserve charges, non-recurring recruiting fees, severance
and other related charges, legal fees associated with stockholders’ litigation and intellectual property litigation, benefit from
income taxes, and non-recurring transaction charges associated with the acquisition of NURO and other business development activities,
or other one-time charges. A reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA net loss is provided in the financial statement
table below.
Stock-based
compensation is a recurring expense and an important part of the Company’s compensation and retention strategy. The Company excludes
it from Adjusted EBITDA net loss because it is a non-cash charge whose amount can vary significantly from period to period based on the
timing and size of awards, modifications such as accelerated vesting in connection with executive transitions, and the Company’s
stock price. Management believes excluding it allows investors to compare the Company’s operating performance more consistently
across periods and against peers.
| | |
Three months ended
September 30, | | |
Nine months ended
September 30, | |
| (in thousands) | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| GAAP net loss | |
$ | (1,339 | ) | |
$ | (3,405 | ) | |
$ | (9,669 | ) | |
$ | (10,931 | ) |
| Depreciation and amortization | |
| 9 | | |
| 118 | | |
| 36 | | |
| 394 | |
| Stock-based compensation | |
| 617 | | |
| 415 | | |
| 2,408 | | |
| 1,460 | |
| Inventory reserve change | |
| 99 | | |
| (98 | ) | |
| 234 | | |
| (241 | ) |
| Severance and other related charges | |
| 33 | | |
| - | | |
| 1,517 | | |
| 180 | |
| Acquisition related expenses | |
| - | | |
| 501 | | |
| - | | |
| 874 | |
| Reserve for bad debt charge | |
| - | | |
| - | | |
| - | | |
| 548 | |
| Interest expense (income) | |
| (95 | ) | |
| 146 | | |
| 452 | | |
| 5 | |
| Benefit from income taxes | |
| (126 | ) | |
| - | | |
| (447 | ) | |
| (48 | ) |
| Non-recurring one-time charges | |
| 122 | | |
| 280 | | |
| 711 | | |
| 280 | |
| Adjusted EBITDA net loss | |
$ | (680 | ) | |
$ | (2,043 | ) | |
$ | (4,758 | ) | |
$ | (7,479 | ) |
The
Company’s use of a non-GAAP measure has limitations as an analytical tool, and you should not consider it in isolation or as a
substitute for analysis of its results as reported under GAAP. Some of these limitations are: (i) the non-GAAP measure does not reflect
interest or tax payments that may represent a reduction in cash available; (ii) although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized may have to be replaced in the future, and the non-GAAP measure does not reflect cash capital
expenditure requirements for such replacements or for new capital expenditure requirements; (iii) the non-GAAP measure does not reflect
the potentially dilutive impact of equity-based compensation; and (iv) the non-GAAP measure does not reflect changes in, or cash requirements
for working capital needs; other companies, including companies in electroCore’s industry, may calculate Adjusted EBITDA net loss
differently, effectively reducing its usefulness as a comparative measure.
Because
of these and other limitations, you should consider the non-GAAP measure together with other GAAP-based financial performance measures,
including various cash flow metrics, net loss, and other GAAP results. A reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA
net loss has been provided in the preceding financial statements table of this press release.
