Exhibit
99.1
electroCore
Announces Second Quarter 2026 Financial Results
Second
quarter 2026 net sales of $9.5 million, an increase of 28% over $7.4 million in the second quarter 2025
Net
loss of $3.1 million decreased 17% from prior year with Adjusted EBITDA net loss improving 26% from prior-year period
Increasing
2026 revenue guidance to greater than 30% year-over-year growth
Company
to host a conference call and webcast today, August 6, 2026, at 4:30 pm EDT
ROCKAWAY,
NJ, August 6, 2026 (GLOBE NEWSWIRE) — electroCore, Inc. (Nasdaq: ECOR) (“electroCore” or the “Company”),
a bioelectronic technology company, today announced financial results for the second quarter ended June 30, 2026. The Company reported
quarterly revenue of $9.5 million, an increase of approximately 28% year-over-year, driven by continued growth in U.S. prescription sales
in the U.S. Department of Veterans Affairs (“VA”) and direct-to-consumer Truvaga sales.
“This
quarter marked a new era for our company as we implemented significant changes across our commercial organization to better position
us for long-term success,” said Joshua Lev, Interim President and Chief Financial Officer of electroCore. “While these actions
required investment and focus throughout the quarter, we believe they have strengthened our foundation, improved operating efficiency,
and enhanced our ability to accelerate revenue growth. We are encouraged by the early results, and we believe these changes will help
us drive sustainable top-line growth and achieve positive Adjusted EBITDA in the third quarter of 2027.”
Recent
Operational Highlights
Veterans
Affairs Channel Continues to Drive Prescription Growth
The
VA continued to be the Company’s largest growth driver in the second quarter. Prescription (Rx) gammaCore revenue grew approximately
11% year-over-year Approximately 16,400 VA patients have received a gammaCore device, representing approximately 2.7% penetration of
the estimated addressable VA headache market.
Quell
Adoption Accelerates
Sales
of the Quell product line were $1.3 million in the second quarter of 2026, growing approximately 700% year-over-year and approximately
30% over the first quarter of 2026. Cumulative Quell revenue is approximately $4.0 million since the acquisition from NeuroMetrix, Inc.
(“NURO”) in May 2025, of which $3.8 million of Quell Fibromyalgia has been sold into the VA.
Truvaga
Spend Decreases as Media Costs Expand
Truvaga
revenue grew approximately 27% year-over-year to $1.3 million and decreased 17% from the prior period. The Company reduced its Truvaga
spend in response to higher media pricing.
Evolution
of the Commercial Organization
To
promote sustained growth, the Company has made material structural changes to the commercial organization. The Company doubled the number
of sales regions from three to six, promoting greater accountability in smaller geographic territories. The Company recruited, contracted,
and trained 17 new 1099 representatives with renewed focus on new patients and refill rates at the individual VA account level and helped
diversify revenue across a larger number of accounts.
These
changes are also structured to improve our cost efficiency over time. The Company has redesigned the sales incentive plan to reduce sales
and marketing expense as a percentage of revenue. The redesigned plan realigns the Company’s sales territories, eliminating overlapping,
inefficient coverage that added cost without building durable accounts and should result in a reduction in incentive compensation variable
expense from approximately 35% of prescription revenue to 27% and an overall reduction of the sales and marketing expense to 54% of revenue
by the end of 2027.
In
addition, moving forward Lovell Government Services will be the Company’s primary Federal Supply Schedule contract holder across
all electroCore products, in both the VA and DoD markets. That will simplify how the Company’s products move through federal procurement
and positions the Company to scale federal growth more efficiently and is expected to eliminate roughly 3% of general and administrative
expense in transaction fees associated with direct sales.
Beyond
the VA, the Company contracted a 1099 representative with a specific mandate to grow the Company’s presence within the Kaiser Permanente
Georgia system and hired a W-2 employee to bring dedicated focus and expertise to Department of Defense and federal workers’ compensation.
Second
Quarter 2026 Financial Results and Select Guidance
For
the three months ended June 30, 2026, electroCore reported net sales of $9.5 million compared to $7.4 million during the same period
in 2025, an increase of approximately 28% over the prior year. The increase of $2.1 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, and continued growth in net
sales of the Company’s nonprescription general wellness Truvaga products. 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 June 30, | |
| Channel: | |
2026 | | |
2025 | |
| United States – Rx | |
$ | 7,447 | | |
$ | 5,693 | |
| General Wellness | |
| 1,306 | | |
| 1,014 | |
| Outside the United States | |
| 503 | | |
| 469 | |
| TAC-STIM | |
| 185 | | |
| 181 | |
| In-License / Other | |
| 9 | | |
| 24 | |
| Total Net Sales | |
$ | 9,450 | | |
$ | 7,381 | |
| | |
Six months ended June 30, | |
| Channel: | |
2026 | | |
2025 | |
| United States – Rx | |
$ | 14,868 | | |
$ | 10,703 | |
| General Wellness | |
| 2,894 | | |
| 2,114 | |
| Outside the United States | |
| 1,005 | | |
| 967 | |
| TAC-STIM | |
| 227 | | |
| 271 | |
| In-License / Other | |
| 40 | | |
| 45 | |
| Total Net Sales | |
$ | 19,034 | | |
$ | 14,100 | |
Gross
profit increased $1.7 million to $8.2 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
The increase in gross profit is attributable to the increased net sales. Gross margin decreased from 87.3% to 86.5% for the three months
ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease in gross margin was primarily due to an increase in
our inventory reserve.
Research
and development expense was $0.8 million in the second quarter of 2026, compared to $0.5 million in the second quarter of 2025. The increase
was primarily due to increased studies and grants, higher stock-based compensation, and initial costs to develop enhancements to our
Truvaga mobile application.
Selling,
general and administrative expense was $10.1 million for the three months ended June 30, 2026, compared to $9.4 million in the prior
year period. Sales and marketing increased $1.4 million from the prior year. The increase in sales and marketing expense was primarily
driven by approximately $0.9 million of variable expenses that supported the $2.1 million increase in net sales, reflecting the operating
leverage embedded in the Company’s platform as it scales.
General
and administrative expense decreased $0.7 million from the prior year. The decrease was primarily attributable to $0.5 million in bad
debt expense recorded in the second quarter of 2025 (associated with a TAC-STIM receivable) that did not recur, as well as a reduction
in professional fees in the second quarter of 2026.
Total
operating expenses in the three months ended June 30, 2026 were $10.9 million, compared to $9.9 million in the three months ended June
30, 2025.
GAAP
net loss in the second quarter of 2026 was $3.1 million, compared to $3.7 million in the second quarter of 2025. The decrease in GAAP
net loss was primarily attributed to higher gross profit associated with the increase in net sales, partially offset by variable sales
and marketing expenses associated with the increase in sales. Net loss per share for the second quarter of 2026 was $0.33, compared to
$0.44 in the second quarter of 2025.
Adjusted
EBITDA net loss in the second quarter of 2026 was $1.8 million, compared to an adjusted EBITDA net loss of $2.4 million in the second
quarter of 2025, an improvement of approximately $0.6 million, or 26%, 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 June 30, 2026, was approximately $10.0 million, compared to approximately $11.6
million at December 31, 2025.
Full
Year 2026 and Select 2027 Outlook
The
Company is raising its full-year 2026 revenue guidance to greater than 30% annual growth over full-year 2025 and expects to achieve positive
Adjusted EBITDA in the third quarter of 2027.
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, August 6, 2026, beginning at 4:30 PM EDT.
Investors
must register here to receive login credentials and be able to ask questions on the call. All attendees who prefer to participate
in “Listen Only” mode may dial in as follows:
Dial-In:
(646) 931-3860
Webinar
ID: 849 0856 5421
Passcode:
305949
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; revenue guidance for the full year of 2026 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, electroCore’s results
of operations and financial performance, 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 June 30, | | |
Six
Months Ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Net sales | |
$ | 9,450 | | |
$ | 7,381 | | |
$ | 19,034 | | |
$ | 14,100 | |
| Cost of goods sold | |
| 1,273 | | |
| 939 | | |
| 2,493 | | |
| 1,952 | |
| Gross profit | |
| 8,177 | | |
| 6,442 | | |
| 16,541 | | |
| 12,148 | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | |
| Research and development | |
| 818 | | |
| 511 | | |
| 1,558 | | |
| 1,153 | |
| Selling, general and administrative | |
| 10,131 | | |
| 9,437 | | |
| 23,071 | | |
| 18,323 | |
| Total operating expenses | |
| 10,949 | | |
| 9,948 | | |
| 24,629 | | |
| 19,476 | |
| Loss from operations | |
| (2,772 | ) | |
| (3,506 | ) | |
| (8,088 | ) | |
| (7,328 | ) |
| Other (income) expense: | |
| | | |
| | | |
| | | |
| | |
| Interest and other income | |
| (40 | ) | |
| (68 | ) | |
| (92 | ) | |
| (151 | ) |
| Interest expense | |
| 321 | | |
| 5 | | |
| 639 | | |
| 10 | |
| Other expense | |
| 6 | | |
| 228 | | |
| 16 | | |
| 387 | |
| Total other expense | |
| 287 | | |
| 165 | | |
| 563 | | |
| 246 | |
| Loss before income taxes | |
| (3,059 | ) | |
| (3,671 | ) | |
| (8,651 | ) | |
| (7,574 | ) |
| Benefit from income taxes | |
| - | | |
| - | | |
| 321 | | |
| 48 | |
| Net loss | |
$ | (3,059 | ) | |
$ | (3,671 | ) | |
$ | (8,330 | ) | |
$ | (7,526 | ) |
| Net loss per share of common stock – Basic and Diluted | |
$ | (0.33 | ) | |
$ | (0.44 | ) | |
$ | (0.91 | ) | |
$ | (0.91 | ) |
| Weighted average common shares outstanding – Basic and Diluted | |
| 9,404 | | |
| 8,316 | | |
| 9,180 | | |
| 8,302 | |
ELECTROCORE,
INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheet Information
(unaudited)
(in
thousands)
| | |
June 30, 2026 | | |
December 31, 2025 | |
| Cash and cash equivalents | |
$ | 8,501 | | |
$ | 7,035 | |
| Marketable securities | |
| 1,543 | | |
| 4,576 | |
| Total assets | |
| 17,064 | | |
| 18,667 | |
| Current liabilities | |
| 11,674 | | |
| 11,348 | |
| Total liabilities | |
| 19,854 | | |
| 20,376 | |
| Total stockholders’ deficit | |
| (2,790 | ) | |
| (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.
| | |
Three months ended June 30, | | |
Six months ended June 30, | |
| (in thousands) | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| GAAP net loss | |
$ | (3,059 | ) | |
$ | (3,671 | ) | |
$ | (8,330 | ) | |
$ | (7,526 | ) |
| Depreciation and amortization | |
| 6 | | |
| 124 | | |
| 27 | | |
| 276 | |
| Stock-based compensation | |
| 755 | | |
| 506 | | |
| 1,791 | | |
| 1,045 | |
| Inventory reserve change | |
| 102 | | |
| (55 | ) | |
| 135 | | |
| (143 | ) |
| Severance and other related charges | |
| 58 | | |
| - | | |
| 1,483 | | |
| 180 | |
| Acquisition related expenses | |
| - | | |
| 228 | | |
| - | | |
| 373 | |
| Reserve for bad debt charge | |
| - | | |
| 548 | | |
| - | | |
| 548 | |
| Interest expense (income) | |
| 281 | | |
| (58 | ) | |
| 547 | | |
| (141 | ) |
| Benefit from income taxes | |
| - | | |
| - | | |
| (321 | ) | |
| (48 | ) |
| Non-recurring one-time charges | |
| 104 | | |
| - | | |
| 589 | | |
| - | |
| Adjusted EBITDA net loss | |
$ | (1,753 | ) | |
$ | (2,378 | ) | |
$ | (4,079 | ) | |
$ | (5,436 | ) |
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.
