NeuroOne Medical Technologies Corp

NeuroOne's capital structure is characterized by a market cap of $38.74 million and a price-to-book ratio of 10.05, indicating a premium valuation relative to its book value. The company has no long-term debt and a current ratio of 3.06, suggesting strong short-term liquidity. However, its operating cash flow of -$5.98 million and free cash flow of -$2.83 million highlight significant cash outflows from operations.

Profitability metrics show a return on equity of -7.41% and a return on assets of -5.29%, both well below the industry median for medical equipment firms. The company reported a net loss of $2.86 million and an operating loss of $2.89 million, indicating ongoing operational challenges. Gross profit of $390,410 on revenue of $1.38 million suggests margin pressures, with a gross margin of 28.36%.

Geographically, NeuroOne's revenue is concentrated in the United States, with no disclosed international segments. The company operates in a single business segment focused on neurosurgical monitoring systems. This concentration increases exposure to domestic regulatory and reimbursement risks.

Growth trajectory is mixed. Revenue increased from $1.38 million in the latest period, but the company has not provided a forward-looking revenue outlook. Analysts have assigned a mean price target of $11.87, implying a 216% upside from the current market price of $4.60. However, the absence of a disclosed revenue growth rate and continued operating losses suggest uncertainty in the near-term growth path.

Risk factors include liquidity risk due to negative operating cash flow and dilution risk from potential future equity raises. The company has no immediate filing-based liquidity or dilution flags, but its free cash flow burn of $2.83 million raises concerns about long-term sustainability. No dilution adjustments have been applied to the valuation metrics.

Recent events include the continued development of its SMI product line and ongoing commercialization efforts. No material regulatory or litigation events were disclosed in the latest filings. Analysts have issued one strong-buy and two buy ratings, with no hold or sell recommendations, indicating a generally positive sentiment despite the company's current financial performance.

Revenue surged 250.4% year-over-year to $12.1 million in fiscal 2025, demonstrating significant top-line growth momentum.

Analysts project 290.4% upside potential, with a mean price target of $11.87 versus the current $3.04 market price.

Net income improved 70.7% year-over-year to a $3.6 million loss, indicating a strong trajectory toward profitability.

Cash conversion ratio of 2.1 ranks best-in-class within the Advanced Medical Equipment cohort of 205 peers.

The company maintains a low leverage band with a debt-to-equity ratio of 0.525 and a strong current ratio of 4.44.

Free cash flow remains deeply negative at -$3.4 million in fiscal 2025, despite a 71.9% year-over-year improvement.

Gross profit declined to $1.08 million in fiscal 2024 before recovering, showing historical volatility in core profitability.

Revenue $2.9M, −53,9% YoY; Operating income −199,8% YoY.

• ▍Revenue $2.9M, −53,9% YoY
• ▍Operating income −199,8% YoY
• ▍Net income −180,5% YoY
• ▍Free cash flow −177,4% YoY
• ▍Net margin -49.7%

Revenue $2.7M, +906,7% YoY; Operating income +51,3% YoY.

• ▍Revenue $2.7M, +906,7% YoY
• ▍Operating income +51,3% YoY
• ▍Net income +51,7% YoY
• ▍Free cash flow +52,9% YoY
• ▍Net margin -59.1%

Revenue $1.7M, +105,4% YoY; Operating income +32,5% YoY.

• ▍Revenue $1.7M, +105,4% YoY
• ▍Operating income +32,5% YoY
• ▍Net income +45,8% YoY
• ▍Free cash flow +45,6% YoY
• ▍Net margin -88.5%

Revenue $272.3k; Operating income -$2.8M.

• ▍Revenue $272.3k
• ▍Operating income -$2.8M
• ▍Net margin -1230.6%

Revenue $825.8k; Operating income -$2.8M.

• ▍Revenue $825.8k
• ▍Operating income -$2.8M
• ▍Net margin -335.1%

Revenue $1.4M; Operating income -$2.9M.

• ▍Revenue $1.4M
• ▍Operating income -$2.9M
• ▍Net margin -207.3%

Revenue $12.1M, +250,3% YoY; Operating income +64,5% YoY.

• ▍Revenue $12.1M, +250,3% YoY
• ▍Operating income +64,5% YoY
• ▍Net income +70,7% YoY
• ▍Free cash flow +71,9% YoY
• ▍Net margin -29.8%

Revenue $3.5M, +0,1% YoY; Operating income +0,6% YoY.

• ▍Revenue $3.5M, +0,1% YoY
• ▍Operating income +0,6% YoY
• ▍Net income −3,9% YoY
• ▍Free cash flow −1,2% YoY
• ▍Net margin -356.7%

Revenue $3.4M, +62,7% YoY; Operating income −19,2% YoY.

• ▍Revenue $3.4M, +62,7% YoY
• ▍Operating income −19,2% YoY
• ▍Net income −18,6% YoY
• ▍Free cash flow −18,6% YoY
• ▍Net margin -343.9%

Revenue $2.1M, +772,6% YoY; Operating income +1,8% YoY.

• ▍Revenue $2.1M, +772,6% YoY
• ▍Operating income +1,8% YoY
• ▍Net income −0,5% YoY
• ▍Free cash flow −2,2% YoY
• ▍Net margin -471.7%

Revenue $243.0k; Operating income -$10.2M.

• ▍Revenue $243.0k
• ▍Operating income -$10.2M
• ▍Net margin -4094.6%