electroCore, Inc.

What they do

electroCore develops and sells non-invasive bioelectronic devices. Its prescription products are gammaCore for primary headache conditions and Quell Fibromyalgia for fibromyalgia symptoms in adults with high pain sensitivity. It also sells non-prescription consumer products: Truvaga for general wellness and TAC-STIM for human performance, the latter developed with the U.S. Department of Defense BOOST program. Products are dispensed via specialty pharmacy, healthcare systems, direct from the company's Rockaway, New Jersey facility, or through ecommerce and retail partners.

Revenue drivers

• gammaCore (prescription nVNS) — FDA-cleared handheld device for primary headache; sold mainly into the U.S. Department of Veterans Affairs channel, where Rx gammaCore revenue grew about 11% year-over-year in Q2 2026.
• Quell Fibromyalgia — Wearable prescription neuromodulation device acquired from NeuroMetrix in May 2025; Q2 2026 sales were $1.3 million, up roughly 700% year-over-year, with cumulative revenue of about $4.0 million since acquisition.
• Truvaga — Non-prescription general wellness handset sold direct-to-consumer and through retail/marketplace partners including Best Buy and Rehabmart; Q2 2026 revenue was $1.3 million, up about 27% year-over-year but down 17% sequentially.
• TAC-STIM — Non-prescription nVNS handset sold as a commercial off-the-shelf product to active-duty military and professional organizations, with ongoing evaluation in U.S. Air Force and Army Special Operations Command units.

Recent performance

Second quarter 2026 net sales were $9.5 million, up approximately 28% from $7.4 million in Q2 2025. Growth was driven by U.S. prescription sales in the VA and direct-to-consumer Truvaga sales. Net loss was $3.1 million, down 17% from the prior-year period, and Adjusted EBITDA net loss improved 26%. Full-year 2025 revenue was $32.0 million versus $25.2 million in 2024, while 2025 net loss widened to $14.0 million from $11.9 million. At June 30, 2026, cash and equivalents were $8.5 million against total liabilities of $19.9 million and shareholder equity of negative $2.8 million.

Strategy

electroCore is restructuring its commercial organization: it doubled sales regions from three to six and added 17 new 1099 representatives focused on new patients and refill rates at individual VA accounts. It redesigned its sales incentive plan to cut variable incentive compensation from roughly 35% of prescription revenue to 27%, targeting sales and marketing expense at 54% of revenue by the end of 2027. Lovell Government Services will become the primary Federal Supply Schedule contract holder across all products in VA and DoD markets, which the company expects to eliminate about 3% of G&A expense in transaction fees. It also contracted representation for Kaiser Permanente Georgia and hired a W-2 employee focused on DoD and federal workers' compensation. Management may relaunch the FDA-cleared Quell 2.0 lower-extremity pain product direct-to-consumer in the future.

Risks

• Customer concentration — The VA accounted for 75.8% of revenue in the three months ended June 30, 2026 and 75.3% in the six-month period, so loss of that customer would materially harm results.
• Government funding dependence — Revenue in the U.S. and United Kingdom depends substantially on government funding arrangements such as the VA FSS contract and the U.K. MedTech Funding Mandate, which could change.
• History of losses and cash needs — The company has reported net losses and negative operating cash flow annually from 2021 through 2025 and may need additional funds that may not be available on acceptable terms.
• New product adoption — The recently launched gammaCore Emerald and Quell product lines carry uncertain market acceptance, and the company notes limited commercialization history for Quell and its wellness products.

Outlook

Management increased 2026 revenue guidance to greater than 30% year-over-year growth. It expects the commercial reorganization to improve operating efficiency and drive sustainable top-line growth. The company said it believes the changes will help it achieve positive Adjusted EBITDA in the third quarter of 2027. It also intends to generate the majority of 2026 VA channel sales through its agreement with Lovell and to continue using the U.K. MTFM program for cluster headache.