Firefly Neuroscience 2025 Q3 Earnings Revenue Surges 1075% as Losses Narrow

Firefly Neuroscience (AIFF) reported fiscal 2025 Q3 results marked by explosive revenue growth and a significant reduction in net losses. The company’s performance exceeded expectations, driven by the successful integration of Evoke Neuroscience and strategic cost reductions. CEO Greg Lipschitz emphasized progress in commercial execution and technological innovation, while the stock faced mixed price action post-earnings.

Revenue

Firefly’s total revenue surged 1075.8% to $388,000 in Q3 2025, driven by a 30% sequential increase and the May 2025 acquisition of Evoke Neuroscience. Service revenue dominated at $345,000, supported by expanded EEG/ERP scan volumes (10.9% sequential growth). Rentals and product sales contributed $15,000 and $14,000 respectively, while other miscellaneous revenue added $14,000. The performance reflects the combined strength of Firefly’s service offerings and post-acquisition operational efficiency.

Earnings/Net Income

The company narrowed its net loss to $2.64 million in Q3 2025, a 38.5% improvement from $4.29 million in Q3 2024. Earnings per share (EPS) improved to -$0.20 from -$0.61, driven by a 35% reduction in operating expenses to $2.8 million. While the loss remains significant, the sequential and year-over-year improvements underscore cost discipline and integration benefits. The EPS improvement indicates progress toward profitability, albeit with ongoing challenges.

Post-Earnings Price Action Review

A backtested strategy of buying Firefly shares on the day of its earnings release and holding for 30 days yielded a 20.5% return over three years, outperforming the 6.8% annualized benchmark. However, the strategy exhibited high volatility (standard deviation of 24.2) and two major drawdowns of 30% and 35%, lasting up to 42 days. With a beta of 1.8, Firefly’s stock mirrored broader market movements but amplified swings. While the long-term gains suggest speculative appeal, the risks—particularly sensitivity to market downturns—highlight its suitability for high-risk-tolerance investors.

CEO Commentary

Greg Lipschitz, Firefly’s CEO, highlighted the successful integration of Evoke Neuroscience as a catalyst for Q3’s performance. “Our revenue growth and reduced cost structure demonstrate the immediate benefits of the Evoke acquisition,” he stated. The CEO emphasized continued focus on commercial expansion and leveraging NVIDIA’s AI capabilities to develop a foundational EEG/ERP brain model. Firefly’s leadership also underscored partnerships, such as the collaboration with HealingMaps, as key drivers for scaling cognitive electrophysiology analytics.

Guidance

Firefly did not provide explicit forward-looking revenue or EPS guidance for future periods. However, the company signaled intent to build on Q3’s momentum through strategic partnerships and technological advancements, including the deployment of the CLEAR Platform.

Additional News

1. Acquisition of Evoke Neuroscience: Firefly’s $6 million acquisition of Evoke in May 2025 expanded its EEG/ERP database to 180,000 scans, tripling its IP portfolio and boosting commercial users tenfold.

2. CLEAR Platform Launch: The company unveiled its proprietary CLEAR Platform, powered by NVIDIA GPUs, to enhance EEG data quality and accelerate preprocessing by 60-80%.

3. HealingMaps Partnership: A strategic alliance with HealingMaps aims to provide cognitive electrophysiology analytics to over 2,500 clinics, expanding Firefly’s market reach in alternative therapy treatments.