Firefly Neuroscience, Inc. (NASDAQ:AIFF) said it has entered into a partnership with the U.S. Department of Defense to support the evaluation and treatment of active-duty service members and veterans affected by Post-Traumatic Stress Disorder (PTSD) and Traumatic Brain Injury (TBI).
The small-cap company, which has a market capitalization of about $23.88 million, has seen its stock rise roughly 92% since the start of the year despite recent volatility, with shares recently trading around $1.68.
According to the company, the collaboration builds on work previously carried out by Evoke Neuroscience, Inc.—a firm Firefly acquired in May 2025—with the U.S. Naval Medical Center Camp Lejeune Family Medicine Residency program. Specific details of the Defense Department partnership were not disclosed.
Firefly’s FDA 510(k)-cleared AI-powered EEG/ERP platform is being used within related Defense Department initiatives. The technology provides quantitative neurological data to help military healthcare professionals with diagnosis, treatment planning and monitoring patient outcomes. The system is non-invasive and designed for use in both clinical and operational settings.
The company reported revenue growth of 958% over the twelve months ending in the third quarter of 2025, reaching $780,000, while maintaining a gross profit margin of 65.9%. Firefly currently holds more cash than debt on its balance sheet, though it remains unprofitable and continues to consume cash, reporting earnings per share of -$2.28.
The economic burden of PTSD in the United States has been estimated at $232.2 billion, with approximately $42.7 billion linked to the military population, according to research published in The Journal of Clinical Psychiatry in 2022. Data from the RAND Corporation indicates that more than 444,300 U.S. service members were diagnosed with at least one traumatic brain injury between 2000 and 2021.
“Every U.S. service member who comes home carrying the invisible wounds of PTSD and/or TBI deserves to be truly seen,” said Dave DeCaprio, President and Chief Operating Officer of Firefly.
Firefly maintains a proprietary dataset containing more than 191,000 EEG/ERP brain scans. The company develops AI-driven brain analytics tools designed to assist in evaluating neurological and mental health conditions including depression, dementia, anxiety disorders, concussions and ADHD.
Other recent developments
Firefly has also reported rapid expansion in its commercial partnerships. The company said its partner network increased twentyfold, while EEG/ERP brain scan volumes grew thirty-threefold.
By the end of 2025, Firefly had established 99 commercial partnerships and conducted more than 10,800 brain scans. The company said this represented growth of 1,880% in partner locations and a 3,227% increase in clinical assessments compared with the previous year.
The company also reported progress in research using its AI-based EEG/ERP technology aimed at distinguishing among the three main subtypes of attention-deficit/hyperactivity disorder (ADHD). Brain scans collected through its FDA-510(k)-cleared Evoke System are being used in research designed to identify biological differences between ADHD subtypes.
These developments, the company said, reflect its expanding role in the neurological and mental health diagnostics market.