Neuronetics Reports Fourth Quarter and Full Year 2025 Financial and Operating Results
Rhea-AI Summary
Neuronetics (NASDAQ: STIM) reported Q4 2025 revenue of $41.8M (up 86% YoY) and full year 2025 revenue of $149.2M (up 99% YoY), driven by the December 2024 Greenbrook acquisition and clinic revenue of $87.0M for 2025. Gross margin fell to 48.5% for 2025 and the company reported a $39.1M net loss. Cash totaled $34.1M at year-end. Guidance for 2026: revenue $160M–$166M, gross margin 47%–49%, operating expenses $100M–$105M.
Dan Reuvers will become CEO effective March 23, 2026; TRICARE West expanded TMS coverage for adolescents aged 15+.
Positive
- Full year revenue increased 99% to $149.2 million
- Greenbrook clinic revenue contributed $87.0 million in 2025
- Q4 2025 operating cash flow improved to $0.9 million
- Guidance: 2026 revenue expected at $160M–$166M
- Shipped 161 NeuroStar systems in 2025
Negative
- Gross margin declined to 48.5% from 72.3% in 2024
- Operating expenses rose to $103.7 million, +16.9% YoY
- Net loss of $39.1 million for full year 2025
- U.S. treatment session revenue decreased 15% year-over-year
News Market Reaction – STIM
On the day this news was published, STIM declined 9.93%, reflecting a notable negative market reaction. Argus tracked a peak move of +4.4% during that session. Argus tracked a trough of -49.4% from its starting point during tracking. Our momentum scanner triggered 42 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $10M from the company's valuation, bringing the market cap to $93M at that time. Trading volume was very high at 3.1x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
STIM is up 5.02% with above-average volume, while key peers show mixed moves: BSGM up 39.91%, CVRX up 2.34%, BWAY down 0.44%, and others flat. Momentum scanner only flags BWAY, suggesting today’s move is primarily stock-specific to STIM’s earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 10 | Prelim Q4/FY25 results | Positive | +23.3% | Prelim Q4 and FY2025 revenue beat with positive Q4 operating cash flow. |
| Nov 04 | Q3 2025 earnings | Neutral | +3.6% | Strong revenue growth from Greenbrook with margin compression and CEO transition plan. |
| Aug 05 | Q2 2025 earnings | Positive | -2.5% | Strong Q2 growth and record clinic revenue but stock fell despite improved cash burn. |
| May 06 | Q1 2025 earnings | Neutral | +0.0% | High growth from Greenbrook plus equity offering and continued net loss. |
| Mar 27 | Updated 2024 results | Negative | -5.8% | Wider 2024 losses and lower adjusted EBITDA after Greenbrook-related revisions. |
Earnings releases have often driven positive moves for STIM, especially when highlighting Greenbrook-driven growth and cash-flow improvement, though at least one strong quarter saw a negative reaction.
Across the last five earnings-tagged events, Neuronetics repeatedly emphasized Greenbrook clinic integration, rapid revenue growth, and evolving profitability. Q1–Q3 2025 reports showed rising clinic revenue and improving cash burn, while margins compressed as the clinic mix increased. The February 2026 preliminary Q4/FY2025 release, which closely matches today’s final numbers, triggered a strong positive move of 23.29%. An updated 2024 restatement in March 2025 produced a negative reaction, underscoring sensitivity to revisions and loss metrics.
Historical Comparison
In the past year, STIM’s 5 earnings-linked updates saw an average move of 3.74%. Today’s 5.02% gain sits modestly above that pattern, consistent with prior strong-growth quarters.
Earnings updates from early 2025 through Q3 2025 charted Greenbrook-driven revenue expansion, margin pressure, and improving cash burn, culminating in today’s finalized Q4/FY2025 results and 2026 guidance.
Regulatory & Risk Context
The company has an active Form S-3 shelf filed on 2025-07-03 with an expiration in 2028-07-03. The shelf is not yet marked effective in this context, and no aggregate dollar capacity is specified here, though at least one 424B5 takedown occurred on 2025-08-06.
Market Pulse Summary
The stock moved -9.9% in the session following this news. A negative reaction despite solid revenue growth and improving cash flow would fit prior instances where strong operational updates still met selling pressure, such as the post‑Q2 2025 move of -2.47%. The market has at times focused on compression from the 72.3% to 48.5% gross margin range and continued net losses of $(39.1)M. An active shelf registration and recent insider sales could also color sentiment, even alongside 2026 revenue guidance of $160–$166M.
Key Terms
transcranial magnetic stimulation medical
tms medical
psilocybin medical
treatment resistant depression medical
phase 3 medical
nda regulatory
fda regulatory
AI-generated analysis. Not financial advice.
Total revenue of
Greenbrook clinic revenue of
Continued cash management improvement, with cash provided by operations of
Expect full year 2026 revenue of between
Dan Reuvers appointed as President and Chief Executive Officer, effective March 23, 2026; proven medical device leader with more than 30 years of experience scaling commercial healthcare businesses
MALVERN, Pa., March 17, 2026 (GLOBE NEWSWIRE) -- Neuronetics, Inc., (NASDAQ: STIM) (the “Company” or “Neuronetics”) a vertically integrated, commercial stage, medical technology and healthcare company with a strategic vision of transforming the lives of patients whenever and wherever they need help, with the leading neurohealth therapies in the world, today announced its financial and operating results for the fourth quarter and full year of 2025.
Fourth Quarter 2025 Highlights
- Fourth quarter 2025 revenue of
$41.8 million , up86% as reported and23% on an adjusted pro forma basis as compared to the fourth quarter 2024 - Greenbrook clinic revenue of
$23.5 million , up428% as reported and37% on an adjusted pro forma basis as compared to the fourth quarter 2024 - U.S. NeuroStar Advanced Therapy System revenue of
$4.4 million , shipping 49 systems
Full Year 2025 Highlights
- Full year revenue of
$149.2 million , up99% as reported and15% on an adjusted pro forma basis as compared to the full year 2024 - Greenbrook clinic revenue of
$87.0 million , up 1,857% as reported and28% on an adjusted pro forma basis as compared to the full year 2024 - U.S. NeuroStar Advanced Therapy System revenue of
$14.3 million , shipping 161 systems
Recent Operational Highlights
- Appointed Dan Reuvers as President and Chief Executive Officer, effective March 23, 2026
- Advanced collaboration with Compass Pathways on COMP360 psilocybin for Treatment Resistant Depression
- Expanded TRICARE West coverage now includes adolescents aged 15+ struggling with depression
- Achieved milestone of over 237,000 global patients treated with over 8 million treatment sessions
"A year ago, we set out to build a vertically integrated mental health company, and I am proud of what this team delivered. Our Greenbrook clinics drove significant revenue growth as operational and commercial initiatives took hold across the network, and our NeuroStar business finished the year with solid momentum in both system sales and treatment utilization," said Keith Sullivan, President and Chief Executive Officer of Neuronetics. "We exited the year with positive operating cash flow in the fourth quarter, a direct result of this team's focus on growth, operational discipline, and cash collection throughout 2025."
Keith Sullivan continued, "The platform we have built is now opening doors that neither company could pursue alone. Our collaboration with Compass Pathways on COMP360 psilocybin is a great example. We already serve a large treatment-resistant depression population across Greenbrook and have a proven playbook for launching clinic-based treatments, positioning us to lead as new modalities come to market. We are entering 2026 with real momentum, clear growth opportunities, and confidence. I'm pleased to welcome Dan Reuvers as our next President and CEO, and I'm confident his proven leadership in building and scaling commercial healthcare businesses makes him the right person to lead Neuronetics in its next chapter of growth."
Fourth Quarter 2025 Financial and Operating Results for the Three Months Ended December 31, 2025
| Revenues by Geography | |||||||||||
| Three Months Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Amount | Amount | % Change | |||||||||
| (in thousands, except percentages) | |||||||||||
| U.S. | $ | 40,661 | $ | 21,642 | 88 | % | |||||
| International | 1,116 | 851 | 31 | % | |||||||
| Total revenues | $ | 41,777 | $ | 22,493 | 86 | % | |||||
Total revenue for the three months ended December 31, 2025 was
| U.S. Revenues by Product Category | |||||||||||
| Three Months Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Amount | Amount | % Change | |||||||||
| (in thousands, except percentages) | |||||||||||
| NeuroStar Advanced Therapy System | $ | 4,421 | $ | 3,849 | 15 | % | |||||
| Treatment sessions | 12,391 | 12,858 | (4 | )% | |||||||
| Clinic revenue | 23,486 | 4,445 | 428 | % | |||||||
| Other | 363 | 490 | (26 | )% | |||||||
| Total U.S. revenues | $ | 40,661 | $ | 21,642 | 88 | % | |||||
U.S. NeuroStar Advanced Therapy System revenue for the three months ended December 31, 2025 was
U.S. treatment session revenue for the three months ended December 31, 2025 was
Clinic revenue, which represents revenue generated by treatment centers from the Greenbrook acquisition, was
Gross margin for the fourth quarter of 2025 was
Operating expenses during the fourth quarter of 2025 were
Net loss for the fourth quarter of 2025 was
Full Year Financial and Operating Results
| Revenues by Geography | |||||||||||
| Year ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Amount | Amount | % Change | |||||||||
| (in thousands, except percentages) | |||||||||||
| U.S. | $ | 146,048 | $ | 72,488 | 101 | % | |||||
| International | 3,109 | 2,402 | 29 | % | |||||||
| Total revenues | $ | 149,157 | $ | 74,890 | 99 | % | |||||
Total revenues increased by
| U.S. Revenues by Product Category | |||||||||||
| Year ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Amount | Amount | % Change | |||||||||
| (in thousands, except percentages) | |||||||||||
| NeuroStar Advanced Therapy System | $ | 14,259 | $ | 15,267 | (7 | )% | |||||
| Treatment sessions | 43,319 | 50,832 | (15 | )% | |||||||
| Clinic revenue | 86,977 | 4,445 | 1,857 | % | |||||||
| Other | 1,493 | 1,944 | (23 | )% | |||||||
| Total U.S. revenues | $ | 146,048 | $ | 72,488 | 101 | % | |||||
U.S. NeuroStar Advanced Therapy System revenue for year ended December 31, 2025 was
U.S. treatment session revenue for the year ended December 31, 2025 was
Clinic revenue, which represents revenue generated by treatment centers from the Greenbrook acquisition, was
Gross margin for the full year 2025 was
Operating expenses during the full year 2025 were
Net loss for the year of 2025 was
As of December 31, 2025, the Company held
In March 2026, Neuronetics amended its agreement with Perceptive Advisors LLC (Perceptive), which reduces the Company’s total outstanding debt obligation and ongoing interest expense. Under the amendment, Neuronetics made a one-time principal payment of
Appointment of New Chief Executive Officer
The Company announced the appointment of Dan Reuvers as President and Chief Executive Officer, effective March 23, 2026. Mr. Reuvers brings more than 30 years of medical device leadership experience, most recently serving as President and CEO of Tactile Medical (Nasdaq: TCMD), where he grew revenue while delivering record earnings and cash flow.
Compass Pathways Collaboration
The Company continues to advance its collaboration with Compass Pathways on COMP360 psilocybin, a potentially transformational new treatment for treatment-resistant depression. Compass has completed two Phase 3 studies demonstrating clinically meaningful and durable improvement through at least 26 weeks after just one or two doses, and plans to submit an NDA with the potential for an FDA decision by year-end.
"With approximately 4 million treatment resistant depression patients in the U.S., the need for new, effective treatments remains enormous. We believe by adding new modalities to our platform we will be able to help more patients in need. The Phase 3 results for COMP360 are an exciting development in this space, and our collaboration with Compass gives us an exciting potential path to offer another differentiated treatment across our national clinic network." said Dr. Geoffrey Grammer, Chief Medical Officer of Neuronetics.
TRICARE West Expands Coverage for TMS Therapy, Including NeuroStar Advanced Therapy, to Treat Adolescents with Depression
TRICARE West has expanded coverage for transcranial magnetic stimulation (“TMS”) therapy to include adolescents aged 15 and older diagnosed with depression, marking a significant step forward in access to non-drug mental health treatment for military families. Effective immediately across 26 states, the policy update enables eligible TRICARE beneficiaries to receive FDA-cleared, evidence-based TMS therapy as a treatment option during a critical stage of emotional development. The decision underscores growing recognition of the need for innovative, safe, and effective alternatives to medication for adolescents facing major depressive disorder.
Business Outlook
For the first quarter of 2026, the Company expects total worldwide revenue between
For the full year 2026, Neuronetics expects:
- Total Revenue:
$160 million to$166 million - Gross Margin:
47% to49% - Operating Expenses:
$100 million to$105 million , inclusive of approximately$8.5 million of non-cash stock-based compensation - Operating Cash Flow:
$(13) million to$(17) million
The Company anticipates a reduction in operating expense in the second half of 2026 as a result of on-going efficiency initiatives and associated investments. By the fourth quarter of 2026, operating expenses are projected to be less than
Operating cash flow is expected to improve significantly throughout the year, driven by revenue growth, cost reduction, and continued working capital improvements.
Webcast and Conference Call Information
The conference call will be broadcast live in listen-only mode via webcast at https://edge.media-server.com/mmc/p/t8xxgfnr. To listen to the conference call on your telephone, participants may register for the call here. While it is not required, it is recommended you join 10 minutes prior to the event start.
About Neuronetics
Neuronetics, Inc. believes that mental health is as important as physical health. As a global leader in neuroscience, Neuronetics is delivering more treatment options to patients and physicians by offering exceptional in-office treatments that produce extraordinary results. NeuroStar Advanced Therapy is a non-drug, noninvasive treatment that can improve the quality of life for people suffering from neurohealth conditions when traditional medication has not helped. In addition to selling the NeuroStar Advanced Therapy System and associated treatment sessions to customers, Neuronetics operates Greenbrook TMS Inc. (Greenbrook) treatment centers across the United States, offering NeuroStar Advanced Therapy for the treatment of MDD and other mental health disorders. NeuroStar Advanced Therapy is the leading TMS treatment for MDD in adults, with over 8 million treatments delivered, and is backed by the largest clinical data set of any TMS treatment system for depression, including the world’s largest depression outcomes registry. Greenbrook treatment centers also offer SPRAVATO® (esketamine) Nasal Spray, a prescription medicine indicated for the treatment of treatment-resistant depression (TRD) in adults as monotherapy or in conjunction with an oral antidepressant. It is also indicated for depressive symptoms in adults with major depressive disorder (MDD) with acute suicidal ideation or behavior in conjunction with an oral antidepressant.1 Greenbrook has provided more than 2 million treatments to over 60,000 patients struggling with depression.
The NeuroStar Advanced Therapy System is cleared by the U.S. Food and Drug Administration for adults with MDD, as an adjunct for adults with obsessive-compulsive disorder, to decrease anxiety symptoms in adult patients with MDD that may exhibit comorbid anxiety symptoms (anxious depression), and as a first line adjunct for the treatment of MDD in adolescent patients aged 15-21. For safety information and indications for use, visit NeuroStar.com.
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:
Certain statements in this press release, including the documents incorporated by reference herein, include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws. Statements in this press release that are not historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as “may,” “will,” “would,” “should,” “expect,” “plan,” “design,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “outlook” or “continue” as well as the negative of these terms and similar expressions. These statements include those relating to the Company’s business outlook and current expectations for upcoming quarters and fiscal year 2025, including with respect to revenue, expenses, growth, and any statements of assumptions underlying any of the foregoing items. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. These risks and uncertainties include, without limitation, risks and uncertainties related to: the effect of the transaction with Greenbrook on our business relationships; operating results and business generally; our ability to execute our business strategy; our ability to achieve or sustain profitable operations due to our history of losses; our reliance on the sale and usage of our NeuroStar Advanced Therapy System to generate revenues; the scale and efficacy of our salesforce; our ability to retain talent; availability of coverage and reimbursement from third-party payors for treatments using our products; physician and patient demand for treatments using our products; developments in respect of competing technologies and therapies for the indications that our products treat; product defects; our ability to obtain and maintain intellectual property protection for our technology; developments in clinical trials or regulatory review of the NeuroStar Advanced Therapy System for additional indications; developments in regulation in the U.S. and other applicable jurisdictions; potential effects of evolving and/or extensive government regulation; the terms of our credit facility; our ability to successfully roll-out our Better Me Provider Program on the planned timeline; and our self-sustainability and existing cash balances. For a discussion of these and other related risks, please refer to the Company’s recent filings with the SEC, which are available on the SEC’s website at www.sec.gov, including, without limitation, the factors described under the heading “Risk Factors” in Neuronetics’ Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as may be updated or supplemented by subsequent reports that Neuronetics has filed or files with the SEC. These forward-looking statements are based on the Company’s expectations and assumptions as of the date of this press release. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, or changes in the Company’s expectations.
Investor Contact:
Mike Vallie or Mark Klausner
ICR Healthcare
443-213-0499
ir@neuronetics.com
Media Contact:
EvolveMKD
646-517-4220
NeuroStar@evolvemkd.com
| NEURONETICS, INC. Consolidated Statements of Operations (In thousands, except per share data) | ||||||||||||||||||||||||||||
| Three Months ended | Year ended | |||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||
| Products and other | $ | 18,291 | $ | 18,048 | $ | 62,180 | $ | 70,445 | ||||||||||||||||||||
| Services | 23,486 | 4,445 | 86,977 | 4,445 | ||||||||||||||||||||||||
| Total Revenue | 41,777 | 22,493 | 149,157 | 74,890 | ||||||||||||||||||||||||
| Cost of revenues | ||||||||||||||||||||||||||||
| Products and other | 4,396 | 4,387 | 16,464 | 17,516 | ||||||||||||||||||||||||
| Services | 15,677 | 3,213 | 60,385 | 3,213 | ||||||||||||||||||||||||
| Total Cost of revenues | 20,073 | 7,600 | 76,849 | 20,729 | ||||||||||||||||||||||||
| Gross profit | 21,704 | 14,893 | 72,308 | 54,161 | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||
| Sales and marketing | 11,743 | 9,811 | 47,458 | 45,631 | ||||||||||||||||||||||||
| General and administrative | 13,338 | 10,782 | 49,702 | 30,322 | ||||||||||||||||||||||||
| Research and development | 1,666 | 5,772 | 6,584 | 12,771 | ||||||||||||||||||||||||
| Total operating expenses | 26,747 | 26,365 | 103,744 | 88,724 | ||||||||||||||||||||||||
| Loss from operations | (5,043 | ) | (11,472 | ) | (31,436 | ) | (34,563 | ) | ||||||||||||||||||||
| Other (income) expense: | ||||||||||||||||||||||||||||
| Interest expense | 2,318 | 1,757 | 8,415 | 7,286 | ||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 4,427 | ||||||||||||||||||||||||
| Other income, net | (155 | ) | (548 | ) | (716 | ) | (2,549 | ) | ||||||||||||||||||||
| Net loss | $ | (7,206 | ) | $ | (12,681 | ) | $ | (39,135 | ) | $ | (43,727 | ) | ||||||||||||||||
| Less: Net loss attributable to non-controlling interest | (48 | ) | 19 | (137 | ) | (19 | ) | |||||||||||||||||||||
| Net loss attributable to Neuronetics stockholders’ | (7,158 | ) | (12,662 | ) | (38,998 | ) | (43,708 | ) | ||||||||||||||||||||
| Net loss per share of common stock outstanding, basic and diluted attributable to Neuronetics stockholders’ | $ | (0.10 | ) | $ | (0.34 | ) | $ | (0.59 | ) | $ | (1.38 | ) | ||||||||||||||||
| Weighted average common shares outstanding, basic and diluted | 68,756 | 36,855 | 65,951 | 31,734 | ||||||||||||||||||||||||
| NEURONETICS, INC. Consolidated Balance Sheets (In thousands, except per share data) | ||||||||
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 28,134 | $ | 18,459 | ||||
| Restricted cash | 6,000 | 1,000 | ||||||
| Accounts receivable, net of allowance of credit losses for | 16,469 | 23,355 | ||||||
| Inventory | 4,327 | 4,248 | ||||||
| Current portion of net investments in sales-type leases | 225 | 206 | ||||||
| Current portion of prepaid commission expense | 3,050 | 3,078 | ||||||
| Current portion of note receivables | 424 | 930 | ||||||
| Prepaid expenses and other current assets | 2,922 | 6,846 | ||||||
| Total current assets | 61,551 | 58,122 | ||||||
| Property and equipment, net | 4,466 | 6,242 | ||||||
| Goodwill | 23,622 | 18,634 | ||||||
| Intangible assets, net | 18,149 | 19,606 | ||||||
| Operating lease right-of-use assets | 23,560 | 27,093 | ||||||
| Net investments in sales-type leases | 98 | 86 | ||||||
| Prepaid commission expense | 7,972 | 8,902 | ||||||
| Long-term notes receivable | 151 | 295 | ||||||
| Other assets | 1,982 | 1,923 | ||||||
| Total assets | $ | 141,551 | $ | 140,903 | ||||
| Liabilities and Equity | — | |||||||
| Current liabilities: | — | |||||||
| Accounts payable | $ | 10,739 | $ | 11,077 | ||||
| Accrued expenses | 12,316 | 12,818 | ||||||
| Current portion of deferred revenue | 753 | 974 | ||||||
| Deferred and contingent consideration | 500 | 1,000 | ||||||
| Other payables | 652 | 605 | ||||||
| Current portion of operating lease liabilities | 5,561 | 4,791 | ||||||
| Total current liabilities | 30,521 | 31,265 | ||||||
| Long-term debt, net | 65,807 | 55,151 | ||||||
| Deferred revenue | 48 | 2 | ||||||
| Operating lease liabilities | 18,935 | 22,686 | ||||||
| Total liabilities | 115,311 | 109,104 | ||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 690 | 557 | ||||||
| Additional paid-in capital | 480,475 | 446,938 | ||||||
| Accumulated deficit | (458,787 | ) | (419,789 | ) | ||||
| Total Stockholders' equity | 22,378 | 27,706 | ||||||
| Non-controlling interest | 3,862 | 4,093 | ||||||
| Total equity | 26,240 | 31,799 | ||||||
| Total liabilities and equity | $ | 141,551 | $ | 140,903 | ||||
| NEURONETICS, INC. Consolidated Statements of Cash Flows (In thousands) | ||||||||
| Year ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from Operating activities: | ||||||||
| Net loss | $ | (39,135 | ) | $ | (43,727 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | — | |||||||
| Depreciation and amortization | 3,465 | 2,073 | ||||||
| Capitalized Software impairment | — | 3,956 | ||||||
| Allowance for credit losses | 587 | 2,055 | ||||||
| Inventory impairment | 388 | 626 | ||||||
| Share-based compensation | 6,848 | 5,602 | ||||||
| Non-cash interest expense | 824 | 771 | ||||||
| Cost of rental units purchased by customers | — | — | ||||||
| Loss on extinguishment of debt | — | 4,427 | ||||||
| Loss on disposal of property and equipment | 72 | 28 | ||||||
| Changes in certain assets and liabilities: | — | |||||||
| Accounts receivable, net | 3,541 | (3,727 | ) | |||||
| Inventory | (395 | ) | 3,150 | |||||
| Net investments in sales-type leases | (31 | ) | 997 | |||||
| Prepaid commission expense | 958 | (1,096 | ) | |||||
| Prepaid expenses and other assets | 4,674 | (1,155 | ) | |||||
| Accounts payable | (1,750 | ) | (1,985 | ) | ||||
| Accrued expenses | (502 | ) | (2,083 | ) | ||||
| Other liabilities | 257 | (66 | ) | |||||
| Deferred revenue | (175 | ) | (843 | ) | ||||
| Net Cash used in Operating activities | (20,374 | ) | (30,997 | ) | ||||
| Cash flows from Investing activities: | — | |||||||
| Purchases of property and equipment and capitalized software | (801 | ) | (1,466 | ) | ||||
| Cash paid for acquisition, net of cash and restricted cash acquired | — | (2,553 | ) | |||||
| Repayment of notes receivable | — | 1,606 | ||||||
| Net Cash used in Investing activities | (801 | ) | (2,413 | ) | ||||
| Cash flows from Financing activities: | ||||||||
| Payments of debt issuance costs | (168 | ) | (2,624 | ) | ||||
| Proceeds from issuance of long-term debt | 10,000 | 57,479 | ||||||
| Repayment of promissory note | (211 | ) | — | |||||
| Repayment of deferred and contingent consideration | (500 | ) | — | |||||
| Proceeds from issuance of warrants | — | 2,521 | ||||||
| Repayment of long-term debt | — | (60,000 | ) | |||||
| Payment for debt extinguishment cost | — | (4,185 | ) | |||||
| Proceeds from the issuance of common stock | 20,700 | — | ||||||
| Payments of common stock offering issuance costs | (1,731 | ) | — | |||||
| Proceeds from issuance of common stock under ATM Program | 8,313 | — | ||||||
| Payments of common stock offering issuance costs under ATM Program | (472 | ) | — | |||||
| Distribution to non-controlling interest | (94 | ) | — | |||||
| Proceeds from exercises of stock options | 13 | 1 | ||||||
| Net Cash provided by (used in) Financing activities | 35,850 | (6,808 | ) | |||||
| Net increase (decrease) in Cash, Cash equivalents and Restricted cash | 14,675 | (40,218 | ) | |||||
| Cash, Cash equivalents and Restricted cash, Beginning of Period | 19,459 | 59,677 | ||||||
| Cash, Cash equivalents and Restricted cash, End of Period | $ | 34,134 | $ | 19,459 | ||||
| Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet: | ||||||||
| Cash and cash equivalents | 28,134 | 18,459 | ||||||
| Restricted cash and cash equivalents | 6,000 | 1,000 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 34,134 | $ | 19,459 | ||||
Non-GAAP Financial Measures (Unaudited)
EBITDA is not a measure of financial performance under generally accepted accounting principles in the U.S. (“GAAP”), and should not be construed as a substitute for, or superior to, GAAP net loss. However, management uses both the GAAP and non-GAAP financial measures internally to evaluate and manage the Company’s operations and to better understand its business. Further, management believes that the addition of the non-GAAP financial measures provides meaningful supplementary information to, and facilitates analysis by, investors in evaluating the Company’s financial performance, results of operations and trends. The Company’s calculation of EBITDA may not be comparable to similarly designated measures reported by other companies, because companies and investors may differ as to what type of events warrant adjustment.
The following table reconciles reported net loss to EBITDA:
| Three Months ended December 31, | Year ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||||||
| Net loss | $ | (7,206 | ) | $ | (12,681 | ) | $ | (39,135 | ) | $ | (43,727 | ) | |||||||||||||
| Interest expense, net | 2,163 | 1,209 | 7,699 | 4,737 | |||||||||||||||||||||
| Income taxes | — | — | — | — | |||||||||||||||||||||
| Depreciation and amortization | 767 | 442 | 3,465 | 2,152 | |||||||||||||||||||||
| EBITDA | $ | (4,276 | ) | $ | (11,030 | ) | $ | (27,971 | ) | $ | (36,838 | ) | |||||||||||||
Non-GAAP Pro forma and Adjusted Pro forma revenue information (Unaudited)
The following table presents the Company’s pro forma operating results, giving effect to the acquisition of Greenbrook as if the transaction had occurred on January 1, 2024. These pro forma results are based on assumptions that management believes are reasonable under the circumstances. However, they are not necessarily indicative of the Company’s future performance. The pro forma financial information reflects the historical operating results of both the Company and Greenbrook, with all intercompany transactions eliminated. The adjusted pro forma results further reflect eliminations related to the closure of certain clinics in 2024. The pro forma data does not include the impact of any potential synergies or cost-saving initiatives resulting from the acquisition:
| Three Months ended | Twelve Months ended | |||||||
| December 31, 2024 | December 31, 2024 | |||||||
| (in thousands) | (in thousands) | |||||||
| Neuronetics | $ | 18,048 | $ | 70,445 | ||||
| Greenbrook | 18,004 | 75,496 | ||||||
| Intercompany revenue | (1,272 | ) | (8,831 | ) | ||||
| Total Pro forma | 34,780 | 137,110 | ||||||
| Adjusted for clinic closures | (839 | ) | (7,673 | ) | ||||
| Adjusted Pro forma Revenue | $ | 33,941 | $ | 129,437 | ||||
| Three Months ended | Twelve Months ended | |||||||
| December 31, 2024 | December 31, 2024 | |||||||
| (in thousands) | (in thousands) | |||||||
| Neuronetics Treatment sessions | $ | 12,858 | $ | 50,832 | ||||
| Intercompany Treatment sessions | (1,172 | ) | (8,248 | ) | ||||
| Total Pro forma Treatment sessions | 11,686 | 42,584 | ||||||
References
1 The effectiveness of SPRAVATO® in preventing suicide or in reducing suicidal ideation or behavior has not been demonstrated. Use of SPRAVATO® does not preclude the need for hospitalization if clinically warranted, even if patients experience improvement after an initial dose of SPRAVATO®. For more important safety information about SPRAVATO®, please visit spravatohcp.com.
FAQ
What were Neuronetics (STIM) Q4 2025 revenues and growth rates?
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