Neuronetics, Inc. (STIM) Market Cap
Neuronetics, Inc. has a market capitalization of $117.1M.
Financials based on reported quarter end 2025-12-31
Price: $1.69
▲ 0.10 (6.29%)
Market Cap: 117.08M
NASDAQ · time unavailable
CEO: Jeffrey S. Jones
Sector: Healthcare
Industry: Medical - Diagnostics & Research
IPO Date: 2018-06-28
Website: https://www.neurostar.com
Neuronetics, Inc. (STIM) - Company Information
Market Cap: 117.08M · Sector: Healthcare
Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. Neuronetics, Inc. was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.
Analyst Sentiment
Based on 7 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 1 sources)
Consensus Price Target
Low
$8
Median
$8
High
$8
Average
$8
Potential Upside: 373.4%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Stimulus Technologies (STIM) reported a revenue of $41.8M for the fiscal year ended December 31, 2025, alongside a net loss of $7.2M and negative earnings per share (EPS) of $0.10. The company has total assets of $141.6M and total liabilities amounting to $115.3M, leading to total equity of $26.2M and a net debt position of -$9.6M, indicating a cash-rich balance sheet. Operating cash flow stood at $908k, and it recorded positive free cash flow of $692k for the year, suggesting some operational efficiency despite the overall loss. Over the last year, STIM's stock price has declined significantly by 68.74%, reflecting negative market sentiment. With a current share price of $1.46, the price target consensus is pegged at $8.00, indicating potential upside if market conditions improve. However, the absence of dividends and substantial losses poses concerns for shareholder returns and long-term profitability."
Revenue Growth
Moderate revenue presence but not showing significant growth.
Profitability
Net losses indicate profitability issues despite revenue.
Cash Flow Quality
Positive free cash flow is a positive aspect in otherwise weak financials.
Leverage & Balance Sheet
Strong balance sheet with a net cash position improves financial stability.
Shareholder Returns
Significant stock price decline and no dividends detract from returns.
Analyst Sentiment & Valuation
Consensus price target suggests optimism, though market performance is poor.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Neuronetics exited Q4 2025 with clear operational progress—Q4 revenue $41.8M (+86% YoY) and a narrowed net loss (-$0.10/sh vs -$0.34/sh), plus operating cash flow turning positive (+$0.9M) after sequential burn improvement. Management’s tone is confident on 2026 top-line momentum (FY revenue $160M–$166M; clinic double-digit to mid-teens, NeuroStar low-to-mid single digits) and disciplined spend (OpEx annualized < $100M by Q4). However, the Q&A exposed real friction points analysts care about: an ongoing CID investigation with the U.S. Attorney’s Office (billing practices pre–Greenbrook), early-year weather-driven patient access issues, and continued negative operating cash flow guidance for 2026 (-$13M to -$17M), with Q1 being the peak burn quarter. The Perceptive debt amendment ($5M principal) helps near-term interest expense (~$600k annually savings) but doesn’t eliminate the liquidity reality. Overall: execution is improving, but analyst scrutiny centers on compliance risk and cash discipline.
Growth Catalysts
- Adjusted pro forma revenue growth of 23% in Q4, driven by strongest capital shipment quarter of the year
- Greenbrook clinic revenue grew 28% full-year (adjusted pro forma basis)
- SPRAVATO rollout momentum: 84 clinics providing treatment; nearly complete with 89-site footprint
- Total treatment volume up 18% YoY in Q4 (across NeuroStar TMS and SPRAVATO)
- Automated patient transfer + scheduling QR codes to improve referral-to-treatment conversion and reduce friction
Business Development
- TRICARE West expanded TMS coverage for adolescents age 15+ diagnosed with depression, effective across 26 states
- COMPASS Pathways collaboration for COMP360 psilocybin (discussions tied to preparation for commercial launch next year; no exclusivity details confirmed in Q&A beyond Greenbrook being one of multiple strategic collaborations)
- Partner services via intake center: benefits investigations and patient management support to Transformations Care Network and Elite DNA
- NeuroStar rollout focus on higher-volume, TMS-ready accounts (credentialed with payers and staffed to start TMS quickly)
Financial Highlights
- Q4 total revenue: $41.8M vs $22.5M prior year (+86%); adjusted pro forma revenue +23% YoY
- Q4 revenue composition: Clinic revenue $23.5M (+37% adjusted pro forma)
- Q4 NeuroStar system shipments: 49 systems; system ASP above target for 4th straight quarter
- Q4 treatment session revenue: $12.4M; +6% YoY on adjusted pro forma basis (reported -4% due to absence of prior-year Greenbrook intercompany purchases)
- Gross margin: 52% in 2025 vs 66% prior-year quarter (lower due to Greenbrook clinic inclusion at lower margin); Q4 gross margin was the highest of the year due to efficiency + favorable mix
- Operating expenses Q4: $26.7M (up $0.4M / +1.4% YoY); increase driven by Greenbrook G&A $8.5M partially offset by lower R&D
- Stock-based expense: ~$2.2M non-cash in Q4
- Net loss Q4: $7.2M (-$0.10/sh) vs $12.7M (-$0.34/sh) prior year
- Q4 EBITDA: negative $4.3M vs negative $11.0M prior year
- Operating cash flow improvement: sequential improvement from -$17.0M in Q1 to +$0.9M in Q4
Capital Funding
- Perceptive debt amendment (March 2026): one-time $5.0M principal payment; outstanding debt obligation reduced; interest expense reduced
- Cash as of 12/31/2025: $34.1M total ($28.1M cash & equivalents; $6.0M restricted cash)
- Debt payment did not reduce restricted cash; pro forma cash after $5M paydown implied ~$29M
- Interest expense savings: management expects ~ $600k annually savings from the $5M paydown
- Operating cash burn expected to remain negative in 2026 (CFO guidance: -$13M to -$17M), with improved positivity in the second half
Strategy & Ops
- Regional Account Manager program: Q4 added 430 new referring providers (+25% YoY); 1,300+ new referrers added across 2025
- Field engagement scale: 47,000+ physician outreach activities during 2025; 2,300 patient referrals in Q4 (+46% YoY)
- Clinic standardization: tablet kiosks deployed across all locations for streamlined check-in and at-visit payment of patient responsibility
- Digital intake: piloting a patient portal to complete intake forms + submit insurance info before appointment
- Automation/efficiency: AI leveraged in benefits investigation to file claims faster and increase first-pass acceptance rates while reducing labor
- NeuroStar system go-to-market: capital team realigned toward higher-volume, higher-growth accounts (TMS-ready practices) to reduce time from purchase to treating first patient
Market Outlook
- FY 2026 revenue guidance: $160M–$166M (midpoint >9% growth YoY vs 2025)
- FY 2026 clinic growth guidance: double digits to mid-teens YoY
- FY 2026 NeuroStar growth guidance: low to mid-single digits YoY
- Q1 2026 revenue guidance: $33M–$35M
- FY 2026 gross margin guidance: 47%–49%
- FY 2026 operating expense guidance: $100M–$105M inclusive of ~$8.5M non-cash stock-based compensation; operating expense annualized run rate < $100M by Q4 2026
- FY 2026 operating cash flow guidance: -$13M to -$17M; operating cash flow expected positive during the second half with highest burn in Q1 due to seasonality + annual outlays (licenses, incentive comp)
- Management noted first-quarter Q1 impact: negative seasonality (lowest revenue quarter) + weather impacts affecting patient ability to visit clinics
Risks & Headwinds
- CID / investigative risk: U.S. Attorney’s Office in Middle District of Florida requested documentation for billing practices prior to Greenbrook acquisition; management stated they are providing all information and cooperating (ongoing investigation; asked about granularity for Florida/Michigan documents)
- Gross margin dilution risk from Greenbrook clinic lower-margin mix despite Q4 being best quarterly margin of the year
- Cash burn / liquidity risk: FY 2026 operating cash flow projected negative (-$13M to -$17M), with reliance on significant second-half improvement
- Seasonality/weather operational hurdle: Q1 historically lowest; recent weather impacts in early 2026 affecting patient clinic attendance
Sentiment: MIXED
Note: This summary was synthesized by AI from the STIM Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.