Key Highlights

  • Third quarter Revenue was USD 41.96 million against a USD 40.42 million estimate, and EPS was USD -0.02.
  • Greenbrook revenue was USD 26.19 million against USD 21.81 million last year, and NeuroStar revenue was USD 15.8 million.
  • Gross Margin was 52.2% against 45.9% a year earlier, with operating expenses of USD 21.3 million against USD 24.4 million.
  • Full-year 2026 revenue guidance of USD 160 million to USD 164 million was left unchanged by management.

Revenue

Neuronetics, Inc. (NASDAQ:STIM) reported third quarter revenue of USD 41.96 million, against USD 37.30 million in the same quarter of 2025 and an estimate of USD 40.42 million.

Greenbrook, the clinic business, accounted for USD 26.19 million, against USD 21.81 million a year earlier. Management described gains from revenue cycle work, citing better patient qualification, cleaner claims and more efficient collections, and said it began deploying an AI-enabled coding tool during the quarter. NeuroStar revenue was USD 15.8 million, up 1.8%, helped by what management called a record quarter of system sales. Session revenue was lower than last year, which the company tied to a new go-to-market approach that favors Capital purchases over per-session arrangements.

Profit and Margins

The net loss per share was USD 0.02 against an estimate of USD 0.09 and compares with USD 0.13 in the prior-year quarter. Net loss attributable to Neuronetics stockholders was USD 1.69 million, against USD 9.05 million a year earlier.

Gross profit was USD 21.89 million against USD 17.11 million, and gross margin was 52.2% against 45.9%. Management attributed the change to the new NeuroStar go-to-market strategy and improved revenue cycle management at the clinics. Operating expenses were USD 21.35 million against USD 24.43 million, led by lower sales and Marketing spending of USD 8.48 million against USD 11.85 million. Income from operations was USD 0.54 million, compared with a loss of USD 7.32 million a year earlier, and adjusted EBITDA was USD 1.9 million against a loss of USD 4.7 million.

Cash, Debt and Guidance

Total cash was USD 27.9 million at September 30, made up of USD 22.9 million of cash and cash equivalents and USD 5.8 million of restricted cash, against USD 34.1 million at December 31, 2025. Management said cash from operating and investing activities was USD 0.8 million in the quarter, against negative USD 0.9 million a year earlier. Long-term debt, net of costs, was USD 61.75 million against USD 65.81 million at year end, under the Perceptive Credit facility.

Full-year 2026 guidance keeps revenue at USD 160 million to USD 164 million. Gross margin guidance moved to 49% to 50% from 48% to 50%, operating expenses excluding stock-based compensation were guided to USD 89 million to USD 92 million, and Cash Flow from operating and investing activities to negative USD 10 million to negative USD 12 million. Management targets limited to no net cash use from operating and investing in the second half.

Numbers in Context

Revenue of USD 41.96 million sits alongside a gross margin of 52.2%, adjusted EBITDA of USD 1.9 million and total cash of USD 27.9 million.

On operations, management named several initiatives. A 510(k) submission for an accelerated TMS protocol, filed in August, is under FDA review. A distribution agreement with Wave Neuroscience would integrate its personalized protocol system with NeuroStar, and the company plans to seek FDA clearance for NeuroStar compatibility with its PTSD indication before launch. A TrackStar integration with the AdvancedMD records platform is scheduled to reach NeuroStar providers in the fourth quarter. At Greenbrook, the company plans to start shifting part of its direct-to-consumer Advertising budget toward field sales representatives in the fourth quarter, with the new hires ramped by mid 2027.