GICS 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.
Neuronetics reported total revenue of $37.3 million for Q3 2025, representing an 11% increase on a pro forma basis compared to the prior year quarter. The growth was primarily driven by the strong performance of Greenbrook clinics, which generated $21.8 million in revenue, up 25% on an adjusted pro forma basis. The company's NeuroStar business reported revenue of $15.5 million, a 4% decrease year-over-year, while U.S. NeuroStar System revenue was $3.5 million, with a third consecutive quarter of system ASP greater than the target. Gross margin was 45.9% compared to 75.6% in the prior year quarter. The net loss for the quarter was $9.4 million or $0.13 per share, compared to a net loss of $13.3 million or $0.44 per share in the prior year quarter.
Publication Date: Nov -23
The company's Greenbrook growth strategy delivered strong results, driven by the regional account manager (RAM) program, which contributed to the growth. The optimization of RAMs continues to produce results, with over 2,200 patients referred through RAMs in Q3. The SPRAVATO rollout remains on track, with 84 out of 89 SPRAVATO-eligible clinics now offering the therapy. The Better Me Provider Program remains a key growth driver, with nearly 425 active BMP sites. As Keith Sullivan noted, "BMP sites respond to patients faster and are more knowledgeable about NeuroStar TMS, resulting in them treating significantly more patients per quarter than non-BMP practices."
The company made significant strides in operational excellence and cash optimization, introducing self-check-in kiosks that improved efficiency. As of September 30, 2025, total cash was $34.5 million, consisting of cash and cash equivalents of $28 million and restricted cash of $6.5 million. EBITDA loss narrowed to $6.4 million, compared to $11.6 million in the prior year quarter.
Analysts estimate Neuronetics' revenue growth at 10.9% for the next year. The company's current valuation metrics include a P/S Ratio of 0.69, EV/EBITDA of -2.31, and ROE of -149.58%. The actual EPS for Q3 2025 was -$0.13, compared to estimates of -$0.12. These metrics indicate that the market is pricing in significant growth potential, but also reflects the company's current challenges.
Neuronetics to Participate at the Piper Sandler 37th Annual Healthcare Conference
Nov -20
TRICARE West Expands NeuroStar® TMS Coverage to Include Adolescents Aged 15+ Struggling with Depression
Nov -12
Neuronetics, Inc. (STIM) Q3 2025 Earnings Call Transcript
Nov -04
Neuronetics (STIM) Reports Q3 Loss, Misses Revenue Estimates
Nov -04
Neuronetics Reports Third Quarter 2025 Financial and Operating Results and Announces CEO Transition Plan
Nov -04
Neuronetics Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)
Oct -31
Neuronetics Announces Three-Year Exclusive Partnership with Elite DNA Behavioral Health to Expand NeuroStar Access and Operational Excellence
Oct -30
Neuronetics to Report Third Quarter 2025 Financial and Operating Results and Host Conference Call
Oct -21
Growing demand for non-invasive depression treatments, increasing awareness of mental health, and expanding adoption of Transcranial Magnetic Stimulation (TMS) therapy drive the growth of Neuronetics' Treatment Sessions.
Growing demand for non-invasive depression treatments, increasing awareness of TMS therapy, and Neuronetics' strong market presence drive the growth of the NeuroStar Advanced Therapy System market.
Growing demand for non-invasive depression treatments, increasing awareness of TMS therapy, and expanding insurance coverage drive growth in the Neuronetics' Other segment.
A non-invasive, non-systemic, and non-pharmacological treatment for adult patients with Major Depressive Disorder (MDD) who have not seen success with prior antidepressant medications.
A non-invasive, outpatient procedure that uses transcranial magnetic stimulation (TMS) to target key areas of the brain involved in depression.
A proprietary, 3D navigation system that provides precise and accurate targeting of the brain areas involved in depression.
Neuronetics, Inc. has a moderate threat of substitutes due to the availability of alternative treatments for depression, such as medication and therapy.
Neuronetics, Inc. has a low bargaining power of customers due to the specialized nature of its product and the lack of alternative options for patients.
Neuronetics, Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for its components and materials.
Neuronetics, Inc. has a high threat of new entrants due to the growing demand for mental health treatments and the potential for new companies to enter the market.
Neuronetics, Inc. has a moderate intensity of rivalry due to the presence of competitors in the market, but the company's unique product and technology provide a competitive advantage.
| Value | |
|---|---|
| Debt Weight | 63.75% |
| Debt Cost | 8.68% |
| Equity Weight | 36.25% |
| Equity Cost | 16.37% |
| WACC | 11.47% |
| Leverage | 175.86% |
Value: 7.2
Growth: 4.0
Quality: 3.5
Yield: 0.0
Momentum: 10.0
Volatility: 1.7
1-Year Total Return ->
Value: 7.1
Growth: 1.7
Quality: 4.1
Yield: 2.0
Momentum: 7.0
Volatility: 3.3
1-Year Total Return ->
Value: 8.8
Growth: 1.0
Quality: 3.7
Yield: 7.0
Momentum: 0.0
Volatility: 1.3
1-Year Total Return ->
Value: 9.8
Growth: 4.7
Quality: 5.6
Yield: 0.0
Momentum: 0.5
Volatility: 0.0
1-Year Total Return ->
Value: 9.6
Growth: 3.2
Quality: 3.4
Yield: 0.0
Momentum: 1.5
Volatility: 1.7
1-Year Total Return ->
Value: 7.8
Growth: 3.6
Quality: 4.3
Yield: 0.0
Momentum: 1.5
Volatility: 1.3
1-Year Total Return ->