Neuronetics reports 11% revenue growth in Q3, CEO to retire in 2026

MALVERN, Pa. - Neuronetics, Inc. (NASDAQ:STIM) reported third quarter 2025 revenue of $37.3 million, representing an 11% increase on an adjusted pro forma basis compared to the same period last year, according to a company press release issued Tuesday. The medical device company’s shares, currently trading at $2.77, have seen significant volatility, falling 10.65% over the past week despite a remarkable 154.13% gain over the past year. According to InvestingPro data, the stock appears overvalued compared to its Fair Value.

The medical technology company, which specializes in neurohealth therapies, saw particularly strong performance from its Greenbrook clinics, which generated $21.8 million in revenue, a 25% increase on an adjusted pro forma basis compared to Q3 2024.

The company shipped 40 NeuroStar Advanced Therapy Systems during the quarter, generating system revenue of $3.5 million, a 15% decrease from the prior year period. Treatment session revenue was $10.5 million, down 21% from Q3 2024.

Neuronetics reported a net loss of $9.4 million, or $0.13 per share, compared to a net loss of $13.3 million, or $0.44 per share, in the third quarter of 2024. Gross margin decreased to 45.9% from 75.6% in the prior year, primarily due to the inclusion of Greenbrook’s clinic business.

The company ended the quarter with $34.5 million in total cash, consisting of $28 million in cash and cash equivalents and $6.5 million in restricted cash. Cash used in operations improved to $0.8 million for the quarter.

Neuronetics also announced that CEO Keith Sullivan plans to retire effective June 30, 2026. The company has initiated a search for his successor, and Sullivan has agreed to remain as a consultant after his retirement to ensure a smooth transition.

In August, the company secured an additional $10 million in funding under its existing debt agreement with Perceptive Credit Holdings IV, LP after meeting required revenue conditions. Neuronetics also raised $7.8 million in net proceeds through the sale of approximately 2.3 million shares under its at-the-market facility.

For the fourth quarter of 2025, Neuronetics expects total worldwide revenue between $40 million and $43 million. The company revised its full-year 2025 revenue guidance to between $147 million and $150 million, down from previous guidance of $149 million to $155 million.

In other recent news, Neuronetics Inc. reported its second-quarter 2025 financial results, which revealed a larger-than-expected loss per share but exceeded revenue forecasts. The company posted an earnings per share of -$0.15, missing the forecast of -$0.08, while revenue reached $38.1 million, surpassing the expected $36.59 million. Canaccord Genuity responded by lowering its price target for Neuronetics to $7.00 from $8.00, citing margin concerns, but maintained a Buy rating on the stock. Neuronetics also announced a three-year exclusive agreement with Elite DNA Behavioral Health to supply transcranial magnetic stimulation (TMS) devices across more than 30 locations in Florida. This partnership will utilize Neuronetics’ Greenbrook platform to offer operational and patient support services. Additionally, over 5 million New York Medicaid members will gain access to TMS therapy for major depressive disorder starting this fall, as announced by Neuronetics. In other developments, Stifel raised its price target on SiTime Corporation to $324.00 from $240.00, maintaining a Buy rating. This adjustment follows SiTime’s launch of its Titan Platform, marking its entry into the $4 billion resonator market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.