Neuronetics set to join Russell indexes in June

MALVERN, Pa. - Neuronetics, Inc. (NASDAQ:STIM), a medical technology company specializing in neurohealth therapies with a current market capitalization of $251.1 million, is slated to be included in the Russell 3000® and Russell 2000® indexes, effective after US markets open on June 30, 2025. The Russell indexes annual reconstitution recognizes the company’s market capitalization, which determines its membership for one year.

The inclusion in these prominent indexes is significant for Neuronetics, as it could enhance the company’s visibility among institutional investors. The Russell 3000® Index represents the largest 3,000 US public companies, while the Russell 2000® Index focuses on small-cap firms. FTSE Russell, the global index provider, bases its index memberships on objective market-capitalization rankings and style attributes. According to InvestingPro data, the company has demonstrated remarkable momentum with a 252% return over the past six months and a 104% return over the last year.

Keith J. Sullivan, President and CEO of Neuronetics, remarked on the milestone, stating that it validates the company’s strategic vision and operational execution. He emphasized the company’s expansion in providing innovative mental health treatments and its integrated approach, combining NeuroStar technology with the Greenbrook clinic network. Sullivan also noted the company’s path to positive cash flow and its strong growth model. InvestingPro analysts have set price targets ranging from $5.50 to $8.00 for the stock, reflecting confidence in the company’s growth trajectory. Get detailed insights and 8 additional ProTips with an InvestingPro subscription.

Neuronetics is known for its NeuroStar Advanced Therapy, a non-drug, noninvasive treatment for mental health conditions, particularly major depressive disorder (MDD). The company also operates Greenbrook TMS Inc. treatment centers, which offer NeuroStar Advanced Therapy and SPRAVATO® (esketamine) Nasal Spray for various mental health disorders. Financial metrics from InvestingPro show the company’s strong liquidity position with a current ratio of 2.44 and revenue growth of 22% in the last twelve months. Access the comprehensive Pro Research Report for deeper analysis of STIM’s financial health and growth prospects.

The NeuroStar Advanced Therapy System has been cleared by the U.S. Food and Drug Administration for use in adults with MDD and other indications. It has delivered over 7.4 million treatments and is supported by a substantial clinical data set. Greenbrook has provided treatments to over 55,000 patients.

This news is based on a press release statement from Neuronetics and reflects the company’s recent developments and strategic position within the medical technology industry.

In other recent news, Neuronetics, Inc. reported its first-quarter 2025 earnings, revealing a net loss of $0.21 per share, which fell short of analysts’ expectations of a $0.19 loss per share. Despite this, the company experienced a significant 84% year-over-year increase in revenue, reaching $32 million, surpassing projections of $29.07 million. This financial performance highlights a strong sales outcome but also underscores ongoing challenges in achieving profitability. Additionally, Neuronetics has provided a full-year revenue forecast ranging from $149 million to $155 million, with expectations of a 55% gross margin.

The company is actively working on strategic initiatives such as the integration of Greenbrook, which has achieved 95% of anticipated synergies, and the expansion of adolescent TMS treatments. Neuronetics is also rolling out SPRAVATO in its Greenbrook clinics, aiming to complete the implementation of the buy-and-bill model by the end of 2025. In other developments, the company’s Annual Meeting of Stockholders resulted in the election of all director nominees and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. A proposal to eliminate supermajority voting requirements was not approved. These recent developments indicate Neuronetics’ focus on growth and operational optimization despite facing profitability concerns.

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