TRICARE expands depression treatment coverage for military teens

MALVERN, Pa. - TRICARE has updated its medical policy to include transcranial magnetic stimulation (TMS) coverage for adolescents aged 15 and older with depression, Neuronetics, Inc. (NASDAQ:STIM) announced Wednesday. The news comes as the company's stock trades at $2.14, currently considered undervalued according to InvestingPro analysis.

The policy change, effective immediately, applies to TRICARE beneficiaries in 26 states, primarily affecting active and retired military service members and their eligible family members.

"The demands of military life can create unique stressors for the children of service members, increasing their vulnerability to depression and other mental health challenges," said Geoffrey Grammer, Chief Medical Officer of Neuronetics and retired U.S. Army Colonel, according to a company press release.

Neuronetics manufactures NeuroStar Advanced Therapy, a non-drug, non-invasive treatment for depression that received FDA clearance for adolescent patients in 2024. The treatment can be used as a first-line option without prior medication failures. Despite recent stock volatility, with a 19.7% drop last week, Neuronetics maintains a strong financial position with a current ratio of 2.24, indicating its liquid assets exceed short-term obligations.

The coverage expansion applies to Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming.

An estimated 4.3 million U.S. adolescents aged 15-21 are affected by major depression, which can disrupt academic performance, relationships, and emotional well-being.

Several other insurers have also added coverage for adolescent TMS therapy, including Evernorth Health Services (a Cigna company), BlueCross BlueShield Health Care Service Corporation, Humana, Aetna, and Medi-Cal.While Neuronetics reported impressive revenue growth of 78.6% in the last twelve months, analysts expect continued sales growth this year. Investors seeking deeper insights into STIM's financial health and growth prospects can access comprehensive analysis through InvestingPro's detailed Research Reports, available for over 1,400 US equities.

In other recent news, Neuronetics reported a third-quarter 2025 revenue of $37.3 million, marking an 11% increase compared to the same period last year. The company's Greenbrook clinics contributed significantly to this growth, generating $21.8 million in revenue, which is a 25% increase from the previous year. Additionally, Neuronetics entered into an exclusive three-year 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 enhance operational and patient support services. Another development for Neuronetics is that New York Medicaid will start covering TMS therapy for major depressive disorder, potentially expanding the company's reach to over 5 million Medicaid members. Meanwhile, Stifel raised its price target for SiTime Corporation to $324 from $240, maintaining a Buy rating. This adjustment follows SiTime's launch of its Titan Platform, which positions the company uniquely in the $4 billion resonator market. These recent developments highlight significant growth and strategic partnerships for both Neuronetics and SiTime.

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