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Neuronetics
(NASDAQ:STIM)
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Rating:43Neutral
Price Target:
$1.00
▼(-29.58% Downside)
Action:Reiterated
Date:06/24/26
The score is held down primarily by weak financial quality—ongoing losses, negative free cash flow, and a still-pressured balance sheet despite improving revenue. Technicals also remain bearish with the stock below all major moving averages and negative MACD. Offsetting factors are a constructive (but mixed) earnings outlook with reiterated guidance and expected H2 cash-flow improvement, though near-term liquidity and continued cash burn remain key risks.
Positive Factors
Recurring revenue model
Neuronetics’ business generates recurring consumables and service revenue from an installed NeuroStar base, creating a structural annuity stream. This model boosts revenue visibility, supports margin sustainability as utilization rises, and reduces reliance on one-time device placements over a multi-month horizon.
Negative Factors
Ongoing negative cash flow
Despite improvement, persistent negative operating and free cash flow forces reliance on external funding or cash reserves. Continued burn constrains investments in commercial expansion and R&D, increases execution risk if revenue growth stalls, and pressures liquidity across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
Neuronetics’ business generates recurring consumables and service revenue from an installed NeuroStar base, creating a structural annuity stream. This model boosts revenue visibility, supports margin sustainability as utilization rises, and reduces reliance on one-time device placements over a multi-month horizon.
Read all positive factors
Neuronetics Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue into device sales, recurring consumables and service contracts, leasing and training. Reveals whether growth is driven by one-time equipment sales or by recurring streams that support steadier margins and cash flow; heavy reliance on device sales can mean lumpier results and greater sensitivity to capital spending cycles.
Breaks down revenue into device sales, recurring consumables and service contracts, leasing and training. Reveals whether growth is driven by one-time equipment sales or by recurring streams that support steadier margins and cash flow; heavy reliance on device sales can mean lumpier results and greater sensitivity to capital spending cycles.
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The Fly
The FlyNeuronetics (STIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.25M
Dividend YieldN/A
Average Volume (3M)2.30M
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth69.52%
EPS Growth58.15%
CountryUS
Employees716
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.54
Shares Outstanding69,587,840
10 Day Avg. Volume1,300,428
30 Day Avg. Volume2,296,489
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)4.07
Price to Sales (P/S)0.61
P/FCF Ratio-4.30
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit2.15
Enterprise Value/Ebitda-6.08
Forecast
1Y Price Target
$3.00Price Target Upside111.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$161.08M
Neuronetics Business Overview & Revenue Model
Company Description
Neuronetics, Inc. functions as a medical technology enterprise with commercialized products, specializing in the creation, enhancement, and global distribution of solutions for individuals experiencing neurohealth conditions, both within the U.S. ...
How the Company Makes Money
Neuronetics generates revenue primarily by selling and supporting its NeuroStar TMS therapy systems and associated recurring consumables and services used by psychiatric and other outpatient providers. Key revenue streams typically include: (1) ca...
Neuronetics Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a mixed but constructive view: top-line growth (total revenue +8%, clinic revenue +15%), improved profitability trends (narrower net loss and $2.0M adjusted EBITDA improvement), and meaningful operational initiatives (cost savings, go-to-market pilots, payer/regulatory tailwinds). Offsetting these positives are ongoing challenges including NeuroStar treatment revenue declines, gross margin contraction, a materially reduced cash balance ($19.0M vs $34.1M at year-end), continued GAAP losses and a near-term projected operating cash burn for the year. Management emphasized discipline, cash-flow focus, and pilots to expand reach — signaling a path to stabilization but with execution and liquidity risks to manage in the near term.Positive Updates
Total Revenue Growth
Total revenue of $34.5 million in Q1 2026, an increase of 8% year-over-year from $32.0 million in Q1 2025.
Negative Updates
NeuroStar Revenue Decline
Total NeuroStar revenue (systems + treatment sessions) was $12.9 million, down 3% year-over-year; U.S. treatment session revenue declined 5% to $9.1 million despite a 3.5% increase in system treatment utilization (impacted by reduced customer inventory).
Read all updates
Q1-2026 Updates
Positive
Negative
Total Revenue Growth
Total revenue of $34.5 million in Q1 2026, an increase of 8% year-over-year from $32.0 million in Q1 2025.
Read all positive updates
Company Guidance
Guidance was reiterated: Neuronetics expects full‑year 2026 revenue of $160–$166 million, gross margins of 47%–49%, and operating expenses of $100–$105 million (including roughly $8.5 million of non‑cash stock‑based compensation). Full‑year operating cash flow is projected to be negative $13 million to negative $17 million, with improvement beginning in Q2, sequential improvement through the year and operating cash flow flat to positive in the second half; Q2 is expected to show mid‑single‑digit revenue growth. Management also expects cost actions taken in Q1 to deliver approximately $2.5–$3.0 million of annualized savings with net savings beginning in Q3; the company reported $19.0 million of total cash (about $13.0 million unrestricted) and used $9.4 million of cash in operations in Q1.Neuronetics Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
36
Negative
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 151.64M | 149.16M | 74.89M | 71.35M | 65.21M | 55.31M |
| Gross Profit | 72.72M | 72.31M | 54.16M | 51.70M | 49.72M | 43.66M |
| EBITDA | -25.70M | -27.12M | -34.37M | -22.76M | -31.96M | -26.81M |
| Net Income | -37.11M | -39.00M | -43.71M | -30.19M | -37.16M | -31.19M |
Balance Sheet | ||||||
| Total Assets | 125.44M | 141.55M | 140.90M | 115.83M | 116.88M | 141.22M |
| Cash, Cash Equivalents and Short-Term Investments | 13.21M | 34.36M | 18.66M | 60.58M | 71.88M | 96.34M |
| Total Debt | 85.39M | 90.30M | 82.63M | 62.47M | 39.74M | 39.54M |
| Total Liabilities | 108.38M | 115.31M | 109.10M | 81.64M | 59.82M | 56.05M |
| Stockholders Equity | 13.27M | 22.38M | 27.71M | 34.19M | 57.06M | 85.17M |
Cash Flow | ||||||
| Free Cash Flow | -13.58M | -21.18M | -32.46M | -34.41M | -34.01M | -30.34M |
| Operating Cash Flow | -12.80M | -20.37M | -31.00M | -32.04M | -30.74M | -27.98M |
| Investing Cash Flow | -753.00K | -801.00K | -2.41M | -1.32M | 6.73M | -9.84M |
| Financing Cash Flow | 11.30M | 35.85M | -6.81M | 22.70M | 207.00K | 83.01M |
Neuronetics Technical Analysis
Positive
1.42
Price Trends
1.45
Negative
1.43
Negative
1.81
Negative
Market Momentum
-0.05
Negative
50.93
Neutral
55.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STIM, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.45, and below the 200-day MA of 1.81, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 55.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STIM.
Neuronetics Risk Analysis
Neuronetics disclosed 87 risk factors in its most recent earnings report. Neuronetics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Neuronetics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $316.88M | -4.11 | -46.74% | ― | 167.42% | -22.94% | |
54 Neutral | $698.32M | -8.93 | -55.89% | ― | -52.94% | 59.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $110.65M | -5.09 | -113.53% | ― | 20.55% | -4.63% | |
44 Neutral | $27.89M | ― | 402.97% | ― | 17.42% | 42.75% | |
43 Neutral | $93.25M | -2.48 | -164.68% | ― | 69.52% | 58.15% | |
41 Neutral | $69.10M | -0.64 | 274.33% | ― | 27.45% | 82.80% |
* Healthcare Sector Average
STIM
Neuronetics
1.34
-2.15
-61.60%
ACRS
Aclaris Therapeutics
5.00
3.58
252.11%
MDXH
MDxHealth
0.43
-1.78
-80.72%
XGN
Exagen
4.58
-2.40
-34.38%
PRE
Prenetics Group
18.83
10.31
121.01%
ATLN
Atlantic International
0.85
-1.18
-58.13%
Neuronetics Corporate Events
Business Operations and StrategyExecutive/Board Changes
Neuronetics Promotes Cory Anderson to Lead Greenbrook Unit
Positive
Jun 23, 2026
On June 16, 2026, Neuronetics’ board of directors promoted Cory Anderson from Senior Vice President, Chief Technology Officer to Executive Vice President, General Manager of Greenbrook, effective July 1, 2026, reflecting the company’s ...
Executive/Board ChangesShareholder Meetings
Neuronetics Shareholders Approve Directors, Auditor and Equity Plan
Positive
May 29, 2026
On May 28, 2026, Neuronetics, Inc. held its Annual Meeting of Stockholders, with approximately 80.41% of eligible shares represented, and shareholders elected all director nominees to one-year terms ending at the 2027 meeting. Investors also ratif...
Business Operations and StrategyExecutive/Board Changes
Neuronetics Extends Interim Financial Leadership Through Amended Agreement
Neutral
May 22, 2026
Neuronetics, Inc. previously disclosed that its board appointed Francis X. Brown III as interim principal financial and accounting officer effective May 5, 2026, under a consulting agreement that provided a one-time payment of $25,000 for his serv...
Business Operations and StrategyFinancial Disclosures
Neuronetics Posts Q1 Revenue Growth and Expanded TMS Coverage
Positive
May 5, 2026
On May 5, 2026, Neuronetics reported first-quarter 2026 results showing total revenue of $34.5 million, up 8% year over year, driven by a 15% rise in U.S. clinic revenue to $21.5 million and a 13% increase in NeuroStar system revenue, though inter...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Neuronetics Announces CFO Transition and Reaffirms 2026 Outlook
Negative
Apr 6, 2026
On April 1, 2026, Neuronetics entered into an Executive Consulting and Release Agreement with retiring president and chief executive Keith J. Sullivan, under which he will provide consulting services through March 31, 2027 without additional pay w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.