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Neuronetics
(NASDAQ:STIM)
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Rating:46Neutral
Price Target:
$2.00
▼(-33.33% Downside)
Action:Reiterated
Date:10/03/26
The score is held down primarily by weak financial quality (ongoing losses, negative free cash flow, and very high leverage) and bearish technicals (price below key moving averages with negative MACD). Offsetting these risks, the earnings call indicates tangible operational improvement (margin expansion, lower OPEX, positive adjusted EBITDA) and modestly better guidance, but continued cash burn and NeuroStar transition risks keep the overall profile below average.
Positive Factors
Revenue Growth
Growing revenue, led by stronger Greenbrook clinic performance, indicates improving commercial traction across the company’s interventional psychiatry platform. If sustained, higher collections, payer contracting, and clinic activity can support recurring treatment revenue and improve operating leverage over the next several quarters.
Negative Factors
High Leverage
Very high leverage limits financial flexibility and leaves the company more dependent on improved operating performance to stabilize its capitalization. The combination of substantial debt relative to equity and deeply negative returns can increase refinancing or dilution pressure if profitability does not improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Growing revenue, led by stronger Greenbrook clinic performance, indicates improving commercial traction across the company’s interventional psychiatry platform. If sustained, higher collections, payer contracting, and clinic activity can support recurring treatment revenue and improve operating leverage over the next several quarters.
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
$153.16M
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth39.59%
EPS Growth61.06%
CountryUS
Employees658
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.43
Shares Outstanding76,197,220
10 Day Avg. Volume646,503
30 Day Avg. Volume1,071,008
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 Cap1.05
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit2.10
Enterprise Value/Ebitda-8.10
Forecast
1Y Price Target
$5.50Price Target Upside83.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.35
Revenue Forecast (FY)$161.83M
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 makes money primarily by commercializing its NeuroStar TMS therapy platform and supporting an installed base of provider customers. Key revenue streams typically include: (1) Capital equipment revenue: sales of NeuroStar TMS systems to...
Neuronetics Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed measurable operational and financial progress: revenue growth (9.1%), strong Greenbrook performance (+16.8%), margin expansion (to 51.1%), reduced OPEX (-12%), an improved net loss and a positive adjusted EBITDA, plus strengthened cash and an ATM raise. These positives were balanced against execution and timing risks centered on NeuroStar's transition (NeuroStar revenue down 2.7% and sessions down double digits due to inventory normalization and mix shifts), underused clinic capacity (~40%), potential short-term revenue choppiness as customers migrate to new purchase/lease models, and dependence on external regulatory timelines for psychedelics. On balance, the company demonstrated tangible progress toward profitability and cash generation while acknowledging near-term mix and execution challenges.Positive Updates
Total Revenue Growth
Total revenue of $41.6M in Q2 FY2026, up 9.1% year-over-year (vs $38.1M), driven primarily by Greenbrook.
Negative Updates
NeuroStar Revenue Decline and Session Revenue Drop
Total NeuroStar revenue was $14.7M, down 2.7% year-over-year. Treatment session revenue declined by double digits year-over-year (partially due to inventory normalization and some units no longer active).
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue Growth
Total revenue of $41.6M in Q2 FY2026, up 9.1% year-over-year (vs $38.1M), driven primarily by Greenbrook.
Read all positive updates
Company Guidance
The company narrowed full‑year guidance to total revenue of $160.0M–$164.0M (from $160.0M–$166.0M), gross margin of 48%–50% (up from 47%–49%), and operating expenses of $95M–$100M (down from $100M–$105M); management will also report OPEX excluding share‑based compensation at $91M–$96M with share‑based compensation estimated at ~$4M. They revised cash guidance to combined cash flow from operations and investing of negative $10.5M to negative $14.5M (prior guidance was cash flow from operations only of negative $13M to negative $17M), said they continue to target limited net cash utilization in H2, and will begin reporting NeuroStar more holistically as a single revenue line going forward.Neuronetics Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 155.10M | 149.16M | 74.89M | 71.35M | 65.21M | 55.31M |
| Gross Profit | 76.19M | 72.31M | 54.16M | 51.70M | 49.72M | 43.66M |
| EBITDA | -19.78M | -27.12M | -34.37M | -22.76M | -31.96M | -26.81M |
| Net Income | -30.43M | -39.00M | -43.71M | -30.19M | -37.16M | -31.19M |
Balance Sheet | ||||||
| Total Assets | 131.53M | 141.55M | 140.90M | 115.83M | 116.88M | 141.22M |
| Cash, Cash Equivalents and Short-Term Investments | 19.43M | 34.36M | 18.66M | 60.58M | 71.88M | 96.34M |
| Total Debt | 86.52M | 90.30M | 82.63M | 62.47M | 39.74M | 39.54M |
| Total Liabilities | 109.89M | 115.31M | 109.10M | 81.64M | 59.82M | 56.05M |
| Stockholders Equity | 17.85M | 22.38M | 27.71M | 34.19M | 57.06M | 85.17M |
Cash Flow | ||||||
| Free Cash Flow | -10.07M | -21.18M | -32.46M | -34.41M | -34.01M | -30.34M |
| Operating Cash Flow | -9.13M | -20.37M | -31.00M | -32.04M | -30.74M | -27.98M |
| Investing Cash Flow | -918.00K | -801.00K | -2.41M | -1.32M | 6.73M | -9.84M |
| Financing Cash Flow | 26.66M | 35.85M | -6.81M | 22.70M | 207.00K | 83.01M |
Neuronetics Technical Analysis
Negative
3.00
Price Trends
2.66
Negative
2.16
Negative
1.86
Positive
Market Momentum
-0.20
Positive
35.53
Neutral
34.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STIM, the sentiment is Negative. The current price of 3 is above the 20-day moving average (MA) of 2.19, above the 50-day MA of 2.66, and above the 200-day MA of 1.86, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 35.53 is Neutral, neither overbought nor oversold. The STOCH value of 34.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STIM.
Neuronetics Risk Analysis
Neuronetics disclosed 85 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 | $190.90M | -9.61 | -121.62% | ― | 20.83% | 9.70% | |
55 Neutral | $319.38M | -4.02 | -49.17% | 2.46% | 182.05% | -5.43% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $153.16M | -4.67 | -150.56% | ― | 39.59% | 61.06% | |
45 Neutral | $560.83M | -6.57 | -61.65% | ― | -51.05% | 57.25% | |
43 Neutral | $18.55M | -0.36 | 142.63% | ― | 12.75% | 16.23% |
* Healthcare Sector Average
STIM
Neuronetics
2.08
-0.88
-29.73%
ACRS
Aclaris Therapeutics
3.83
1.57
69.47%
MDXH
MDxHealth
0.18
-4.22
-95.82%
XGN
Exagen
7.48
-4.44
-37.25%
PRE
Prenetics Group
16.57
-0.81
-4.66%
Neuronetics Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Neuronetics Expands CFO Nir Naor’s Financial Leadership Role
Positive
Aug 17, 2026
On August 11, 2026, Neuronetics, Inc. ended Francis X. Brown III’s tenure as interim principal financial and accounting officer, noting that his departure was not due to any dispute with management or the board, and that he would remain with...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Neuronetics narrows losses and boosts margins in Q2
Positive
Aug 11, 2026
On August 11, 2026, Neuronetics reported second-quarter 2026 results showing total revenue of $41.6 million, up 9.1% year on year, driven by a 16.8% increase in Greenbrook clinic revenue to $26.9 million even as NeuroStar revenue dipped 2.7%. Gros...
Business Operations and StrategyExecutive/Board Changes
Neuronetics Announces New CFO Amid Leadership Transitions
Positive
Jul 20, 2026
On July 20, 2026, Neuronetics announced a series of senior leadership changes that underscore its focus on financial discipline and expansion of its interventional psychiatry footprint. The Board appointed finance veteran Nir Naor as Executive Vic...
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.