Want to see STIM full AI Analyst Report?
Top Page
Neuronetics
(NASDAQ:STIM)
Select Model
Select Model
Rating:50Neutral
Price Target:
$3.50
▲(16.67% Upside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weak financial quality (ongoing losses, negative free cash flow, and high leverage). Technicals are supportive with strong momentum, but overbought signals raise near-term risk. The earnings call data is moderately positive due to better margins and lower cost guidance, yet continued cash burn guidance and execution risk around the NeuroStar transition cap the overall rating.
Positive Factors
Strong Revenue Growth
Rapid top-line expansion, led by Greenbrook, indicates stronger adoption of the company’s neurohealth platform. Sustained clinic growth can increase treatment volume, recurring service demand, and the installed base over the next several quarters.
Negative Factors
Persistent Losses and Negative Cash Flow
The company has not yet converted revenue growth into sustainable cash generation. Continued operating and investing cash use may require additional financing, limiting strategic flexibility and increasing execution risk until operations consistently fund the business.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Rapid top-line expansion, led by Greenbrook, indicates stronger adoption of the company’s neurohealth platform. Sustained clinic growth can increase treatment volume, recurring service demand, and the installed base 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.
Data provided by:
The Fly
The FlyNeuronetics (STIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$228.59M
Dividend YieldN/A
Average Volume (3M)1.96M
Price to Earnings (P/E)―
Beta (1Y)2.00
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. Volume3,223,854
30 Day Avg. Volume1,959,322
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.00Price Target Upside66.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$161.13M
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:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 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 | -21.25M | -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 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $441.96M | -6.31 | -46.74% | ― | 182.05% | -5.43% | |
57 Neutral | $72.15M | -1.08 | 402.97% | ― | 12.75% | 16.23% | |
54 Neutral | $911.16M | -10.62 | -61.65% | ― | -51.05% | 57.25% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $185.81M | -9.17 | -121.62% | ― | 20.83% | 9.70% | |
50 Neutral | $228.59M | -6.88 | -150.56% | ― | 39.59% | 61.06% |
* Healthcare Sector Average
STIM
Neuronetics
2.96
-0.48
-13.95%
ACRS
Aclaris Therapeutics
6.16
4.32
234.78%
MDXH
MDxHealth
0.72
-2.74
-79.16%
XGN
Exagen
7.52
-2.22
-22.79%
PRE
Prenetics Group
26.25
18.85
254.73%
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...
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...
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.