Neuronetics Reports Strong Q1 2025 Growth

Neuronetics ( (STIM) ) has released its Q1 earnings. Here is a breakdown of the information Neuronetics presented to its investors.

Neuronetics, Inc. is a medical technology company specializing in neurohealth therapies, primarily known for its NeuroStar Advanced Therapy System, a non-invasive treatment for mental health conditions. The company, which operates in the healthcare sector, focuses on providing innovative solutions for patients with depression and other mental health disorders.

In the first quarter of 2025, Neuronetics reported a significant revenue increase of 84% compared to the same period in 2024, driven largely by the acquisition of Greenbrook. The company also completed a secondary offering, raising $18.9 million, and announced major insurance coverage expansions for adolescent TMS treatment.

Key financial highlights include a total revenue of $32.0 million, with U.S. clinic revenue contributing $18.7 million. Despite a decrease in gross margin to 49.2% due to the inclusion of Greenbrook’s clinic business, the company projects a positive cash flow by the third quarter of 2025. Operational expenses increased by 35%, attributed to Greenbrook’s administrative costs.

Neuronetics continues to expand its insurance coverage for adolescent TMS therapy, positioning itself for long-term growth. The company also strengthened its balance sheet through strategic financing, which will support key growth initiatives and maintain its path to achieving cash flow positivity.

Looking ahead, Neuronetics anticipates worldwide revenue between $36.0 million and $38.0 million for the second quarter of 2025 and expects to maintain a positive cash flow trajectory, reflecting confidence in its strategic direction and operational execution.