Neuronetics (STIM) AI Stock Analysis

• Market Cap: $104.95M
• Dividend Yield: N/A
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 78.62%
• EPS Growth: 32.39%
• Country: US
• Employees: 716
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.10
• Shares Outstanding: 69,276,596
• 10 Day Avg. Volume: 1,594,570
• 30 Day Avg. Volume: 2,476,511
• PEG Ratio: 0.04
• Price to Book (P/B): 4.07
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -4.30
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: -5.72
• 1Y Price Target: $4.25
• Price Target Upside: 214.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.46
• Revenue Forecast (FY): $164.16M

• Rating: 47 Neutral
• Price Target: $1.50 ▲(11.11% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily constrained by weak financial fundamentals—ongoing losses and persistent cash burn despite improving revenue and reduced debt. Technicals also remain bearish with the stock trading below key moving averages and negative MACD. The earnings call improves the outlook with growth guidance and a stated path to positive operating cash flow in H2 2026, but margin pressure and legal/reimbursement risks keep the overall score below average.

Positive Factors

Clinic & Treatment Volume Expansion

Sustained clinic revenue and treatment-volume growth indicate improving demand and higher utilization of installed TMS systems. A growing treatment base drives recurring consumable, service and maintenance revenue, strengthening long-term revenue visibility and unit economics as the installed base scales.

Balance-sheet & Debt Reduction

Material debt reduction meaningfully lowers fixed financial obligations and increases optionality for reinvestment or M&A. A cleaner leverage profile reduces refinancing risk, extending the runway for commercialization and supporting multi-quarter investments in commercial scale and margin improvement.

Strategic Pipeline Collaboration (COMPASS)

Participation in an NDA-stage psilocybin program offers structural upside beyond core TMS, expanding addressable market and therapy mix if approved and reimbursed. Existing SPRAVATO experience and clinic footprint could lower commercialization lift and create long-term optionality across novel neurotherapies.

Negative Factors

Persistent Negative Cash Flow

Ongoing operating and free cash burn signals the business has not yet self-funded growth; sustained negative cash flow requires external financing or sharp margin gains. If execution falters, liquidity constraints could force dilutive funding or cutbacks, hindering long-term commercialization plans.

Gross Margin Compression

Lower margins driven by higher-share, lower-margin clinic operations reduce operating leverage and slow the path to sustainable profitability. Structural mix shifts pressure gross profits per dollar of revenue, meaning the company must drive substantial scale or efficiency to restore historical margin levels.

Regulatory & Reimbursement Risk

Active legal inquiry and uncertain payer coverage for emerging therapies create lasting execution risk. Potential compliance costs, reputational damage, or restricted reimbursement can impair clinic economics and slow adoption of new modalities, complicating revenue predictability and long-term margin recovery.

Neuronetics Business Overview & Revenue Model

Company Description

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. Neuronetics, Inc. was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.

How the Company Makes Money

Neuronetics generates revenue primarily from selling and supporting its NeuroStar TMS systems and from recurring usage tied to ongoing treatment delivery. Key revenue streams include: (1) Capital sales of NeuroStar systems to psychiatric practices, hospitals, and other healthcare providers; (2) Recurring revenue from consumables and treatment-related components associated with operating installed systems (e.g., items replaced or used over time during therapy delivery); (3) Service, warranty, and maintenance revenue (including service contracts) for installed systems; and (4) Potential revenue from rentals, leases, or other arrangements for access to systems if offered in a given period (specific mix by period not provided here). The company’s earnings are influenced by growth in its installed base, utilization rates (more patient treatments can increase recurring and service-related revenue), reimbursement dynamics for TMS therapy (which affect provider demand and throughput), and commercial execution through its direct sales and customer support infrastructure. Material, specific partnership-driven revenue details are null.

Neuronetics Financial Statement Overview

Summary

Revenue is accelerating (2025 up ~14.8% YoY) and leverage improved materially (debt reduced to ~$24.5M from ~$82.6M). However, profitability remains weak (2025 EBIT ~-$31.4M; net loss ~-$39.0M) and cash generation is a major risk with negative operating cash flow (~-$20.4M in 2025) and consistently negative free cash flow (~-$21.2M in 2025).

Income Statement

Revenue growth is improving, with 2025 revenue up about 14.8% versus 2024, but profitability remains weak. Gross profit dollars increased in 2025 (about $72.3M vs. $54.2M in 2024), yet the company is still generating sizable operating losses (EBIT roughly -$31.4M in 2025) and a large net loss (about -$39.0M in 2025). Earlier years show consistently negative profit margins, indicating the business has not yet demonstrated sustainable earnings leverage.

Balance Sheet

Leverage improved meaningfully in 2025 as total debt fell to about $24.5M from $82.6M in 2024, reducing balance-sheet pressure. However, equity remains relatively modest (about $22.4M in 2025) versus a sizable asset base (about $141.6M), and historical returns on equity are deeply negative (e.g., 2024), reflecting ongoing losses. Overall, the balance sheet is better positioned than last year but still exposed if losses persist.

Cash Flow

Cash generation remains a key concern: operating cash flow is negative across all years shown, including about -$20.4M in 2025 (an improvement from about -$31.0M in 2024). Free cash flow is also consistently negative and worsened in 2025 to about -$21.2M (around -30.7% growth versus 2024). While the cash burn rate improved versus 2024 on the operating line, the business has not yet demonstrated a durable path to self-funding operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	149.16M	74.89M	71.35M	65.21M	55.31M
Gross Profit	72.31M	54.16M	51.70M	49.72M	43.66M
EBITDA	-27.97M	-34.37M	-22.76M	-31.96M	-26.81M
Net Income	-39.00M	-43.71M	-30.19M	-37.16M	-31.19M
Balance Sheet
Total Assets	141.55M	140.90M	115.83M	116.88M	141.22M
Cash, Cash Equivalents and Short-Term Investments	34.36M	18.66M	60.58M	71.88M	96.34M
Total Debt	90.30M	82.63M	62.47M	39.74M	39.54M
Total Liabilities	115.31M	109.10M	81.64M	59.82M	56.05M
Stockholders Equity	22.38M	27.71M	34.19M	57.06M	85.17M
Cash Flow
Free Cash Flow	-21.18M	-32.46M	-34.41M	-34.01M	-30.34M
Operating Cash Flow	-20.37M	-31.00M	-32.04M	-30.74M	-27.98M
Investing Cash Flow	-801.00K	-2.41M	-1.32M	6.73M	-9.84M
Financing Cash Flow	35.85M	-6.81M	22.70M	207.00K	83.01M

Neuronetics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STIM, the sentiment is Neutral. The current price of 1.35 is above the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.62, and below the 200-day MA of 2.58, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 83.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STIM.

Neuronetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRE	61 Neutral	$355.92M	-3.79	-36.02%	―	159.45%	8.59%
ATLN	54 Neutral	$274.24M	-3.84	―	―	109.65%	77.14%
ACRS	52 Neutral	$451.03M	-4.66	-113.23%	―	-41.87%	-165.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
STIM	47 Neutral	$104.95M	-2.33	-138.87%	―	78.62%	32.39%
MDXH	46 Neutral	$161.36M	-5.33	516.59%	―	21.68%	58.30%
XGN	44 Neutral	$71.44M	-6.57	-126.62%	―	14.08%	1.34%

Neuronetics Corporate Events

Neuronetics Appoints New CEO to Lead Next Growth Phase

On March 12, 2026, Neuronetics’ board appointed veteran medtech executive Daniel L. Reuvers as president and chief executive officer, with his tenure to begin around March 23, 2026 under an agreement that includes a $730,000 base salary, bonus eligibility, and a 1.5 million-unit restricted stock grant. The move follows a transformative 2025 in which revenue nearly doubled to $149.2 million, fueled by the Greenbrook TMS acquisition and strong clinic growth, and positions the company to build on improving cash generation, expanded insurance coverage, and new therapeutic collaborations as it targets further scale in the mental health treatment market.

Neuronetics reported fourth-quarter 2025 revenue of $41.8 million, up 86% year over year, with U.S. sales rising 88% and Greenbrook clinic revenue surging, while shipment of 49 NeuroStar systems and modest pro forma gains in treatment-session revenue underscored growing utilization. Management highlighted that the company exited 2025 with positive operating cash flow and a broader patient base—over 237,000 individuals treated in more than 8 million sessions—supporting its ambition to leverage its integrated platform and Reuvers’ commercialization experience to drive the next phase of growth in neurohealth therapies.

The most recent analyst rating on (STIM) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.

Neuronetics Amends Registration Rights, Aligns With Major Shareholder

On March 2, 2026, Neuronetics, Inc. and Madryn Asset Management LP executed a second amendment to their Registration Rights Agreement related to shares issued to the Madryn Parties under Neuronetics’ earlier arrangement with Greenbrook TMS Inc., originally disclosed in August and amended in November 2024. The Second Amendment commits Neuronetics, upon receiving a shelf notice, to file a resale registration statement for all Madryn-held registrable securities within five business days after filing its 2025 Form 10-K, while Madryn agrees to vote all its Neuronetics shares in line with the board’s recommendations on specified proposals at the company’s 2026 annual meeting, signaling tighter alignment between a key shareholder and the company’s governance plans.

The most recent analyst rating on (STIM) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.

Neuronetics Grants 2025 Performance-Based Bonuses to Executives

On February 23, 2026, Neuronetics, Inc.’s board, acting on the recommendation of its Compensation Committee, approved annual cash incentive awards for senior executives tied to 2025 performance. The payments, totaling more than $649,000 for the chief executive, chief financial, and chief legal officers, are scheduled to be made on or about March 13, 2026.

The compensation awards to CEO Keith J. Sullivan, CFO Steven E. Pfanstiel, and Chief Legal Officer W. Andrew Macan underscore the board’s support for existing leadership and its use of variable pay to reward recent operational and financial execution. The decision signals continuity in Neuronetics’ executive team and incentive structure, which may be relevant to investors tracking management stability and governance practices.

The most recent analyst rating on (STIM) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.

Neuronetics amends credit agreement, adjusts subsidiary guarantee terms

On January 15, 2026, Neuronetics, Inc. amended its existing credit agreement and guaranty, originally executed on July 25, 2024, with Perceptive Credit Holdings IV, LP as collateral agent and other lenders. The latest amendment modifies the conditions under which the company’s subsidiaries are required to join the facility as obligors and subsidiary guarantors, potentially affecting the scope of subsidiary-level guarantees and obligations under its debt structure.

The most recent analyst rating on (STIM) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.

Neuronetics Grants Retention-Focused Incentive Awards to Executives

On December 30, 2025, Neuronetics, Inc.’s compensation committee approved significant cash and restricted stock unit incentive awards for two senior executives, Executive Vice President, Chief Financial Officer and Treasurer Steven E. Pfanstiel and Executive Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary W. Andrew Macan, granting them cash bonuses of $240,000 and $231,750, respectively, and 170,212 and 164,361 RSUs, respectively. The awards, which will be paid and will fully vest on the earlier of June 30, 2027 or a termination of employment without cause, underscore the company’s focus on retaining key leadership and aligning executive incentives with long-term corporate performance, potentially strengthening management stability during a critical period for its strategic and financial execution.

The most recent analyst rating on (STIM) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.