Neuronetics Inc (STIM)
NASDAQ:STIM
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Neuronetics
(NASDAQ:STIM)
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Rating:47Neutral
Price Target:
$1.50
▲(2.74% Upside)
Action:ReiteratedDate: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
Accelerating revenue and treatment utilization
Sustained top-line acceleration and rising treatment volumes indicate durable demand for TMS therapy and expanding service utilization. Higher utilization supports recurring consumables and service revenue, improves installed-base economics, and increases the likelihood of self-funding operations if growth persists.
Negative Factors
Persistent negative operating and free cash flow
Consistent cash burn and negative free cash flow mean the business remains dependent on external financing or asset sales until operations turn cash-positive. Even with quarterly improvement, sustained negative cash generation elevates execution and liquidity risk if growth or cost gains stall.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and treatment utilization
Sustained top-line acceleration and rising treatment volumes indicate durable demand for TMS therapy and expanding service utilization. Higher utilization supports recurring consumables and service revenue, improves installed-base economics, and increases the likelihood of self-funding operations if growth persists.
Read all positive factors
Neuronetics (STIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$110.84M
Dividend YieldN/A
Average Volume (3M)2.54M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth78.62%
EPS Growth32.39%
CountryUS
Employees716
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.10
Shares Outstanding69,276,596
10 Day Avg. Volume2,329,832
30 Day Avg. Volume2,544,512
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 Cap1.42
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit2.17
Enterprise Value/Ebitda-5.61
Forecast
1Y Price Target
$4.25Price Target Upside191.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$164.16M
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...
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...
Neuronetics Key Performance Indicators (KPIs)
Neuronetics Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call communicated meaningful commercial progress from the Greenbrook integration (strong pro forma revenue growth, treatment volume expansion, improved referral network, NeuroStar capital momentum, and positive Q4 operating cash flow) alongside clear near-term challenges (gross margin compression from clinic mix, ongoing legal inquiry, expected negative operating cash flow in FY2026 before H2 recovery, and reimbursement uncertainty for new therapies). Management provided guidance for growth (2026 revenue $160M–$166M, midpoint >9% YoY), a path to reduced operating expenses and positive operating cash flow in the back half of 2026, and strategic optionality via the COMPASS collaboration—overall the positives around growth, integration progress, and improving cash metrics were emphasized, tempered by notable execution, margin, and regulatory risks.Positive Updates
Strong Pro Forma Revenue Growth
Total revenue for Q4 was $41.8M (reported +86% YoY driven by acquisition); adjusted pro forma Q4 revenue grew 23% versus prior year, reflecting combined NeuroStar + Greenbrook momentum.
Negative Updates
Gross Margin Compression
Reported gross margin for Q4 was 52% versus 66% in prior-year quarter, driven by inclusion of lower-margin Greenbrook clinic operations; FY2026 gross margin guidance is 47%–49% (indicating further margin pressure from mix).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Pro Forma Revenue Growth
Total revenue for Q4 was $41.8M (reported +86% YoY driven by acquisition); adjusted pro forma Q4 revenue grew 23% versus prior year, reflecting combined NeuroStar + Greenbrook momentum.
Read all positive updates
Company Guidance
Management guided full-year 2026 revenue of $160–$166 million (midpoint >9% growth vs. 2025), with clinic revenue expected to grow in the double-digits to mid‑teens and NeuroStar revenue to grow in the low‑ to mid‑single digits; first‑quarter 2026 revenue is projected at $33–$35 million. They expect full‑year gross margin of 47%–49% and operating expenses of $100–$105 million (including approximately $8.5 million of non‑cash stock‑based compensation), with operating expense run‑rate targeted to be under $100 million by Q4. Operating cash flow is forecast to be negative $13 million to negative $17 million for FY2026 (seasonally heaviest burn in Q1), with meaningful sequential improvement beginning in Q2 and operating cash flow turning positive in the second half of the year.Neuronetics Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| 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
Negative
1.46
Price Trends
1.59
Negative
1.66
Negative
2.54
Negative
Market Momentum
-0.01
Negative
51.42
Neutral
86.53
Negative
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 1.46 is above the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.59, and below the 200-day MA of 2.54, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 86.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STIM.
Neuronetics Risk Analysis
Neuronetics disclosed 70 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $361.14M | -3.79 | -36.02% | ― | 159.45% | 8.59% | |
54 Neutral | $216.01M | -3.84 | ― | ― | 109.65% | 77.14% | |
52 Neutral | $431.73M | -4.66 | -52.04% | ― | -41.87% | -165.76% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $110.84M | -2.33 | -138.87% | ― | 78.62% | 32.39% | |
44 Neutral | $68.55M | -6.57 | -126.62% | ― | 14.08% | 1.34% | |
43 Neutral | $157.90M | -5.33 | 516.59% | ― | 21.68% | 58.30% |
* Healthcare Sector Average
STIM
Neuronetics
1.46
-2.92
-66.70%
ACRS
Aclaris Therapeutics
3.30
1.63
97.60%
MDXH
MDxHealth
2.90
1.33
84.71%
XGN
Exagen
2.74
-1.12
-29.02%
PRE
Prenetics Group
22.15
18.11
448.27%
ATLN
Atlantic International
3.45
-1.31
-27.52%
Neuronetics Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Neuronetics Appoints New CEO to Lead Next Growth Phase
Positive
Mar 17, 2026
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, bon...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Neuronetics Amends Registration Rights, Aligns With Major Shareholder
Positive
Mar 2, 2026
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 I...
Executive/Board Changes
Neuronetics Grants 2025 Performance-Based Bonuses to Executives
Positive
Feb 25, 2026
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 ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Neuronetics amends credit agreement, adjusts subsidiary guarantee terms
Neutral
Jan 22, 2026
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 condit...
Business Operations and StrategyExecutive/Board Changes
Neuronetics Grants Retention-Focused Incentive Awards to Executives
Positive
Jan 6, 2026
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. Pfanst...
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.