Neuronetics (STIM) AI Stock Analysis

• Market Cap: $91.77M
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 78.62%
• EPS Growth: 32.39%
• Country: US
• Employees: 716
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.13
• Shares Outstanding: 68,485,920
• 10 Day Avg. Volume: 1,536,825
• 30 Day Avg. Volume: 2,329,522
• PEG Ratio: -0.04
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -1.57
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: -4.34
• 1Y Price Target: $6.25
• Price Target Upside: 366.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.46
• Revenue Forecast (FY): $164.15M

• Rating: 44 Neutral
• Price Target: $2.00 ▲(49.25% Upside)
• Action: Reiterated Date: 01/07/26
• Date: Action: Reiterated 01/07/26

The score is held down primarily by weak financial durability (large losses, negative cash flow, and higher leverage) and bearish technicals (price below major moving averages with negative MACD). The latest earnings call provides some offset via strong reported revenue growth and improving cash burn with a near-term breakeven cash flow target, but margin pressure and reduced guidance keep the outlook cautious.

Positive Factors

Revenue Growth from Greenbrook Acquisition

The Greenbrook integration drove a 101% YoY Q3 revenue surge, adding clinic-based recurring revenue and expanding U.S. clinic footprint. This diversification beyond device sales supports more predictable, recurring top-line growth and service-driven revenue mix over the medium term.

Improving Operational Cash Flow

Operating cash use improved materially to $0.8M in Q3 from $17M earlier, and management targeted roughly breakeven operating cash flow in Q4. Sustained cash-flow improvement reduces dependence on external financing, extends runway, and enhances financial resilience if maintained.

Executive Retention Incentives

Significant cash and RSU awards for senior finance and legal leaders signal a deliberate push to retain critical executives during a strategic execution phase. Strong retention alignment supports continuity, reduces execution risk, and aids integration and cash-improvement initiatives over the next several quarters.

Negative Factors

Persistent Negative Profitability

Trailing losses (EBIT ~-28.7%, net ~-34.3% TTM) indicate the business has not yet converted revenue scale into sustainable earnings. Persistent unprofitability pressures equity, limits reinvestment capacity, and increases reliance on external capital unless margins and operating leverage improve.

Elevated Leverage and Balance-Sheet Risk

Leverage rising to ~3.3x debt-to-equity markedly reduces financial flexibility and increases refinancing and covenant risk. With ongoing cash burn historically negative, high debt magnifies downside risk and could constrain strategic investments or require dilutive financing if cash-flow targets slip.

Material Gross Margin Compression

Inclusion of lower-margin Greenbrook clinic revenue reduced gross margins sharply (75.6% to 45.9% YoY). Unless clinic economics improve, the shift toward lower-margin services will limit the firm's ability to translate revenue growth into operating profit and free cash flow over the medium term.

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 through the sale of its NeuroStar Advanced Therapy System and the associated disposable TMS treatment coils. The company operates a direct sales model, targeting healthcare providers, including hospitals and outpatient clinics, that offer TMS therapy to patients with major depressive disorder. Additionally, Neuronetics earns revenue from recurring sales of treatment sessions and service agreements related to the NeuroStar system. The company may also engage in partnerships with healthcare organizations and research institutions to expand its market reach and validate its product efficacy, contributing to its overall financial performance.

Neuronetics Financial Statement Overview

Summary

Revenue growth improved meaningfully in TTM (~+16.9%), but profitability remains deeply negative (TTM EBIT margin ~-28.7%, net margin ~-34.3%). Balance-sheet risk is elevated with much higher leverage (debt-to-equity ~3.3x) and very negative ROE (~-151%). Cash flow is still negative (TTM operating cash flow ~-$29.9M; TTM FCF ~-$30.6M), indicating ongoing cash burn despite some improvement signals.

Income Statement

Revenue growth improved meaningfully in TTM (Trailing-Twelve-Months) (about +16.9%) versus low growth in 2024, and gross margin remains solid (~50% in TTM, though down sharply from the low-70% range in 2021–2024). However, profitability is still weak: operating results are deeply negative (TTM EBIT margin around -28.7%) and net losses remain large (TTM net margin around -34.3%). Overall, the company is scaling revenue but has not yet translated that into sustainable earnings.

Balance Sheet

Leverage has increased materially over time, with debt rising and equity shrinking, pushing debt-to-equity to ~3.3x in TTM (Trailing-Twelve-Months) (up from ~0.46x in 2021). Returns on shareholder capital are very negative (TTM return on equity around -151%), reflecting ongoing losses against a relatively small equity base. While total assets are sizable, the combination of high leverage and persistent losses increases financial risk and reduces balance-sheet flexibility.

Cash Flow

Cash generation remains challenged, with operating cash flow and free cash flow both negative in TTM (Trailing-Twelve-Months) (roughly -$29.9M and -$30.6M). Free cash flow also deteriorated versus the prior period (TTM free cash flow growth about -13.8%). A modest positive is that free cash flow is roughly in line with the net loss (cash burn not dramatically worse than accounting losses), but the business still consumes cash and likely depends on external funding if conditions do not improve.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.87M	74.89M	71.35M	65.21M	55.31M	49.24M
Gross Profit	65.50M	54.16M	51.70M	49.72M	43.66M	37.69M
EBITDA	-34.14M	-34.37M	-22.76M	-31.96M	-26.81M	-25.89M
Net Income	-44.50M	-43.71M	-30.19M	-37.16M	-31.19M	-27.45M
Balance Sheet
Total Assets	145.47M	140.90M	115.83M	116.88M	141.22M	78.66M
Cash, Cash Equivalents and Short-Term Investments	34.65M	18.66M	60.58M	71.88M	96.34M	50.84M
Total Debt	90.75M	82.63M	62.47M	39.74M	39.54M	38.34M
Total Liabilities	114.11M	109.10M	81.64M	59.82M	56.05M	53.16M
Stockholders Equity	27.36M	27.71M	34.19M	57.06M	85.17M	25.49M
Cash Flow
Free Cash Flow	-30.55M	-32.46M	-34.41M	-34.01M	-30.34M	-29.12M
Operating Cash Flow	-29.88M	-31.00M	-32.04M	-30.74M	-27.98M	-28.39M
Investing Cash Flow	-2.96M	-2.41M	-1.32M	6.73M	-9.84M	-730.00K
Financing Cash Flow	46.44M	-6.81M	22.70M	207.00K	83.01M	2.37M

Neuronetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.34 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.66, and below the 200-day MA of 2.77, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 38.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STIM.

Neuronetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATLN	54 Neutral	$197.23M	-1.67	―	―	109.65%	77.14%
PRE	53 Neutral	$284.57M	-4.11	-23.93%	―	159.45%	8.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACRS	47 Neutral	$346.11M	-5.42	-113.23%	―	-41.87%	-165.76%
STIM	44 Neutral	$91.77M	-1.62	-239.53%	―	78.62%	32.39%
MDXH	44 Neutral	$168.29M	-5.10	-720.01%	―	21.68%	58.30%
XGN	44 Neutral	$82.04M	-3.91	-122.81%	―	14.08%	1.34%

Neuronetics Corporate Events

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.

Neuronetics CEO Retirement Announcement and Q3 Revenue Surge

On November 4, 2025, Neuronetics announced that CEO Keith J. Sullivan will retire on June 30, 2026, and the company has started searching for his successor. Sullivan will remain as a consultant post-retirement to ensure a smooth transition. The announcement coincided with the release of Neuronetics’ third-quarter 2025 financial results, showing a 101% increase in total revenue compared to the same period in 2024, driven by the acquisition of Greenbrook TMS. The company reported significant growth in U.S. clinic revenue and continued improvements in cash management, positioning it well for future growth and value delivery to patients and shareholders.

The most recent analyst rating on (STIM) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.