Neuronetics (STIM) AI Stock Analysis

• Market Cap: $130.12M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• 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): -0.13
• Shares Outstanding: 68,485,920
• 10 Day Avg. Volume: 1,705,555
• 30 Day Avg. Volume: 1,304,660
• 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: 1.87
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 3.72
• Enterprise Value/Ebitda: -7.14
• 1Y Price Target: $7.00
• Price Target Upside: 268.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.46
• Revenue Forecast (FY): $164.15M

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-21.05% Downside)

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

Acquisition-driven revenue growth

The 101% YoY jump in Q3 revenue reflects scale benefits from the Greenbrook acquisition, materially expanding recurring clinic revenue. This structural increase can improve sales visibility, support investment in commercialization, and accelerate pathway to sustainable scale if integration and clinic economics hold.

Growing clinic revenue base

Recurring clinic revenue from Greenbrook provides a steady, services-based cash flow stream distinct from device sales. A growing clinic network increases predictable per‑patient revenue, supports cross-selling (devices, disposables, SPRAVATO), and deepens market presence in TMS treatment delivery.

Improving cash generation trajectory

Sharp reduction in operating cash burn and management targeting near-term operating cash flow breakeven indicate improving unit economics and tighter expense control. Durable improvement in cash generation reduces refinancing risk and supports reinvestment or margin recovery over the next several quarters.

Negative Factors

Elevated financial leverage

Leverage at ~3.3x significantly constrains financial flexibility and raises refinancing and interest risks, especially given ongoing losses. High debt amplifies downside during operational setbacks and limits ability to fund growth organically without dilutive or costly external financing.

Ongoing negative cash flow and losses

TTM negative operating and free cash flow show the business still consumes material cash despite revenue scaling. Persistent cash deficits necessitate external financing or equity dilution, constrain reinvestment, and pose execution risk if promised breakeven improvements slip.

Margin pressure and legacy product decline

Sharp gross margin deterioration reflects integration of lower-margin clinic revenues and pressures on device sales. Concurrent decline in NeuroStar revenue signals demand headwinds for the legacy product, which could limit overall margin recovery and make profitability harder as scale shifts to lower‑margin services.

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

Neuronetics faces ongoing financial challenges with consistent losses and cash flow difficulties. Despite modest revenue growth, profitability remains elusive due to high leverage and reliance on external financing.

Income Statement

Neuronetics shows a modest revenue growth over the years, with a 4.96% increase from 2023 to 2024. However, the company has consistently reported negative EBIT and net income margins, indicating ongoing profitability challenges. The gross profit margin remains relatively healthy, but the persistent negative EBITDA margin points to operational inefficiencies.

Balance Sheet

The balance sheet reflects significant leverage with a high debt-to-equity ratio, although it has improved slightly from the previous year. The equity ratio is relatively low, suggesting limited financial flexibility. The company has maintained a positive cash position, yet declining stockholders' equity is a concern.

Cash Flow

Neuronetics has experienced negative free cash flow growth, with cash flows consistently in the red. The operating cash flow to net income ratio is negative, highlighting cash generation issues. The company relies heavily on financing activities to manage cash needs, which may not be sustainable long-term.

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: Positive
• Last Price: 1.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STIM, the sentiment is Positive. The current price of 1.9 is above the 20-day moving average (MA) of 1.62, above the 50-day MA of 1.64, and below the 200-day MA of 3.11, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 61.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STIM.

Neuronetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRE	51 Neutral	$221.67M	-4.31	-23.93%	―	159.45%	8.59%
ACRS	50 Neutral	$283.86M	-1.90	-113.23%	―	-41.87%	-165.76%
STIM	44 Neutral	$130.12M	―	-239.53%	―	78.62%	32.39%
MDXH	44 Neutral	$190.07M	-6.03	-720.01%	―	21.68%	58.30%
ATLN	44 Neutral	$152.75M	-1.39	―	―	109.65%	77.14%
XGN	43 Neutral	$106.29M	-5.07	-122.81%	―	14.08%	1.34%

Neuronetics Corporate Events

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.