Neuronetics, Inc.

What they do

Neuronetics commercializes the NeuroStar Advanced Therapy System, a non-invasive TMS device cleared by the FDA for major depressive disorder, OCD, adolescent MDD, and anxious depression. It also operates Greenbrook treatment centers across the U.S. that provide TMS therapy and SPRAVATO (esketamine) for treatment-resistant depression. The company generates revenue from system sales, treatment sessions, and services at the Greenbrook clinics.

Revenue drivers

• Greenbrook revenue — Revenue from the wholly owned Greenbrook treatment centers, which grew 16.8% year-over-year to $26.9 million in Q2 2026, representing about 65% of total revenue.
• NeuroStar revenue — Revenue from sales of the NeuroStar Advanced Therapy System and associated treatment sessions, totaling $14.7 million in Q2 2026, a 2.7% decline year-over-year.

Recent performance

In Q2 2026, total revenue was $41.6 million, up 9.1% year-over-year, with Greenbrook revenue driving the growth. Gross margin improved to 51.1% from 46.6%, and operating expenses fell 12% to $22.7 million. Net loss narrowed to $3.4 million from $10.1 million, and adjusted EBITDA turned positive at $0.3 million. As of June 30, 2026, total cash was $25.0 million, and long-term debt was $61.5 million.

Strategy

Management is broadening customer access to NeuroStar technology and driving operational gains at the Greenbrook clinics, including improved revenue cycle management. The company aims to achieve sustained profitability and positive net cash flow from operations and investing. It is also strengthening leadership, with recent appointments of a new CFO, a new Senior Vice President of Sales, and a promoted Executive VP/General Manager of Greenbrook clinics. The combination of a leading TMS platform and a national care network is positioned to lead as new interventional therapies come to market.

Risks

• History of losses — The company has incurred net losses every year since inception, with a $39.0 million loss in 2025 and an accumulated deficit of $458.8 million as of December 31, 2025.
• Reliance on NeuroStar and Greenbrook — Revenue depends heavily on sales of the NeuroStar device and treatment sessions, and the Greenbrook acquisition adds integration and operational risks.
• Reimbursement risk — Future revenue depends on coverage and reimbursement from third-party payors; any adverse changes could significantly impact demand.
• Going concern uncertainty — The company has negative cash flow from operations and may need additional capital; its ability to continue as a going concern is a stated risk factor.

Outlook

Management expects continued growth in the Greenbrook business and progress toward profitability. They highlight the potential of new go-to-market strategies and improved cost discipline, but acknowledge there is more work ahead. The company plans to maintain its leadership in TMS and expand as new interventional therapies emerge, with a focus on sustained positive cash flow.