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what it is
Neuronetics sells a magnetic brain-stimulation system and related treatments for depression and OCD.
how it gets paid
Last year Neuronetics made $75M in revenue. U.S. treatment sessions was the main engine at $43.2M, or 58% of sales.
what just happened
The quarter was about one thing: 47.1% gross margin was not enough to cover a still-lossmaking cost base.
At a glance
C++ balance sheet — some cracks in the foundation
60/100 earnings predictability — reasonably predictable
-$1.38 fy2024 eps est
forward revenue ests — verify vs ~$75M actuals
~-46% operating margin — loss-making at the op line
xvary composite: 33/100 — weak
What they do
Neuronetics sells a magnetic brain-stimulation system and related treatments for depression and OCD.
The pitch is simple. If antidepressants fail, NeuroStar offers an FDA-cleared office treatment with no drugs in your system. That matters because the company has one commercial platform, 716 employees, and access to Japan's national health insurance, which gives you a real installed-base business instead of a lab experiment.
How they make money
$75M
annual revenue
U.S. treatment sessions
$43.2M
8.0%
NeuroStar system sales
$16.5M
8.0%
Service and support
$8.3M
flat
International revenue
$7.0M
flat
The products that matter
TMS medical device platform
NeuroStar Advanced Therapy
$10.8M U.S. treatment-session revenue last quarter
this is the core product, and the key number is the direction: $10.8M last quarter, down 8% from a year ago. if the installed base is healthy, this line should grow.
core product
treatment center operations
Greenbrook Treatment Centers
integration bet · cost-save narrative
Greenbrook is the clinic integration story; ~$22M has appeared in commentary as a cost-savings target— it is not a line item in the revenue bridge above. Execution risk lives here.
integration bet
recurring treatment-session revenue
U.S. treatment sessions
$10.8M last quarter · -8% from a year ago
this is the recurring proof that clinics are still using the installed base. when this line falls 8%, you are watching utilization, not just sales, weaken.
proof point
Key numbers
~-46%
operating margin
Negative operating margin → it loses on the order of ~46¢ per sales dollar before interest and taxes— the headline figure is negative, not +46%.
$85M
long-term debt
Debt is money the company owes. Plain English: lenders have a claim almost as large as the company's entire $89M market value. So what: balance-sheet risk is real.
-$1.38
2024 EPS
EPS means profit per share. Plain English: each share lost $1.38 in fiscal 2024. So what: the business is still far from self-funding.
5/100
price stability
Price stability measures how calm the stock has been. Plain English: this one has been extremely jumpy. So what: your share price can move fast even when the business does not.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $85M (49% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for STIM right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter was about one thing: 47.1% gross margin was not enough to cover a still-lossmaking cost base.
Latest reported quarter revenue ~$10.7M in the data set shown here; Q4 2024 EPS in that history was ~-$0.33. Gross margin → money left after direct costs → so what: even with ~47% gross margin, Neuronetics still lost money below the line.
$10.7M
quarter revenue
-$0.33
eps
47.1%
gross margin
the number that mattered
47.1% gross margin matters because a medical-device company needs that cushion to absorb sales, marketing, and integration costs, and right now it still is not enough.
source: SEC filing data and company earnings history, 2024-2025
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What could go wrong
the #1 risk is continued cash burn while the Greenbrook integration stays unproven.
high
Chronic unprofitability
STIM lost $44.5M on $130M of trailing revenue. That's a -34% net margin. A company can tell a growth story for only so long while losing about one-third of every dollar it brings in.
This keeps dilution in play and turns every quarter into a credibility test.
high
Debt-heavy balance sheet
Long-term debt is $85M, or 49% of total capital. For a company with an $89M market cap, that is not background noise. It is the capital structure.
If operations disappoint, debt limits the number of easy fixes you have left.
med
Core product softness
U.S. treatment-session revenue for NeuroStar was $10.8M last quarter, down 8% from a year ago. That matters because this line is supposed to prove the installed base is active and clinics are seeing repeat demand.
If that line keeps falling, the original device thesis weakens fast.
med
Greenbrook integration risk
Management is leaning on $22M of annual cost savings from the Greenbrook acquisition. Promised savings and realized savings are different things. The market needs proof in the income statement, not slides.
If integration slips, breakeven moves further out and the turnaround multiple disappears.
An $89M equity carrying $85M of long-term debt and a $44.5M trailing loss does not have many bad quarters available.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
losses need to shrink, not just revenue grow
Q3 revenue rose 11%, but EPS missed at -$0.15 versus -$0.08 expected. If revenue rises and losses stay wide, the turnaround case starts looking cosmetic.
calendar
Q4 2025 earnings on march 17, 2026
Management already pointed to preliminary Q4 revenue of $41.8M. You want to see whether that number holds and whether integration commentary finally comes with measurable proof.
risk
Madryn's 30.3% stake matters
A holder with 30.3% voting power is not passive wallpaper. Strategic pressure, board influence, or capital-allocation demands can reshape the story fast.
trend
is NeuroStar stabilizing or still slipping
The core U.S. treatment-session line fell 8% last quarter. One more weak print and the market will stop calling it temporary.
Analyst rankings
earnings predictability
60 / 100
A 60 / 100 predictability score means estimates are only moderately reliable. In human-speak: analysts do not have this business nailed down, so earnings day can get weird fast.
beta
1.4
Beta measures how much a stock moves relative to the market. At 1.4, STIM has historically moved about 40% more than the index. Not a bunker stock.
source: institutional data
Institutional activity
institutional ownership data for STIM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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