Financial Data and Key Metrics Changes - Total revenue for the second quarter was $38.1 million, an 18% year-over-year increase on an adjusted pro forma basis [7][25] - Revenue from the NeuroStar business was $15.1 million, with U.S. treatment session revenue increasing by 13% on a pro forma basis [7][27] - Gross margin decreased to 46.6% compared to 74% in the prior year quarter, primarily due to the inclusion of Green Brook's lower-margin clinic business [28] - Net loss for the quarter was $9.8 million, or $0.15 per share, compared to a net loss of $9.8 million, or $0.33 per share, in the prior year quarter [29] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $3.5 million with 41 systems shipped, demonstrating a strong average selling price [27] - U.S. clinic revenue reached $23 million, marking the strongest quarterly performance for Green Brook [28] - The Better Me Provider (BMP) program has 395 active sites, treating three times more patients per site compared to non-BMP practices [13][14] Market Data and Key Metrics Changes - The company has seen a 25% growth in adolescent new patient starts in 2025 compared to 2024, driven by increased insurance coverage [20] - The publication of clinical data in a reputable journal highlighted the effectiveness of the NeuroStar TMS system in adolescents, with nearly 70% experiencing clinically meaningful improvement [21] Company Strategy and Development Direction - The company is focusing on three strategic priorities: executing the Green Brook growth strategy, scaling the BMP program, and improving operational efficiencies [8][9] - The Green Brook growth strategy has exceeded expectations, with improved patient conversion rates through enhanced patient connection capabilities [10] - The company is taking a thoughtful approach to expanding the buy and bill model for SPRAVATO, focusing on opportunities that deliver good margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by the end of 2025, supported by operational improvements and strategic initiatives [35] - The integration of Neuronetics and Green Brook is creating significant value, positioning the company for sustainable growth and profitability [36] Other Important Information - Cash used in operations for the second quarter was $3.5 million, better than the previously guided target of under $5 million [31] - The company has received additional funding under its existing debt agreement, enhancing financial flexibility [30] Q&A Session Summary Question: Dynamics of traditional NeuroStar business vs. Green Brook - Management indicated that the shift in strategy towards provider connections is expected to improve conversion rates over time, despite a slower growth in traditional NeuroStar business [40][42] Question: Impact of marketing strategy on long-term spending - The new strategy is anticipated to make marketing dollars more efficient, potentially lowering overall marketing spend while still requiring some investment in educational efforts [43][44] Question: Resubmitted claims and reimbursement timing - Management is focused on improving revenue cycle management and expects to see a tailwind from catching up on aged claims while enhancing the efficiency of new claims [46][48] Question: Clinical sales per site and long-term expectations - Management did not provide a specific target for clinical sales per site but indicated that revenue trends and site performance would continue to improve [53][55] Question: Marketing strategy for adolescent patients - The company is targeting providers who care for adolescent patients through the Provider Connection program, which has shown positive results in driving awareness and adoption [59]

Core Insights - Neuronetics reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, marking an earnings surprise of -87.50% [1] - The company generated revenues of $38.11 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.87% and significantly up from $16.45 million a year ago [2] - Neuronetics shares have increased approximately 189.4% year-to-date, outperforming the S&P 500's gain of 7.6% [3] Financial Performance - Over the last four quarters, Neuronetics has consistently failed to meet consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $39.04 million, and for the current fiscal year, it is -$0.37 on revenues of $150.72 million [7] Industry Context - Neuronetics operates within the Medical - Instruments industry, which is currently ranked in the bottom 37% of over 250 Zacks industries [8] - The performance of Neuronetics' stock may be influenced by the overall outlook of the industry, as top-ranked industries tend to outperform lower-ranked ones by a factor of more than 2 to 1 [8]

Company Overview - Neuronetics and Greenbrook have combined to leverage scale and capabilities for mental health treatment[17] - The combined company has treated 221,376 unique patients[18] and administered 7,912,427 treatments[19] - The company reported $129 million in annual revenue for 2024 (pro forma adjusted)[19] Market and Opportunity - The total available market is 293 million U S adults and adolescents suffering from depression, depression with anxiety, and OCD[33,34] - Approximately 8 million patients are poorly served by antidepressant medication[34] - Better Me Program (BMP) clinics treat 33 times more patients than non-BMP clinics[57,58] Financial Performance and Guidance - Q2 2025 revenue was $381 million, a 132% increase from Q2 2024[90] - The company projects revenue between $149 million and $155 million for FY 2025, representing a 15% to 19% pro forma year-over-year growth[85] - The company anticipates achieving positive cash flow from operations in Q4 2025[85]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) Neuronetics, Inc.'s interim consolidated financial statements as of June 30, 2025, reflect increased revenues from the Greenbrook acquisition, ongoing net losses, and negative operating cash flow, with assets and liabilities decreasing and cash bolstered by a stock offering [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $134.7 million, primarily due to reduced cash, while total liabilities also decreased to $103.1 million, and total equity remained stable Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,969 | $18,459 | | Total current assets | $56,139 | $58,122 | | Total assets | $134,650 | $140,903 | | **Liabilities & Equity** | | | | Total current liabilities | $27,803 | $31,265 | | Long-term debt, net | $55,539 | $55,151 | | Total liabilities | $103,143 | $109,104 | | Total equity | $31,507 | $31,799 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenues surged to $38.1 million due to the Greenbrook acquisition, but increased costs led to a lower gross margin and a stable net loss of $9.8 million, while the six-month net loss widened to $22.5 million Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $38,108 | $16,450 | $70,083 | $33,867 | | Gross Profit | $17,758 | $12,179 | $33,496 | $25,267 | | Loss from operations | ($8,058) | ($8,507) | ($19,072) | ($15,366) | | Net loss | ($9,839) | ($9,832) | ($22,528) | ($17,705) | | Net loss per share | ($0.15) | ($0.33) | ($0.36) | ($0.59) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to $20.5 million for the six months ended June 30, 2025, offset by $19.0 million from financing activities, primarily a stock issuance, resulting in a $2.0 million decrease in total cash Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash used in Operating activities | $(20,497) | $(16,984) | | Net Cash used in Investing activities | $(471) | $(51) | | Net Cash provided by Financing activities | $18,978 | $0 | | **Net decrease in Cash** | **$(1,990)** | **$(17,035)** | - The company received net proceeds of **$18.9 million** from the issuance of common stock during the first six months of 2025, which significantly offset the cash used in operations[18](index=18&type=chunk) [Notes to Interim Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Interim%20Consolidated%20Financial%20Statements) The notes detail the Greenbrook acquisition's impact on revenue, the company's liquidity position, debt structure, and subsequent events including an ATM equity program and credit facility amendment, with management confident in funding operations for the next 12 months - The company completed the acquisition of Greenbrook TMS Inc. on December 9, 2024, for a total consideration of **$38.8 million**, which included common stock, cash, and the settlement of preexisting relationships, adding a new, significant revenue stream from treatment centers[20](index=20&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - Management believes that cash and cash equivalents of **$11.0 million** as of June 30, 2025, along with anticipated revenues, are sufficient to fund operations for at least the next **12 months**[22](index=22&type=chunk)[24](index=24&type=chunk) - In February 2025, the company raised net proceeds of **$18.9 million** through a secondary public offering of its common stock at **$2.25 per share**[23](index=23&type=chunk)[105](index=105&type=chunk) - Subsequent to the quarter end, on July 3, 2025, the company established an 'at the market' (ATM) equity offering program to sell up to **$50.0 million** of its common stock[136](index=136&type=chunk) - On August 1, 2025, the company amended its credit facility to borrow an additional **$10.0 million**, lower its minimum liquidity requirement, and issue additional warrants[139](index=139&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes Q2 2025's 132% revenue growth to the Greenbrook acquisition's clinic revenue, despite a gross margin decline to 46.6% and increased G&A expenses, with liquidity supported by a $19.0 million offering and anticipated reduced operating losses [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q2 2025 total revenue increased 132% to $38.1 million, primarily from new clinic revenue, but gross margin declined to 46.6% due to lower-margin business, while G&A expenses nearly doubled and the six-month net loss increased to $22.5 million Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $38,108 | $16,450 | $21,658 | 132% | | Gross Profit | $17,758 | $12,179 | $5,579 | 46% | | Gross Margin | 46.6% | 74.0% | - | - | | Sales and marketing | $11,868 | $12,303 | ($435) | (4)% | | General and administrative | $12,150 | $6,148 | $6,002 | 98% | | Research and development | $1,798 | $2,235 | ($437) | (20)% | | Net Loss | ($9,839) | ($9,832) | ($7) | (0)% | - The primary driver of revenue growth was the inclusion of **$23.0 million** in clinic revenue following the Greenbrook acquisition[175](index=175&type=chunk) - The decrease in gross margin from **74.0% to 46.6%** was primarily a result of the inclusion of Greenbrook's lower-margin clinic business and a reduction in higher-margin treatment session revenue[178](index=178&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held $11.0 million in cash with an accumulated deficit of $442.6 million, with liquidity bolstered by a $19.0 million secondary offering, and $60.0 million outstanding under its credit facility Key Liquidity Metrics (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $11,000 | $18,500 | | Accumulated deficit | ($442,600) | ($419,800) | | Net cash used in operations (6 months) | ($20,500) | N/A | - The company's primary sources of capital have been its IPO, private placements, credit facilities, secondary stock offerings, and product revenues[195](index=195&type=chunk) - Net cash provided by financing activities for the six months ended June 30, 2025 was **$19.0 million**, primarily from a secondary public offering[204](index=204&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) No material changes to market risk have occurred since the last annual report, with the company monitoring macroeconomic impacts like inflation without significant financial effect to date - There have been no material changes to the company's market risk since the last annual report[207](index=207&type=chunk) - The company is monitoring macroeconomic impacts like inflation, but does not believe they have had a material impact on financial results to date[208](index=208&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls and procedures were effective as of June 30, 2025, while actively integrating Greenbrook's internal control structure - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of **June 30, 2025**[210](index=210&type=chunk) - The company is in the process of integrating Greenbrook's internal controls into its overall financial reporting process following the acquisition[211](index=211&type=chunk) [PART II – OTHER INFORMATION](index=40&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not currently subject to any legal proceedings expected to have a material adverse effect on its financial condition or operations - There are currently no legal proceedings expected to have a material adverse effect on the company[214](index=214&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors.) Investors are referred to previously filed 10-K and 10-Q reports for a comprehensive discussion of the company's risk factors - The report directs readers to previously filed 10-K and 10-Q reports for a comprehensive list of risk factors[215](index=215&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=40&type=section&id=Other%20Items) Items 2, 3, 4, and 5 of Part II are reported as 'Not applicable', with Item 6 detailing the exhibits filed with the quarterly report - Items 2, 3, 4, and 5 of Part II are not applicable for this reporting period[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)

[Overview of Q2 2025 Performance](index=1&type=section&id=Neuronetics%20Reports%20Second%20Quarter%202025%20Financial%20and%20Operating%20Results) Neuronetics reported strong Q2 2025 results with **$38.1 million** revenue, **18% adjusted pro forma growth**, and reduced operational cash burn [Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Neuronetics achieved **$38.1 million** in Q2 2025 revenue, an **18% adjusted pro forma growth**, driven by Greenbrook integration and reduced cash burn | Metric | Value | Note | | :--- | :--- | :--- | | Total Revenue | $38.1 million | 18% adjusted pro forma growth YoY | | Greenbrook Clinic Revenue | $23.0 million | Record quarterly performance | | Cash Used in Operations | $3.5 million | Beat guidance of under $5 million | | Additional Funding | $10 million | From Perceptive Advisors debt agreement | | U.S. Treatment Session Revenue | $10.8 million | 13% pro forma increase YoY | | NeuroStar Systems Shipped | 41 systems | - | | Patients Treated (Global) | > 209,000 | > 7.6 million treatment sessions | - The company appointed **Steven Pfanstiel** as its new Chief Financial Officer, effective **July 15, 2025**[5](index=5&type=chunk) - Recent clinical data demonstrated strong real-world efficacy of **NeuroStar TMS** in treating depression in adolescents and young adults[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management lauded strong Q2 revenue growth and Greenbrook integration, reducing cash usage and targeting positive cash flow in 2025 - Management emphasized strong quarterly performance, driven by solid revenue growth and record clinic revenue from the **Greenbrook integration**[4](index=4&type=chunk) - The company successfully reduced cash used in operations to **$3.5 million**, outperforming its target of under **$5 million**[4](index=4&type=chunk) - The CEO expressed confidence that the strong results position the company to achieve **positive cash flow from operations in 2025**[4](index=4&type=chunk) [Detailed Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025) Q2 2025 saw **132% revenue growth** to **$38.1 million**, a gross margin decline to **46.6%**, and a flat net loss of **$(9.8) million** [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total Q2 2025 revenue surged **132%** to **$38.1 million**, primarily from Greenbrook clinics, despite a decline in U.S. NeuroStar system revenue | Revenue by Geography (Q2 2025) | Amount (in thousands) | % Change YoY | | :--- | :--- | :--- | | U.S. | $37,656 | 133% | | International | $452 | 41% | | **Total Revenues** | **$38,108** | **132%** | | U.S. Revenue by Product (Q2 2025) | Amount (in thousands) | % Change YoY | | :--- | :--- | :--- | | NeuroStar Advanced Therapy System | $3,484 | (13)% | | Treatment sessions | $10,773 | (8)% | | Clinic revenue | $23,024 | N/A | | Other | $375 | (20)% | | **Total U.S. Revenues** | **$37,656** | **133%** | - The significant increase in total revenue was primarily driven by the acquisition of **Greenbrook**, which added **$23.0 million** in U.S. clinic revenue[6](index=6&type=chunk)[9](index=9&type=chunk) - The decline in U.S. treatment session revenue was mainly due to the absence of **$2.1 million** in revenue from Greenbrook (now internalized), but on a pro forma basis, this revenue stream grew **13% YoY** to a record high[8](index=8&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q2 2025 gross margin fell to **46.6%** due to Greenbrook integration, while operating expenses rose **25%**, yet net loss remained flat at **$(9.8) million** | Profitability Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Margin | 46.6% | 74.0% | (27.4 p.p.) | | Operating Expenses | $25.8 million | $20.7 million | +25% | | Net Loss | $(9.8) million | $(9.8) million | 0% | | Net Loss Per Share | $(0.15) | $(0.33) | +$0.18 | - The primary reason for the decline in gross margin was the inclusion of **Greenbrook's clinic business**[9](index=9&type=chunk) - The increase in operating expenses was mainly attributable to the inclusion of **Greenbrook's general and administrative expenses of $6.1 million**[10](index=10&type=chunk) [Financial Position and Cash Flow](index=3&type=section&id=Financial%20Position%20and%20Cash%20Flow) As of June 30, 2025, total cash was **$17.5 million**, with cash used in operations significantly reduced to **$3.5 million** for the quarter | Cash Position | As of June 30, 2025 | | :--- | :--- | | Cash and cash equivalents | $11.0 million | | Restricted cash | $6.5 million | | **Total Cash** | **$17.5 million** | - Cash used in operations for the second quarter was **$3.5 million**, a significant reduction[12](index=12&type=chunk) [Corporate Developments](index=3&type=section&id=Corporate%20Developments) Neuronetics secured **$10 million** in additional funding, reported strong NeuroStar clinical efficacy, and appointed a new Chief Financial Officer [Additional Funding](index=3&type=section&id=Company%20Secures%20%2410%20Million%20in%20Additional%20Funding%20from%20Perceptive%20Advisors) Neuronetics secured an additional **$10.0 million** in debt funding in August 2025, meeting revenue milestones and extending a key liquidity covenant - The company received **$10.0 million** in additional debt funding in **August 2025**[13](index=13&type=chunk) - Eligibility for the funds was triggered by achieving specific revenue conditions under the **Tranche 2 terms**[13](index=13&type=chunk) - The **$2 million** minimum liquidity requirement was extended from **September 2025 to September 2026**[13](index=13&type=chunk) [Clinical & Product Updates](index=3&type=section&id=NeuroStar%20TMS%20Shows%20Strong%20Real-World%20Efficacy%20in%20Treating%20Depression%20in%20Adolescents%20and%20Young%20Adults) A study confirmed NeuroStar TMS's strong real-world efficacy for depression in adolescents, with nearly **70%** showing clinically meaningful improvement - A study of over **1,200 patients** aged **12–21** showed that nearly **70%** experienced clinically meaningful improvement in depression symptoms with **NeuroStar TMS**[14](index=14&type=chunk) - The results, drawn from the world's largest depression outcomes dataset, mirror outcomes in adults and support the **FDA-cleared use of NeuroStar** as an adjunct therapy for younger patients[14](index=14&type=chunk) [Management Changes](index=3&type=section&id=Neuronetics%20Appoints%20New%20Chief%20Financial%20Officer) Steven Pfanstiel was appointed as the new Chief Financial Officer, bringing over **two decades** of healthcare sector experience - **Steven Pfanstiel** was appointed as the new CFO, succeeding Stephen Furlong[15](index=15&type=chunk) - Mr. Pfanstiel has over **20 years of experience** in the healthcare sector, including leadership roles at Marinus Pharmaceuticals, Lifescan, and Johnson & Johnson[15](index=15&type=chunk) [Business Outlook (Guidance)](index=3&type=section&id=Business%20Outlook) Neuronetics provided Q3 and full-year 2025 revenue guidance, updated gross margin and operating expense forecasts, and shifted positive cash flow to Q4 2025 [Revenue Guidance](index=3&type=section&id=Revenue%20Guidance) Neuronetics projects Q3 2025 revenue between **$37.0 million** and **$39.0 million**, maintaining full-year guidance of **$149.0 million** to **$155.0 million** | Period | Guidance Range | | :--- | :--- | | Q3 2025 Revenue | $37.0 million - $39.0 million | | Full Year 2025 Revenue | $149.0 million - $155.0 million (maintained) | [Margin, Expense, and Cash Flow Guidance](index=3&type=section&id=Margin%2C%20Expense%2C%20and%20Cash%20Flow%20Guidance) Full-year 2025 guidance includes a revised gross margin of **48%-50%**, increased operating expenses of **$100M-$105M**, and positive operating cash flow expected in Q4 2025 | Full Year 2025 Guidance | New Guidance | Previous Guidance | | :--- | :--- | :--- | | Gross Margin | 48% - 50% | Not specified (updated) | | Total Operating Expenses | $100.0M - $105.0M | $90M - $98M | | Positive Operating Cash Flow | Expected in Q4 2025 | Expected in Q3 2025 | | Year-End Total Cash | $25M - $28M | Not specified | - The gross margin forecast was adjusted due to a higher-than-expected percentage of total revenue coming from **Greenbrook clinics** and the mix of **Spravato business**[18](index=18&type=chunk) - Operating expense guidance was raised to augment critical areas, including the **claims collections team**, and to allow more time to realize integration synergies[19](index=19&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) Q2 2025 saw **$38.1 million** revenue, a **$(10.1) million** net loss, **$134.7 million** in total assets, and **$(20.5) million** cash used in operations [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenues increased **132%** to **$38.1 million**, with gross profit rising to **$17.8 million**, and net loss at **$(10.1) million** or **$(0.15)** per share | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $38,108 | $16,450 | | Gross profit | $17,758 | $12,179 | | Loss from operations | $(8,058) | $(8,507) | | Net loss | $(9,839) | $(9,832) | | Net loss per share | $(0.15) | $(0.33) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$134.7 million**, total liabilities **$103.1 million**, and total equity **$31.5 million** | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $10,969 | $18,459 | | Total current assets | $56,139 | $58,122 | | Total assets | $134,650 | $140,903 | | Total current liabilities | $27,803 | $31,265 | | Total liabilities | $103,143 | $109,104 | | Total equity | $31,507 | $31,799 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash used in operations was **$(20.5) million**, offset by **$19.0 million** from financing, resulting in a **$(2.0) million** net cash decrease | (in thousands) | Six Months Ended June 30, 2025 | | :--- | :--- | | Net Cash used in Operating activities | $(20,497) | | Net Cash used in Investing activities | $(472) | | Net Cash provided by Financing activities | $18,978 | | **Net decrease in Cash, Cash equivalents and Restricted cash** | **$(1,990)** | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20(Unaudited)) Non-GAAP EBITDA improved to a **$(7.2) million** loss in Q2 2025, with adjusted pro forma revenue for Q2 2024 at **$32.2 million** [Reconciliation of Net Loss to EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20EBITDA) Non-GAAP EBITDA for Q2 2025 was a **$(7.2) million** loss, an improvement from **$(8.0) million** in Q2 2024, after adjustments | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(9,839) | $(9,832) | | Interest expense, net | $1,781 | $1,325 | | Depreciation and amortization | $901 | $555 | | **EBITDA** | **$(7,157)** | **$(7,952)** | [Pro Forma Revenue Information](index=10&type=section&id=Non-GAAP%20Pro%20forma%20and%20Adjusted%20Pro%20forma%20revenue%20information%20(Unaudited)) Adjusted pro forma revenue for Q2 2024 was **$32.2 million**, indicating an **18%** year-over-year growth compared to Q2 2025 reported revenue | Pro Forma Revenue (Q2 2024) | Amount (in thousands) | | :--- | :--- | | Neuronetics Revenue | $16,450 | | Greenbrook Revenue | $20,408 | | Intercompany revenue elimination | $(2,283) | | **Total Pro forma Revenue** | **$34,575** | | Adjustment for clinic closures | $(2,404) | | **Adjusted Pro forma Revenue** | **$32,171** |

Core Insights - Neuronetics, Inc. reported total revenue of $38.1 million for the second quarter of 2025, reflecting an 18% adjusted pro forma revenue growth and a 132% increase compared to the same quarter in 2024 [1][6][5] - The company achieved record revenue of $23.0 million from Greenbrook clinics during the quarter, contributing significantly to the overall revenue growth [1][6] - Cash used in operations was reduced to $3.5 million, outperforming the guidance of under $5 million [1][4] Financial Performance - Total revenues for the three months ended June 30, 2025, were $38.1 million, up from $16.5 million in the same period of 2024, primarily due to the acquisition of Greenbrook [5][6] - U.S. clinic revenue was $23.0 million, while international revenue increased by 41% to $452,000 [5][7] - Gross margin decreased to 46.6% from 74.0% year-over-year, mainly due to the inclusion of Greenbrook's clinic business [10] Operational Highlights - The company shipped 41 NeuroStar Advanced Therapy Systems, generating $3.5 million in revenue, although this represented a 13% decrease compared to the previous year [8][6] - U.S. treatment session revenue was $10.8 million, an 8% decrease year-over-year, but a 13% increase on a pro forma basis [9][6] - Neuronetics treated over 209,000 global patients with 7.6 million treatment sessions [6] Management and Strategic Developments - Steven Pfanstiel was appointed as the new Chief Financial Officer, bringing over 20 years of healthcare experience [16] - The company secured an additional $10 million in funding from Perceptive Advisors LLC, extending its liquidity requirements [14] - Neuronetics expects total worldwide revenue for the third quarter of 2025 to be between $37.0 million and $39.0 million, and for the full year 2025, between $149.0 million and $155.0 million [17][18] Future Outlook - The company anticipates gross margin improvement in the second half of 2025, expecting it to be between 48% and 50% [18] - Total operating expenses for 2025 are now projected to be between $100.0 million and $105.0 million, reflecting the integration of Greenbrook [19] - Neuronetics expects to achieve positive cash flow from operations in the fourth quarter of 2025 [20]

Company Overview - Neuronetics, Inc. is a vertically integrated medical technology and healthcare company focused on transforming patients' lives through neurohealth therapies [1][3] - The company operates Greenbrook TMS Inc., which runs treatment centers across the U.S. offering NeuroStar Advanced Therapy for mental health disorders [3] Product and Treatment Information - NeuroStar Advanced Therapy is a non-drug, noninvasive treatment for major depressive disorder (MDD) and has delivered over 7.4 million treatments, supported by the largest clinical data set for TMS treatment systems [3] - Greenbrook treatment centers have provided more than 1.8 million treatments to over 55,000 patients suffering from depression, also offering SPRAVATO® (esketamine) Nasal Spray for treatment-resistant depression [3] Regulatory and Safety Information - The NeuroStar Advanced Therapy System is FDA-cleared for adults with MDD and as an adjunct treatment for obsessive-compulsive disorder and anxiety symptoms in adults with MDD [4]

Core Insights - Neuronetics, Inc. has published significant findings demonstrating the effectiveness of NeuroStar TMS in treating adolescents and young adults with depression, as reported in a leading medical journal [1][2] Company Overview - Neuronetics is a medical technology company focused on improving the quality of life for patients with neurohealth disorders through innovative products [4] - The company operates Greenbrook TMS Inc., which provides NeuroStar Advanced Therapy for major depressive disorder (MDD) and other mental health conditions across the United States [4] Treatment Efficacy - The study based on the NeuroStar TrakStar Clinical Database involved 1,283 patients, with approximately 70% reporting clinically meaningful improvement in depression symptoms, while less than 1% experienced worsening [2][3] - The results for adolescents and young adults align with previous findings in adult populations, indicating a strong correlation between the number of treatment sessions completed and clinical improvement [2] Market Opportunity - With one in five adolescents experiencing major depressive disorder and limited FDA-approved medications available, NeuroStar TMS presents a significant opportunity to provide a safe and effective treatment option for this demographic [3] - Since receiving FDA clearance as an add-on therapy for adolescents aged 15-21 in March 2024, there has been over a one-third increase in the number of adolescents treated with NeuroStar [2]

Investor Contact: Mike Vallie or Mark Klausner ICR Healthcare 443-213-0499 ir@neuronetics.com Media Contact: EvolveMKD 646-517-4220 NeuroStar@evolvemkd.com MALVERN, Pa., July 22, 2025 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ: STIM), a medical technology company focused on designing, developing, and marketing products that improve the quality of life for patients who suffer from neurohealth disorders, announced that it plans to release second quarter 2025 financial and operating results prior to market ...

Company Leadership Transition - Steven Pfanstiel has been appointed as the new Chief Financial Officer of Neuronetics, effective July 15, 2025, replacing Steve Furlong, who will retire on March 31, 2026 [2][3] - Steve Furlong will continue to serve as Senior Advisor to the CEO during the transition period to ensure operational continuity [2][3] Executive Background - Steven Pfanstiel brings over two decades of healthcare experience, having previously served as CFO and COO at Marinus Pharmaceuticals, where he was instrumental in the launch of the flagship product, Ztalmy [3][4] - Pfanstiel has held senior financial roles at various high-growth healthcare companies, including Lifescan and Optinose, and has experience at Johnson & Johnson across multiple product categories [3][4] Strategic Vision and Growth - Neuronetics aims to expand access to mental health treatments and deliver sustainable growth, leveraging Pfanstiel's expertise in financial leadership and growth strategies [3][4] - The company is focused on integrating Greenbrook operations and achieving positive cash flow in the third quarter of 2025, marking a significant operational milestone [5] Stock Incentives - As part of his employment agreement, Pfanstiel received an inducement grant of 400,000 restricted stock units, with specific vesting schedules tied to his continued employment [4] Company Performance and Market Position - Neuronetics reaffirms its guidance for the second quarter and full year 2025, driven by successful integration efforts and key growth drivers [5] - The company operates Greenbrook TMS treatment centers across the U.S., offering NeuroStar Advanced Therapy, which has delivered over 7.4 million treatments for major depressive disorder (MDD) [6][7]