Core Insights - Neuronetics, Inc. is a commercial stage medical technology company focused on transforming patient lives through neurohealth therapies [1][2] - The management team will participate in a fireside chat at the Piper Sandler 37th Annual Healthcare Conference on December 4, 2025 [1] Company Overview - Neuronetics is a global leader in neuroscience, providing innovative treatment options for mental health conditions [2] - The company offers the NeuroStar Advanced Therapy, a non-drug, noninvasive treatment for patients with major depressive disorder (MDD) when traditional medications are ineffective [2] - NeuroStar Advanced Therapy is the leading TMS treatment for MDD in adults, with over 7.4 million treatments delivered and supported by the largest clinical data set for TMS treatments [2] - Neuronetics operates Greenbrook TMS Inc., which runs treatment centers across the U.S. and has provided over 1.8 million treatments to more than 55,000 patients [2] Treatment Details - 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 [3] - It is also approved as a first-line adjunct treatment for adolescents aged 15-21 with MDD [3]

Core Insights - The health care sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Group 1: Oversold Stocks - Inotiv Inc (NASDAQ:NOTV) has an RSI of 26.7, with shares falling 33.2% to close at $0.69. The company anticipates fourth-quarter revenue between $137.5 million and $138.5 million, a 60% increase year-over-year in its Discovery and Safety Assessment services [3][8] - Airsculpt Technologies Inc (NASDAQ:AIRS) has an RSI of 29.3, with shares declining 23.8% to close at $4.17. The company reported lower-than-expected third-quarter results and reduced its FY25 revenue outlook, with a 60% drop in stock price over the past month [4][8] - Neuronetics Inc (NASDAQ:STIM) has an RSI of 23.9, with shares falling 17.1% to close at $1.65. The company cut its FY2025 sales guidance, experiencing a 40% decline in stock price over the past month [5][8]

Core Insights - Neuronetics, Inc. has announced that TriWest has updated its medical policy to include TMS coverage for adolescents aged 15 and older, marking a significant advancement in treatment accessibility for this demographic [1][2][3] Company Overview - Neuronetics, Inc. specializes in medical technology aimed at improving the quality of life for patients with neurohealth disorders, particularly through its NeuroStar Advanced Therapy [1][5] - The company operates Greenbrook TMS Inc., which provides NeuroStar Advanced Therapy for treating major depressive disorder (MDD) and other mental health conditions across the United States [5] Industry Context - TRICARE coverage is primarily utilized by active and retired military personnel and their families, with the new policy affecting beneficiaries in 26 states [2] - An estimated 4.3 million U.S. adolescents aged 15-21 are affected by major depression, highlighting the need for effective treatment options [3] - NeuroStar TMS therapy is recognized as a safe and effective first-line treatment for adolescents with major depressive disorder, especially given the limited medication options available [3][6] Treatment Efficacy - NeuroStar Advanced Therapy has delivered over 7.9 million treatments and is supported by the largest clinical data set for TMS treatment of depression [5] - The therapy is FDA-cleared for various indications, including as a first-line adjunct treatment for adolescents aged 15-21 with MDD [6]

Core Viewpoint - Neuronetics, Inc. reported a mixed performance in its Q3 2025 earnings, with a slight miss on EPS estimates but significant year-over-year revenue growth Financial Performance - The company reported an EPS of -$0.13, missing the estimated EPS of -$0.12 by 18.18% [1][5] - Revenue for the quarter was $37.3 million, slightly below the estimated $37.8 million, representing a 2.21% miss [3][5] - Year-over-year, revenue increased significantly from $18.53 million in the same quarter last year [3] Comparison to Previous Periods - The current EPS of -$0.13 shows improvement from a loss of $0.29 per share in the same quarter last year [2] - In the previous quarter, the company reported a loss of $0.15 per share, missing the expected loss of $0.08, resulting in an 87.5% negative surprise [2] Revenue Breakdown - The Greenbrook clinic contributed $21.8 million to the revenue, reflecting a 25% increase from Q3 2024 [3] Valuation Metrics - Neuronetics has a price-to-earnings (P/E) ratio of -3.81, indicating negative earnings [4] - The price-to-sales ratio stands at 1.65, suggesting investors pay $1.65 for every dollar of sales [4] - The enterprise value to sales ratio is 2.28, reflecting the company's valuation relative to sales [4] - Despite negative earnings, the company maintains a strong liquidity position with a current ratio of 2.02 [4][5]

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分组1 - Neuronetics reported a quarterly loss of $0.13 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.11, but an improvement from a loss of $0.29 per share a year ago, indicating an earnings surprise of -18.18% [1] - The company posted revenues of $37.3 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.21%, but showing significant growth from $18.53 million in the same quarter last year [2] - Neuronetics shares have increased approximately 72.1% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] 分组2 - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Neuronetics was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $42.37 million, and for the current fiscal year, it is -$0.56 on revenues of $150.79 million [7] 分组3 - The Medical - Instruments industry, to which Neuronetics belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $37.3 million, an increase of 101% compared to $18.5 million in Q3 2024, primarily driven by the inclusion of Greenbrook operations following the acquisition [16][19] - On an adjusted pro forma basis, revenue increased by 11% year-over-year [16] - Gross margin decreased to 45.9% from 75.6% in the prior year quarter, mainly due to the lower margin of Greenbrook's clinic business [18][19] - Net loss for Q3 2025 was $9.4 million or $0.13 per share, compared to a net loss of $13.3 million or $0.44 per share in the prior year [19] Business Line Data and Key Metrics Changes - Revenue from Greenbrook clinics was $21.8 million, up 25% on an adjusted pro forma basis compared to the prior year [6][18] - NeuroStar business revenue was $15.5 million, with system revenue at $3.5 million and treatment session revenue at $10.5 million [16][19] - NeuroStar treatment session utilization grew 11% year-over-year, indicating strong demand despite a decrease in treatment session revenue due to customer inventory adjustments [17][18] Market Data and Key Metrics Changes - SPRAVATO volumes increased sequentially in Q3 compared to Q2, with 84 of 89 eligible clinics now offering the therapy [8][18] - The company is optimizing its SPRAVATO offering by adjusting billing methods based on state and payer reimbursement dynamics [8][22] Company Strategy and Development Direction - The company is focused on integrating and optimizing operations post-Greenbrook acquisition, aiming to improve efficiencies and capture full value from combined businesses [5][15] - Strategic partnerships, such as with Elite DNA and Transformations Care Network, are expected to expand NeuroStar's footprint and enhance treatment access [23][24] - The company is committed to operational excellence and cash optimization, with initiatives like self-check-in kiosks and AI integration to improve patient experience and reduce costs [12][13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute on priorities and create value for patients and shareholders, highlighting strong momentum in the Greenbrook integration and operational improvements [15][25] - The company anticipates achieving positive cash flow from operations in Q4 2025, with projected revenue guidance of $40 million to $43 million [20][22] Other Important Information - The company has received additional funding under its existing debt agreement, strengthening its cash position [20] - New York State Medicaid began covering NeuroStar TMS therapy for adults with major depressive disorder, expanding access to over 5 million members [15] Q&A Session Summary Question: What is driving the growth dynamics between Greenbrook and NeuroStar sites? - Management noted that Greenbrook clinics saw nearly 28% growth year-over-year, driven by SPRAVATO and TMS segments, while NeuroStar's treatment utilization increased but did not translate to revenue growth due to inventory adjustments [28][29] Question: What changed regarding gross margin expectations post-Greenbrook merger? - Management explained that the lower gross margin is due to the inclusion of Greenbrook's lower-margin clinic business, while NeuroStar's cost structure remains stable [30][31] Question: Can operational efficiencies be quantified in terms of cost savings? - Management indicated that while specific savings have not been quantified, investments in automation and technology are expected to drive long-term efficiencies [35][38] Question: How is the adolescent indication performing and what role does the provider connection program play? - Management reported an uptick in adolescent patient starts, largely driven by the provider connection network, which has increased awareness among primary care physicians [56][57]

Company Overview - The company combines mental health services and device expertise to treat more patients[17] - The company has treated 229,429 unique patients and administered 8,213,816 treatments[18, 19] - The company reported $129 million in annual revenue for 2024[19] Market and Clinical Data - The total available market consists of 293 million individuals affected by depression and OCD[34] - Approximately 8 million patients are poorly served by antidepressant medication[35] - 83% of patients experienced improvement in depression symptoms, and 62% achieved symptom relief (remission)[47] Financial Performance and Guidance - Q3 2025 revenue reached $373 million, a 101% increase compared to Q3 2024[92] - The company projects FY 2025 revenue between $147 million and $150 million, representing a 14% to 16% adjusted pro forma year-over-year growth[87] - The company is targeting positive cash flow from operations in Q4 2025[87] Growth Initiatives - The company is expanding the Better Me Provider (BMP) network, with over 420 BMP clinics in 49 states[23] - The company is expanding SPRAVATO® treatment to 89 treatment centers by the end of Fiscal Year 2025[76] - NeuroStar University (NSU) attendees have started 38% more patients, and performed 26% more treatment sessions YTD than non-attendees[65, 69]

Revenue Growth - Total revenues increased by $18.8 million, or 101%, from $18.5 million for the three months ended September 30, 2024 to $37.3 million for the three months ended September 30, 2025[160]. - For the nine months ended September 30, 2025, revenues increased by $55.0 million, or 105%, from $52.4 million in 2024 to $107.4 million in 2025[160]. - Total revenue for the three months ended September 30, 2025 was $37.3 million, an increase of 101% compared to $18.5 million for the same period in 2024[181]. - For the nine months ended September 30, 2025, total revenue was $107.4 million, an increase of 105% compared to $52.4 million in 2024[194]. - U.S. revenue increased by 102% to $36.2 million, while international revenue rose by 73% to $1.0 million[181]. - The revenue growth was primarily driven by the inclusion of clinic revenue of $21.8 million from the acquisition of Greenbrook[182]. Financial Performance - The company incurred net losses of $9.4 million and $31.9 million for the three and nine months ended September 30, 2025, compared to losses of $13.3 million and $31.0 million in 2024[161]. - The company has an accumulated deficit of $451.6 million as of September 30, 2025[161]. - Gross margin for the nine months ended September 30, 2025 decreased to 47.1% from 74.9% in 2024, primarily due to the inclusion of Greenbrook's clinic business[198]. - The company incurred negative cash flows from operating activities of $21.3 million for the nine months ended September 30, 2025, compared to $22.4 million for the same period in 2024[205][214]. Expenses - Cost of revenues increased by $15.7 million, or 346%, resulting in a gross margin decrease from 75.6% to 45.9%[185]. - General and administrative expenses rose by $3.6 million, or 49%, primarily due to the addition of Greenbrook's expenses[187]. - Research and development expenses are expected to decrease during 2025 compared to 2024[176]. - Research and development expenses decreased by $0.9 million, or 38%, due to personnel expense savings from restructuring after the acquisition[188]. - The company anticipates an increase in sales and marketing expenses in 2025 due to the addition of Greenbrook-related expenses[172]. - Interest expense increased by $0.5 million, or 28%, primarily due to a higher outstanding debt balance[189]. Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $28.0 million, up from $18.5 million as of December 31, 2024, while the accumulated deficit increased to $451.6 million from $419.8 million[205]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $0.6 million, an increase from $0.04 million in 2024, primarily due to purchases of property and equipment and capitalized software costs[216]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $36.9 million, reflecting proceeds from the issuance of common stock of $20.7 million and long-term debt of $10.0 million[217]. - The company had $70 million of borrowings outstanding under the Perceptive Facility as of September 30, 2025, with a final maturity on July 25, 2029[211]. - The company may seek additional funding through equity or debt securities if cash and anticipated revenues are insufficient to meet liquidity requirements[206]. Operational Outlook - The company expects clinic revenue to increase in 2025[164]. - The company anticipates that operating losses will lessen in the near term due to revenue growth and ongoing cost efficiencies related to the Greenbrook acquisition[205]. - The company is closely monitoring macroeconomic impacts, including inflation and supply chain issues, which could adversely affect financial results[222].

Financial Performance - Total revenue for Q3 2025 was $37.3 million, representing an 11% adjusted pro forma growth compared to Q3 2024[1] - Revenues for Q3 2025 reached $37,297, a 101% increase from $18,530 in Q3 2024[25] - Gross profit for Q3 2025 was $17,108, compared to $14,001 in Q3 2024, reflecting a gross margin improvement[25] - EBITDA for Q3 2025 was $(6,435), an improvement from $(11,643) in Q3 2024[31] - Net loss for Q3 2025 was $(9.4) million, or $(0.13) per share, an improvement from $(13.3) million, or $(0.44) per share in Q3 2024[11] - Net loss for Q3 2025 was $9,401, an improvement from a net loss of $13,341 in Q3 2024[25] Revenue Sources - Greenbrook clinic revenue reached $21.8 million in Q3 2025, marking a 25% increase on an adjusted pro forma basis versus Q3 2024[4] - U.S. NeuroStar Advanced Therapy System revenue was $3.5 million, with 40 systems shipped during the quarter[4] Cash and Assets - Total cash at the end of Q3 2025 was $34.5 million, an increase from $19.5 million as of December 31, 2024[12] - Cash and cash equivalents increased to $27,971 as of September 30, 2025, compared to $18,459 at the end of 2024[27] - Total assets grew to $145,465 as of September 30, 2025, up from $140,903 at the end of 2024[27] - Total current liabilities decreased to $28,940 as of September 30, 2025, from $31,265 at the end of 2024[27] - Long-term debt increased to $65,671 as of September 30, 2025, compared to $55,151 at the end of 2024[27] Operating Expenses - Operating expenses for Q3 2025 were $24.4 million, a 12% increase compared to Q3 2024, primarily due to Greenbrook's expenses[10] - Operating expenses totaled $24,429 in Q3 2025, up from $21,729 in Q3 2024, with significant increases in general and administrative expenses[25] Future Outlook - For Q4 2025, the company expects total worldwide revenue between $40 million and $43 million[16] - The company anticipates full-year 2025 gross margin to be between 47% and 49%[17] Patient Treatment Milestone - The company achieved a milestone of over 229,429 global patients treated with 8.2 million treatment sessions[4] Regulatory Update - New York State Medicaid expanded coverage for TMS therapy, including NeuroStar Advanced Therapy, to treat major depressive disorder, effective October 1, 2025[15]