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]

Transforming Lives Through NeuroHealth COMPANY PRESENTATION NASDAQ: STIM November 2025 Forward Looking Statements This presentation contains estimates and other statistical data prepared by independent parties and by Neuronetics, Inc. ("Neuronetics" or the "Company") relating to market size and growth and other data about the industry in which the Company operates. These estimates and data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates and d ...

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]