Core Insights - NeuroStar, a Silver Sponsor at the 13th Annual Clinical TMS Society (CTMSS) Meeting, is committed to clinical innovation and excellence in mental health care [1][2] - The company will present two significant poster presentations based on the TrakStar data set, which is the largest real-world outcomes database in TMS [2][3] - NeuroStar aims to optimize TMS efficacy and expand its use into new populations and protocols, reinforcing its leadership in the psychiatric community [3] Company Updates - NeuroStar will present a retrospective analysis comparing clinical outcomes between its proprietary Figure-8 coil and Brainsway's H-coil in treating depression [2] - The company is evaluating personalized qEEG-informed protocols for TMS therapy, demonstrating operational feasibility with the NeuroStar TMS System [4] - NeuroStar has delivered over 7.4 million treatments and operates Greenbrook TMS centers across the U.S. for treating Major Depressive Disorder (MDD) and other mental health disorders [6] Event Participation - The CTMSS Meeting will take place from June 11-14 in San Diego, CA, where NeuroStar will also participate in the PULSES Course for TMS providers [2] - Presentations will include data on elderly adults (age 70 and older) with MDD treated with TMS, and a retrospective analysis from 200 Greenbrook centers [7]

Company Overview - Neuronetics, Inc. is a commercial stage medical technology and healthcare company focused on transforming patient lives through neurohealth therapies [1] - The company operates the NeuroStar Advanced Therapy System, a non-drug, noninvasive treatment for major depressive disorder (MDD) and other neurohealth conditions [5][6] Market Position - Neuronetics is set to join the Russell 3000® Index and the Russell 2000® Index effective June 30, 2025, which is a significant milestone for the company [1][4] - The Russell indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against them [2] Strategic Vision - The inclusion in the Russell indexes validates Neuronetics' strategic vision and operational execution, enhancing visibility among institutional investors [4] - The company aims to expand access to innovative mental health treatments through an integrated approach, combining NeuroStar technology with a growing clinic network [4] Treatment Impact - NeuroStar Advanced Therapy has delivered over 7.4 million treatments and is backed by the largest clinical data set for TMS treatment for depression [5] - Greenbrook treatment centers have provided more than 1.8 million treatments to over 55,000 patients suffering from depression [5]

Core Insights - Neuronetics, Inc. has launched the first National TMS Therapy Awareness Day on May 14, aimed at raising awareness about transcranial magnetic stimulation (TMS) as a non-drug treatment for major depressive disorder (MDD), anxiety, and OCD [1][2] Company Overview - Neuronetics is a commercial stage medical technology company focused on neurohealth therapies, with a mission to transform patients' lives [1] - The company operates Greenbrook TMS Inc., which provides NeuroStar Advanced Therapy for MDD and other mental health disorders across the United States [5][7] TMS Therapy Details - TMS therapy was first FDA-cleared in 2008 for treatment-resistant depression and has since gained widespread adoption as an evidence-backed treatment option [2] - NeuroStar is the leading TMS therapy in the U.S., with over 7.4 million treatments delivered and the largest clinical data set for TMS treatment of depression [7] - In 2024, NeuroStar received FDA clearance for use in adolescents aged 15-21, expanding access to younger patients [2][8] Awareness Campaign - The National TMS Awareness Day aims to provide hope to individuals who have not found relief through traditional antidepressants and to promote awareness of non-medication treatment options [2][6] - The campaign will include sharing patient and provider stories on social media to highlight the effectiveness of NeuroStar TMS therapy [6] Clinical Impact - The company will present new data at the 2025 American Psychiatric Association Annual Meeting, focusing on the efficacy of TMS protocols for treating MDD [4] - NeuroStar Advanced Therapy is cleared for various indications, including as an adjunct treatment for OCD and anxiety symptoms in patients with MDD [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $32 million, an increase of 84% compared to $17.4 million in Q1 2024, primarily driven by the Greenbrook acquisition [6][21] - Gross margin decreased to 49% from 75% in the prior year quarter, mainly due to the inclusion of Greenbrook's lower-margin clinic business [22] - Net loss for the quarter was $12.7 million, or $0.21 per share, compared to a net loss of $7.9 million, or $0.27 per share, in the prior year quarter [23] - EBITDA was negative $10.1 million compared to negative $6.3 million in the prior year quarter [23] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $2.8 million with 31 systems shipped [7] - US treatment session revenue was $9.6 million, a decrease of 26% year over year due to the elimination of Greenbrook treatment session revenue [21] - US clinic revenue, representing Greenbrook revenue, was $18.7 million for the quarter, reflecting strong performance [21] Market Data and Key Metrics Changes - Greenbrook's total clinic revenue increased by 41% year over year, from approximately $139,000 in Q1 2024 to approximately $196,000 in Q1 2025 [11] - NeuroStar TMS revenue at Greenbrook clinics increased by 8% year over year [11] Company Strategy and Development Direction - The company is focused on two strategic priorities: executing the Greenbrook integration and growth strategy, and scaling the Better Meat Provider (BMP) program [7][13] - The rollout of SPRAVATO is progressing, with 75% of Greenbrook clinics now offering it as a treatment option [9] - The BMP program is gaining momentum, with over 385 active sites and another 110 sites working to meet program standards [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by Q3 2025, supported by revenue growth initiatives and operational improvements [12][29] - The macro environment is expected to have a negligible impact on the business, with limited effects from tariffs [25] Other Important Information - The company has identified approximately $22.5 million of annualized synergies from the Greenbrook acquisition, with 95% realized by the end of 2024 [12] - The company is actively looking for additional synergy opportunities, expecting total realized synergies to exceed $23 million [12] Q&A Session Summary Question: Can you provide insights on BMP sites and their utilization trends? - Management noted a natural dip in the funnel due to an influx of new accounts entering the BMP program, but expects to build the pipeline back up [34][38] Question: What are the expectations for Greenbrook and NeuroStar utilization? - Greenbrook's utilization per NeuroStar chair increased to just under five patients per day, with growth expected to continue [41][42] Question: Can you clarify the revenue guidance for the year? - The guidance remains at $65 million to $70 million for Neuronetics and $80 million to $85 million for Greenbrook [58] Question: What is the expected operating expense for Q2? - The normalized operating expense for Q2 is expected to be in the range of $23 million to $24 million [54] Question: How will the gross margin evolve in the coming quarters? - Management anticipates a nice improvement in gross margin in Q2 and Q3, approaching the 55% target [62]

Company Performance - Neuronetics reported a quarterly loss of $0.21 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, representing an earnings surprise of -61.54% [1] - The company posted revenues of $31.98 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 9.37%, and showing significant growth from $17.42 million a year ago [2] - Over the last four quarters, Neuronetics has not surpassed consensus EPS estimates, but it has topped revenue estimates twice [2] Stock Movement and Outlook - Neuronetics shares have increased by approximately 179.5% since the beginning of the year, contrasting with a -3.9% decline in the S&P 500 [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $36.68 million, and for the current fiscal year, it is -$0.34 on revenues of $149.65 million [7] Industry Context - The Medical - Instruments industry, to which Neuronetics belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Neuronetics' stock performance [5]

Company Overview & Strategy - Neuronetics and Greenbrook have combined to leverage scale and treat more mental health patients, having treated 213,500 unique patients and administered 7,620,000 treatments[13] - The company is focused on driving accelerated growth, realizing cost reductions, and transforming its financial profile to deliver mid-teens revenue growth and near-term profitability[21] - A key strategy involves expanding the Better Me Provider (BMP) network, with over 375 BMP clinics in 49 states[17], and increasing patient flow through referral networks and optimized digital marketing[70] Financial Performance & Guidance - Full year 2024 consolidated adjusted net pro forma revenue was $129.4 million[13, 79] - Q1 2025 revenue reached $32.0 million, an 84% increase compared to Q1 2024 on a reported basis and a 7% increase on an adjusted pro forma basis[88, 95] - The company anticipates revenue between $149 million and $155 million for FY 2025, representing a 15% to 19% pro forma year-over-year growth[83] - The company expects to achieve cash flow positive status beginning in Q3 2025[83] Cost Synergies - The company has identified $22.6 million in annualized expected cost savings through various initiatives, including NNI RIF/Spend Reductions ($16.2 million), Greenbrook Clinics savings ($5.1 million), and Additional Reductions ($1.3 million)[77] Clinical & Market Position - NeuroStar is the first FDA-cleared TMS treatment for adolescent depression and is positioned as a first-line treatment[44] - Real-world clinical results show 83% improvement in depression symptoms and 62% symptom relief (remission) for patients with MDD[39] - Practices attending NeuroStar University (NSU) have started 40% more patients than non-attendees since Q3 2022[55], and performed 30% more treatment sessions in Q1 2025[60]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $32 million, an increase of 84% compared to $17.4 million in Q1 2024, primarily driven by the Greenbrook acquisition [6][22] - Gross margin decreased to 49% from 75% in the prior year quarter, mainly due to the inclusion of Greenbrook's lower-margin clinic business [23] - Operating expenses increased to $26.8 million, a 35% rise from $19.9 million in Q1 2024, largely due to Greenbrook's operating expenses [23] - Net loss for the quarter was $12.7 million, or $0.21 per share, compared to a net loss of $7.9 million, or $0.27 per share, in the prior year [24] - EBITDA was negative $10.1 million, worsening from negative $6.3 million in the prior year [24] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $2.8 million with 31 systems shipped [6][22] - US treatment session revenue was $9.6 million, a decrease of 26% year-over-year due to the elimination of Greenbrook treatment session revenue [22] - US clinic revenue from Greenbrook was $18.7 million for the quarter, reflecting strong performance [22] Market Data and Key Metrics Changes - Greenbrook's total clinic revenue was approximately $196,000 in Q1 2025, a 41% increase from approximately $139,000 in Q1 2024 [12] - NeuroStar TMS revenue at Greenbrook increased by 8% year-over-year [12] Company Strategy and Development Direction - The company is focused on two strategic priorities: executing the Greenbrook integration and growth strategy, and scaling the Better Meat Provider (BMP) program [7][14] - Key initiatives include optimizing Regional Account Managers, rolling out SPRAVATO in more clinics, and standardizing operations across the Greenbrook network [10][11] - The BMP program is gaining momentum, with over 385 active sites and expectations for continued growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by Q3 2025, supported by revenue growth initiatives and operational improvements [13][32] - The macro environment is expected to have a negligible impact on the business, with manageable tariff effects [27] - The company is committed to expanding access to NeuroStar TMS treatment and improving financial performance [20][30] Other Important Information - The company has identified $22.5 million of expected annualized synergies from the Greenbrook acquisition, with 95% realized by the end of 2024 [13] - A successful public offering in February raised $18.9 million in net proceeds, strengthening the company's capital position [25] Q&A Session Summary Question: Can you provide insights on BMP sites and their growth? - Management noted a natural dip in the funnel due to an influx of new accounts entering the BMP program, expecting to build the pipeline back up [36][37] Question: What drives utilization at BMP sites? - BMP sites are the focus of marketing efforts, with significant progress in driving awareness and education among patients [40][42] Question: Can you break down the revenue guidance for Greenbrook and NeuroStar? - The guidance remains at $65 million to $70 million for Neuronetics and $80 million to $85 million for Greenbrook [61] Question: What is the expected G&A spend going forward? - G&A expenses in Q1 were higher due to pulling in budgeted expenses to improve vendor relations, but no significant increases are expected for the remainder of 2025 [54][56] Question: What is the impact of SPRAVATO buy and bill transition on cash flow? - Higher SPRAVATO buy and bill expenses were incurred in Q1, but management is working to secure a credit line to manage cash flow effectively [70][72]

Revenue Growth - Total revenues increased by $14.6 million, or 84%, from $17.4 million for the three months ended March 31, 2024, to $32.0 million for the three months ended March 31, 2025[131]. - U.S. revenues were $31.5 million for the three months ended March 31, 2025, compared to $16.8 million for the same period in 2024, representing an increase of 87%[131]. - Revenues from treatment sessions, clinic revenue, and NeuroStar Advanced Therapy Systems represented 31%, 59%, and 9% of U.S. revenues, respectively, for the three months ended March 31, 2025[124]. - Total revenue for Q1 2025 was $32.0 million, an increase of $14.6 million or 84% compared to $17.4 million in Q1 2024[151]. - U.S. clinic revenue from the Greenbrook acquisition was $18.7 million in Q1 2025, contributing significantly to revenue growth[155]. Financial Performance - The company incurred net losses of $12.7 million for the three months ended March 31, 2025, compared to net losses of $7.9 million for the same period in 2024[131]. - As of March 31, 2025, the company had an accumulated deficit of $432.5 million[131]. - Net loss for Q1 2025 was $12.7 million, a 61% increase from a net loss of $7.9 million in Q1 2024[167]. - Cash and cash equivalents as of March 31, 2025, were $20.2 million, up from $18.5 million at the end of 2024[162]. - Net cash used in operating activities for Q1 2025 was $17.0 million, compared to $12.0 million in Q1 2024[166]. - Interest expense increased by 5% to $1.9 million in Q1 2025 due to rising interest rates[160]. Expense Management - Operating expenses increased by $6.8 million or 34% to $26.8 million in Q1 2025, driven by a 121% increase in general and administrative expenses[158]. - Research and development expenses are expected to decrease during 2025 compared to 2024 expenses[146]. - Research and development expenses decreased by 31% to $1.6 million in Q1 2025, reflecting cost savings post-acquisition[159]. - The company anticipates that sales and marketing expenses will increase in 2025 due to the addition of Greenbrook sales and marketing related expenses[142]. Future Outlook - The company expects clinic revenue to increase in 2025[136]. - The company anticipates that operating losses will lessen in the near term due to revenue growth and ongoing cost efficiencies from the Greenbrook acquisition[162]. - The company generated approximately $8,500 of average revenue per patient for a standard course of treatment[125]. - Gross profit for Q1 2025 was $15.7 million, with a gross margin of 49.2%, down from 75.1% in Q1 2024[156].

Financial Performance - In 2024, Neuronetics reported an annual revenue of $129 million, with 213,500 unique patients treated and 7.62 million treatments administered[14]. - Q4 2024 revenue reached $22.5M, with full year revenue at $74.9M, reflecting a significant growth trajectory[63]. - Q1 2025 revenue was $32.0M, an 84% increase compared to Q1 2024[70]. - FY 2025 revenue guidance is set between $149M to $155M, indicating a year-over-year growth of 15% to 19%[66]. - Neuronetics' adjusted net pro forma revenue for Q4 2024 was $33.9M, with a consolidated adjusted net pro forma revenue of $129.4M for the full year[63]. - Total U.S. Revenues for 2023 reached $69,336, reflecting a 5% increase year-over-year[89]. - Total Revenues for 2023 amounted to $71,348, with a year-over-year growth of 9%[89]. - Total Revenues for 2024 are forecasted to be $129,430, reflecting an 81% increase compared to 2023[91]. Growth Strategy - The company aims for mid-teens revenue growth and expects to achieve cash flow breakeven in Q3 2025[20]. - The company has realized significant cost reductions, enabling immediate operating leverage and transforming its financial profile[20]. - The company achieved annualized expected cost savings of $22.6M through various initiatives, with $16.2M expected from Greenbrook reductions[61]. - The company aims to be cash flow positive starting in Q3 2025[66]. - Neuronetics is focused on standardizing operational excellence across its network to improve treatment revenue and patient care[55]. Treatment and Clinical Outcomes - Neuronetics has over 375 operating treatment clinics across 15 states, with a total of 55,700 patients treated and 1.8 million treatments administered through Greenbrook[17]. - The NeuroStar system has been utilized in over 202,000 patients, with 7.4 million treatment sessions performed, making it the market leader in Transcranial Magnetic Stimulation (TMS)[31]. - Neuronetics' clinical results show an 83% improvement in depression symptoms for patients with Major Depressive Disorder (MDD) after treatment[34]. - The Better Me Provider Program (BMP) has shown a 2.2x faster conversion from patient interest to treatment compared to non-BMP practices[42]. Product Development and Market Expansion - The company has a robust R&D pipeline, including a third-generation system and the largest clinical dataset in the world to drive new indications[33]. - Neuronetics is the first to market with an FDA-cleared TMS treatment for adolescent depression, expanding its addressable market significantly[37]. - The SPRAVATO® program, approved by the FDA, is expected to expand to nearly 85 treatment centers by the end of fiscal 2025, enhancing the company's treatment offerings[53]. - The company is expanding referral networks for over 375 BMP clinics to enhance patient flow[57]. Revenue Trends and Projections - Total U.S. NeuroStar Advanced Therapy System Revenues for 2023 were $16,460, a decrease of 7% year-over-year[89]. - Total U.S. Treatment Sessions Revenues for 2023 were $50,895, remaining flat year-over-year with a 0% change[89]. - Total International Revenues for 2023 were $2,012, showing a 12% increase year-over-year[89]. - For Q1 2024, Total U.S. NeuroStar Advanced Therapy System Revenues are projected to be $3,310, a 14% decline compared to Q1 2023[91]. - Total U.S. Revenues for Q1 2024 are expected to be $29,143, indicating a significant 95% increase year-over-year[91]. - Total NeuroStar Systems in 2023 were 204, representing a 4% decrease year-over-year[89]. - Total NeuroStar Systems for Q1 2024 are anticipated to be 40, a 32% decrease year-over-year[91].

Core Insights - Neuronetics reported strong financial results for Q1 2025, with total revenues of $32.0 million, an 84% increase compared to $17.4 million in Q1 2024, primarily driven by the acquisition of Greenbrook [5][6][10] - The company is on track to achieve positive cash flow by Q3 2025, supported by growth initiatives and operational improvements [4][15] Financial Performance - Total revenues for Q1 2025 were $32.0 million, up 84% from $17.4 million in Q1 2024, with U.S. revenues increasing by 87% to $31.5 million [5][6] - U.S. clinic revenue reached $18.7 million, while treatment session revenue was $9.6 million, both reflecting the impact of the Greenbrook acquisition [8][10] - Gross margin decreased to 49.2% from 75.1% in the previous year, mainly due to the inclusion of Greenbrook's clinic business [9] - Operating expenses rose to $26.8 million, a 35% increase from $19.9 million in Q1 2024, largely due to Greenbrook's administrative costs [9] Operational Highlights - The integration of Greenbrook is progressing well, with significant operational advancements noted [6][15] - The Better Me Provider program is effectively increasing patient treatment rates and therapy initiation speed [4] - Major insurance coverage expansions for adolescent TMS treatment have been achieved, enhancing access for patients aged 15 and older [13][14] Strategic Developments - A secondary offering raised approximately $18.9 million in net proceeds, strengthening the company's financial position [6][15] - The company expects total worldwide revenue for Q2 2025 to be between $36.0 million and $38.0 million, and for the full year 2025, between $149.0 million and $155.0 million [16][17] Leadership Changes - Chief Financial Officer Steve Furlong will retire in March 2026, with a search for his successor already underway [12]