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]

Core Insights - Neuronetics, Inc. plans to release its first quarter 2025 financial and operating results on May 6, 2025, prior to market open [1] - A conference call will be held at 8:30 a.m. Eastern Time on the same day to discuss the results [1][2] Company Overview - Neuronetics, Inc. focuses on improving the quality of life for patients with neurohealth disorders through innovative medical technology [3] - The company is a leader in neuroscience, offering the NeuroStar Advanced Therapy, a non-drug, noninvasive treatment for mental health conditions [3] - NeuroStar is indicated for treating depressive episodes and reducing anxiety symptoms in adults with Major Depressive Disorder (MDD) who have not responded to previous antidepressant treatments [3] - The therapy is also FDA-cleared for use as an adjunct treatment for adults with obsessive-compulsive disorder and for adolescents aged 15-21 with MDD [3] - Over 7.1 million NeuroStar treatments have been delivered, establishing it as the leading Transcranial Magnetic Stimulation (TMS) treatment for MDD in adults [3]

"This decision by Cigna/Evernorth is a significant step forward for adolescent mental healthcare and reflects the momentum we have built with payors over the past year since NeuroStar first received the FDA clearance for adolescents," said Keith J. Sullivan, President and CEO of Neuronetics. "We are grateful that millions more families will now have easier access to NeuroStar TMS as a proven, non-drug treatment for major depression and can get the care they deserve." The expansion is effective immediately, ...

Healthcare related stocks appear volatile to most investors because they make risky predictions. The performance of healthcare stocks reacts strongly to medical study successes and crashes when studies produce unsatisfactory results. Nonetheless, it remains a high-risk, high-reward game, especially for those companies that are Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular in ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-38546 NEURONETICS, INC. (Exact name of registrant as specified in its charter) incorporation or or ...

Core Viewpoint - Neuronetics, Inc. has updated its financial results for the fourth quarter and full year ending December 31, 2024, due to non-cash revisions related to the acquisition of Greenbrook TMS Inc. and shares outstanding adjustments, impacting key financial metrics [1][3]. Financial Results Summary Fourth Quarter 2024 Results - Revenues for Q4 2024 were reported at $22.493 million, an increase from $20.314 million in Q4 2023 [9]. - Operating expenses rose to $26.365 million from $20.198 million in the same quarter last year [10]. - The net loss increased to $(12.681) million, compared to $(5.377) million in Q4 2023, resulting in a net loss per share of $(0.34) [10]. Full Year 2024 Results - Total revenues for the year were $74.890 million, up from $71.348 million in 2023 [9]. - Operating expenses for the year increased to $88.724 million from $82.259 million in 2023 [10]. - The net loss for the year was $(43.727) million, compared to $(30.189) million in 2023, with a net loss per share of $(1.38) [10]. Adjusted Financial Metrics - Adjusted EBITDA for Q4 2024 was $(0.415) million, a decrease from $(3.031) million in Q4 2023 [17]. - For the full year, adjusted EBITDA was $(21.793) million, compared to $(21.012) million in 2023 [17]. Balance Sheet Overview - As of December 31, 2024, total assets were reported at $140.903 million, an increase from $115.831 million in 2023 [11]. - Current liabilities rose to $31.265 million from $19.812 million in the previous year [12]. - Stockholders' equity decreased to $27.706 million from $34.190 million in 2023 [12]. Cash Flow Analysis - Net cash used in operating activities for the year was $(30.997) million, slightly improved from $(32.038) million in 2023 [14]. - The company reported a net decrease in cash and cash equivalents of $(40.218) million, down from $(10.663) million in 2023 [14].

Core Viewpoint - Neuronetics (STIM) shares have increased by 16.1% recently, closing at $5.06, with a potential upside of 35% based on Wall Street analysts' mean price target of $6.83 [1] Price Targets - The average price target consists of three estimates ranging from a low of $5.50 to a high of $8, with a standard deviation of $1.26, indicating variability among analysts [2] - The lowest estimate suggests an 8.7% increase, while the highest indicates a 58.1% upside [2] - A low standard deviation signifies greater agreement among analysts regarding price movement [2][7] Analyst Sentiment - Analysts show increasing optimism about STIM's earnings, with a strong consensus on higher EPS estimates, which correlates with potential stock price increases [4][9] - The Zacks Consensus Estimate for the current year has risen by 58.8% in the past month, with two estimates increasing and no negative revisions [10] Zacks Rank - STIM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11] Conclusion on Price Targets - While consensus price targets may not reliably predict the extent of STIM's gains, they can provide a directional guide for potential price movements [12]