Neuronetics(US:STIM)2025-11-04 12:31Revenue 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].