Neuronetics Reports First Quarter 2025 Financial and Operating Results

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]