Neuronetics (STIM) Q4 2025 Earnings Transcript

Core Insights - Neuronetics, Inc. has appointed Dan Reavers as the new President and CEO, effective March 23, indicating a leadership transition aimed at driving future growth [1] - The company reported strong fourth-quarter results with a 23% adjusted pro forma revenue growth, attributed to the successful integration of Greenbrook and increased treatment volumes [5][17] - Positive operating cash flow was achieved in Q4, marking a significant milestone for the company [6] Financial Performance - Total revenue for Q4 2025 was $41.8 million, an 86% increase from $22.5 million in Q4 2024, primarily due to the inclusion of Greenbrook operations [17] - NeuroStar business revenue was $18.3 million, reflecting a 9% pro forma increase year-over-year [17] - Gross margin decreased to 52% from 66% in the prior year, largely due to the lower margin of Greenbrook's clinic business [19] Operational Highlights - Clinic revenue grew 28% on an adjusted pro forma basis, with a significant increase in the referring provider network, adding 430 new providers in Q4 [6][12] - The company executed over 47,000 physician outreach activities, resulting in a 46% increase in patient referrals [7] - The rollout of SPRAVATO is nearly complete, with 84 clinics now offering the treatment [7] Strategic Initiatives - Neuronetics is focused on expanding its NeuroStar TMS systems market access through new models tailored to customer needs [26][27] - The company aims to address the unmet need for treatment-resistant depression (TRD) patients, with plans to advance collaboration with COMPASS Pathways on COMP360 psilocybin [28][29] - The infrastructure built for SPRAVATO is expected to facilitate the launch of new therapies, enhancing patient access and treatment options [30][31] Future Guidance - For 2026, total revenue is projected to be between $160 million and $166 million, indicating over 9% growth compared to 2025 [22] - The company anticipates strong growth in its clinic business, with double-digit year-over-year increases, while the NeuroStar business is expected to grow in the low to mid-single digits [22] - Operating expenses are expected to be between $100 million and $105 million, with a focus on efficiency improvements [23]