Neuronetics (NASDAQ:STIM) Announces Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Q1 results: Neuronetics reported EPS of -$0.16, beating estimates by $0.01, with revenue of $34.45M (slightly above expectations); NeuroStar revenue was down 3% while system shipments rose 10% and Greenbrook clinic revenue was up 15%, though gross margin fell to 46.9% and adjusted EBITDA improved to -$6.6M.
• Liquidity tightened as cash fell to $19M from $34.1M with Q1 operating cash burn of $9.4M; management says current plans provide runway through the year but is evaluating balance‑sheet and financing options and amended debt to ease covenant/interest pressure.
• New CEO Dan Reuvers has launched a listening tour and is pursuing broader go‑to‑market efforts, clinic execution improvements and cost actions expected to save ~$2.5–$3M annually (net benefits starting in Q3), and the stock jumped about 18% on the update amid notable insider and institutional activity.

Neuronetics (NASDAQ:STIM - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.16) EPS for the quarter, beating analysts' consensus estimates of ($0.17) by $0.01, FiscalAI reports. Neuronetics had a negative return on equity of 121.26% and a negative net margin of 26.15%.The company had revenue of $34.45 million during the quarter, compared to analysts' expectations of $34.17 million.

Here are the key takeaways from Neuronetics' conference call:

• New CEO Dan Reuvers began a listening tour and outlined a strategy to broaden NeuroStar's go-to-market, tighten clinic execution, and evaluate the business structure with an open mind to actions that could unlock shareholder value.
• Q1 results: total revenue $34.5M (+8% YoY), NeuroStar revenue down 3% while system shipments rose 10% (34 systems), and Greenbrook clinic revenue up 15% driven by SPRAVATO; gross margin fell to 46.9% due to revenue mix, but adjusted EBITDA improved to -$6.6M.
• Cash and liquidity tightened—total cash $19M (down from $34.1M), Q1 operating cash use $9.4M—management says current plan provides runway through the year but will continue evaluating the balance sheet and financing options.
• Management is taking cost actions expected to deliver ~$2.5M–$3M of annualized savings (net benefits starting in Q3), improving collections and operational efficiency in clinics, and piloting expanded commercial models for NeuroStar to drive growth.
• Company amended its debt (one‑time $5M principal payment to Perceptive) to reduce interest/covenant pressure and highlighted potential upside if Compass/psilocybin therapy is approved, though timing and reimbursement remain uncertain.

Neuronetics Stock Up 18.1%

STIM stock traded up $0.37 during mid-day trading on Tuesday, reaching $2.39. The company had a trading volume of 3,998,775 shares, compared to its average volume of 2,133,197. The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.87 and a current ratio of 2.02. The company has a market capitalization of $165.95 million, a price-to-earnings ratio of -4.04 and a beta of 1.13. The firm has a fifty day simple moving average of $1.44 and a 200 day simple moving average of $1.72. Neuronetics has a fifty-two week low of $0.80 and a fifty-two week high of $4.85.

Insider Transactions at Neuronetics

In other Neuronetics news, Director Keith J. Sullivan sold 46,289 shares of the stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $1.34, for a total value of $62,027.26. Following the sale, the director owned 1,590,924 shares of the company's stock, valued at $2,131,838.16. This trade represents a 2.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Jorey Chernett purchased 100,000 shares of Neuronetics stock in a transaction on Monday, April 20th. The stock was bought at an average cost of $1.58 per share, for a total transaction of $158,000.00. Following the transaction, the insider directly owned 9,878,988 shares in the company, valued at $15,608,801.04. This represents a 1.02% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders acquired 1,857,872 shares of company stock worth $2,431,406 and sold 183,032 shares worth $269,588. 8.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Neuronetics

Several hedge funds and other institutional investors have recently made changes to their positions in STIM. Goldman Sachs Group Inc. raised its position in shares of Neuronetics by 2,993.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 630,393 shares of the company's stock worth $2,320,000 after acquiring an additional 610,014 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Neuronetics by 172.3% in the second quarter. Geode Capital Management LLC now owns 879,045 shares of the company's stock valued at $3,068,000 after buying an additional 556,268 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Neuronetics by 195,023.5% in the second quarter. JPMorgan Chase & Co. now owns 66,342 shares of the company's stock valued at $232,000 after buying an additional 66,308 shares in the last quarter. New York State Common Retirement Fund purchased a new stake in shares of Neuronetics in the second quarter valued at approximately $103,000. Finally, Invesco Ltd. purchased a new stake in shares of Neuronetics in the second quarter valued at approximately $100,000. Institutional investors and hedge funds own 53.59% of the company's stock.

Analyst Ratings Changes

STIM has been the subject of a number of research analyst reports. Canaccord Genuity Group lowered their target price on Neuronetics from $7.00 to $3.00 and set a "buy" rating for the company in a report on Thursday, March 19th. Weiss Ratings restated a "sell (e+)" rating on shares of Neuronetics in a report on Thursday, January 22nd. Finally, Wall Street Zen upgraded Neuronetics from a "sell" rating to a "hold" rating in a report on Saturday, April 18th. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, Neuronetics has an average rating of "Hold" and a consensus price target of $3.00.

Neuronetics Company Profile

Neuronetics, Inc is a commercial‐stage medical technology company that develops and markets non-invasive neuromodulation therapies for psychiatric and neurological disorders. The company's flagship product, the NeuroStar Advanced Therapy System, uses repetitive transcranial magnetic stimulation (rTMS) to deliver targeted magnetic pulses to areas of the brain implicated in major depressive disorder (MDD). NeuroStar Advanced Therapy has received U.S. Food and Drug Administration clearance for the treatment of adults with treatment-resistant depression and is supported by a growing body of clinical evidence demonstrating its safety and efficacy.

Founded in 2003 and headquartered in Malvern, Pennsylvania, Neuronetics focuses on advancing clinical care through innovation in neurostimulation.

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