Neuronetics(NASDAQ) STIM

Neuronetics, Inc. treats mental health conditions using magnetic fields. It makes medical devices for people with severe depression. The company also runs clinics that offer specialized brain therapies.

Tools for Mental Health

• Greenbrook Revenue: Patient fees from psychiatric centers providing transcranial magnetic stimulation and Spravato; accounted for 65% of revenue in the three months ended June 30, 2026.
• NeuroStar Revenue: Sales of medical systems and recurring treatment sessions to providers; represented 35% of revenue in the three months ended June 30, 2026.
• NeuroStar Systems: Non-surgical equipment that creates magnetic fields to activate mood-regulating areas of the brain.
• Treatment Sessions: Recurring electronic codes required for physicians to deliver therapy using the NeuroStar system.

Strategic Growth Steps

• Acquired Greenbrook on Dec. 9, 2024, adding patient care centers to its equipment business.
• Expanded the NeuroStar system's FDA clearance to include adolescent patients between 15 to 21 years old.
• Developed clinical indications for the treatment of obsessive-compulsive disorder and anxious depression.

Technology and Access

The company maintains a direct sales force that reaches an estimated 53,000 psychiatrists across the U.S. Its treatment systems allow providers to stimulate brain regions associated with mood without using pharmaceutical drugs.

Financial Results Breakdown

• Total revenue reached $41.6 million for the three months ended June 30, 2026, up 9% year over year.
• Net loss was $14.2 million for the six months ended June 30, 2026, a 37% improvement from the prior year.
• Gross margin reached 51.1% for the three months ended June 30, 2026, up from 46.6% in 2025.
• Management expressed substantial doubt about the company's ability to continue as a going concern due to possible debt covenant issues in 2027.

Evolution of the Business

Neuronetics has transformed from a device manufacturer into a dual-segment business providing both equipment and clinical services. This vertical integration allows the company to capture value from both the sale of technology and direct patient care.