MALVERN, PA — Neuronetics Inc. (Nasdaq: STIM) moved into operating profitability in the third quarter of 2026 as revenue from its Greenbrook psychiatric clinics increased 20.1%, helping the Malvern-based mental health technology company narrow its net loss and improve its full-year expense and cash flow forecasts.
The company reported operating income of $500,000 for the quarter ended Sept. 30, compared with an operating loss of $7.3 million a year earlier, reflecting stronger clinic revenue, higher gross margins and reduced operating expenses.
Total revenue increased 12.5% to $42 million from $37.3 million in the third quarter of 2025, with Greenbrook contributing $26.2 million, up from $21.8 million.
The improvement reflects Neuronetics’ strategy of combining sales of its NeuroStar transcranial magnetic stimulation (TMS) technology with direct patient care through its Greenbrook network of interventional psychiatry clinics.
Adjusted earnings before interest, taxes, depreciation and amortization reached $1.9 million, compared with a loss of $4.7 million a year earlier.
The company reported a consolidated net loss of $1.6 million, down from $9.4 million in the prior-year quarter.
Net loss attributable to Neuronetics shareholders narrowed to $1.7 million, or 2 cents per share, from $9 million, or 13 cents per share, a year earlier.
Gross margin expanded to 52.2% from 45.9%, a gain of 6.3 percentage points, as changes to the company’s sales strategy and improvements in Greenbrook’s revenue collection processes contributed to profitability.
Operating expenses declined 13% to $21.3 million from $24.4 million, primarily because of lower sales and marketing spending, partially offset by higher general and administrative costs.
Neuronetics also generated $800,000 in cash from operating and investing activities during the quarter, compared with a cash outflow of $900,000 a year earlier.
The company ended September with $27.9 million in total cash, including $22.1 million in cash and equivalents and $5.8 million in restricted cash. That compared with $34.1 million in total cash at the end of 2025.
President and Chief Executive Officer Dan Reuvers attributed the operating improvement to growth in Greenbrook’s patient care business, stronger NeuroStar system sales and changes in how the company manages revenue collection.
“We delivered a record third quarter within Greenbrook as well as NeuroStar system sales,” Reuvers stated. “This reflects both our revenue cycle management advances as well as the positive reception of our expanded NeuroStar go-to-market options.”
The financial improvement prompted Neuronetics to lower its expected full-year operating expenses and narrow its projected cash outflow while maintaining its revenue forecast.
For 2026, the company continues to expect total revenue between $160 million and $164 million.
Its gross margin forecast was tightened to a range of 49% to 50%, compared with the previous range of 48% to 50%.
Neuronetics reduced its projected operating expenses to between $92.5 million and $95.5 million, down from its previous forecast of $95 million to $100 million.
Excluding stock-based compensation, expected operating expenses were lowered to $89 million to $92 million from $91 million to $96 million. Estimated stock-based compensation was reduced to $3.5 million from $4 million.
The company also improved its cash flow outlook, projecting a full-year operating and investing cash outflow of $10 million to $12 million, compared with its previous forecast of $10.5 million to $14.5 million.
Alongside its financial restructuring and clinic expansion, Neuronetics is pursuing regulatory clearances intended to expand the clinical applications and accessibility of its NeuroStar technology.
In August, the company submitted a 510(k) application to the U.S. Food and Drug Administration for an accelerated TMS treatment protocol.
The application remains under review. If cleared, the protocol could allow providers to deliver treatment through a more condensed schedule, potentially making the therapy more accessible to patients who face difficulties completing conventional treatment schedules.
Neuronetics has also entered into a distribution agreement with Wave Neuroscience to pursue the use of NeuroStar systems in treating post-traumatic stress disorder.
Wave Neuroscience has developed a software algorithm that uses electroencephalogram data to guide TMS treatment for PTSD.
Neuronetics plans to seek FDA clearance to make NeuroStar compatible with Wave Neuroscience’s PTSD treatment technology.
If authorized, the arrangement would allow existing NeuroStar customers to use their installed systems with Wave Neuroscience’s software for PTSD treatment, expanding the potential clinical applications of the equipment.
The company is also integrating NeuroStar treatment operations with electronic medical record and practice management software to reduce administrative work for providers.
Its TrakStar practice management platform has been integrated with AdvancedMD’s electronic health record, scheduling, billing and revenue cycle management system.
The integration connects TMS treatment data with clinical documentation and administrative workflows, reducing the need for duplicate data entry across separate systems.
Neuronetics expects the integration to become available during the fourth quarter of 2026 to existing NeuroStar providers using AdvancedMD, with broader availability for providers adopting the platform.
The operational changes come as Neuronetics prepares to expand its treatment offerings beyond conventional TMS services, including potential future use of psychedelic-based therapies.
Reuvers identified additional NeuroStar partnerships, increased patient treatment capacity at Greenbrook clinics and the development of a broader interventional psychiatry offering as priorities.
The company’s revised financial outlook reflects progress in controlling expenses and improving clinic economics while maintaining investment in regulatory development and commercial expansion.
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