MALVERN, PA — Neuronetics, Inc. (NASDAQ: STIM) reported an impressive 84% revenue increase to $32.0 million for the first quarter of 2025, attributed primarily to the acquisition of Greenbrook TMS. U.S. clinic revenue accounted for $18.7 million of total revenue, while U.S. treatment session revenue totaled $9.6 million, and NeuroStar Advanced Therapy System revenue contributed $2.8 million.
“2025 is off to a great start as our approach to innovative mental health treatment is improving access to care for patients and delivering value for providers,” said Keith J. Sullivan, President and CEO. “Our growth initiatives for the Greenbrook clinics continue to exceed expectations, and we’re on track to achieve positive cash flow in the third quarter.”
Despite strong revenue growth, the company reported a net loss of $12.7 million, or $(0.21) per share, which widened from $(7.9) million, or $(0.27) per share, in the prior-year period. The decline in gross margin from 75.1% to 49.2% was attributed to the integration of Greenbrook’s clinic business.
Cash and cash equivalents stood at $20.2 million as of March 31, 2025. Neuronetics raised $18.9 million through a secondary offering early in the quarter, which was used to settle Greenbrook’s vendor payment plans and address integration costs. The company expects operational cash usage to decrease significantly in the second quarter.
Operational Updates
Neuronetics expanded insurance coverage for its FDA-cleared adolescent NeuroStar TMS therapy, with Evernorth Health Services (Cigna) joining other insurers such as Humana and Aetna in covering patients aged 15 and older with major depressive disorder. This coverage expansion supports the estimated 4.3 million U.S. adolescents affected by major depression.
The company also announced that Steve Furlong, Chief Financial Officer since 2019, will retire in March 2026. A successor search is underway, with plans for a smooth transition.
Business Outlook
For the second quarter of 2025, Neuronetics projects revenue between $36.0 million and $38.0 million. Year-end cash is expected to exceed $20 million, supporting management’s confidence in achieving full-year revenue guidance of $149.0 million to $155.0 million and reaching positive cash flow in the third quarter.
Neuronetics remains focused on enhancing its offering through programs like SPRAVATO® expansion and the Better Me Provider initiative, further advancing its leadership in the mental health treatment space.
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