MALVERN, PA — Neuronetics (NASDAQ: STIM) reported higher first-quarter revenue driven by growth in its U.S. clinic operations following the Greenbrook acquisition, while the company narrowed losses and reduced cash used in operations.
Revenue for the quarter ended March 31 increased 8% to $34.5 million from $32.0 million a year earlier. Net loss narrowed to $10.8 million, or $0.16 per share, from $12.7 million, or $0.21 per share, in the prior-year quarter.
U.S. clinic revenue rose 15% to $21.5 million, reflecting continued expansion of SPRAVATO treatment offerings and the company’s buy-and-bill reimbursement model.
Neuronetics shipped 34 NeuroStar Advanced Therapy systems during the quarter, up 10% from a year earlier. U.S. NeuroStar system revenue increased 13% to $3.2 million.
Treatment session revenue declined to $9.1 million from $9.6 million in the prior-year quarter.
Gross margin fell to 46.9% from 49.2%, which the company attributed primarily to product and business mix.
Operating expenses declined 6% to $25.1 million, driven by lower administrative, sales, and marketing costs.
Net cash used in operations improved to $9.4 million from $17.0 million a year earlier. Cash and cash equivalents totaled $13.2 million at March 31, with total cash, including restricted cash, at $19.0 million.
The company also disclosed a $5.0 million principal payment made in March to reduce debt and future interest expense.
During the quarter, Optum, UnitedHealthcare, and United Behavioral Health expanded clinical policy coverage for transcranial magnetic stimulation therapy to allow psychiatric mental health nurse practitioners to order, supervise, and administer NeuroStar Advanced Therapy in states with full practice authority.
Neuronetics noted that the policy expansion covers about 34.8 million insured lives across 26 states and Washington.
“I’m encouraged by our first quarter performance, which reflects the team’s continued execution on revenue growth, operational efficiency, and cash management,” Dan Reuvers said.
“Our clinic business delivered double-digit growth, we reduced operating expenses, and we meaningfully improved our operating cash flow versus the first quarter of last year,” Reuvers added.
For the second quarter, Neuronetics expects revenue growth in the mid-single digits.
The company maintained its full-year 2026 guidance, projecting revenue between $160 million and $166 million, gross margin between 47% and 49%, and operating expenses between $100 million and $105 million.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.