Neuronetics (NASDAQ:STIM) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Neuronetics (NASDAQ:STIM) issued its quarterly earnings data on Wednesday. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.07, FiscalAI reports. The firm had revenue of $41.96 million during the quarter, compared to the consensus estimate of $40.42 million. Neuronetics had a negative net margin of 19.62% and a negative return on equity of 125.11%.

Here are the key takeaways from Neuronetics’ conference call:

• Revenue rose 12.5% to $42 million, while gross margin expanded to 52.2%; the company also reported positive operating income, adjusted EBITDA, and operating and investing cash flow for the quarter.
• Greenbrook revenue increased 20.1%, supported by revenue-cycle improvements and growth in SPRAVATO. Management said early results from its AI-enabled claims tool improved first-month collections by a low double-digit percentage, though clinic occupancy remains uneven, ranging from about 25% to 75%.
• NeuroStar recorded its strongest quarter for system sales, with more than half of units sold through capital or lease arrangements. Management said the broader go-to-market strategy is reaching larger accounts, but expects sessions revenue to continue trending slightly lower.
• Despite positive quarterly cash flow, the company still expects full-year cash flow from operating and investing of negative $10 million to negative $12 million. Full-year revenue guidance was unchanged at $160 million to $164 million.
• Management sees potential growth opportunities from its Wave Neuroscience partnership, an EHR integration, and a planned Compass Pathways launch in 2027. These opportunities remain subject to regulatory, commercial, and reimbursement execution.

Neuronetics Stock Performance

NASDAQ:STIM traded up $0.52 during mid-day trading on Wednesday, reaching $2.78. 4,235,708 shares of the stock were exchanged, compared to its average volume of 1,990,210. Neuronetics has a 1 year low of $0.80 and a 1 year high of $3.44. The stock has a market capitalization of $211.53 million, a P/E ratio of -6.31 and a beta of 1.36. The company has a 50 day simple moving average of $2.49 and a 200-day simple moving average of $1.87. The company has a quick ratio of 1.69, a current ratio of 1.88 and a debt-to-equity ratio of 2.84.

Insider Transactions at Neuronetics

In other news, major shareholder Jorey Chernett acquired 18,000 shares of the business’s stock in a transaction on Friday, October 30th. The stock was bought at an average price of $2.27 per share, for a total transaction of $40,860.00. Following the transaction, the insider owned 10,620,988 shares in the company, valued at $24,109,642.76. This represents a 0.17% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 8.40% of the company’s stock.

Analyst Upgrades and Downgrades

STIM has been the subject of a number of research reports. BTIG Research reiterated a “buy” rating and issued a $6.00 price objective on shares of Neuronetics in a report on Thursday, September 17th. B. Riley Financial initiated coverage on shares of Neuronetics in a report on Friday, September 11th. They issued a “buy” rating on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of Neuronetics in a report on Monday, September 14th. Wall Street Zen upgraded shares of Neuronetics from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. Finally, Citigroup reiterated a “market outperform” rating on shares of Neuronetics in a research note on Tuesday, July 21st. Four equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $4.67.

Neuronetics Company Profile

Neuronetics, Inc is a medical technology company that develops and commercializes noninvasive treatments for psychiatric and neurological disorders. Its primary product is NeuroStar TMS Therapy, which uses transcranial magnetic stimulation to deliver targeted magnetic pulses to areas of the brain associated with mood regulation.

NeuroStar TMS Therapy is cleared by the U.S. Food and Drug Administration for treating major depressive disorder in adults and adolescents, obsessive-compulsive disorder, and depression with anxious distress.