Neuronetics Reports 84% Revenue Growth to $31.975 Million, Net Loss Increases

Neuronetics, Inc. reported significant financial growth in its quarterly results for the period ending March 31, 2025, with total revenues reaching $31.975 million, an increase of 84% from $17.417 million in the same period last year. This growth was primarily driven by the inclusion of clinic revenue following the acquisition of Greenbrook TMS Inc., which contributed $18.659 million to the total revenue. However, the company also reported a net loss of $12.689 million, compared to a net loss of $7.873 million in the prior year, reflecting ongoing operational challenges.

The company's cost of revenues surged to $16.237 million, a 275% increase from $4.329 million in the previous year, leading to a gross profit of $15.738 million and a gross margin of 49.2%, down from 75.1% in the prior year. The increase in costs was attributed to the operational expenses associated with the newly acquired Greenbrook clinics and a decrease in treatment session revenue. Operating expenses overall rose to $26.752 million, up 34% from $19.947 million, with general and administrative expenses seeing a notable increase of 121% due to the integration of Greenbrook's operations.

Neuronetics' operational metrics indicate a strategic shift following the acquisition, with the company now managing a network of outpatient mental health service centers. As of March 31, 2025, the company had 65,820,344 shares of common stock outstanding, reflecting a secondary public offering completed in February 2025, which raised approximately $18.9 million. The company continues to focus on expanding its sales and marketing efforts, targeting an estimated 53,000 psychiatrists across 26,000 practices in the U.S.

Looking ahead, Neuronetics anticipates that its operating losses will continue in the near term as it invests in sales and marketing and product development activities. The company has $20.224 million in cash and cash equivalents as of the end of the quarter, alongside an accumulated deficit of $432.464 million. Management believes that the current cash position, combined with anticipated revenue growth, will be sufficient to fund operations for at least the next 12 months. However, the company remains vigilant regarding macroeconomic conditions that could impact its business, including inflation and potential recessionary pressures.