Neuronetics Reports 132% Revenue Growth to $38.1 Million in Latest Quarter

Neuronetics, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $38.1 million for the three months ended June 30, 2025, a 132% increase from $16.5 million in the same period last year. For the six months ended June 30, 2025, revenues totaled $70.1 million, up 107% from $33.9 million in the prior year. This growth is primarily attributed to the inclusion of clinic revenue following the acquisition of Greenbrook TMS Inc., which contributed $23 million in the second quarter. However, the company also reported a net loss of $9.8 million for the quarter, slightly higher than the $9.8 million loss recorded in the same quarter of 2024.

The company’s cost of revenues surged to $20.4 million for the second quarter, a 376% increase compared to $4.3 million in the prior year, leading to a gross margin decline from 74% to 46.6%. The increase in costs is largely due to the operational expenses associated with Greenbrook's clinic business. Operating expenses overall rose to $25.8 million, up 25% from $20.7 million in the previous year, driven by a significant increase in general and administrative costs, which nearly doubled to $12.2 million.

Neuronetics has also made strategic moves to enhance its market position, including the acquisition of Greenbrook, which has expanded its treatment center footprint across the U.S. The company now operates in 15 states, providing TMS therapy and other mental health services. As of June 30, 2025, Neuronetics reported a total of 66,113 shares of common stock outstanding, reflecting a recent secondary public offering that raised approximately $18.9 million in net proceeds.

In terms of operational metrics, the company has treated over 209,215 patients with its NeuroStar Advanced Therapy System, which remains a key product in its portfolio. The system is FDA-cleared for treating major depressive disorder and other mental health conditions. Despite the growth in revenues, Neuronetics continues to face challenges, including an accumulated deficit of $442.6 million and negative cash flows from operating activities amounting to $20.5 million for the first half of 2025.

Looking ahead, Neuronetics anticipates that its operating losses will decrease in the near term due to revenue growth and ongoing cost efficiencies related to the Greenbrook acquisition. The company is focused on expanding its sales and marketing efforts to further penetrate the market and enhance its product offerings. However, it remains cautious about macroeconomic conditions that could impact its business, including inflation and changes in reimbursement policies.