Neuronetics Reports 101% Revenue Growth to $37.3 Million in Latest Quarter

Neuronetics, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $37.3 million for the three months ended September 30, 2025, a 101% increase from $18.5 million in the same period last year. For the nine months ended September 30, 2025, total revenues were $107.4 million, up 105% from $52.4 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 $21.8 million in the third quarter alone. Despite the revenue increase, the company reported a net loss of $9.4 million for the quarter, an improvement from a loss of $13.3 million in the same period last year.

The company's cost of revenues also saw a substantial rise, increasing by 346% to $20.2 million for the third quarter, which resulted in a gross margin decline from 75.6% to 45.9%. This decrease is largely due to the lower margins associated with clinic revenue compared to the sales of NeuroStar Advanced Therapy Systems. Operating expenses rose to $24.4 million, up 12% from the previous year, driven by increased general and administrative costs related to the Greenbrook acquisition, which offset a decrease in research and development expenses.

Neuronetics' operational metrics indicate a strategic shift following the Greenbrook acquisition, which has expanded its service offerings and customer base. The company now operates treatment centers across 15 states, providing TMS therapy and other mental health services. As of September 30, 2025, Neuronetics had approximately 68,445 shares of common stock outstanding, reflecting a significant increase from 55,679 shares at the end of 2024. The company also reported cash and cash equivalents of $28.0 million, up from $18.5 million at the end of 2024, indicating improved liquidity.

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 plans to continue expanding its sales and customer support teams to penetrate the market further and enhance the adoption of its NeuroStar Advanced Therapy System. However, management remains cautious about macroeconomic conditions that could impact its business, including inflation and changes in consumer confidence.

Overall, Neuronetics is positioned for growth as it integrates Greenbrook's operations and expands its market presence, although it continues to face challenges related to profitability and operational costs. The company’s focus on enhancing its product offerings and increasing clinic revenue is expected to play a crucial role in its financial performance moving forward.