Company Overview - The company combines mental health services and device expertise to treat more patients[17] - The company has treated 229,429 unique patients and administered 8,213,816 treatments[18, 19] - The company reported $129 million in annual revenue for 2024[19] Market and Clinical Data - The total available market consists of 293 million individuals affected by depression and OCD[34] - Approximately 8 million patients are poorly served by antidepressant medication[35] - 83% of patients experienced improvement in depression symptoms, and 62% achieved symptom relief (remission)[47] Financial Performance and Guidance - Q3 2025 revenue reached $373 million, a 101% increase compared to Q3 2024[92] - The company projects FY 2025 revenue between $147 million and $150 million, representing a 14% to 16% adjusted pro forma year-over-year growth[87] - The company is targeting positive cash flow from operations in Q4 2025[87] Growth Initiatives - The company is expanding the Better Me Provider (BMP) network, with over 420 BMP clinics in 49 states[23] - The company is expanding SPRAVATO® treatment to 89 treatment centers by the end of Fiscal Year 2025[76] - NeuroStar University (NSU) attendees have started 38% more patients, and performed 26% more treatment sessions YTD than non-attendees[65, 69]

Revenue Growth - Total revenues increased by $18.8 million, or 101%, from $18.5 million for the three months ended September 30, 2024 to $37.3 million for the three months ended September 30, 2025[160]. - For the nine months ended September 30, 2025, revenues increased by $55.0 million, or 105%, from $52.4 million in 2024 to $107.4 million in 2025[160]. - Total revenue for the three months ended September 30, 2025 was $37.3 million, an increase of 101% compared to $18.5 million for the same period in 2024[181]. - For the nine months ended September 30, 2025, total revenue was $107.4 million, an increase of 105% compared to $52.4 million in 2024[194]. - U.S. revenue increased by 102% to $36.2 million, while international revenue rose by 73% to $1.0 million[181]. - The revenue growth was primarily driven by the inclusion of clinic revenue of $21.8 million from the acquisition of Greenbrook[182]. Financial Performance - The company incurred net losses of $9.4 million and $31.9 million for the three and nine months ended September 30, 2025, compared to losses of $13.3 million and $31.0 million in 2024[161]. - The company has an accumulated deficit of $451.6 million as of September 30, 2025[161]. - Gross margin for the nine months ended September 30, 2025 decreased to 47.1% from 74.9% in 2024, primarily due to the inclusion of Greenbrook's clinic business[198]. - The company incurred negative cash flows from operating activities of $21.3 million for the nine months ended September 30, 2025, compared to $22.4 million for the same period in 2024[205][214]. Expenses - Cost of revenues increased by $15.7 million, or 346%, resulting in a gross margin decrease from 75.6% to 45.9%[185]. - General and administrative expenses rose by $3.6 million, or 49%, primarily due to the addition of Greenbrook's expenses[187]. - Research and development expenses are expected to decrease during 2025 compared to 2024[176]. - Research and development expenses decreased by $0.9 million, or 38%, due to personnel expense savings from restructuring after the acquisition[188]. - The company anticipates an increase in sales and marketing expenses in 2025 due to the addition of Greenbrook-related expenses[172]. - Interest expense increased by $0.5 million, or 28%, primarily due to a higher outstanding debt balance[189]. Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $28.0 million, up from $18.5 million as of December 31, 2024, while the accumulated deficit increased to $451.6 million from $419.8 million[205]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $0.6 million, an increase from $0.04 million in 2024, primarily due to purchases of property and equipment and capitalized software costs[216]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $36.9 million, reflecting proceeds from the issuance of common stock of $20.7 million and long-term debt of $10.0 million[217]. - The company had $70 million of borrowings outstanding under the Perceptive Facility as of September 30, 2025, with a final maturity on July 25, 2029[211]. - The company may seek additional funding through equity or debt securities if cash and anticipated revenues are insufficient to meet liquidity requirements[206]. Operational Outlook - The company expects clinic revenue to increase in 2025[164]. - The company anticipates that operating losses will lessen in the near term due to revenue growth and ongoing cost efficiencies related to the Greenbrook acquisition[205]. - The company is closely monitoring macroeconomic impacts, including inflation and supply chain issues, which could adversely affect financial results[222].

Financial Performance - Total revenue for Q3 2025 was $37.3 million, representing an 11% adjusted pro forma growth compared to Q3 2024[1] - Revenues for Q3 2025 reached $37,297, a 101% increase from $18,530 in Q3 2024[25] - Gross profit for Q3 2025 was $17,108, compared to $14,001 in Q3 2024, reflecting a gross margin improvement[25] - EBITDA for Q3 2025 was $(6,435), an improvement from $(11,643) in Q3 2024[31] - Net loss for Q3 2025 was $(9.4) million, or $(0.13) per share, an improvement from $(13.3) million, or $(0.44) per share in Q3 2024[11] - Net loss for Q3 2025 was $9,401, an improvement from a net loss of $13,341 in Q3 2024[25] Revenue Sources - Greenbrook clinic revenue reached $21.8 million in Q3 2025, marking a 25% increase on an adjusted pro forma basis versus Q3 2024[4] - U.S. NeuroStar Advanced Therapy System revenue was $3.5 million, with 40 systems shipped during the quarter[4] Cash and Assets - Total cash at the end of Q3 2025 was $34.5 million, an increase from $19.5 million as of December 31, 2024[12] - Cash and cash equivalents increased to $27,971 as of September 30, 2025, compared to $18,459 at the end of 2024[27] - Total assets grew to $145,465 as of September 30, 2025, up from $140,903 at the end of 2024[27] - Total current liabilities decreased to $28,940 as of September 30, 2025, from $31,265 at the end of 2024[27] - Long-term debt increased to $65,671 as of September 30, 2025, compared to $55,151 at the end of 2024[27] Operating Expenses - Operating expenses for Q3 2025 were $24.4 million, a 12% increase compared to Q3 2024, primarily due to Greenbrook's expenses[10] - Operating expenses totaled $24,429 in Q3 2025, up from $21,729 in Q3 2024, with significant increases in general and administrative expenses[25] Future Outlook - For Q4 2025, the company expects total worldwide revenue between $40 million and $43 million[16] - The company anticipates full-year 2025 gross margin to be between 47% and 49%[17] Patient Treatment Milestone - The company achieved a milestone of over 229,429 global patients treated with 8.2 million treatment sessions[4] Regulatory Update - New York State Medicaid expanded coverage for TMS therapy, including NeuroStar Advanced Therapy, to treat major depressive disorder, effective October 1, 2025[15]

Core Insights - Neuronetics, Inc. reported total revenue of $37.3 million for Q3 2025, reflecting an 11% adjusted pro forma growth compared to Q3 2024, and a 101% increase on an unadjusted basis [1][7] - The company generated $21.8 million in revenue from Greenbrook clinics in Q3 2025, marking a 25% increase on an adjusted pro forma basis compared to Q3 2024 [1][11] - Neuronetics' President and CEO, Keith J. Sullivan, announced his intention to retire effective June 30, 2026, with a search for his successor already underway [1][4] Financial Performance - Total revenues for Q3 2025 were $37.3 million, a 101% increase from $18.5 million in Q3 2024, driven primarily by the acquisition of Greenbrook TMS [7][8] - U.S. revenue increased by 102% to $36.2 million, while international revenue rose by 73% to $1.0 million compared to Q3 2024 [8] - The gross margin for Q3 2025 was 45.9%, down from 75.6% in Q3 2024, mainly due to the inclusion of Greenbrook's clinic business [11] Operational Highlights - The company shipped 40 NeuroStar Advanced Therapy Systems, generating $3.5 million in revenue, a 15% decrease from $4.1 million in Q3 2024 [9][10] - U.S. treatment session revenue was $10.5 million, down 21% from $13.3 million in Q3 2024, primarily due to the absence of $2.2 million in revenue from Greenbrook [10][11] - Neuronetics achieved a milestone of over 229,429 global patients treated with 8.2 million treatment sessions [7] Cash Management and Funding - As of September 30, 2025, the company held $34.5 million in total cash, an increase from $19.5 million at the end of 2024, with cash used in operations amounting to $0.8 million [14][15] - Neuronetics secured an additional $10 million in funding under its debt agreement with Perceptive Credit Holdings IV, LP, and extended its minimum liquidity requirement to September 2026 [15][16] Business Outlook - For Q4 2025, the company expects total worldwide revenue between $40 million and $43 million, and for the full year 2025, revenue is projected to be between $147 million and $150 million [18][19] - The company anticipates gross margin for the full year 2025 to be between 47% and 49%, with total operating expenses expected to be between $100 million and $105 million [19][20] - Neuronetics aims for positive cash flow from operations in Q4 2025, projecting a range of $2 million positive to $2 million negative [20]

Core Viewpoint - Neuronetics, Inc. has entered into a three-year exclusive agreement with Elite DNA Behavioral Health to provide transcranial magnetic stimulation (TMS) devices and patient support services across Elite DNA's 30+ locations, aiming to enhance patient access to advanced mental health treatments [1][2][3] Company Overview - Neuronetics, Inc. focuses on developing products that improve the quality of life for patients with neurohealth disorders and is a leader in neuroscience, particularly in TMS therapy [5][6] - Elite DNA Behavioral Health, founded in 2013, is one of Florida's largest mental health networks, providing accessible mental health care through over 30 locations [4] Partnership Details - The collaboration will utilize Neuronetics' Greenbrook platform to enhance operational and patient-support services for Elite DNA, allowing their team to concentrate on patient experience [2][3] - The partnership aims to operationalize strategic values from Neuronetics' Greenbrook acquisition and serves as a model for future collaborations with other organizations [2] Treatment and Services - NeuroStar Advanced Therapy, a non-invasive TMS treatment, has delivered over 7.6 million treatments and is backed by extensive clinical data, making it the leading TMS treatment for major depressive disorder (MDD) in adults [5][6] - Greenbrook treatment centers also provide SPRAVATO (esketamine) Nasal Spray for treatment-resistant depression, having administered over 1.8 million treatments to more than 55,000 patients [6]

Core Insights - Neuronetics, Inc. plans to release its third quarter 2025 financial and operating results on November 4, 2025, before market open, followed by a conference call at 8:30 a.m. Eastern Time [1] Company Overview - Neuronetics, Inc. focuses on improving the quality of life for patients with neurohealth disorders through innovative medical technology, particularly the NeuroStar® Advanced Therapy, which is a leading provider of Transcranial Magnetic Stimulation (TMS) [3] - The company operates Greenbrook TMS Inc. treatment centers across the U.S., offering NeuroStar Advanced Therapy for Major Depressive Disorder (MDD) and other mental health conditions [3] - NeuroStar Advanced Therapy has delivered over 7.6 million treatments and is supported by the largest clinical data set for TMS treatments for depression, including the world's largest depression outcomes registry [3] Treatment Offerings - NeuroStar Advanced Therapy is FDA-cleared for adults with MDD and is also indicated for adolescents aged 15-21 as an adjunct treatment [4] - Greenbrook treatment centers provide SPRAVATO® (esketamine) Nasal Spray for treatment-resistant depression (TRD) and for adults with MDD exhibiting acute suicidal ideation [3][4] - Greenbrook has administered over 1.8 million treatments to more than 55,000 patients suffering from depression [3]

Core Points - New York State Medicaid will cover Transcranial Magnetic Stimulation (TMS) services for adults diagnosed with major depressive disorder (MDD) starting October 1, 2025, for fee-for-service members and November 1, 2025, for those in Managed Care Plans [1][2] - This policy change will benefit nearly 1 million individuals with fee-for-service Medicaid and over 4.4 million individuals with Managed Care Organizations in New York [2] - Major depressive disorder affects 21 million adults in the U.S., with 6.4 million unable to tolerate or receiving inadequate relief from antidepressants [3] Company Overview - Neuronetics, Inc. is a medical technology company focused on neurohealth disorders and is the maker of NeuroStar Advanced Therapy, the leading provider of TMS [1][5] - NeuroStar Advanced Therapy is a non-drug, non-invasive treatment that has shown an 83% response rate and a 62% remission rate for MDD patients [3] - Neuronetics operates Greenbrook TMS Inc. treatment centers across the U.S., providing NeuroStar Advanced Therapy and has delivered over 7.6 million treatments [5] Industry Context - The decision by New York State Medicaid reflects a growing recognition of TMS as an evidence-based treatment for depression [2] - Neuronetics is the only TMS company with a dedicated health policy team advocating for health policy updates [4] - The NeuroStar Advanced Therapy System is FDA-cleared for various indications, including MDD and anxiety symptoms in adults [6]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $38.1 million, an 18% year-over-year increase on an adjusted pro forma basis [7][25] - Revenue from the NeuroStar business was $15.1 million, with U.S. treatment session revenue increasing by 13% on a pro forma basis [7][27] - Gross margin decreased to 46.6% compared to 74% in the prior year quarter, primarily due to the inclusion of Green Brook's lower-margin clinic business [28] - Net loss for the quarter was $9.8 million, or $0.15 per share, compared to a net loss of $9.8 million, or $0.33 per share, in the prior year quarter [29] Business Line Data and Key Metrics Changes - NeuroStar system revenue was $3.5 million with 41 systems shipped, demonstrating a strong average selling price [27] - U.S. clinic revenue reached $23 million, marking the strongest quarterly performance for Green Brook [28] - The Better Me Provider (BMP) program has 395 active sites, treating three times more patients per site compared to non-BMP practices [13][14] Market Data and Key Metrics Changes - The company has seen a 25% growth in adolescent new patient starts in 2025 compared to 2024, driven by increased insurance coverage [20] - The publication of clinical data in a reputable journal highlighted the effectiveness of the NeuroStar TMS system in adolescents, with nearly 70% experiencing clinically meaningful improvement [21] Company Strategy and Development Direction - The company is focusing on three strategic priorities: executing the Green Brook growth strategy, scaling the BMP program, and improving operational efficiencies [8][9] - The Green Brook growth strategy has exceeded expectations, with improved patient conversion rates through enhanced patient connection capabilities [10] - The company is taking a thoughtful approach to expanding the buy and bill model for SPRAVATO, focusing on opportunities that deliver good margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positivity by the end of 2025, supported by operational improvements and strategic initiatives [35] - The integration of Neuronetics and Green Brook is creating significant value, positioning the company for sustainable growth and profitability [36] Other Important Information - Cash used in operations for the second quarter was $3.5 million, better than the previously guided target of under $5 million [31] - The company has received additional funding under its existing debt agreement, enhancing financial flexibility [30] Q&A Session Summary Question: Dynamics of traditional NeuroStar business vs. Green Brook - Management indicated that the shift in strategy towards provider connections is expected to improve conversion rates over time, despite a slower growth in traditional NeuroStar business [40][42] Question: Impact of marketing strategy on long-term spending - The new strategy is anticipated to make marketing dollars more efficient, potentially lowering overall marketing spend while still requiring some investment in educational efforts [43][44] Question: Resubmitted claims and reimbursement timing - Management is focused on improving revenue cycle management and expects to see a tailwind from catching up on aged claims while enhancing the efficiency of new claims [46][48] Question: Clinical sales per site and long-term expectations - Management did not provide a specific target for clinical sales per site but indicated that revenue trends and site performance would continue to improve [53][55] Question: Marketing strategy for adolescent patients - The company is targeting providers who care for adolescent patients through the Provider Connection program, which has shown positive results in driving awareness and adoption [59]

Core Insights - Neuronetics reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, marking an earnings surprise of -87.50% [1] - The company generated revenues of $38.11 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.87% and significantly up from $16.45 million a year ago [2] - Neuronetics shares have increased approximately 189.4% year-to-date, outperforming the S&P 500's gain of 7.6% [3] Financial Performance - Over the last four quarters, Neuronetics has consistently failed to meet consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $39.04 million, and for the current fiscal year, it is -$0.37 on revenues of $150.72 million [7] Industry Context - Neuronetics operates within the Medical - Instruments industry, which is currently ranked in the bottom 37% of over 250 Zacks industries [8] - The performance of Neuronetics' stock may be influenced by the overall outlook of the industry, as top-ranked industries tend to outperform lower-ranked ones by a factor of more than 2 to 1 [8]

Company Overview - Neuronetics and Greenbrook have combined to leverage scale and capabilities for mental health treatment[17] - The combined company has treated 221,376 unique patients[18] and administered 7,912,427 treatments[19] - The company reported $129 million in annual revenue for 2024 (pro forma adjusted)[19] Market and Opportunity - The total available market is 293 million U S adults and adolescents suffering from depression, depression with anxiety, and OCD[33,34] - Approximately 8 million patients are poorly served by antidepressant medication[34] - Better Me Program (BMP) clinics treat 33 times more patients than non-BMP clinics[57,58] Financial Performance and Guidance - Q2 2025 revenue was $381 million, a 132% increase from Q2 2024[90] - The company projects revenue between $149 million and $155 million for FY 2025, representing a 15% to 19% pro forma year-over-year growth[85] - The company anticipates achieving positive cash flow from operations in Q4 2025[85]