Neuronetics (NASDAQ:STIM) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Neuronetics (NASDAQ:STIM) posted its earnings results on Tuesday. The company reported ($0.16) earnings per share for the quarter, topping the consensus estimate of ($0.17) by $0.01, FiscalAI reports. Neuronetics had a negative net margin of 24.48% and a negative return on equity of 124.95%. The business had revenue of $34.45 million for the quarter, compared to analyst estimates of $34.17 million.

Here are the key takeaways from Neuronetics’ conference call:

• New CEO Dan Reuvers began a listening tour and outlined a strategy to broaden NeuroStar’s go-to-market, tighten clinic execution, and evaluate the business structure with an open mind to actions that could unlock shareholder value.
• Q1 results: total revenue $34.5M (+8% YoY), NeuroStar revenue down 3% while system shipments rose 10% (34 systems), and Greenbrook clinic revenue up 15% driven by SPRAVATO; gross margin fell to 46.9% due to revenue mix, but adjusted EBITDA improved to -$6.6M.
• Cash and liquidity tightened—total cash $19M (down from $34.1M), Q1 operating cash use $9.4M—management says current plan provides runway through the year but will continue evaluating the balance sheet and financing options.
• Management is taking cost actions expected to deliver ~$2.5M–$3M of annualized savings (net benefits starting in Q3), improving collections and operational efficiency in clinics, and piloting expanded commercial models for NeuroStar to drive growth.
• Company amended its debt (one‑time $5M principal payment to Perceptive) to reduce interest/covenant pressure and highlighted potential upside if Compass/psilocybin therapy is approved, though timing and reimbursement remain uncertain.

Neuronetics Price Performance

NASDAQ STIM traded down $0.11 on Thursday, hitting $1.81. 1,519,697 shares of the company were exchanged, compared to its average volume of 2,149,211. The company has a current ratio of 2.02, a quick ratio of 1.87 and a debt-to-equity ratio of 2.51. Neuronetics has a 1-year low of $0.80 and a 1-year high of $4.85. The company has a market cap of $125.59 million, a P/E ratio of -3.36 and a beta of 1.13. The firm has a 50 day moving average of $1.47 and a two-hundred day moving average of $1.70.

Analysts Set New Price Targets

STIM has been the topic of several research reports. Canaccord Genuity Group reduced their price target on shares of Neuronetics from $7.00 to $3.00 and set a “buy” rating on the stock in a research report on Thursday, March 19th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Neuronetics in a research report on Thursday, January 22nd. Finally, Wall Street Zen upgraded shares of Neuronetics from a “sell” rating to a “hold” rating in a research report on Saturday, April 18th. One research analyst has 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 company currently has an average rating of “Hold” and an average price target of $3.00.

Insider Transactions at Neuronetics

In other Neuronetics news, Director Keith J. Sullivan sold 46,289 shares of the company’s stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $1.34, for a total transaction of $62,027.26. Following the transaction, the director directly owned 1,590,924 shares in the company, valued at approximately $2,131,838.16. This represents a 2.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Jorey Chernett bought 607,400 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were acquired at an average price of $1.35 per share, for a total transaction of $819,990.00. Following the completion of the transaction, the insider owned 8,123,804 shares in the company, valued at approximately $10,967,135.40. This trade represents a 8.08% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have acquired 1,857,872 shares of company stock worth $2,431,406 and have sold 183,032 shares worth $269,588. Corporate insiders own 8.40% of the company’s stock.

Institutional Trading of Neuronetics

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Neuronetics by 3.3% in the 3rd quarter. Vanguard Group Inc. now owns 2,832,118 shares of the company’s stock valued at $7,732,000 after acquiring an additional 89,504 shares during the period. UBS Group AG raised its position in shares of Neuronetics by 580.7% in the 3rd quarter. UBS Group AG now owns 2,164,831 shares of the company’s stock valued at $5,910,000 after acquiring an additional 1,846,801 shares during the period. Lane Generational LLC bought a new stake in Neuronetics during the 4th quarter worth approximately $2,353,000. Balyasny Asset Management L.P. increased its stake in Neuronetics by 6.5% during the 2nd quarter. Balyasny Asset Management L.P. now owns 1,509,099 shares of the company’s stock worth $5,267,000 after purchasing an additional 92,048 shares in the last quarter. Finally, Wexford Capital LP increased its stake in Neuronetics by 83.1% during the 3rd quarter. Wexford Capital LP now owns 1,177,225 shares of the company’s stock worth $3,214,000 after purchasing an additional 534,155 shares in the last quarter. 53.59% of the stock is currently owned by institutional investors and hedge funds.

About Neuronetics

Neuronetics, Inc is a commercial‐stage medical technology company that develops and markets non-invasive neuromodulation therapies for psychiatric and neurological disorders. The company’s flagship product, the NeuroStar Advanced Therapy System, uses repetitive transcranial magnetic stimulation (rTMS) to deliver targeted magnetic pulses to areas of the brain implicated in major depressive disorder (MDD). NeuroStar Advanced Therapy has received U.S. Food and Drug Administration clearance for the treatment of adults with treatment-resistant depression and is supported by a growing body of clinical evidence demonstrating its safety and efficacy.

Founded in 2003 and headquartered in Malvern, Pennsylvania, Neuronetics focuses on advancing clinical care through innovation in neurostimulation.