Neuronetics reports Q3 revenue growth and CEO transition plan

Neuronetics Inc. (NASDAQ: STIM) reported third-quarter revenue of $37.3 million, representing 11% growth on an adjusted pro forma basis compared to the same period in 2024. The medical technology company also announced that CEO Keith Sullivan plans to retire on June 30, 2026.

The company generated $21.8 million in clinic revenue from its Greenbrook operations during the quarter, marking a 25% increase on an adjusted pro forma basis versus the prior year. U.S. NeuroStar Advanced Therapy System revenue totaled $3.5 million, with 40 systems shipped during the quarter.

Neuronetics ended the quarter with $34.5 million in total cash, consisting of cash, cash equivalents, and restricted cash. The company used $0.8 million in operating cash flow during the third quarter, representing continued improvement in cash management.

The company secured $10 million in additional funding under its existing debt agreement with Perceptive Credit Holdings IV, LP, and raised $7.8 million in net proceeds through the sale of approximately 2.3 million shares under its at-the-market facility.

New York State Medicaid expanded coverage for transcranial magnetic stimulation therapy, including NeuroStar Advanced Therapy, to treat major depressive disorder. The coverage affects over 5 million members statewide and took effect October 1, 2025, for fee-for-service members.

Net loss for the quarter was $9.4 million, or $0.13 per share, compared to $13.3 million, or $0.44 per share, in the third quarter of 2024. Gross margin was 45.9% compared to 75.6% in the prior year quarter, primarily due to the inclusion of Greenbrook's clinic business.

For the fourth quarter of 2025, Neuronetics expects total worldwide revenue between $40 million and $43 million. Full-year 2025 revenue guidance was adjusted to between $147 million and $150 million, down from previous guidance of $149 million to $155 million.

The company has commenced a search for Sullivan's successor. Board Chairman Rob Cascella stated that Sullivan has been instrumental in transforming the company during his five-year tenure, particularly through the strategic acquisition of Greenbrook TMS.

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