Neuronetics (STIM, Financial) has announced the appointment of Steven Pfanstiel as the new Chief Financial Officer, effective from July 15, 2025. Pfanstiel will be taking over from Steve Furlong, who will retire on March 31, 2026. To ensure a seamless transition, Furlong will continue to serve as Senior Advisor to the CEO until the end of March 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Neuronetics Inc (STIM, Financial) is $6.83 with a high estimate of $8.00 and a low estimate of $5.50. The average target implies an upside of 77.03% from the current price of $3.86. More detailed estimate data can be found on the Neuronetics Inc (STIM) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Neuronetics Inc's (STIM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Neuronetics Inc (STIM, Financial) in one year is $3.05, suggesting a downside of 20.98% from the current price of $3.86. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Neuronetics Inc (STIM) Summary page.
STIM Key Business Developments
Release Date: May 06, 2025
- Total Revenue: $32 million, an increase of 84% over Q1 2024.
- Pro Forma Revenue Growth: 7% increase over pro forma revenue of $29.8 million for Q1 2024.
- NeuroStar System Revenue: $2.8 million with 31 systems shipped.
- US Treatment Session Revenue: $9.6 million.
- US Clinic Revenue (Greenbrook): $18.7 million.
- Gross Margin: 49%, down from 75% in Q1 2024.
- Operating Expenses: $26.8 million, a 35% increase from $19.9 million in Q1 2024.
- Net Loss: $12.7 million or $0.21 per share, compared to a net loss of $7.9 million or $0.27 per share in Q1 2024.
- EBITDA: Negative $10.1 million, compared to negative $6.3 million in Q1 2024.
- Cash and Cash Equivalents: $20.2 million as of March 31, 2025.
- Q2 Revenue Guidance: $36 million to $38 million.
- Full Year Revenue Guidance: $149 million to $155 million.
- Full Year Gross Margin Guidance: Approximately 55%.
- Full Year Operating Expenses Guidance: $90 million to $98 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Neuronetics Inc (STIM, Financial) reported a total revenue of $32 million for Q1 2025, marking an 84% increase over the same period in 2024.
- The integration of Greenbrook's operations has led to significant synergies, with 95% of the initially identified $22.5 million in annualized synergies realized by the end of 2024.
- The Better Me Provider (BMP) program is expanding, with over 385 active sites and an additional 110 sites working to meet program standards, leading to increased patient treatment rates.
- The rollout of SPRAVATO in Greenbrook clinics is progressing well, with 75% of clinics now offering the treatment, contributing to revenue improvements.
- Neuronetics Inc (STIM) has strengthened its capital position with a successful public offering in February, raising $18.9 million in net proceeds, supporting growth initiatives and maintaining a path to cash flow positivity by Q3 2025.
Negative Points
- Gross margin decreased to 49% in Q1 2025 from 75% in the prior-year quarter, primarily due to the inclusion of Greenbrook's clinic business, which operates at a lower margin.
- Operating expenses increased by 35% to $26.8 million in Q1 2025, largely due to the inclusion of Greenbrook's operating expenses.
- Net loss for the quarter was $12.7 million, compared to a net loss of $7.9 million in the prior year quarter.
- EBITDA was negative $10.1 million, worsening from negative $6.3 million in the prior year quarter.
- Cash used in operations for Q1 2025 was $17 million, significantly higher than typical levels due to strategic decisions to settle vendor payment plans and pull forward certain expenses.
