Q2 2026 Neuronetics Inc Earnings Call Transcript
Key Points
- Total revenue increased 9.1% year-over-year to $41.6 million, driven by strong Greenbrook growth.
- Greenbrook revenue grew 16.8% to $26.9 million, with cash collections growing faster than revenue due to improved revenue cycle management.
- Gross margin improved to 51.1% from 46.6% in the prior year, driven by better payer contracting and revenue cycle management.
- Net loss narrowed significantly to $3.4 million from $10.1 million, and adjusted EBITDA turned positive at $0.3 million.
- Cash burn reduced substantially, with cash used in operations and investing down to $1.4 million from $3.8 million in Q2 2025, and total cash increased to $25 million.
- NeuroStar total revenue declined 2.7% year-over-year, with treatment session revenue down double digits due to model changes and customer inventory normalization.
- The shift to new commercial models (capital purchases, leases) may cause revenue to be 'choppier' in the second half of 2026.
- The company reduced executive headcount and flattened structure, indicating potential organizational disruption.
- Cash flow guidance remains negative for the full year, with expected cash use of $10.5 million to $14.5 million.
- The company's reliance on the success of the new go-to-market pilot and the potential for existing customers to transition away from the high-touch session model introduces uncertainty.
Good day and thank you for standing by. Welcome to the Neuronetics second-quarter 2026 financial and operating results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Mike Vallie from ICR Healthcare. Please go ahead.
Good morning and thank you for joining us for the Neuronetics second quarter 2026 conference call. Joining me on today's call are the Neuronetics President and Chief Executive Officer, Dan Reuvers, and the company's recently appointed Chief Financial Officer, Nir Naor. Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our business, strategy, financial and revenue guidance, and other situational issues and metrics.
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