Q1 2025 Neuronetics Inc Earnings Call Transcript
Key Points
- Neuronetics Inc (STIM) 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.
- 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.
Good day and thank you for standing by. Welcome to the Neuronetics' Reports first-quarter 2025 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, Mark Klausner. Please go ahead.
Good morning, and thank you for joining us for the Neuronetics' first-quarter 2025 conference call. Joining me on today's call are Neuronetics' President and Chief Executive Officer, Keith Sullivan, and Chief Financial Officer, Steve Furlong.
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, the Greenbrook acquisition, and other operational issues and metrics.
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