Neuronetics (NASDAQ:STIM) Posts Earnings Results, Beats Estimates By $0.02 EPS

Neuronetics (NASDAQ:STIM) announced its quarterly earnings results on Tuesday. The company reported ($0.10) EPS for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.02, FiscalAI reports. Neuronetics had a negative net margin of 33.88% and a negative return on equity of 131.15%. The firm had revenue of $41.78 million during the quarter, compared to the consensus estimate of $40.84 million.

Here are the key takeaways from Neuronetics’ conference call:

• Board named Dan Reuvers as new CEO effective March 23, bringing 30+ years of medical-device leadership that management says will help scale the business.
• Q4 adjusted pro forma revenue grew ~23% with total revenue of $41.8M and the company achieved positive operating cash flow in Q4, improving operating cash burn from -$17M in Q1 to +$0.9M in Q4.
• Full-year 2026 guidance targets $160–$166M revenue (midpoint >9% growth) but forecasts operating cash flow of -$13M to -$17M with the first quarter being the weakest, so near-term cash burn is expected to continue.
• Greenbrook clinic momentum continues—clinic revenue and referrals rose materially, Spravato is deployed in 84 clinics, and the company is positioning its network to roll out COMP360 (psilocybin) commercially if approved, which could expand future treatment offerings.
• The company disclosed an ongoing civil investigative demand from the U.S. Attorney’s Office in the Middle District of Florida seeking billing documents for pre-acquisition Greenbrook practices and is cooperating, representing a legal/regulatory risk.

Neuronetics Price Performance

STIM stock opened at $1.23 on Wednesday. The stock has a market cap of $83.90 million, a PE ratio of -1.49 and a beta of 0.87. Neuronetics has a 12 month low of $0.80 and a 12 month high of $5.34. The company has a 50-day moving average price of $1.63 and a 200 day moving average price of $2.05. The company has a current ratio of 2.24, a quick ratio of 2.09 and a debt-to-equity ratio of 2.09.

Analyst Ratings Changes

STIM has been the subject of several analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neuronetics in a research note on Thursday, January 22nd. Wall Street Zen raised Neuronetics from a “sell” rating to a “hold” rating in a research report on Saturday, December 6th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $7.00.

Neuronetics News Summary

Here are the key news stories impacting Neuronetics this week:

• Positive Sentiment: Q4 results and 2026 revenue guidance — Neuronetics reported Q4 revenue of $41.8M (beat consensus) and provided 2026 revenue guidance of $160M–$166M, reflecting strong clinic and pro forma growth driven by Greenbrook. This shows top-line momentum and a path to higher revenue. Neuronetics Reports Fourth Quarter and Full Year 2025 Financial and Operating Results
• Positive Sentiment: Experienced CEO hire — the company named Dan Reuvers as President & CEO (effective March 23). Reuvers has a track record of scaling revenue and managing direct-billing models, which investors may view as supportive for commercial execution and margin improvement. Neuronetics Appoints Dan Reuvers as President and Chief Executive Officer
• Positive Sentiment: Product and growth initiatives — management outlined a >9% revenue growth target for 2026 while piloting new TMS models and preparing for the Compass therapy launch, signaling potential future revenue upside if adoption and reimbursement follow. Neuronetics outlines >9% 2026 revenue growth target
• Neutral Sentiment: Earnings call detail available — transcripts and the Q4 call provide color on margin trends, cash flow and roll‑out plans (useful for assessing execution risk). Investors should review the call for specifics on reimbursement, clinic rollouts and the Better Me Provider Program timeline. Earnings Call Transcript
• Negative Sentiment: Profitability, leverage and insider sales — despite revenue growth, Neuronetics remains unprofitable (negative net margin and ROE), carries leverage and disclosed large inducement RSUs for the new CEO. Recent insider sales and a history of insider dispositions add investor concern about near-term dilution and governance optics. Quiver Quant — CEO Appointment & Insider Activity
• Negative Sentiment: High-volume selling and valuation risk — trading volume spiked well above average around the release, amplifying price movement. The company still has a limited market cap and an extended history of losses, which raises sensitivity to execution misses and funding/credit concerns. MarketBeat — Q4 Earnings Snapshot

Insiders Place Their Bets

In related news, CEO Keith J. Sullivan sold 33,847 shares of the stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $1.65, for a total value of $55,847.55. Following the sale, the chief executive officer directly owned 1,533,165 shares of the company’s stock, valued at $2,529,722.25. This represents a 2.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last 90 days, insiders have sold 104,307 shares of company stock valued at $164,097. Corporate insiders own 9.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Invesco Ltd. raised its holdings in shares of Neuronetics by 80.0% in the fourth quarter. Invesco Ltd. now owns 58,940 shares of the company’s stock worth $81,000 after buying an additional 26,194 shares during the period. XTX Topco Ltd boosted its holdings in Neuronetics by 992.6% during the 4th quarter. XTX Topco Ltd now owns 314,194 shares of the company’s stock valued at $434,000 after acquiring an additional 285,438 shares during the period. Caption Management LLC boosted its holdings in Neuronetics by 571.4% during the 4th quarter. Caption Management LLC now owns 92,501 shares of the company’s stock valued at $128,000 after acquiring an additional 78,723 shares during the period. Bridgeway Capital Management LLC grew its position in Neuronetics by 35.6% in the 4th quarter. Bridgeway Capital Management LLC now owns 95,205 shares of the company’s stock valued at $131,000 after acquiring an additional 25,000 shares during the last quarter. Finally, FourWorld Capital Management LLC grew its position in Neuronetics by 64.0% in the 4th quarter. FourWorld Capital Management LLC now owns 931,250 shares of the company’s stock valued at $1,285,000 after acquiring an additional 363,250 shares during the last quarter. Institutional investors own 53.59% of the company’s stock.

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.