Neuronetics Posts Q3 Operating Profit as Revenue Rises 12.5%

Neuronetics, Inc. (Nasdaq: STIM) reported a third-quarter operating profit and positive adjusted EBITDA as higher revenue, wider gross margins and lower operating expenses improved its results from a year earlier. The mental-health therapy company also maintained a 2026 outlook that calls for revenue growth while still projecting negative cash flow from operations and investing.

Revenue for the three months ended September 30, 2026, rose 12.5% to $42.0 million from $37.3 million in the prior-year quarter. Gross profit increased to $21.9 million from $17.1 million, while gross margin expanded to 52% from 46%.

Operating expenses declined to $21.3 million from $24.4 million and fell to 51% of revenue from 65%. That combination produced operating income of $541,000, compared with a $7.3 million operating loss in the third quarter of 2025.

The net loss attributable to STIM shareholders narrowed to $1.7 million from $9.0 million. Adjusted EBITDA, a non-GAAP measure, improved to positive $1.9 million from a loss of $4.7 million. The latest adjusted figure excluded $178,000 of stock-based compensation and $562,000 of restructuring costs.

Broader access across clinics and NeuroStar customers

Neuronetics provides in-office mental-health treatments through its NeuroStar transcranial magnetic stimulation platform and Greenbrook Mental Wellness Centers. Its network includes 93 company-run clinics and more than 800 NeuroStar customer sites nationwide.

The company is broadening how customers can obtain NeuroStar systems. In addition to its established treatment-session model, which includes ongoing support and no upfront system commitment, Neuronetics now offers direct purchases and leases with support available separately. The company said the three options are intended to reach a wider range of customers with different economic requirements.

Greenbrook offers both TMS and Spravato within its clinics, allowing patients to be evaluated and managed through an integrated care relationship. Neuronetics also said Greenbrook’s existing infrastructure—including certified sites, trained staff and experience with supervised treatments—could support psychedelic-class therapies if they receive regulatory approval. Such therapies are not yet commercially available, and the presentation cautioned that FDA approval is not assured.

2026 guidance targets up to 10% revenue growth

Neuronetics expects full-year 2026 revenue of $160 million to $164 million, representing year-over-year growth of 7% to 10%. It forecasts gross margin of 49% to 50% and GAAP operating expenses of $92.5 million to $95.5 million.

Excluding approximately $3.5 million of stock-based compensation, operating expenses are projected at $89 million to $92 million. The company expects combined cash flow from operations and investing to be negative $10 million to $12 million.

As of September 30, Neuronetics had $22.1 million of cash and cash equivalents plus $5.75 million of restricted cash, for total cash of $27.9 million. Long-term debt, net, stood at $61.8 million.

The company identified several uncertainties that could affect its outlook, including its ability to achieve sustainable profitability and positive cash flow, reliance on NeuroStar sales and treatment usage, reimbursement availability, patient and physician demand, competition, regulation and the terms of its credit facility. It also cited risks related to the Greenbrook transaction, its existing cash balance and its ability to continue as a going concern.