Neuronetics, Inc. (NASDAQ:STIM) reported a 12.5% increase in third-quarter 2026 revenue to $42.0 million, driven by growth in its Greenbrook clinic network and improved performance across its NeuroStar business.
The mental health treatment company also reported adjusted EBITDA of $1.9 million, compared with a loss of $4.7 million a year earlier, reflecting improved operating efficiency and profitability.
For the quarter ended September 30, Neuronetics recorded a net loss of $1.6 million, narrowing from $9.4 million in the corresponding period of 2025.
Greenbrook Revenue Rises 20.1%
Greenbrook revenue increased 20.1% to $26.2 million from $21.8 million a year earlier, accounting for the majority of the company’s quarterly revenue growth.
NeuroStar revenue rose 1.8% to $15.8 million, compared with $15.5 million in the third quarter of 2025.
Gross margin improved to 52.2% from 45.9%, supported by changes to the company’s commercial strategy and improved revenue cycle management within its Greenbrook clinics.
Operating expenses declined 13% to $21.3 million from $24.4 million, primarily reflecting lower sales and marketing costs.
Neuronetics reported operating income of $0.5 million, compared with an operating loss of $7.3 million a year earlier.
The net loss attributable to shareholders narrowed to $1.7 million, or $0.02 per share, from $9.0 million, or $0.13 per share, in the prior-year quarter.
Management Highlights Improving Profitability
Dan Reuvers, President and Chief Executive Officer of Neuronetics, said the results demonstrated progress in the company’s commercial and operational strategy.
“This quarter showed our strategy taking hold across our business. We delivered a record third quarter within Greenbrook as well as NeuroStar system sales,” Reuvers said.
He attributed the performance to improvements in revenue cycle management and positive customer reception of the company’s expanded NeuroStar commercial offerings.
Neuronetics generated $0.8 million in combined operating and investing cash flow during the quarter, compared with a cash outflow of $0.9 million a year earlier.
The company ended September with total cash of $27.9 million, including $22.1 million in cash and cash equivalents and $5.8 million in restricted cash.
NeuroStar Expands Treatment Development and Technology Integration
Neuronetics submitted a 510(k) application to the US Food and Drug Administration in August for an accelerated transcranial magnetic stimulation (TMS) treatment protocol, which remains under regulatory review.
The company also entered a distribution agreement with Wave Neuroscience to pursue the use of NeuroStar technology in treating post-traumatic stress disorder, subject to obtaining the necessary FDA clearance.
Separately, Neuronetics announced the integration of its TrakStar practice management platform with AdvancedMD’s electronic medical records and billing systems.
The integration is expected to become available to existing NeuroStar providers using AdvancedMD during the fourth quarter of 2026.
Full-Year Revenue Guidance Maintained
Neuronetics reaffirmed its full-year 2026 revenue outlook of $160 million to $164 million.
The company narrowed its gross margin guidance to 49%–50%, compared with its previous range of 48%–50%.
Expected operating expenses were reduced to $92.5 million–$95.5 million from the previous forecast of $95 million–$100 million.
Excluding stock-based compensation, operating expenses are projected between $89 million and $92 million.
Neuronetics also improved its forecast for combined operating and investing cash flow, now expecting an outflow of $10 million–$12 million, compared with its previous projection of $10.5 million–$14.5 million.
Outlook for Neuronetics
Neuronetics’ third-quarter results reflected continued growth in its Greenbrook clinic operations, improving gross margins and reduced operating expenses.
The company’s return to positive quarterly operating income and adjusted EBITDA represents progress towards sustained profitability, although it continued to report a net loss.
Investors will be monitoring Greenbrook’s revenue performance, the FDA review of accelerated TMS technology and the company’s ability to meet its full-year financial guidance.