Neuronetics Q2 2025: Navigating Contradictions in Marketing Strategies and Revenue Expectations

Marketing strategy and SPRAVATO buy and bill, TMS and SPRAVATO revenue mix at Greenbrook, marketing strategy for traditional STIM business, Greenbrook's contribution to revenue, and revenue growth and seasonality are the key contradictions discussed in Neuronetics' latest 2025Q2 earnings call.



Revenue Growth and Greenbrook Integration:
- Neuronetics reported total revenue of $38.1 million in Q2 2025, an 18% year-over-year increase on an adjusted pro forma basis.
- Growth was driven by the strength of the Greenbrook clinic business, generating $23 million in revenue, and the integration of Greenbrook operations following the acquisition.

Operational Efficiency and Cash Collections:
- Neuronetics improved cash collections, reducing cash used in operations to $3.5 million, better than the previous target of under $5 million.
- This was achieved through initiatives to address legacy issues with payers, improve claim submission accuracy, and optimize patient flow with self-check-in programs.

SPRAVATO Rollout and Billing Strategy:
- The rollout of SPRAVATO continues with 77 of 83 eligible clinics now offering the therapy.
- The company is taking a more analytical approach to its buy and bill model expansion, focusing on opportunities that deliver good margins based on varying payer reimbursement rates.

Adolescent Growth and Marketing Strategy:
- Neuronetics saw 25% growth in adolescent new patient starts in the first half of 2025 compared to 2024, driven by expanded insurance coverage.
- The company is focusing on educating primary care physicians about the benefits of referring patients for NeuroStar treatment, driven by the Provider Connection Program.

Financial Guidance and Cash Flow Management:
- Neuronetics expects net revenue of $37 million to $39 million for Q3 and targets cash flow from operations to be in the range of negative $3 million to breakeven in Q3, turning positive in Q4.
- This is based on the successful optimization of SPRAVATO buy and bill reimbursements and ongoing operational efficiency improvements.