AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Neuronetics Inc Q1 2025 Earnings Call Highlights: Revenue Surges Amid Margin Challenges
ByAinvest
Wednesday, May 7, 2025 2:24 am ET1min read
Neuronetics Inc reported Q1 2025 revenue of $32mln, an 84% increase YoY. Despite this, gross margin fell to 49% from 75% in the prior year, mainly due to the inclusion of Greenbrook's clinic business. Operating expenses rose 35% to $26.8mln, while net loss increased to $12.7mln. The company raised $18.9mln in a public offering to support growth initiatives.
Neuronetics Inc. (NASDAQ: STIM), a leading provider of transcranial magnetic stimulation (TMS) therapy for mental health disorders, reported its Q1 2025 financial results, showcasing a significant increase in revenue but facing operational challenges. The company's revenue for the quarter reached $32.0 million, representing an 84% year-over-year (YoY) increase [1]. This growth was primarily driven by the inclusion of clinic revenue from the acquisition of Greenbrook.However, the company's gross margin decreased to 49% from 75% in the prior year, largely due to the integration of Greenbrook's clinic business [1]. Operating expenses rose by 35% to $26.8 million, while the net loss increased to $12.7 million. To support its growth initiatives, Neuronetics raised $18.9 million through a public offering [2].
The company's strategic acquisition of Greenbrook has expanded its operational footprint, allowing it to derive revenue directly from treatment centers. Neuronetics anticipates that its operating losses will decrease in the near term due to revenue growth and ongoing cost efficiencies [2]. The company also expects clinic revenue to increase in 2025.
Despite the strong revenue growth, investors should consider the significant drop in gross margin and the challenges in achieving profitability targets. The company's recent financial performance shows mixed signals, with strong revenue growth but continued operating losses. The key question remains whether Neuronetics can successfully execute its integration strategy and achieve cash flow positivity by Q3 2025 as promised.
References:
[1] https://www.investing.com/news/company-news/neuronetics-q1-2025-slides-combined-entity-targets-profitability-by-q3-amid-84-revenue-growth-93CH-4024912
[2] https://www.tradingview.com/news/tradingview:2e38d759a2d16:0-neuronetics-inc-sec-10-q-report/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet