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    STIM
    Earnings call· Jun 2026(Q2 FY26)

    Neuronetics Q2 FY26 earnings call STIM

    Aug 11, 2026 Source

    Executive summary

    Neuronetics Q2 FY26 — Strong Greenbrook Growth and Neurostar Commercial Model Evolution Drive Profitability Progress

    Neuronetics delivered a solid quarter, driven by robust growth in its Greenbrook clinic business and initial positive reception to new Neurostar commercial models. The company demonstrated meaningful progress towards profitability and reduced cash burn, with a focus on operational efficiency and optimizing patient acquisition costs. Management is positioning the company for sustainable growth into 2027 and for future opportunities in interventional psychiatry, including potential psychedelic therapies.

    Highlights

    5

    • Total revenue increased 9.1% year-over-year to $41.6 million.

    • Greenbrook revenue grew 16.8% year-over-year to $26.9 million, driven by strong provider growth and pricing improvement.

    • Adjusted EBITDA improved by $5.9 million year-over-year, turning positive at $0.3 million.

    • Net loss significantly reduced to $3.4 million ($0.05 per share) from $10.1 million ($0.15 per share) in Q2 FY25.

    • Cash balance increased to $25 million as of June 30th, up from $19 million on March 31st, 2026.

    Concerns

    2

    • Neurostar total revenue decreased 2.7% year-over-year to $14.7 million, with session revenue down double digits.

    • Second half revenue for Neurostar may be 'a bit choppier' due to mix shifts from new commercial options.

    Guidance & targets

    6
    CategoryTargetConfidence
    Total Revenue
    $160M-$164M
    high materiality
    High
    Gross Margin
    48%-50%
    high materiality
    High
    Operating Expenses (OPEX)
    $95M-$100M
    high materiality
    High
    Operating Expenses (OPEX) excluding share-based compensation
    $91M-$96M
    medium materiality
    High
    Share-based Compensation
    $4M
    low materiality
    High
    Cash Flow from Operations and Investing
    Negative $10.5M to Negative $14.5M
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Neurostar
    New commercial models (outright purchase, lease, a la carte support) introduced. Session revenue reduction partly due to inventory normalization and units no longer active. Utilization up 10% among active accounts.
    Capital revenue: up double digitsTreatment session revenue: down double digits
    		$14.7M-2.7%——
    Greenbrook
    Driven by improved revenue cycle management, better patient qualification, cleaner claims, efficient collections, and improved reimbursement rates. Significant available capacity in clinics.
    Cash collections growth: faster than revenueAI in insurance authorization: reduced operating costsAvailable capacity: up to 40% unused
    		$26.9M16.8%——

    Operational metrics

    13
    Adjusted EBITDA
    $0.3Mvs negative $5.6M in Q2 FY25
    Q2 FY26

    Improvement of $5.9 million year-over-year.

    Net Loss per Share
    $0.05vs $0.15 in Q2 FY25
    Q2 FY26

    Net loss of $3.4 million compared to $10.1 million in prior year.

    Cash and Cash Equivalents
    $25Mvs $19M as of March 31, 2026
    As of June 30, 2026

    Consisting of cash, cash equivalents, and restricted cash.

    Cash Used by Operations and Investing
    $1.4Mvs $3.8M in Q2 FY25
    Q2 FY26

    Cash used from Operations and Investing.

    Net Proceeds from ATM Equity Offering
    $7.6M
    Q2 FY26

    Raised through at-the-market equity offering.

    Gross Margin
    51.1%vs 46.6% in Q2 FY25
    Q2 FY26

    Function of mix and improving revenue cycle management efforts.

    Operating Expenses
    $22.7Mdown 12% vs $25.8M in Q2 FY25
    Q2 FY26

    Largely due to lower general and administrative expenses and lower sales and marketing expenses; continued cost efficiency measures.

    Neurostar Session Revenue
    down double digitsvs prior year
    Q2 FY26

    Almost half of reduction reflected continued normalization of customer inventory; balance from units no longer active.

    Neurostar Capital Revenue
    up double digitsvs prior year
    Q2 FY26

    Reflected encouraging early reception to Q2 go-to-market pilot.

    Greenbrook Cash Collections Growth
    faster than revenue
    Q2 FY26

    Driven by improved revenue cycle management.

    AI in Insurance Authorization
    reduced operating costs
    Q2 FY26

    Helped reduce operating costs at Greenbrook.

    Greenbrook Unused Capacity
    40%
    Current

    Available capacity in Greenbrook clinics.

    Executive Headcount
    reduced
    Q2 FY26

    Part of leadership team changes and flattening structure.

    Industry KPIs

    8
    MetricValueDetails
    System utilization10%%
    Pricing realized priceImproved
    Procedure volume growth10%%
    FCF conversion leverage guidanceNegative $10.5M to Negative $14.5MUSD
    Installed base system placementsLargest
    Segment franchise organic growth9.1%%
    Consumables recurring revenue mixShift expected
    Sales force commercial capacity buildUnder evaluation

    Product announcements

    1
    ProductTypeDetails
    Neurostar with ANT Neuro neuro navigation technologymilestone

    Deals & partnerships

    2
    ANT NeuroStrategic collaboration to co-promote FDA cleared neuro navigation technology with Neurostar.

    Allows Neuronetics to offer enhanced visualization, consistency, and personalization for treatment planning and delivery alongside the Neurostar system.

    Compass PathwaysCollaboration to prepare for anticipated commercial launch of their psychedelic therapeutic for treatment-resistant depression.

    Neuronetics is positioning its Greenbrook clinics as a delivery platform for future psychedelic treatments, leveraging existing infrastructure for in-office drug delivery, monitoring, REMS programs, and prior authorization.

    Risks & headwinds

    2
    Choppier revenue for Neurostar due to commercial model shiftssecond half

    a bit choppier

    Mitigation: the changes position us for renewed and sustainable growth as we enter 2027.

    Neurostar session revenue declineQ2 FY26

    down double digits

    Mitigation: reflects the change in our model, not the demand for the therapy; almost half of the reduction reflected continued normalization of customer inventory, now at the lower levels we'd expect to maintain.

    What to watch in Q3 FY26

    5

    Neurostar revenue mix shift impact

    next quarter
    CurrentSecond half revenue may be a bit choppier
    TargetEvidence of renewed and sustainable growth as company enters 2027

    Why it matters

    The new commercial models are a significant strategic shift; their impact on overall Neurostar revenue and the mix between capital, consumables, service, and sessions is key to future growth.

    Ultimately as we introduce new commercial options and we see some mix shifts, our second half revenue may be a bit choppier, but the changes position us for renewed and sustainable growth as we enter 2027.

    Q&A highlights

    6

    How will Greenbrook optimize existing capacity for new therapies like Compass 360 (6-hour observation vs. Spravato's 2-hour)? Will new facilities open or existing ones expand once current capacity is filled?

    Management stated significant unused capacity (up to 40%) in existing Greenbrook clinics, which will be prioritized for filling first. Rooms are easily convertible for different therapies. AI is being used for scheduling to optimize utilization. Expansion (new sites/footprints) will be considered after existing capacity is maximized.

    “we've talked about having available capacity as much as 40% that's still not consumed. So filling those chairs with patients that can benefit from our therapies is a top priority.”

    asked by William Plovanic · answered by Daniel Reuvers

    2 min read6 chapters

    Detailed Narrative

    01

    Neurostar Commercial Model Evolution

    Neuronetics introduced new acquisition models for its Neurostar system, including outright purchase and lease-financed options, alongside the traditional treatment session model. This aims to broaden customer reach and compete for business previously out of reach, allowing customers to choose support levels à la carte. The shift is expected to lead to more value reflected in capital revenue, consumables, and service, and less in session revenue, positioning the company for renewed growth in 2027.

    02

    Greenbrook Operational Discipline and Growth

    The Greenbrook clinic business showed strong performance with 16.8% year-over-year revenue growth to $26.9 million. This was driven by improved revenue cycle management, better patient qualification, cleaner claims submissions, and more efficient collections. The company also implemented AI in the insurance authorization process to reduce operating costs, contributing to cash collections growing faster than revenue.

    03

    Focus on Profitability and Cash Generation

    The company made significant progress towards profitability, achieving positive adjusted EBITDA of $0.3 million and reducing net loss. Cash used in operations and investing decreased, and the cash balance increased. The new CFO, Nir Nyor, highlighted his focus on converting the business's strong core into sustained profitability and positive cash flow, with a target of limited net cash utilization in the second half of the year.

    04

    Leadership Team Changes

    CEO Dan Reuvers implemented changes to the senior leadership team, including reducing executive headcount and flattening the structure. Key appointments include Nir Nyor as CFO, Corey Anderson as EVP and GM of Greenbrook, and Rob Green as SVP of Sales. These changes aim to strengthen execution of the company's strategy and get closer to the details of the business.

    05

    Interventional Psychiatry Opportunity (Compass Pathways)

    Neuronetics continues its collaboration with Compass Pathways for the anticipated commercial launch of their psychedelic therapeutic for treatment-resistant depression (TRD). The company believes its existing infrastructure, including in-office drug delivery, REMS programs, trained staff, and prior authorization capabilities, positions Greenbrook as an early leader for delivering such therapies safely and at scale.

    06

    Neurostar Platform Investment

    Neuronetics announced a strategic collaboration with ANT Neuro to co-promote their FDA-cleared neuro navigation technology with Neurostar. This partnership aims to offer providers more visualization, consistency, and personalization in treatment planning and delivery, leveraging Neuronetics' large installed base to scale innovations across the field.

    AI-generated summary of the company’s earnings call. Not investment advice.