Free cash flow improved to -$249K in Q2 2026 (-0.6% margin) from -71.1% in Q1 2024, but operating cash flow has been negative in most recent periods and working capital inflows of $3.0M flattered the latest quarter.
Neuronetics, Inc. (STIM) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | -7.11M | -20.37M | -31M | -32.04M | -30.74M | -27.98M | -28.39M | -30.48M | -20.59M | -11.14M | -8.54M |
| Operating CF Margin % | - | -13.66% | -41.39% | -44.9% | -47.14% | -50.59% | -57.65% | -48.65% | -39.02% | -27.56% | -24.95% |
| Operating CF Growth % | 517.62% | 34.27% | 3.25% | -4.23% | -9.85% | 1.43% | 6.86% | -48.04% | -84.77% | -30.48% | - |
| Net Income | -23.08M | -39.13M | -43.73M | -30.19M | -37.16M | -31.19M | -27.45M | -29.04M | -24.1M | -16.06M | -11.23M |
| Depreciation & Amortization | 2.98M | 3.46M | 2.07M | 2.01M | 1.65M | 1.06M | 941K | 1.06M | 882K | 596K | 673K |
| Stock-Based Compensation | 7.09M | 6.85M | 5.6M | 7.32M | 8.75M | 7.87M | 4.4M | 3.43M | 1.74M | 496K | 161K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.4M | -271K | 108K |
| Other Non-Cash Items | 1.1M | 1.87M | 11.86M | 2.93M | 1.14M | 918K | 1.99M | 976K | 1.07M | 938K | 406K |
| Working Capital Changes | 5.01M | 6.58M | -6.81M | -14.1M | -5.12M | -6.64M | -8.28M | -6.91M | -1.58M | 3.16M | 1.34M |
| Change in Receivables | 4.62M | 3.54M | -3.73M | -8.83M | -6.66M | -3.05M | -597K | -950K | -1.35M | -690K | -123K |
| Change in Inventory | -927K | -395K | 3.15M | -1.1M | -2.59M | -3.44M | -945K | -306K | -435K | -1.07M | -646K |
| Change in Payables | -2.5M | -1.75M | -1.99M | 2.03M | -1.97M | 276K | -1.08M | 299K | 606K | 788K | 734K |
| Cash from Investing | -1.27M | -801K | -2.41M | -1.32M | 6.73M | -9.84M | -730K | -813K | -1.01M | -594K | -324K |
| Capital Expenditures | -1.3M | -801K | -1.47M | -2.37M | -3.27M | -2.35M | -730K | -813K | -1.01M | -594K | -324K |
| CapEx % of Revenue | 0.81% | 0.54% | 1.96% | 3.32% | 5.01% | 4.25% | 1.48% | 1.3% | 1.92% | 1.47% | 0.95% |
| Acquisitions | 0 | 0 | -2.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 47K | 31K | 1.61M | 1.05M | 10M | -7.81M | 0 | 2.61M | 0 | 0 | 0 |
| Cash from Financing | 10.9M | 35.85M | -6.81M | 22.7M | 207K | 83.01M | 2.37M | 2.42M | 97.04M | 23.84M | 4.9M |
| Debt Issued (Net) | -5.3M | 9.62M | -2.52M | 23.8M | 0 | 0 | 2.5M | 0 | 0 | 10M | 5M |
| Equity Issued (Net) | 10.64M | 26.82M | 0 | 0 | 0 | 80.97M | 0 | 0 | 100M | 14.82M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 5.55M | -594K | -4.29M | -1.1M | 207K | 2.03M | -131K | 2.42M | -2.96M | -980K | -104K |
| Net Change in Cash | 2.52M | 14.68M | -40.22M | -10.66M | -23.8M | 45.18M | -26.75M | -28.88M | 75.44M | 12.11M | -3.97M |
| Free Cash Flow | -8.41M | -21.18M | -32.46M | -34.41M | -34.01M | -30.34M | -29.12M | -31.3M | -21.6M | -11.74M | -8.87M |
| FCF Margin % | -5.26% | -14.2% | -43.35% | -48.22% | -52.15% | -54.85% | -59.13% | -49.95% | -40.93% | -29.03% | -25.9% |
| FCF Growth % | 72.48% | 34.77% | 5.65% | -1.17% | -12.1% | -4.18% | 6.95% | -44.87% | -84.03% | -32.41% | - |
| FCF per Share | -0.11 | -0.32 | -1.02 | -1.20 | -1.26 | -1.19 | -1.55 | -1.70 | -2.41 | -1046.17 | -790.11 |
| FCF Conversion (FCF/Net Income) | 0.36x | 0.52x | 0.71x | 1.06x | 0.83x | 0.90x | 1.03x | 1.05x | 0.85x | 0.69x | 0.76x |
| Interest Paid | 5.85M | 0 | 6.51M | 4.79M | 3.54M | 0 | 3.89M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying STIM stock.
Neuronetics, Inc. (STIM) generated $-20.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Neuronetics, Inc. (STIM) reported negative free cash flow of $21.2M in 2025, indicating capital requirements exceeded cash from operations.
Neuronetics, Inc. (STIM) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Persistent operating cash burn
Metrics are mathematically derived from official filings.
Net Losses Mask Inconsistent Cash Conversion
As reported in financial statements, STIM posted cumulative net losses of roughly $85M across the last ten quarters while operating cash flow was negative in most periods, indicating losses are largely cash-consuming rather than accrual-driven timing effects.
The OCF-to-net-income ratio swings erratically, ranging from -0.13 to 1.53, which reflects working capital movements and non-cash charges rather than a stable earnings-to-cash relationship. Stock-based compensation of $1.3M to $2.4M per quarter explains only a modest share of the gap, suggesting the bulk of the shortfall is operational. The quarters with positive OCF, such as Q2 2026, appear driven by working capital release rather than sustainable earnings power, warranting caution before treating them as a turn.
Free Cash Flow Remains Deeply Negative
Based on reported figures, STIM's free cash flow margin improved from -71.1% in Q1 2024 to -0.6% in Q2 2026, yet it has been negative in nine of the last ten quarters, indicating the business has not yet reached self-funding.
The improvement in FCF margin is substantial but has been driven by a rising revenue base and a narrowing burn rather than a demonstrated break-even run rate. The single positive quarter in Q4 2025 did not persist into Q1 2026, which reinforces that the trajectory is not yet established. Investors should monitor whether the near-breakeven Q2 2026 result holds across subsequent periods.
Working Capital Swings Dominate Quarterly Results
According to recent SEC filings, STIM's working capital change moved from a $6.8M drain in Q1 2024 to a $5.7M inflow in Q3 2025 and a $3.0M inflow in Q2 2026, making these swings a major driver of reported operating cash flow.
The magnitude of working capital movements relative to net losses suggests reported operating cash flow is highly sensitive to receivable, inventory, and payable timing. Inflows in recent quarters may reflect collection timing or payable stretching that could reverse, so their persistence cannot be assumed from the reported figures. This dependence warrants further investigation into the underlying components before inferring improved operating efficiency.
Capital Intensity Low but Rising Briefly
As reported in financial statements, STIM's capital expenditures remained below $0.7M per quarter, equating to CapEx-to-revenue ratios between 0.3% and 3.7%, which points to an asset-light model in its current phase.
The spike to 3.7% of revenue in Q2 2024 and 2.1% in Q3 2024 coincides with a period of heavier investment, but spending has since normalized below 1% of revenue. Depreciation and amortization of roughly $0.7M to $0.9M per quarter now slightly exceeds CapEx, which may indicate limited reinvestment in productive capacity. Whether this reflects discipline or underinvestment cannot be determined from the supplied data alone.
Cash Burn May Be Understated by Adjustments
Based on the supplied cash flow data, STIM's free cash flow appears to benefit from stock-based compensation add-backs of $1.3M to $2.4M per quarter, which may flatter reported cash generation relative to economic cost.
Adding back non-cash SBC to operating cash flow inflates the apparent cash position, since the expense is real economic cost borne through dilution. Net losses of $3.4M to $13.3M per quarter remain large relative to any cash-based improvement, suggesting the cash flow statement may present a more favorable picture than the underlying economics. The reported figures do not disclose off-balance-sheet obligations, so no conclusion about hidden liabilities is drawn here.