Gross margins have deteriorated significantly from 77.6% in 2023Q4 to 46.9% in 2026Q1, indicating that the company's shift toward higher-volume business is severely eroding the profitability of each treatment session.
| Sales/Revenue | 151.64M | 149.16M | 74.89M | 71.35M | 65.21M | 55.31M | 49.24M | 62.66M | 52.78M | 40.43M | 34.23M |
| Revenue Growth % | 69.52% | 99.17% | 4.96% | 9.42% | 17.89% | 12.32% | -21.41% | 18.72% | 30.53% | 18.13% | - |
| Cost of Goods Sold | 78.91M | 76.85M | 20.73M | 19.64M | 15.48M | 11.65M | 11.55M | 15.39M | 12.45M | 9.63M | 6.62M |
| COGS % of Revenue | - | 51.52% | 27.68% | 27.53% | 23.74% | 21.07% | 23.46% | 24.56% | 23.58% | 23.82% | 19.35% |
| Gross Profit | 72.72M | 72.31M | 54.16M | 51.7M | 49.72M | 43.66M | 37.69M | 47.27M | 40.33M | 30.8M | 27.61M |
| Gross Margin % | 47.96% | 48.48% | 72.32% | 72.47% | 76.26% | 78.93% | 76.54% | 75.44% | 76.42% | 76.18% | 80.65% |
| Gross Profit Growth % | - | 33.51% | 4.75% | 3.99% | 13.89% | 15.84% | -20.26% | 17.2% | 30.93% | 11.57% | - |
| Operating Expenses | 102.14M | 103.74M | 88.72M | 82.26M | 84.83M | 71.22M | 60M | 74.2M | 60.16M | 44.41M | 36.94M |
| OpEx % of Revenue | - | 69.55% | 118.47% | 115.29% | 130.1% | 128.77% | 121.84% | 118.42% | 114% | 109.83% | 107.93% |
| Selling, General & Admin | 95.81M | 97.16M | 75.95M | 72.74M | 75.5M | 63.3M | 50.8M | 60.45M | 51.93M | 36.47M | 28.72M |
| SG&A % of Revenue | - | 65.14% | 101.42% | 101.96% | 115.78% | 114.44% | 103.16% | 96.48% | 98.4% | 90.2% | 83.91% |
| Research & Development | 6.33M | 6.58M | 12.77M | 9.52M | 9.34M | 7.92M | 9.2M | 13.75M | 8.23M | 7.94M | 8.22M |
| R&D % of Revenue | - | 4.41% | 17.05% | 13.34% | 14.32% | 14.32% | 18.68% | 21.94% | 15.6% | 19.63% | 24.02% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -575K | 357K | -62K |
| Operating Income | -29.42M | -31.44M | -34.56M | -30.55M | -35.11M | -27.56M | -22.31M | -26.93M | -19.83M | -13.61M | -9.34M |
| Operating Margin % | -19.4% | -21.08% | -46.15% | -42.82% | -53.85% | -49.83% | -45.3% | -42.98% | -37.58% | -33.66% | -27.28% |
| Operating Income Growth % | - | 9.05% | -13.12% | 12.98% | -27.38% | -23.56% | 17.16% | -35.78% | -45.75% | -45.74% | - |
| EBITDA | -26.86M | -27.97M | -32.49M | -28.55M | -33.46M | -26.5M | -21.37M | -25.86M | -18.95M | -12.94M | -8.66M |
| EBITDA Margin % | -17.72% | -18.75% | -43.38% | -40.01% | -51.32% | -47.92% | -43.39% | -41.28% | -35.91% | -31.99% | -25.31% |
| EBITDA Growth % | 25.99% | 13.91% | -13.81% | 14.69% | -26.26% | -24.04% | 17.39% | -36.48% | -46.52% | -49.3% | - |
| D&A (Non-Cash Add-back) | 2.55M | 3.46M | 2.07M | 2.01M | 1.65M | 1.06M | 941K | 1.06M | 882K | 673K | 673K |
| EBIT | -20.48M | -31.44M | -36.44M | -24.77M | -33.61M | -27.87M | -26.83M | -28.26M | -20.41M | -13.25M | -9.4M |
| Net Interest Income | -6.15M | -8.41M | -7.3M | -5.4M | -3.6M | -3.3M | -4.52M | -3.69M | -3.69M | -2.81M | -1.83M |
| Interest Income | 0 | 0 | 0 | 24K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 8.41M | 8.41M | 7.29M | 5.42M | 3.6M | 3.3M | 4.52M | 3.69M | 3.69M | 2.81M | 1.83M |
| Other Income/Expense | -7.83M | -7.56M | -9.18M | 365K | -2.1M | -3.61M | -5.14M | -2.11M | -4.26M | -2.45M | -1.9M |
| Pretax Income | -37.25M | -39M | -43.74M | -30.19M | -37.21M | -31.17M | -27.45M | -29.04M | -24.1M | -16.06M | -11.23M |
| Pretax Margin % | -24.56% | -26.15% | -58.41% | -42.31% | -57.06% | -56.36% | -55.75% | -46.35% | -45.66% | -39.72% | -32.82% |
| Income Tax | 0 | 0 | -14K | -24K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0.03% | 0.08% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -37.11M | -39M | -43.71M | -30.19M | -37.16M | -31.19M | -27.45M | -29.04M | -24.1M | -16.06M | -11.23M |
| Net Margin % | -24.48% | -26.15% | -58.36% | -42.31% | -56.99% | -56.39% | -55.75% | -46.35% | -45.66% | -39.72% | -32.82% |
| Net Income Growth % | 23.49% | 10.78% | -44.78% | 18.76% | -19.13% | -13.62% | 5.48% | -20.53% | -50.05% | -42.95% | - |
| Net Income (Continuing) | -37.25M | -39M | -43.73M | -30.16M | -37.21M | -31.17M | -27.45M | -29.04M | -24.1M | -16.06M | -11.23M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.79M | 3.86M | 4.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.53 | -0.59 | -1.38 | -1.05 | -1.38 | -1.22 | -1.46 | -1.87 | -2.69 | -1431.28 | -1001.25 |
| EPS Growth % | 58.78% | 57.25% | -31.43% | 23.91% | -13.11% | 16.44% | 21.93% | 30.48% | 99.81% | -42.95% | - |
| EPS (Basic) | - | -0.59 | -1.38 | -1.05 | -1.38 | -1.22 | -1.46 | -1.87 | -2.69 | -1431.28 | -1001.25 |
| Diluted Shares Outstanding | 69.59M | 65.95M | 31.73M | 28.66M | 26.9M | 25.48M | 18.84M | 18.38M | 8.95M | 11.22K | 11.22K |
| Basic Shares Outstanding | 69.59M | 65.95M | 31.73M | 28.66M | 26.9M | 25.48M | 18.84M | 18.38M | 8.95M | 11.22K | 11.22K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Persistent operating cash burn
According to the provided quarterly income statements, Neuronetics experienced significant revenue fluctuations, peaking at 131.7% growth in 2025Q2 before decelerating to 7.8% in 2026Q1, suggesting that the company's recent top-line expansion may be driven by inconsistent capital equipment cycles rather than sustainable, recurring session-based growth.
The extreme variance in year-over-year growth rates indicates a lack of predictable demand, likely tied to the lumpy nature of medical device placements. Investors should monitor whether the recent deceleration reflects a saturation of the current target market or a temporary pause in practitioner capital expenditure.
As reported in financial statements, gross margins have deteriorated significantly from 77.6% in 2023Q4 to 46.9% in 2026Q1, indicating that the company's shift toward higher-volume, lower-margin business or increased manufacturing costs is severely eroding the profitability profile of each treatment session performed.
This sharp contraction in gross margin suggests that the company is struggling to maintain pricing power as it scales its installed base. The inability to protect margins during periods of revenue growth implies that the cost of goods sold is rising faster than the company's ability to extract value from its recurring revenue streams.
Based on Neuronetics' reported figures, the company has failed to demonstrate meaningful operating leverage, as SG&A expenses consistently consume the majority of gross profit, resulting in persistent operating losses that reached $9.0 million in 2026Q1 despite the company's expanded revenue scale.
The high fixed-cost burden of the direct sales force appears to be a structural anchor preventing the company from reaching profitability. Without a significant reduction in customer acquisition costs or a pivot to a more efficient distribution model, the current operating structure may continue to necessitate external financing.
Data from recent filings reveals that Neuronetics continues to operate with deep negative net margins, which, when combined with a cash position of $34 million, suggests that the company's current trajectory may be unsustainable without a near-term capital infusion or a drastic reduction in operating expenses.
Short-term observers may focus on the risk that the company's cash runway is rapidly depleting, leaving little room for operational errors. The reliance on high-burn commercial strategies to drive growth warrants further investigation into whether the company can achieve a cash-flow-positive state before its liquidity position becomes critical.
Quick answers to the most common questions about buying STIM stock.
For fiscal year 2025, Neuronetics, Inc. (STIM) reported total revenue of $149.2M. This represents a 335.8% increase compared to $34.2M in 2016.
Neuronetics, Inc. (STIM) reported a net loss of $39.0M for the fiscal year ending 2025.
Neuronetics, Inc. (STIM) reported an operating income of $-31.4M, resulting in an operating profit margin of -21.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Neuronetics, Inc. (STIM) generated $72.3M in gross profit for the year, representing a gross profit margin of 48.5%. This demonstrates the company's core pricing power and production efficiency.