Summary of Neuronetics Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $41.6 million, up 9.1% from $38.1 million in Q2 2025.

NeuroStar Revenue: $14.7 million, a decrease of 2.7% year-over-year, with treatment session revenue down double digits and capital sales up double digits.

Greenbrook Revenue: $26.9 million, an increase of 16.8% year-over-year, driven by provider growth and improved pricing.

Gross Margin: Improved to 51.1% from 46.6% in the prior year, attributed to better revenue cycle management and pricing improvements.

Operating Expenses: Reduced to $22.7 million, down 12% from $25.8 million in Q2 2025.

Net Loss: $3.4 million ($0.05 per share), improved from a net loss of $10.1 million ($0.15 per share) in the prior year.

Adjusted EBITDA: Positive $0.3 million, a significant improvement from negative $5.6 million in Q2 2025.

Cash Position: $25 million as of June 30, up from $19 million at the end of Q1 2026.

2Strategic Updates and Business Highlights

NeuroStar Go-to-Market Pilot: Introduced new acquisition models for NeuroStar systems, allowing customers to purchase outright or lease, enhancing competitiveness in the TMS market.

Operational Improvements: Focused on enhancing revenue cycle management and utilizing AI for insurance authorizations to reduce costs.

Leadership Changes: Appointed Nir Naor as CFO and made other key leadership adjustments to streamline operations and improve efficiency.

Psychedelic Collaboration: Continued partnership with Compass Pathways to prepare for the commercial launch of their psychedelic therapy for treatment-resistant depression, positioning Neuronetics as a potential leader in this emerging market.

3Forward Guidance and Outlook

Revenue Guidance: Narrowed to $160 million to $164 million for the year, slightly down from previous guidance of $160 million to $166 million.

Gross Margin Guidance: Expected to be between 48% and 50%, up from prior guidance of 47% to 49%.

Operating Expenses Guidance: Reduced to $95 million to $100 million, with a focus on excluding share-based compensation for clearer forecasting.

Cash Flow Guidance: Estimated cash flow from operations and investing to be negative $10.5 million to negative $14.5 million for the full year.

4Bad News, Challenges, or Points of Concern

NeuroStar Treatment Session Revenue Decline: The shift in customer acquisition models has led to a decline in treatment session revenue, which may impact short-term revenue stability.

Market Competition: The TMS market is maturing, and Neuronetics faces challenges in maintaining its competitive edge as customer preferences evolve.

Transition Risks: As the company shifts to new revenue reporting structures and customer acquisition models, there may be volatility in revenue streams during the transition period.

5Notable Q&A Insights

Capacity Utilization: Dan Reuvers emphasized that Greenbrook clinics have significant unused capacity (up to 40%), which they aim to fill before considering new site openings.

Patient Acquisition Costs: The company is closely evaluating its sales methods and patient acquisition costs to optimize spending between field reps and direct-to-consumer advertising.

NeuroStar Session Dynamics: Reuvers clarified that inventory levels for treatment sessions have normalized, and they do not expect further reductions, indicating a stabilization in that revenue stream. This quarter reflects Neuronetics' progress towards profitability and operational efficiency, while also navigating challenges related to revenue model transitions and market competition.