Neuronetics Reports 5% Revenue Increase to $74.9 Million, Faces $43.7 Million Net Loss

Neuronetics, Inc. reported a revenue increase of 5% for the fiscal year ending December 31, 2024, generating $74.9 million compared to $71.3 million in 2023. The company's U.S. revenues also rose by 5%, reaching $72.5 million, driven primarily by the addition of clinic revenue following the acquisition of Greenbrook TMS Inc. However, the company experienced a net loss of $43.7 million, a significant increase from the $30.2 million loss reported in the previous year. This loss reflects ongoing operational challenges and increased expenses associated with the integration of Greenbrook.

The acquisition of Greenbrook, completed on December 9, 2024, marked a significant strategic development for Neuronetics. Greenbrook operates 95 treatment centers across the United States, providing TMS and SPRAVATO therapies for major depressive disorder (MDD) and other mental health conditions. This acquisition is expected to enhance Neuronetics' market position in the TMS therapy sector, which the company claims is supported by the largest clinical data set among competing systems. The integration of Greenbrook is anticipated to provide operational synergies, although it has also led to increased general and administrative expenses, which rose by 19% to $30.3 million.

Operationally, Neuronetics reported that treatment session revenues accounted for 70% of its U.S. revenues, while sales of the NeuroStar Advanced Therapy System contributed 21%. The company noted a decrease in the number of NeuroStar units sold, from 204 in 2023 to 185 in 2024, which contributed to a decline in system sales revenue. Despite this, the company expects to see future recurring treatment session revenue from the units sold. As of December 31, 2024, Neuronetics employed 716 individuals, reflecting its commitment to expanding its workforce to support growth initiatives.

Looking ahead, Neuronetics aims to enhance its product offerings and expand its market presence, particularly in Japan, where it has received regulatory approval for its NeuroStar system. The company anticipates that its revenues will continue to grow as it increases the adoption of TMS therapy among psychiatrists and expands its treatment center network. However, Neuronetics also faces challenges, including the need to achieve profitability amid ongoing operational losses and the complexities associated with integrating Greenbrook's operations. The company has indicated that it may need to raise additional capital to support its growth strategy and manage its financial obligations effectively.