Neuronetics, Inc 10-Q for FY2026 Q3

Neuronetics, Inc. (STIM)

10-Q 2026-11-04 For: 2026-09-30

Added on November 04, 2026

About this 10-Q

Neuronetics, Inc filed this 10-Q on November 4, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $41.96M; up 12.5% from $37.3M a year earlier
Net loss: $1.69M; compared with a net loss of $9.05M a year earlier
Diluted EPS: -$0.02; compared with -$0.13 a year earlier

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Delaware	33-1051425
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

3222 Phoenixville Pike, Malvern, PA	19355
(Address of principal executive offices)	(Zip Code)
(877) 600-7555
(Registrant’s telephone number, including area code)


Title of each class		Trading Symbol(s)		Name on each exchange on which registered
Common Stock ($0.01 par value)		STIM		The Nasdaq Global Market


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


		Page
PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements.	3
	Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025	3
	Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2026 and 2025	4
	Consolidated Statements of Changes in Equity for the Three and Nine Months ended September 30, 2026 and 2025	5
	Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2026 and 2025	6
	Notes to Interim Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	37
Item 4.	Controls and Procedures.	38
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings.	39
Item 1A.	Risk Factors.	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	39
Item 3.	Defaults Upon Senior Securities.	39
Item 4.	Mine Safety Disclosures.	39
Item 5.	Other Information.	39
Item 6.	Exhibits.	40
	SIGNATURES	41


		September 30,			December 31,
		2026			2025
Assets
Current assets:
Cash and cash equivalents		$	22,106		$	28,134
Restricted cash and cash equivalents			5,750			6,000
Accounts receivable, net of allowance for credit losses of $563 and $1,043 as of September 30, 2026 and December 31, 2025, respectively			14,435			16,469
Inventory			4,943			4,327
Current portion of net investments in sales-type leases			250			225
Current portion of prepaid commission expense			2,652			3,050
Current portion of notes receivable			258			424
Prepaid expenses and other current assets			3,494			2,922
Total current assets			53,888			61,551
Property and equipment, net			3,182			4,466
Goodwill			23,622			23,622
Intangible assets, net			17,056			18,149
Operating lease right-of-use assets			24,694			23,560
Net investments in sales-type leases			87			98
Prepaid commission expense			6,376			7,972
Long-term notes receivable			24			151
Other assets			3,029			1,982
Total assets		$	131,958		$	141,551
Liabilities and Equity
Current liabilities:
Accounts payable		$	9,963		$	10,739
Accrued expenses			10,354			12,316
Current portion of deferred revenue			997			753
Deferred and contingent consideration			250			500
Other payables			254			652
Current portion of operating lease liabilities			5,038			5,561
Total current liabilities			26,856			30,521
Long-term debt, net			61,752			65,807
Deferred revenue			10			48
Operating lease liabilities			20,937			18,935
Total liabilities			109,555			115,311
Commitments and contingencies (Note 18)
Equity:
Preferred stock, $0.01 par value: 10,000 shares authorized; no shares issued or outstanding on September 30, 2026 and December 31, 2025			—			—
Common stock, $0.01 par value: 250,000 shares authorized; 77,728 and 68,994 shares issued and outstanding on September 30, 2026 and December 31, 2025, respectively			777			690
Additional paid-in capital			492,774			480,475
Accumulated deficit			(474,843)			(458,787)
Total Stockholders' equity			18,708			22,378
Non-controlling interest			3,695			3,862
Total equity			22,403			26,240
Total liabilities and equity		$	131,958		$	141,551


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Revenues
NeuroStar	$	15,770	$	15,489	$	43,372	$	43,889
Greenbrook		26,192		21,808		74,612		63,491
Total revenues		41,962		37,297		117,984		107,380
Cost of revenues
NeuroStar		3,610		4,607		9,780		12,068
Greenbrook		16,462		15,582		48,937		44,708
Total cost of revenues		20,072		20,189		58,717		56,776
Gross profit		21,890		17,108		59,267		50,604
Operating expenses:
Sales and marketing		8,484		11,848		29,205		35,715
General and administrative		11,675		11,077		36,127		36,364
Research and development		1,190		1,504		3,890		4,918
Total operating expenses		21,349		24,429		69,222		76,997
Income (Loss) from operations		541		(7,321)		(9,955)		(26,393)
Other (income) expense:
Interest expense		2,144		2,206		6,535		6,097
Loss on extinguishment of debt		—		—		539		—
Other income, net		(47)		(126)		(1,229)		(561)
Net loss	$	(1,556)	$	(9,401)	$	(15,800)	$	(31,929)
Less: Net gain (loss) attributable to non-controlling interest		136		(356)		121		(89)
Net loss attributable to Neuronetics stockholders	$	(1,692)	$	(9,045)		(15,921)		(31,840)
Net loss per share of common stock outstanding, basic and diluted attributable to Neuronetics stockholders	$	(0.02)	$	(0.13)	$	(0.22)	$	(0.49)
Weighted average common shares outstanding, basic and diluted		77,004		67,309		73,268		65,006


	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities:
Net loss	$	(15,800)	$	(31,929)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,216		2,698
Allowance for credit losses		(138)		382
Inventory impairment		7		267
Share-based compensation		2,543		4,667
Non-cash interest expense		711		600
Loss on extinguishment of debt		539		—
Loss on disposal of property and equipment		375		45
Changes in certain assets and liabilities:
Accounts receivable, net		2,465		1,384
Inventory		(772)		(240)
Net investments in sales-type leases		(15)		22
Prepaid commission expense		1,995		840
Prepaid expenses and other assets		(339)		3,813
Accounts payable		(823)		(77)
Accrued expenses		(2,001)		(3,302)
Other liabilities		(398)		(223)
Deferred revenue		244		(229)
Net cash used in operating activities		(9,191)		(21,282)

Cash flows from investing activities:
Purchases of property and equipment and capitalized software		(1,084)		(585)
Proceeds from the sale of property and equipment		25		—
Net cash used in investing activities		(1,059)		(585)

Cash flows from financing activities:
Payments of debt issuance costs		(55)		(80)
Proceeds from issuance of long-term debt		—		10,000
Repayment of deferred and contingent consideration		(250)		—
Repayment of long-term debt		(5,000)		—
Payment for debt extinguishment costs		(250)		—
Proceeds from the issuance of common stock		—		20,700
Payments of common stock offering issuance costs		—		(1,731)
Proceeds from issuance of common stock under ATM Program		8,577		8,313
Payments of common stock offering issuance costs under ATM Program		(409)		(336)
Distribution to non-controlling interest		(423)		—
Proceeds from exercises of stock options		2,202		13
Payments to tax authorities for employee share withholding		(420)		—
Net cash provided by financing activities		3,972		36,879
Net increase (decrease) in Cash, Cash equivalents and Restricted cash		(6,278)		15,012
Cash and cash equivalents and restricted cash and cash equivalents, beginning of period		34,134		19,459
Cash and cash equivalents and restricted cash and cash equivalents, end of period	$	27,856	$	34,471

Reconciliation of cash and cash equivalents and restricted cash and cash equivalents to the consolidated balance sheet:
Cash and cash equivalents		22,106		27,971
Restricted cash and cash equivalents		5,750		6,500
Total cash and cash equivalents and restricted cash and cash equivalents	$	27,856	$	34,471

Supplemental disclosure of cash flow information:
Cash paid for interest	$	5,847	$	5,474
Transfer of inventory to property and equipment	$	155	$	75
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment and capitalized software in accounts payable and accrued expenses	$	48	$	30
	$	—	$	—


		As of September 30, 2026
	Useful Life	Gross Value		Accumulated Amortization		Net Carrying Value		Weighted Average Remaining Useful Life
Management services agreements	17-21 years	$	17,100	$	(1,698)	$	15,402	17.3 years
Trade name	5 years		2,590		(936)		1,654	3.3 years
		$	19,690	$	(2,634)	$	17,056


		As of December 31, 2025
	Useful Life	Gross Value		Accumulated Amortization		Net Carrying Value		Weighted Average Remaining Useful Life
Management services agreements	17-21 years	$	17,100	$	(993)	$	16,107	18 years
Trade name	5 years		2,590		(548)		2,042	4 years
		$	19,690	$	(1,541)	$	18,149


Year			Amortization expense
Remainder of 2026		$	364
2027			1,457
2028			1,457
2029			1,428
2030			939
Thereafter			11,411
		$	17,056


		September 30, 2026
								Fair Value Measurement Based on
								Quoted			Significant
								Prices In			Other		Significant
								Active			Observable		Unobservable
		Carrying						Markets			Inputs		Inputs
		Amount			Fair Value			(Level 1)			(Level 2)		(Level 3)
Assets
Money market funds (cash equivalents)		$	432		$	432		$	432		$	—	$	—
Money market funds (restricted cash and cash equivalents)		$	5,500		$	5,500		$	5,500		$	—	$	—


		December 31, 2025
								Fair Value Measurement Based on
								Quoted			Significant
								Prices In			Other			Significant
								Active			Observable			Unobservable
		Carrying						Markets			Inputs			Inputs
		Amount			Fair Value			(Level 1)			(Level 2)			(Level 3)
Assets
Money market funds (cash equivalents)		$	436		$	436		$	436		$	—		$	—
Money market funds (restricted cash and cash equivalents)		$	5,500		$	5,500		$	5,500		$	—		$	—


		Balance at			Bad Debt		Write-offs of		Balance at
		Beginning of			(Expense)/		Uncollectible		End of
		Period			Reversal		Balances		Period
Nine months ended September 30, 2025		$	(1,930)		(382)		1,247		$	(1,065)
Nine months ended September 30, 2026		$	(1,043)		138		342		$	(563)


		Revenue
Year:		Recognition
Remainder of 2026		76	%
2027		23	%
2028		—	%
2029		1	%
Total		100	%


Warrants
Outstanding
(in thousands)	Exercise Price		Expiration Date
1,125	$	0.94	July-2034
600	$	0.94	Dec-2034
225	$	0.94	August-2035
1,950


		September 30,			December 31,
		2026			2025
Laboratory equipment		$	713		$	676
Office equipment			495			495
Auto			—			23
Computer equipment and software			908			873
Manufacturing equipment			618			618
Clinical equipment			278			278
Leasehold improvements			1,490			1,608
TMS devices			2,756			3,790
Rental equipment			188			157
Property and equipment, gross			7,446			8,518
Less: Accumulated depreciation			(4,264)			(4,052)
Property and equipment, net		$	3,182		$	4,466



		Amount
Remainder of 2026		$	1,987
2027			7,302
2028			5,964
2029			5,413
2030			4,488
Thereafter			12,265
Total lease payments			37,419
Less imputed interest			(11,444)
Present value of operating lease liabilities		$	25,975


				Weighted	Aggregate
	Number of	Weighted		average	average
	Shares under	average		Remaining	Intrinsic
	Option	Exercise Price		Contractual	Value
	(in thousands)	per Option		Life (in years)	(in thousands)
Outstanding at December 31, 2025	1,099	$	2.89
Granted	—	$	—
Exercised	(900)	$	1.98
Forfeited and Expired	(13)	$	6.41
Outstanding at September 30, 2026	186	$	7.04	1.8	$	1
Exercisable at September 30, 2026	186	$	7.04	1.8	$	1
Vested and expected to vest at September 30, 2026	186	$	7.04	1.8	$	1


		Non-vested			Weighted		Non-vested			Weighted
		Restricted			average		PRSUs			average
		Stock Units			Grant-date					Grant-date
		(in thousands)			Fair Value		(in thousands)			Fair Value
Non-vested at December 31, 2025		4,229		$	3.33		1,398		$	3.81
Granted		4,146		$	1.56		—		$	—
Vested		(1,339)		$	4.15		(143)		$	2.90
Forfeited		(2,580)		$	2.42		(846)		$	3.21
Non-vested at September 30, 2026		4,456		$	1.97		409		$	5.45


		Three Months Ended September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
Cost of revenues		$	24		$	19		$	67			92
Sales and marketing			(45)			362			480			823
General and administrative			132			865			1,798			3,235
Research and development			67			163			198			517
Total		$	178		$	1,409		$	2,543		$	4,667


Three months ended September 30, 2026		NeuroStar		Greenbrook		Total
Revenues	$	15,770	$	26,192	$	41,962
Cost of revenues		3,610		16,462		20,072
Segment gross profit	$	12,160	$	9,730	$	21,890

Significant Segment Expense
Selling, General and Administrative
Direct	$	6,217	$	6,559	$	12,776

Research and development
Direct		1,132		58		1,190

Segment profit	$	4,811	$	3,113	$	7,924

Unallocated expenses
General and Administrative					$	7,383
Other income, net						(47)
Interest expense						2,144

Net loss					$	(1,556)


Three months ended September 30, 2025		NeuroStar		Greenbrook		Total
Revenues	$	15,489	$	21,808	$	37,297
Cost of revenues		4,607		15,582		20,189
Segment gross profit	$	10,882	$	6,226	$	17,108

Significant Segment Expense
Selling, General and Administrative
Direct	$	9,136	$	7,148	$	16,284

Research and development
Direct		1,452		52		1,504

Segment profit/(loss)	$	294	$	(974)	$	(680)

Unallocated expenses
General and Administrative					$	6,641
Other income, net						(126)
Interest expense						2,206

Net loss					$	(9,401)


Nine months ended September 30, 2026		NeuroStar		Greenbrook		Total
Revenues	$	43,372	$	74,612	$	117,984
Cost of revenues		9,780		48,937		58,717
Segment gross profit	$	33,592	$	25,675	$	59,267

Significant Segment Expense
Selling, General and Administrative
Direct	$	20,623	$	22,022	$	42,645

Research and development
Direct		3,685		205		3,890

Segment profit	$	9,284	$	3,448	$	12,732

Unallocated expenses
General and Administrative					$	22,687
Other income, net						(1,229)
Loss on extinguishment of debt						539
Interest expense						6,535

Net loss					$	(15,800)


Nine months ended September 30, 2025		NeuroStar		Greenbrook		Total
Revenues	$	43,889	$	63,491	$	107,380
Cost of revenues		12,068		44,708		56,776
Segment gross profit	$	31,821	$	18,783	$	50,604

Significant Segment Expense
Selling, General and Administrative
Direct	$	26,761	$	22,414	$	49,175

Research and development
Direct		4,756		162		4,918

Segment profit/(loss)	$	304	$	(3,793)	$	(3,489)

Unallocated expenses
General and Administrative					$	22,904
Other income, net						(561)
Interest expense						6,097

Net loss					$	(31,929)


	Three Months Ended
	September 30,						Increase / (Decrease)
	2026			2025			Dollars		Percentage

	(in thousands, except percentages)
Revenues	$	41,962		$	37,297		$	4,665	13	%
Cost of revenues		20,072			20,189			(117)	(1)	%
Gross Profit		21,890			17,108			4,782	28	%
Gross Margin		52.2	%		45.9	%

Operating expenses:
Sales and marketing		8,484			11,848			(3,364)	(28)	%
General and administrative		11,675			11,077			598	5	%
Research and development		1,190			1,504			(314)	(21)	%
Total operating expenses		21,349			24,429			(3,080)	(13)	%
Income (Loss) from Operations		541			(7,321)			7,862	107	%
Other (income) expense:
Interest expense		2,144			2,206			(62)	(3)	%
Other income, net		(47)			(126)			79	(63)	%
Net Loss	$	(1,556)		$	(9,401)		$	7,845	83	%


	Revenues by Segment
	Three Months Ended September 30,
	2026				2025
			% of				% of
	Amount		Revenues		Amount		Revenues

	(in thousands, except percentages)
NeuroStar revenue	$	15,770	38	%	$	15,489	42	%
Greenbrook revenue		26,192	62	%		21,808	58	%
Total revenues	$	41,962	100	%	$	37,297	100	%


Exhibit Number		Description

10.1		Neuronetics, Inc. 2026 Equity Incentive Plan (incorporated by reference to Exhibit 10.9 to the Company’s Quarterly Report on Form 10-Q filed on August 11, 2026)
10.2*		Forms of Performance Restricted Stock Unit Grant Notice, Award Agreement under the Neuronetics, Inc. 2026 Equity Incentive Plan
10.3*		Forms of Restricted Stock Unit Grant Notice, Award Agreement under the Neuronetics, Inc. 2026 Equity Incentive Plan
10.4*		Form of Grant Notice, Stock Option Agreement and Notice of Exercise under the 2026 Equity Incentive Plan
10.5		Offer Letter, effective as of July 10, 2026, by and between the Company and Nir Naor (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 20, 2026)
10.6		Separation Agreement dated July 17, 2026 by and between the Company and W. Andrew Macan (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on July 20, 2026)
23.1		Consent of Ballard Spahr LLP (incorporated by reference to Exhibit 23.1 to the Registrant’s Current Report on Form 8-K filed on February 10, 2025).
31.1*		Certification of the Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of the Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because iXBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (Formatted as Inline XBRL and contained Exhibit 101)


		NEURONETICS, INC.
		(Registrant)
Date: November 4, 2026		By:	/s/ Daniel L. Reuvers
		Name:	Daniel L. Reuvers
		Title:	President and Chief Executive Officer
			(Principal Executive Officer)
Date: November 4, 2026		By:	/s/ Nir Naor
		Name:	Nir Naor
		Title:	EVP, Chief Financial Officer, Corporate Secretary and Treasurer
			(Principal Financial and Accounting Officer)


Participant:
Date of Grant:
Vesting Commencement Date:
Number of Restricted Stock Units:

Participant:	[_______________]

Date of Grant:	[_______________]

Vesting Date:	[_______________]

Number of Performance Restricted Stock Units:	[_______________]

Vesting Schedule:	[_______________]

Performance Metric:	[_______________]


Optionholder:
Date of Grant:
Vesting Commencement Date:
Number of Shares Subject to Option:
Exercise Price (Per Share):
Total Exercise Price:
Expiration Date:


Type of Grant:	☐ Incentive Stock Option1	☐ Nonstatutory Stock Option

Exercise Schedule:	Same as Vesting Schedule

Vesting Schedule:	[ , subject to Optionholder’s Continuous Service as of each such date]

Payment:	By one or a combination of the following items (described in the Option Agreement):

	☐ By cash, check, bank draft or money order payable to the Company
	☐ Pursuant to a Regulation T Program if the shares are publicly traded
	☐ By delivery of already-owned shares if the shares are publicly traded
	☐ If and only to the extent this option is a Nonstatutory Stock Option, and subject to the Company’s consent at the time of exercise, by a “net exercise” arrangement


NEURONETICS, INC.		OPTIONHOLDER:

By:
	Signature		Signature

Title:		Date:

Date:


Type of option (check one):	Incentive ☐	Nonstatutory ☐

Stock option dated:

Number of Shares as to which option is exercised:

Certificates to be issued in name of:

Total exercise price:	$	$

Cash payment delivered herewith:	$	$

[Value of ________ Shares delivered herewith1:	$	$ ]

[Value of ________ Shares pursuant to net exercise2:	$	$ ]

[Regulation T Program (cashless exercise3):	$	$ ]


Date: November 4, 2026	By:	/s/ Dan Reuvers
	Name:	Dan Reuvers
	Title:	President and Chief Executive Officer
		(Principal Executive Officer)