Second Quarter 2026
Filed Aug 11, 2026Neuronetics Reports Second Quarter 2026 Financial and Operating Results
Total revenue increased 9.1%, Greenbrook revenue increased 16.8%, gross margin expanded to 51.1%, operating expenses declined 12%, and Adjusted EBITDA improved to $0.3 million from a loss of $5.6 million. NeuroStar revenue declined 2.7%, the company remained loss-making, and total cash was lower than at December 31, 2025.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $41.6 million | – | 9.1% |
| Gross marginGAAP | 51.1% | – | – |
| Operating expensesGAAP | $22.7 million | – | 12% |
| Loss from operationsGAAP | $1.5 million | – | decrease of $6.6 million |
| Adjusted EBITDAnon-GAAP | $0.3 million | – | increase of $5.9 million |
| Net lossGAAP | $3.4 million | – | – |
| Net loss per shareGAAP | $0.05 per share | – | – |
| Weighted average common shares outstandingGAAP | 73,129,107 | – | – |
| Net cash used in operations and investingother | $1.4 million | – | reduction of $2.3 million |
| Total cashother | $25 million | – | – |
| Cash and cash equivalentsother | $19.2 million | – | – |
| Restricted cashother | $5.8 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| NeuroStar revenueThe company said it is broadening how customers can access its technology through expanded NeuroStar go-to-market models. | $ 14,677 (in thousands) | – | (2.7 )% |
| Greenbrook revenueThe increase reflected continued growth of the Greenbrook business. | $ 26,891 (in thousands) | – | 16.8 % |
full year 2026 outlook
- Revenue$160 million and $164 million
- Gross margin48% and 50%
- Operating expenses$95 million to $100 million
- NoteOperating expenses, less SBC: $91 million to $96 million
- NoteEstimated stock-based compensation: $4 million
- NoteCash flow from operations and investing in the range of negative $10.5 million to negative $14.5 million
What drove it
- Total revenue growth was primarily driven by higher Greenbrook revenue.
- Gross-margin expansion was driven by the positive impact of the new go-to-market strategy and improved revenue cycle management within the Greenbrook clinics.
- Operating-expense reduction was primarily attributable to lower general and administrative expenses and lower sales and marketing expenses.
- The company strengthened leadership with the appointment of Nir Naor as Executive Vice President, Chief Financial Officer, Corporate Secretary, and Treasurer; the promotion of Cory Anderson to Executive Vice President and General Manager of Greenbrook; and the appointment of Rob Greene as Senior Vice President, Sales.
Concerns
- NeuroStar revenue declined (2.7 )% year over year.
- The company reported a net loss of $3.4 million and a loss from operations of $1.5 million.
- Total cash was $25 million as of June 30, 2026, compared to total cash of $34.1 million as of December 31, 2025.
- Full-year 2026 guidance calls for cash flow from operations and investing in the range of negative $10.5 million to negative $14.5 million.
What to watch
- Execution of expanded NeuroStar go-to-market models and whether NeuroStar revenue returns to growth.
- Continued Greenbrook revenue growth and revenue-cycle-management improvements within the clinics.
- Sustainability of gross margin in the guided range of 48% and 50%.
- Progress toward the company's goal of sustained profitability and positive net cash flow from operations and investing.
- Operating-expense delivery against the $95 million to $100 million full-year guidance range.
Balance sheet and cash flow
- As of June 30, 2026, the Company held $25 million in total cash, consisting of cash and cash equivalents of $19.2 million and $5.8 million of restricted cash, compared to total cash of $34.1 million as of December 31, 2025.
- Net cash used in operations and investing of $1.4 million, a reduction of $2.3 million compared to $3.8 million in the second quarter of 2025.
Analysis
Neuronetics delivered year-over-year revenue growth in the second quarter, with total revenue of $41.6 million, up 9.1% from $38.1 million. The growth was driven by Greenbrook revenue of $26.9 million, up 16.8%, while NeuroStar revenue was $14.7 million and declined 2.7%. The segment mix makes Greenbrook the documented source of growth, while the NeuroStar decline remains the principal demand issue identified in the reported segment results.
Profitability improved materially. Gross margin increased to 51.1% from 46.6%, which the company attributed to its new go-to-market strategy and improved revenue cycle management in Greenbrook clinics. Operating expenses declined to $22.7 million from $25.8 million, primarily due to lower general and administrative expense and lower sales and marketing expense. Those changes reduced loss from operations to $1.5 million from a loss of $8.1 million and brought Adjusted EBITDA to $0.3 million from a loss of $5.6 million.
The company remained unprofitable on a GAAP basis, reporting a net loss of $3.4 million, or $0.05 per share, compared with a net loss of $10.1 million, or $0.15 per share. Net cash used in operations and investing was $1.4 million, compared to $3.8 million in the second quarter of 2025. Total cash was $25 million as of June 30, 2026, compared with $34.1 million as of December 31, 2025, and consisted of $19.2 million in cash and cash equivalents and $5.8 million in restricted cash.
For full-year 2026, the company expects total revenue between $160 million and $164 million, gross margin between 48% and 50%, and operating expenses between $95 million to $100 million. It also expects operating expenses less stock-based compensation of $91 million to $96 million, with estimated stock-based compensation of $4 million. The company expects cash flow from operations and investing in the range of negative $10.5 million to negative $14.5 million. The release contains no first-quarter 2026 figures, so it does not support a documented sequential comparison.
The key operating focus is whether the new NeuroStar access and go-to-market models can reverse the reported revenue decline while Greenbrook continues to grow. Investors should also focus on the durability of the gross-margin improvement, execution against the reduced operating-expense outlook, and cash use against the full-year cash-flow guidance. Leadership changes place finance, Greenbrook clinic operations, and NeuroStar sales under newly appointed or promoted executives during this execution period.
Management, verbatim
This was a quarter of real operational progress, and meaningful steps toward our goal of sustained profitability and positive net cash flow from operations and investing.
Dan Reuvers, President and Chief Executive Officer of Neuronetics
For some time, NeuroStar has not competed to its full potential, and we are changing that by broadening how customers can access our technology while we continue to drive operational gains across the Greenbrook clinics.
Dan Reuvers, President and Chief Executive Officer of Neuronetics
Not in the filing
stated, not guessed- Prior-quarter revenue, segment revenue, gross margin, operating expenses, operating income or loss, net income or loss, EPS, Adjusted EBITDA, and cash-flow comparisons were not reported.
- Gross profit was not reported.
- GAAP operating income was not reported; the company reported loss from operations.
- Non-GAAP net income or loss and non-GAAP EPS were not reported.
- Operating cash flow and investing cash flow as separate line items were not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- Tax rate was not reported.
- A prior quarterly outlook document was not provided, so no reported actual-versus-prior-guidance comparison is included.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.