Neuronetics, Inc. (STIM)
Neuronetics, Inc. is a commercial-stage medical technology company focused on developing and marketing the NeuroStar Advanced Therapy System for treating major depressive disorder. The company's non-invasive approach offers an alternative treatment option for patients seeking relief from depression.
Company Overview
Neuronetics (STIM) offers a novel, non-invasive solution for major depressive disorder with its NeuroStar system, targeting a significant unmet need in mental healthcare and positioning itself for growth through expanded market penetration and technological advancements in neuromodulation.
Investment Thesis
Neuronetics presents a compelling investment opportunity due to its innovative NeuroStar system and the growing demand for non-pharmacological treatments for depression. The company's focus on transcranial magnetic stimulation (TMS) addresses a significant market need, offering an alternative for patients who have not responded well to traditional therapies. With a market capitalization of $0.11 billion and a gross margin of 50.4%, Neuronetics demonstrates potential for profitability as it scales its operations. Key growth catalysts include expanding insurance coverage for TMS therapy, increasing awareness among psychiatrists and patients, and developing new applications for the NeuroStar system. While the company currently operates at a loss with a profit margin of -34.3% and a P/E of -2.36, strategic investments in sales and marketing, coupled with continued technological advancements, are expected to drive revenue growth and improve profitability in the coming years.
Key Highlights
- Market capitalization of $0.11 billion, reflecting the company's current valuation in the market.
- Gross margin of 50.4%, indicating strong potential for profitability as the company scales its operations.
- NeuroStar Advanced Therapy System offers a non-invasive treatment option for major depressive disorder, addressing a significant unmet need in mental healthcare.
- Beta of 0.81, suggesting lower volatility compared to the overall market.
- Focus on transcranial magnetic stimulation (TMS) positions the company at the forefront of innovative neurohealth solutions.
Competitors
Strengths
- Innovative NeuroStar system with proven efficacy in treating depression.
- Non-invasive and non-systemic treatment option with minimal side effects.
- Established sales and customer support team.
- Growing awareness of TMS therapy among psychiatrists and patients.
Weaknesses
- Limited insurance coverage for NeuroStar therapy.
- Relatively high cost of treatment compared to traditional therapies.
- Dependence on a single product (NeuroStar).
- Negative profit margin.
Catalysts
- Ongoing: Expansion of insurance coverage for NeuroStar therapy.
- Ongoing: Increasing awareness and adoption among psychiatrists and patients.
- Upcoming: Publication of new clinical data supporting the efficacy of NeuroStar.
- Upcoming: Potential FDA approval for new applications of TMS technology.
- Ongoing: Strategic partnerships with mental health organizations.
Risks
- Potential: Competition from other neuromodulation therapies and pharmaceutical treatments.
- Potential: Changes in healthcare regulations and reimbursement policies.
- Potential: Technological obsolescence.
- Ongoing: Limited insurance coverage for NeuroStar therapy.
- Ongoing: Negative profit margin and dependence on a single product.
Growth Opportunities
- Expanding Insurance Coverage: Securing broader insurance coverage for NeuroStar therapy is a significant growth opportunity. As more insurance providers recognize the clinical benefits and cost-effectiveness of TMS, Neuronetics can reach a larger patient population. This involves ongoing efforts to educate insurance companies on the efficacy of NeuroStar and demonstrate its value in reducing healthcare costs associated with depression. Successful expansion of insurance coverage could lead to a substantial increase in patient access and revenue growth for Neuronetics. Timeline: Ongoing.
- Increasing Awareness and Adoption: Raising awareness among psychiatrists and patients about the benefits of NeuroStar is crucial for driving adoption. This can be achieved through targeted marketing campaigns, educational programs, and partnerships with mental health organizations. By highlighting the non-invasive nature of NeuroStar and its potential to improve patient outcomes, Neuronetics can attract more healthcare providers to offer the therapy and encourage patients to consider it as a treatment option. Market size: Millions of individuals affected by depression. Timeline: Ongoing.
- Developing New Applications: Exploring new applications for TMS technology beyond major depressive disorder represents a significant growth opportunity. Neuronetics can invest in research and development to investigate the potential of NeuroStar for treating other neurological and psychiatric conditions, such as anxiety, PTSD, and chronic pain. Successful expansion into new therapeutic areas could diversify the company's revenue streams and establish it as a leader in neuromodulation. Market size: Varies depending on the specific condition. Timeline: 3-5 years.
- Strategic Partnerships and Acquisitions: Forming strategic partnerships with other healthcare companies or acquiring complementary technologies can accelerate Neuronetics' growth. Collaborating with companies specializing in mental health services or developing innovative diagnostic tools could enhance the company's product offerings and expand its market reach. Strategic acquisitions could also provide access to new technologies or customer segments, further strengthening Neuronetics' competitive position. Timeline: Ongoing.
- International Expansion: Expanding into international markets represents a significant growth opportunity for Neuronetics. By obtaining regulatory approvals and establishing distribution networks in key countries, the company can tap into a larger patient population and diversify its revenue streams. International expansion requires careful planning and execution, including adapting the NeuroStar system to meet local regulatory requirements and cultural preferences. Market size: Global market for depression treatment. Timeline: 2-3 years.
Opportunities
- Expanding insurance coverage for TMS therapy.
- Developing new applications for NeuroStar in other neurological and psychiatric conditions.
- Increasing awareness and adoption among psychiatrists and patients.
- Expanding into international markets.
Threats
- Competition from other neuromodulation therapies and pharmaceutical treatments.
- Changes in healthcare regulations and reimbursement policies.
- Potential for technological obsolescence.
- Economic downturn affecting patient access to healthcare.
Competitive Advantages
- Proprietary TMS technology with patents protecting the NeuroStar system.
- Established brand reputation and market presence in the neurohealth space.
- Strong relationships with psychiatrists and healthcare providers.
- High switching costs for customers due to training and investment in NeuroStar equipment.
About
Neuronetics, Inc., founded in 2001 and headquartered in Malvern, Pennsylvania, is a commercial-stage medical technology company dedicated to designing, developing, and marketing innovative products for patients suffering from neurohealth disorders. The company's flagship product, the NeuroStar Advanced Therapy System, provides a non-invasive and non-systemic treatment for adult patients with major depressive disorder (MDD). This system utilizes transcranial magnetic stimulation (TMS) to deliver targeted magnetic pulses to specific areas of the brain associated with mood regulation. Unlike traditional treatments such as medication, NeuroStar offers a localized approach with minimal systemic side effects. Neuronetics sells its NeuroStar systems and related services directly to psychiatrists and other healthcare providers through its dedicated sales and customer support team. The company's focus on innovation and patient outcomes has established it as a key player in the evolving landscape of neurohealth solutions, addressing a significant unmet need in the treatment of depression and other neurological conditions. Neuronetics continues to invest in research and development to expand the applications of its TMS technology and improve the lives of patients with neurohealth disorders.
What They Do
- Designs, develops, and markets medical devices for neurohealth disorders.
- Offers the NeuroStar Advanced Therapy System for treating major depressive disorder.
- Utilizes transcranial magnetic stimulation (TMS) technology.
- Provides a non-invasive and non-systemic treatment option.
- Sells products directly to psychiatrists and healthcare providers.
- Focuses on improving patient outcomes through innovative neuromodulation therapies.
- Offers customer support and training for the NeuroStar system.
Business Model
- Sells NeuroStar Advanced Therapy Systems to psychiatric practices and hospitals.
- Generates revenue from the sale of treatment sessions.
- Provides ongoing service and support for NeuroStar systems.
- Pursues reimbursement from insurance providers for NeuroStar treatments.
Industry Context
Neuronetics operates within the medical diagnostics and research industry, specifically targeting the neurohealth market. The industry is experiencing growth driven by increasing awareness of mental health disorders and the demand for innovative treatment options. The competitive landscape includes companies offering alternative therapies for depression and other neurological conditions. Neuronetics differentiates itself through its NeuroStar system, a non-invasive TMS therapy. The market for depression treatment is substantial, with millions of individuals affected worldwide, creating a significant opportunity for Neuronetics to expand its market share. Competitors include ATLN, CATX, CDXS, GNFT, and NYXH, each offering various approaches to neurological and psychiatric treatments.
Key Customers
- Psychiatrists and psychiatric practices
- Hospitals and mental health clinics
- Patients with major depressive disorder
- Healthcare providers seeking non-invasive treatment options
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $37M | -$9M | $-0.13 |
| Q2 2025 | $38M | -$10M | $-0.15 |
| Q1 2025 | $32M | -$13M | $-0.21 |
| Q4 2024 | $22M | -$13M | $-0.35 |
Source: Company filings
Chart & Info
Price Chart
Neuronetics, Inc. (STIM) stock price: $1.41 (-0.03, -2.08%)
Why Bull
- •Neuronetics seems to be gaining traction in mental health circles; I'm seeing more positive discussions about their approach.
- •Recent insider buying activity suggests that those within the company believe in its long-term potential. That's always a good sign.
- •The overall market sentiment towards mental health solutions is positive, which could benefit Neuronetics.
- •They're expanding their reach, which could lead to increased adoption of their TMS therapy.
Why Bear
- •The mental health treatment space is getting crowded, and Neuronetics faces stiff competition from established players and new entrants.
- •Despite positive sentiment, some community members are raising concerns about the long-term efficacy of TMS therapy.
- •There's a general market concern about the profitability of companies in the mental health sector, given reimbursement challenges and high operating costs.
- •While insider buying is positive, it's important to remember that insiders can be wrong, and there may be other factors at play.
Latest News
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Neuronetics, Inc. (NASDAQ:STIM) Short Interest Update
defenseworld.net · Feb 19, 2026
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Assessing Neuronetics (STIM) Valuation After Positive Cash Flow And Strong Preliminary Q4 Revenue
Simply Wall St. · Feb 13, 2026
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Assessing Neuronetics (STIM) Valuation After Positive Cash Flow And Strong Preliminary Q4 Revenue
Yahoo! Finance: STIM News · Feb 13, 2026
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Top Midday Gainers
MT Newswires · Feb 11, 2026
Technical Analysis
Rationale
AI-generated technical analysis for STIM including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for STIM.
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Current price: $1.41
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for STIM.
Price Targets
Wall Street price target analysis for STIM.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 4.4% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 8/100
Gross margin at 50.9% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 3/100
Net insider selling of -$3.64M may indicate reduced confidence or routine diversification by executives.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates STIM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Neuronetics, Inc. (NASDAQ:STIM) Short Interest Update
Assessing Neuronetics (STIM) Valuation After Positive Cash Flow And Strong Preliminary Q4 Revenue
Assessing Neuronetics (STIM) Valuation After Positive Cash Flow And Strong Preliminary Q4 Revenue
Top Midday Gainers
Frequently Asked Questions
What does Neuronetics, Inc. do?
Neuronetics, Inc. is a commercial-stage medical technology company that focuses on developing and marketing innovative products for patients with neurohealth disorders. Its primary product is the NeuroStar Advanced Therapy System, a non-invasive treatment for major depressive disorder (MDD). The NeuroStar system uses transcranial magnetic stimulation (TMS) to deliver targeted magnetic pulses to specific areas of the brain associated with mood regulation. Neuronetics sells these systems to psychiatrists and other healthcare providers, offering a novel alternative to traditional depression treatments like medication.
Is STIM stock a good buy?
STIM stock presents a mixed investment profile. While the company's NeuroStar system offers a promising non-invasive treatment for depression and the company has a solid gross margin of 50.4%, it currently operates at a loss with a negative profit margin of -34.3%. Potential investors should consider the growth opportunities in expanding insurance coverage and developing new applications for TMS, but also be aware of the risks associated with competition and reimbursement challenges. A thorough analysis of the company's financials and future growth prospects is essential before making an investment decision.
What are the main risks for STIM?
The main risks for Neuronetics (STIM) include competition from established pharmaceutical treatments and other neuromodulation therapies. Changes in healthcare regulations and reimbursement policies could also negatively impact the company's revenue. Additionally, the company's dependence on a single product, the NeuroStar system, exposes it to the risk of technological obsolescence or market saturation. Limited insurance coverage for NeuroStar therapy and the company's current negative profit margin also pose significant financial risks.
Is STIM a good stock to buy?
Whether STIM is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the STIM MoonshotScore?
The MoonshotScore for STIM is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is STIM data updated?
STIM stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to STIM is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for STIM?
Growth catalysts for Neuronetics, Inc. (STIM) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Neuronetics, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are STIM's main competitors?
Neuronetics, Inc. (STIM) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether STIM has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about STIM?
Wall Street analyst coverage for STIM includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is STIM's market cap?
Market capitalization (market cap) for STIM is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows STIM's current market cap alongside enterprise value and other valuation metrics.
How has STIM stock performed recently?
STIM's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing STIM's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in STIM?
Key risk categories for STIM include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures STIM's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling STIM?
Insider trading activity for STIM tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is STIM a good stock for beginners?
Neuronetics, Inc. (STIM) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is STIM for first-time investors?
Every stock carries risk, including Neuronetics, Inc. (STIM). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like STIM.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Future growth prospects are subject to market conditions and company performance.
- This analysis is for informational purposes only and does not constitute investment advice.