Neuronetics Reports Updated Fourth Quarter and Full Year 2024 Financial and Operating Results
MALVERN, Pa., March 27, 2025 (GLOBE NEWSWIRE) -- Neuronetics, Inc. (NASDAQ:STIM) (the "Company" or "Neuronetics") is issuing this press release to update the reporting of its financial results for the fourth quarter and full year ending December 31, 2024. Following the Company's press release on March 4, 2025 initially issuing the Company's fourth quarter and full year 2024 financial results (the "Initial Release") and in connection with finalizing the audited financial statements for the fiscal year ending December 31, 2024, certain non-cash revisions were made to the financial statements related to the Company's acquisition of Greenbrook TMS Inc. ("Greenbrook") and the shares outstanding in the fourth quarter of 2024. These accounting updates resulted in, among other things:
Fourth Quarter 2024 Results for the Three Months Ended December 31, 2024
a $0.6 million reduction in the 2024 bonus accrual that the Company assumed in connection with its acquisition of Greenbrook, resulting in an increase in the Company's operating expenses from $25.8 million, as reported in the Initial Release, to $26.4 million under applicable purchasing accounting principles;
an increase in the net loss and net loss per share from $(12.2) million and $(0.33), respectively, as reported in the Initial Release, to $(12.7) million and $(0.34), respectively; and
a decrease in the adjusted EBITDA from $0.1 million, as reported in the Initial Release, to $(0.4) million.
Full Year 2024 Results
a $0.6 million reduction in the 2024 bonus accrual that the Company assumed in connection with its acquisition of Greenbrook, resulting in an increase in the Company's Operating Expenses from $88.2 million, as reported in the Initial Release, to $88.7 million under applicable purchasing accounting principles;
an increase in the net loss and net loss per share from $(43.2) million and $(1.37), respectively, as reported in the Initial Release, to $(43.7) million and $(1.38), respectively; and
a decrease in the adjusted EBITDA from $(21.3) million, as reported in the Initial Release, to $(21.8) million.
The updated consolidated financial statements for the year and three months ending December 31, 2024 are attached to this press release and fully reflect the accounting updates. The Company also filed its Annual Report on Form 10-K today and the consolidated financial statements in the Annual Report fully reflect the accounting updates.
About Neuronetics
Neuronetics, Inc. believes that mental health is as important as physical health. As a global leader in neuroscience, Neuronetics is delivering more treatment options to patients and physicians by offering exceptional in-office treatments that produce extraordinary results. NeuroStar Advanced Therapy ("NeuroStar Therapy") is a non-drug, noninvasive treatment that can improve the quality of life for people suffering from neurohealth conditions when traditional medication has not helped. In addition to selling the NeuroStar Advanced Therapy System (the "NeuroStar System") and associated treatment sessions to customers, Neuronetics operates Greenbrook treatment centers across the United States, offering NeuroStar Therapy for the treatment of major depressive disorder ("MDD") and other mental health disorders.
NeuroStar Therapy is indicated for the treatment of depressive episodes and for decreasing anxiety symptoms for those who may exhibit comorbid anxiety symptoms in adult patients suffering from MDD and who failed to achieve satisfactory improvement from previous antidepressant medication treatment in the current episode. It is also cleared by the U.S. Food and Drug Administration, as an adjunct for adults with obsessive-compulsive disorder and for adolescent patients aged 15 to 21 with MDD. Neuronetics is committed to transforming lives by offering an exceptional treatment that produces extraordinary results.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995:
Certain statements in this press release, including the documents incorporated by reference herein, include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and "forward-looking information" within the meaning of applicable Canadian securities laws. Statements in this press release that are not historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as "outlook," "potential," "believe," "expect," "plan," "anticipate," "predict," "may," "will," "could," "would" and "should" as well as the negative of these terms and similar expressions. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. These risks and uncertainties include, without limitation, risks and uncertainties related to: the effect of the transaction with Greenbrook, on the Company's business relationships, operating results and business generally; the Company's ability to execute its business strategy; the Company's ability to achieve or sustain profitable operations due to its history of losses; the Company's ability to successfully complete the announced restructuring plans; the Company's reliance on the sale and use of the NeuroStar System to generate revenues; the scale and efficacy of the Company's salesforce; the Company's ability to retain talent; availability of coverage and reimbursement from third-party payors for treatments using the Company's products; physician and patient demand for treatments using the Company's products; developments in competing technologies and therapies for the indications that the Company's products treat; product defects; the Company's revenue concentration among a small number of customers; the Company's ability to obtain and maintain intellectual property protection for its technology; developments in clinical trials or regulatory review of the NeuroStar System for additional indications; developments in regulation in the U.S. and other applicable jurisdictions; the terms of the Company's credit facility; the Company's ability to successfully roll out the Company's Better Me Provider program on the planned timeline; the Company's self-sustainability and existing cash balances; and the Company's ability to achieve cash flow positive in the third quarter of 2025. For a discussion of these and other related risks, please refer to the Company's recent filings with the Securities and Exchange Commission (the "SEC"), which are available on the SEC's website at www.sec.gov, including, without limitation, the factors described under the heading "Risk Factors" in Neuronetics' Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as it may be updated or supplemented by subsequent reports that Neuronetics has filed or files with the SEC. These forward-looking statements are based on the Company's expectations and assumptions as of the date of this press release. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, or changes in the Company's expectations.
Investor Contact:
Mike Vallie or Mark KlausnerICR
Media Contact:
NEURONETICS, INC.
Consolidated Statements of Operations
(Unaudited; In thousands, except per share data)
Three Months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
Revenues
$
22,493
$
20,314
$
74,890
$
71,348
Cost of revenues
7,600
4,543
20,729
19,643
Gross profit
14,893
15,771
54,161
51,705
Operating expenses:
Sales and marketing
9,811
11,716
45,631
47,318
General and administrative
10,782
6,276
30,322
25,426
Research and development
5,772
2,206
12,771
9,515
Total operating expenses
26,365
20,198
88,724
82,259
Loss from operations
(11,472)
(4,427)
(34,563)
(30,554)
Other (income) expense:
Interest expense
1,757
1,843
7,286
5,424
Loss on extinguishment of debt
—
—
4,427
—
Other income, net
(548)
(893)
(2,549)
(5,789)
Net loss
$
(12,681)
$
(5,377)
$
(43,727)
$
(30,189)
Non-controlling interest
19
—
19
—
Net loss attributable to Neuronetics stockholders'
(12,662)
(5,377)
(43,708)
(30,189)
Net loss per share of common stock outstanding, basic and diluted attributable to Neuronetics stockholders'
$
(0.34)
$
(0.19)
