Neuronetics Inc

Neuronetics operates with a high debt-to-equity ratio of 3.08, indicating a capital structure heavily reliant on debt financing. The company holds $42.64 million in cash and equivalents, but this is offset by $59.76 million in long-term debt, resulting in a net cash position of -$17.12 million. The current ratio of 2.58 suggests adequate short-term liquidity, but the negative operating cash flow of -$16.98 million and free cash flow of -$9.85 million highlight ongoing cash burn.

Profitability metrics are weak, with a net loss of $9.83 million and an operating loss of $8.51 million. Return on equity is -50.72%, and return on assets is -10.16%, both significantly below industry norms for medical equipment firms. Gross profit of $12.18 million represents 74% of revenue, but this is insufficient to cover operating expenses.

The company derives revenue primarily from the sale and rental of its NeuroStar TMS Therapy system, with geographic exposure concentrated in the United States. No material international revenue is disclosed, and the business is highly dependent on a single product line.

Outlook for the current fiscal year shows a continuation of losses, with no material revenue growth expected. The company has not provided forward-looking guidance, and historical revenue trends show little to no growth. Analysts have assigned a mean price target of $4.33, but the absence of strong-buy ratings reflects skepticism about near-term value realization.

Risk factors include high leverage, negative cash flows, and dependence on a single product. The risk assessment flags a medium liquidity risk and low dilution risk, though the negative net cash position raises concerns about financial flexibility. No recent equity issuance or dilutive events are reported.

Recent filings and transcripts show no material changes in business strategy or product pipeline. The company remains focused on expanding NeuroStar adoption through clinical studies and physician education. No new product launches or regulatory approvals were disclosed in the latest reports.

Revenue surged 99.2% year-over-year to $149.2 million in fiscal 2026, demonstrating strong top-line growth momentum.

Analysts project 131.1% upside to a mean price target of $4.33, signaling significant undervaluation relative to current market price.

Cash conversion ratio of 1.73 ranks as best-in-class within the Advanced Medical Equipment cohort of 205 peers.

Operating income improved 19.4% year-over-year, indicating better cost management despite continued net losses and negative margins.

Current ratio of 2.02 suggests adequate short-term liquidity to cover immediate liabilities despite high long-term debt levels.

Debt-to-equity ratio of 3.08 places the company in the bottom quartile of its cohort, indicating excessive financial leverage.

Free cash flow deteriorated to -$43.0 million in fiscal 2025, highlighting severe cash burn and negative operating performance.

High credit risk and medium liquidity risk flags suggest potential difficulties in meeting financial obligations or accessing capital.

Revenue $34.5M, +7,8% YoY.

• ▍Revenue $34.5M, +7,8% YoY

Revenue $41.8M, +85,7% YoY; Operating income +56,0% YoY.

• ▍Revenue $41.8M, +85,7% YoY
• ▍Operating income +56,0% YoY
• ▍Net income +43,5% YoY
• ▍Free cash flow +45,6% YoY
• ▍Net margin -17.1%

Revenue $37.3M, +101,3% YoY; Operating income +39,8% YoY.

• ▍Revenue $37.3M, +101,3% YoY
• ▍Operating income +39,8% YoY
• ▍Net income +32,2% YoY
• ▍Free cash flow +34,8% YoY
• ▍Net margin -24.3%

Revenue $38.1M, +131,7% YoY; Operating income +5,3% YoY.

• ▍Revenue $38.1M, +131,7% YoY
• ▍Operating income +5,3% YoY
• ▍Net income −2,9% YoY
• ▍Free cash flow +6,7% YoY
• ▍Net margin -26.6%

Revenue $32.0M; Operating income -$11.0M.

• ▍Revenue $32.0M
• ▍Operating income -$11.0M
• ▍Net margin -39.6%

Revenue $22.5M; Operating income -$11.5M.

• ▍Revenue $22.5M
• ▍Operating income -$11.5M
• ▍Net margin -56.3%

Revenue $18.5M; Operating income -$12.2M.

• ▍Revenue $18.5M
• ▍Operating income -$12.2M
• ▍Net margin -72.0%

Revenue $16.4M; Operating income -$8.5M.

• ▍Revenue $16.4M
• ▍Operating income -$8.5M
• ▍Net margin -59.8%

Revenue $149.2M, +99,2% YoY; Operating income +19,4% YoY.

• ▍Revenue $149.2M, +99,2% YoY
• ▍Operating income +19,4% YoY
• ▍Net income +10,8% YoY
• ▍Free cash flow +15,2% YoY
• ▍Net margin -26.1%

Revenue $74.9M, +5,0% YoY; Operating income −27,6% YoY.

• ▍Revenue $74.9M, +5,0% YoY
• ▍Operating income −27,6% YoY
• ▍Net income −44,8% YoY
• ▍Free cash flow −40,7% YoY
• ▍Net margin -58.4%

Revenue $71.3M, +9,4% YoY; Operating income +13,0% YoY.

• ▍Revenue $71.3M, +9,4% YoY
• ▍Operating income +13,0% YoY
• ▍Net income +18,8% YoY
• ▍Free cash flow +21,2% YoY
• ▍Net margin -42.3%

Revenue $65.2M, +17,9% YoY; Operating income −27,4% YoY.

• ▍Revenue $65.2M, +17,9% YoY
• ▍Operating income −27,4% YoY
• ▍Net income −19,1% YoY
• ▍Free cash flow −19,4% YoY
• ▍Net margin -57.0%