A discounted TMS scale leader betting on vertical integration—if Neuronetics clears billing/reimbursement headwinds, its clinic network could unlock a multi-modality mental health platform rerating.
Overview
Neuronetics (STIM) is a commercial-stage neurohealth company best known for the NeuroStar Advanced Therapy System, a non-invasive TMS platform used for MDD/TRD and OCD, that has recently pivoted from a primarily hardware-focused manufacturer into a vertically integrated mental health services provider. The transformative catalyst was the late-2024 acquisition of Greenbrook TMS, which added a national clinic network (93 treatment centers) and shifted the revenue mix meaningfully toward recurring patient-service revenue. FY2025 revenue nearly doubled to $149.2M (reported +99%), with clinics contributing ~$87.0M versus ~$4.4M the prior year, but consolidated gross margin fell sharply to 48.5% due to the lower-margin clinic model. Despite continued net losses (FY2025 net loss $(39.1)M), operating discipline improved, including positive operating cash flow of ~$0.9M in Q4. Leadership is transitioning again with Dan Reuvers appointed CEO effective March 23, 2026, positioning the company for a new phase focused on integration, utilization efficiency, and expansion into additional modalities (SPRAVATO today; potential psychedelic therapies like COMP360 longer-term).