Greenbrook TMS (GTMS) Q2 2024 earnings summary

Executive summary

• Q2 2024 service revenue rose 8% year-over-year to $19.1 million, despite center closures and billing disruptions from a Change Healthcare cyberattack.

• Other revenue of $1.3 million recognized from milestones in a research collaboration with Compass Pathways for investigational psilocybin treatment.

• Regional operating loss dropped 97% to $0.04 million in Q2 2024, but YTD regional loss increased 49% to $2.5 million due to higher direct and regional costs.

• Comprehensive loss for Q2 2024 decreased 3% year-over-year to $12.4 million; YTD comprehensive loss increased 15% to $27.0 million.

• Expanded Spravato® to 91 centers, medication management to 12 centers, and talk therapy to Florida and Missouri locations.

Financial highlights

• Total Q2 2024 revenue was $20.4 million, up from $17.7 million in Q2 2023; YTD revenue reached $38.4 million, up from $37.0 million.

• Net loss per share improved to $(0.27) in Q2 2024 from $(0.31) in Q2 2023; YTD net loss per share was $(0.60) versus $(0.66) last year.

• Direct center and patient care costs for Q2 2024 were $13.7 million, with total direct center and regional costs at $20.4 million.

• Average service revenue per treatment increased to $232 in Q2 2024 from $212 in Q2 2023.

Outlook and guidance

• Neuronetics Transaction, an all-stock acquisition, expected to close in Q4 2024, subject to shareholder and court approvals and debt conversion.

• Transaction anticipated to deliver revenue scale, cost synergies, accelerated profitability, and a stronger balance sheet.

• Continued expansion of diversified treatment offerings expected to enhance profit margins and diversify revenue.