Neuronetics (STIM) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $41.962M, up 12.5% YoY; gross margin reached 52.2%, and operating income and Adjusted EBITDA turned positive at $0.541M and $1.887M.

• Results improved, but a projected March 2027 revenue-covenant shortfall creates substantial going-concern uncertainty.

Financial highlights

• Q3 gross profit was $21.890M versus $17.108M; gross margin was 52.2% versus 45.9% YoY.

• Operating expenses fell to $21.349M from $24.429M; operating income was $0.541M versus a $7.321M loss.

• Net loss attributable to stockholders was $1.692M, or $0.02 per share, versus $9.045M, or $0.13 per share; Adjusted EBITDA was $1.887M versus a $4.670M loss.

• Nine-month revenue rose 10% to $118.0M; net loss narrowed to $15.8M from $31.9M, and operating cash use fell to $9.2M from $21.3M.

Outlook and guidance

• FY 2026 revenue guidance remains $160M–$164M; gross margin guidance is 49%–50%, raised from 48%–50%.

• FY 2026 operating expense guidance is $92.5M–$95.5M, or $89M–$92M excluding estimated $3.5M stock-based compensation.

• FY 2026 cash flow from operating and investing activities is forecast at negative $10M to negative $12M, improved from prior guidance of negative $10.5M to negative $14.5M.

• Revenue-covenant compliance and lender discussions remain pivotal; revenue-cycle improvements, clinic treatment options, and NeuroStar sales and product-mix strategies do not fully mitigate the risk.