Neuronetics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 12.5% year-over-year to $42.0 million for the three months ended September 30, 2026, compared to $37.3 million in the same period in 2025.
• NeuroStar revenue was $15.8 million, a 1.8% increase year-over-year from $15.5 million.
• Greenbrook revenue was $26.2 million, a 20.1% increase year-over-year from $21.8 million.
• Gross margin improved to 52.2% in the third quarter of 2026 from 45.9% in the third quarter of 2025.
• Operating expenses decreased 13% to $21.3 million in the third quarter of 2026 from $24.4 million in the third quarter of 2025, driven by lower sales and marketing expenses partially offset by higher general and administrative expenses.
• Income from operations was $0.5 million in the third quarter of 2026, compared to a loss of $7.3 million in the third quarter of 2025.
• Adjusted EBITDA was $1.9 million in the third quarter of 2026, compared to a loss of $4.7 million in the third quarter of 2025.
• Net loss attributable to Neuronetics stockholders was $1.7 million ($0.02 per share) for the third quarter of 2026, compared to $9.0 million ($0.13 per share) in the third quarter of 2025.
• Cash provided by operating and investing activities was $0.8 million in the third quarter of 2026, compared to $(0.9) million in the third quarter of 2025.
• As of September 30, 2026, the Company held $27.9 million in total cash ($22.1 million in cash and cash equivalents and $5.8 million in restricted cash), down from $34.1 million as of December 31, 2025.
• Long-term debt, net, was $61.8 million as of September 30, 2026, compared to $65.8 million as of December 31, 2025.
• Current portion of deferred revenue was $1.0 million as of September 30, 2026, compared to $0.8 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 total revenue guidance remains between $160 million and $164 million.
• Full-year 2026 gross margin guidance is between 49% and 50%, revised up from the prior guidance of 48% to 50%.
• Full-year 2026 operating expenses, excluding stock-based compensation, are guided between $89 million and $92 million, with estimated stock-based compensation of $3.5 million (prior guidance was $91 million to $96 million excluding $4.0 million stock-based compensation).
• Full-year 2026 total operating expenses are guided between $92.5 million and $95.5 million (prior guidance was $95 million to $100 million).
• Full-year 2026 cash flow from operating and investing activities is guided between $(10.0) million and $(12.0) million, revised from prior guidance of $(10.5) million to $(14.5) million.

Business Segments and Product Lines:

• Greenbrook reported a record third quarter driven by continued business growth and improved revenue cycle management.
• NeuroStar system sales achieved a record third quarter, reflecting positive reception of expanded go-to-market options.
• The Company submitted a 510(k) application to the FDA for an accelerated TMS protocol in August, pending review.
• The Company entered a distribution agreement with Wave Neuro to pursue FDA clearance for using Wave Neuro's EEG-based software algorithm to treat PTSD on existing NeuroStar systems.
• NeuroStar launched its first-ever integration with AdvancedMD's EHR/EMR platform, connecting treatment data with clinical documentation and billing workflows, expected to be available to AdvancedMD users in the fourth quarter of 2026.

Market and Competitive Landscape:

• The Company is preparing for the introduction of a more comprehensive offering involving psychedelics.
• The accelerated TMS protocol, if approved, is expected to expand access to TMS for more patients by offering condensed protocols.
• The Wave Neuro partnership aims to allow NeuroStar customers to treat PTSD on existing systems pending FDA clearance.

Risks and Challenges:

• Forward-looking statements are subject to risks including the ability to achieve or sustain profitable operations due to a history of losses.
• Risks include reliance on the sale and usage of the NeuroStar Advanced Therapy System, the scale and efficacy of the salesforce, and the ability to retain talent.
• Potential risks involve availability of coverage and reimbursement from third-party payors, physician and patient demand, and developments in competing technologies.
• Risks include product defects, ability to obtain and maintain intellectual property protection, and developments in clinical trials or regulatory reviews for additional indications.
• Risks related to evolving government regulation, credit facility terms, self-sustainability, existing cash balance, and the ability to achieve positive cash flows and continue as a going concern are noted.

Management Commentary and Tone:

• Dan Reuvers, President and CEO, stated the quarter showed the strategy taking hold across the business, delivering record results in both Greenbrook and NeuroStar system sales.
• Management highlighted the positive impact of revenue cycle management advances and the expanded NeuroStar go-to-market options.
• Management emphasized a continued prioritization on profitability and cash flow generation.
• Management indicated a focus on new and expanded partnerships for NeuroStar, serving more patients in Greenbrook clinics, and preparing for the introduction of psychedelics.

Other Key Points:

• The Company recorded a loss on extinguishment of debt of $0.5 million in the nine months ended September 30, 2026, related to a $5 million debt repayment to Perceptive Advisors, LLC in the first quarter of 2026.
• The Company recognized restructuring expenses of $0.9 million in the nine months ended September 30, 2026, related to workforce reductions and organizational restructuring.
• The Company issued $8.6 million in proceeds from the issuance of common stock under the ATM Program during the nine months ended September 30, 2026.
• The Company repaid $5.0 million of long-term debt during the nine months ended September 30, 2026.
• Weighted average common shares outstanding increased to 77.0 million in the third quarter of 2026 from 67.3 million in the third quarter of 2025.