Neuronetics Inc (STIM) Stock Forecast & Price Target

Neuronetics is supported by a compelling mix of platform expansion, improving profitability, and a larger addressable market across interventional psychiatry. The December 2024 Greenbrook acquisition transformed it into a vertically integrated network with 93 treatment centers, and Q2 showed revenue of $41.6M, gross margin of 51.1%, and the first positive adjusted EBITDA of $0.3M, helped by stronger collections, better reimbursement, and lower operating expenses. At the same time, the NeuroStar shift to session, purchase, and lease models should unlock enterprise accounts that were previously inaccessible, while the Compass Pathways collaboration and ready clinic capacity position the company to benefit from potential psilocybin adoption in 2027.

Neuronetics is challenged by inconsistent commercial execution, an expected near-term transition in the NeuroStar business, and the risk of slower procedure volumes, all of which can pressure revenue durability in a competitive, pricing-sensitive market. Although Q2 cash rose to $25.0M after $7.6M of ATM proceeds, operations and investing still consumed cash, and full-year cash flow is expected to remain negative at -$10.5M to -$14.5M, underscoring ongoing funding needs. Even with 2026 revenue modeled at $161M and improving gross margins, the company’s profitability path remains fragile given higher operating expense risk, regulatory delays, and limited adoption of new products.