The strong beat on both revenue and EPS, combined with positive Adjusted EBITDA and raised gross margin guidance, signals accelerating operational improvement. Traders should watch for continued margin expansion and cash flow progress in H2 2026, as the narrowed revenue guidance midpoint implies modest deceleration. The cash burn trajectory and ability to reach sustained positive cash flow remain key catalysts.
Price Chart
Executive Summary
Neuronetics reported Q2 2026 revenue of $41.6M (+9.1% YoY), beating the $40.2M consensus, and EPS of -$0.05, a 59.2% beat vs the -$0.12 estimate. The headline beat was driven by strong Greenbrook clinic revenue (+16.8% YoY to $26.9M) and a 460bps gross margin expansion to 51.1%, while NeuroStar system revenue declined 2.7% YoY. The company narrowed FY 2026 revenue guidance to $160M-$164M (from $160M-$166M) and raised gross margin guidance to 48%-50%, signaling improving operational leverage and a path toward breakeven, though cash burn remains a concern with $24.9M total cash at quarter-end.
Key Financial Metrics
Key Facts
- Total revenue of $41.6M, up 9.1% YoY, beating consensus of $40.2M.
- GAAP EPS of -$0.05, a 59.2% beat vs consensus of -$0.12.
- Greenbrook clinic revenue grew 16.8% YoY to $26.9M, driving overall growth.
- Gross margin expanded 460bps to 51.1% from 46.6% YoY, driven by new go-to-market strategy and improved revenue cycle management.
- Adjusted EBITDA turned positive at $0.3M vs a loss of $5.6M in Q2 2025.
- FY 2026 revenue guidance narrowed to $160M-$164M (from $160M-$166M); gross margin guidance raised to 48%-50% (from 47%-49%).
- NeuroStar system revenue declined 2.7% YoY to $14.7M, partially offsetting clinic gains.
- Net loss narrowed to $3.4M from $10.1M YoY; operating cash burn improved to $1.4M from $3.8M in Q2 2025.
- Total cash of $24.9M as of June 30, 2026, down from $34.1M at year-end 2025.
- Leadership team strengthened with new CFO, GM of Greenbrook, and SVP of Sales.
Financial Impact
Revenue beat by $1.4M vs consensus; EPS beat by $0.07; gross margin expansion of 460bps; operating expenses down 12% YoY.
Risk Factors
- NeuroStar system revenue declining 2.7% YoY indicates core capital equipment business is under pressure.
- Cash burn continues; total cash declined $9.2M in H1 2026 to $24.9M, limiting runway without additional financing.
- FY 2026 revenue guidance midpoint of $162M implies H2 revenue of ~$86M, requiring acceleration from H1's $76M.
- History of losses and going-concern risk mentioned in forward-looking statements.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-343474 |
| Document: d78613dex992.htm | 0001193125-26-343474 |
| Document: d78613d8k.htm | 0001193125-26-343474 |
| Document: 0001193125-26-343474-index-headers.html | 0001193125-26-343474 |
| Document: 0001193125-26-343474-index.html | 0001193125-26-343474 |
| Document: 0001193125-26-343474.txt | 0001193125-26-343474 |
| 8-K Data (Synthetic) | 0001193125-26-343474 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 11, 2026 10w ago | 8-K | $3.19 $3.21 | ▲ +0.63% | ▲ +0.38% | $2.24 (−29.78%) |
Aug 11, 2026 10w ago | Press Release | $3.19 $3.21 | ▲ +0.63% | ▲ +0.38% | $2.24 (−29.78%) |
Jun 23, 2026 17w ago | 8-K | $1.26 $1.27 | ▲ +0.79% | ▲ +0.65% | $2.24 (+77.78%) |
May 22, 2026 22w ago | 8-K | $1.20 $1.22 | ▲ +1.67% | ▲ +1.08% | $2.24 (+86.67%) |
May 5, 2026 24w ago | 8-K | $2.17 $1.91 | ▼ −11.98% | ▼ −13.37% | $2.24 (+3.23%) |
May 5, 2026 24w ago | Press Release | $2.17 $1.91 | ▼ −11.98% | ▼ −13.37% | $2.24 (+3.23%) |
Apr 21, 2026 26w ago | Press Release | $1.50 $1.59 | ▲ +6.00% | ▲ +4.98% | $2.24 (+49.33%) |
Apr 13, 2026 28w ago | EFFECT | $1.39 $1.43 | ▼ −2.88% | ▼ −1.67% | $2.24 (−61.15%) |
Mar 19, 2026 31w ago | Insider Cluster | $1.52 $1.45 | ▼ −4.29% | ▼ −2.55% | $2.24 (+47.85%) |
Mar 19, 2026 31w ago | Insider Cluster | $1.52 $1.45 | ▼ −4.29% | ▼ −2.55% | $2.24 (+47.85%) |
US Market Status
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