📊 STIM Key Takeaways
Is Neuronetics, Inc. (STIM) a Good Investment?
Neuronetics exhibits exceptional revenue growth (+99.2% YoY) with healthy gross margins (46.9%), but fundamentals are severely compromised by negative operating cash flow (-$9.4M), high leverage (4.62x Debt/Equity), and inability to cover interest expenses. At current burn rates with only $13.2M cash, financial distress risk is substantial despite improving loss trajectory.
Neuronetics, Inc. Key Strengths (STIM)
- Exceptional top-line growth at 99.2% YoY demonstrates strong market demand
- Solid gross margin of 46.9% indicates pricing power and viable unit economics
- Improving loss per share trend (+57.2% YoY) suggests operational path toward profitability
STIM Stock Risks: Neuronetics, Inc. Investment Risks
- Negative operating cash flow (-$9.4M) and negative free cash flow (-$9.6M) are unsustainable
- Extreme leverage of 4.62x Debt/Equity with only $13.3M stockholders equity and $61.3M long-term debt creates financial distress risk
- Negative interest coverage (-4.0x) indicates inability to service debt from operations; cash runway approximately 1.4 years at current burn rate
- Operating margin of -26.1% shows growth is not yet profitable despite rapid scaling
- High insider activity (24 Form 4 filings in 90 days) warrants scrutiny regarding confidence
Key Metrics to Watch
- Time to operating profitability and path to positive operating margins
- Operating cash flow trajectory and time to positive FCF generation
- Debt refinancing needs and debt maturity schedule relative to cash position
- Gross margin sustainability as revenue scales and operating leverage improvement
Neuronetics, Inc. (STIM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Neuronetics, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
STIM Profit Margin, ROE & Profitability Analysis
STIM vs Healthcare Sector: How Neuronetics, Inc. Compares
How Neuronetics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Neuronetics, Inc. Stock Overvalued? STIM Valuation Analysis 2026
Based on fundamental analysis, Neuronetics, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Neuronetics, Inc. Balance Sheet: STIM Debt, Cash & Liquidity
STIM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Neuronetics, Inc.'s revenue has grown significantly by 138% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.05 indicates the company is currently unprofitable.
STIM Revenue Growth, EPS Growth & YoY Performance
STIM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $32.0M | -$10.8M | $-0.16 |
| Q3 2025 | $18.5M | -$9.0M | $-0.13 |
| Q2 2025 | $16.5M | -$9.8M | $-0.15 |
| Q1 2025 | $17.4M | -$7.9M | $-0.21 |
| Q3 2024 | $17.9M | -$4.9M | $-0.33 |
| Q2 2024 | $16.5M | -$4.9M | $-0.17 |
| Q1 2024 | $15.5M | -$7.9M | $-0.27 |
| Q3 2023 | $16.5M | -$4.9M | $-0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Neuronetics, Inc. Dividends, Buybacks & Capital Allocation
STIM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Neuronetics, Inc. (CIK: 0001227636)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STIM
What is the AI rating for STIM?
Neuronetics, Inc. (STIM) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STIM's key strengths?
Claude: Exceptional top-line growth at 99.2% YoY demonstrates strong market demand. Solid gross margin of 46.9% indicates pricing power and viable unit economics.
What are the risks of investing in STIM?
Claude: Negative operating cash flow (-$9.4M) and negative free cash flow (-$9.6M) are unsustainable. Extreme leverage of 4.62x Debt/Equity with only $13.3M stockholders equity and $61.3M long-term debt creates financial distress risk.
What is STIM's revenue and growth?
Neuronetics, Inc. reported revenue of $34.5M.
Does STIM pay dividends?
Neuronetics, Inc. does not currently pay dividends.
Where can I find STIM SEC filings?
Official SEC filings for Neuronetics, Inc. (CIK: 0001227636) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STIM's EPS?
Neuronetics, Inc. has a diluted EPS of $-0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STIM's fundamental grade?
Based on our AI fundamental analysis in May 2026, Neuronetics, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is STIM stock overvalued or undervalued?
Valuation metrics for STIM: ROE of -81.3% (sector avg: 15%), net margin of -31.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is STIM's AI grade for 2026?
Our dual AI analysis gives Neuronetics, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STIM's free cash flow?
Neuronetics, Inc.'s operating cash flow is $-9.4M, with capital expenditures of $197.0K. FCF margin is -27.9%.
How does STIM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -31.3% (avg: 12%), ROE -81.3% (avg: 15%), current ratio 1.67 (avg: 2).
Is Neuronetics, Inc. carrying too much debt?
STIM has a debt-to-equity ratio of 4.62x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.67 suggests adequate short-term liquidity.