Latest news with #Greenbrook
Yahoo
30-04-2025
- Business
- Yahoo
Why Neuronetics, Inc. (STIM) is Surging in 2025
We recently published a list of . In this article, we are going to take a look at where Neuronetics, Inc. (NASDAQ:STIM) stands against other healthcare stocks that are surging in 2025. After lagging behind the broader market in 2024, many healthcare stocks are making a comeback this year. Healthcare spending has been continuously soaring and is projected to do so in the coming years due to demographic tailwinds. The industry now accounts for a fifth of the U.S. economy, and it's a good idea to have exposure to it. Most executives now hold a favorable view of the industry's prospects, a notable increase from 52% just a year ago. Moreover, it's an industry that is more insulated from tariffs and macro risks. Of course, the top gainers here are not defensive healthcare stocks, but it's still worth looking into the winners here if you are chasing potential multibaggers. Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified in another article. For this article, I screened the best-performing healthcare stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A lab technician gazing into a microscope, analyzing sample slides for medical technology research. Number of Hedge Fund Holders In Q4 2024: 5 Neuronetics, Inc. (NASDAQ:STIM) is a medical device company that manufactures and markets NeuroStar Advanced Therapy, a leading transcranial magnetic stimulation (TMS) system for treating major depressive disorder and other mental health conditions. The stock's strong performance in early 2025 was driven by several transformative developments. The most impactful was the completion of its acquisition of Greenbrook TMS in December 2024. This deal combined Neuronetics' technology with Greenbrook's network of over 95 clinics, creating a vertically integrated leader in mental health therapy delivery and unlocking over $22 million in annualized cost synergies. Neuronetics, Inc. (NASDAQ:STIM) also reported preliminary full-year 2024 revenue of $74.5 million, with pro forma revenue (including Greenbrook) at $129.8 million. The company issued 2025 guidance for 12% to 19% year-over-year revenue growth and projected cash flow breakeven by the third quarter of 2025. Another major catalyst was the FDA's clearance in March 2024 for NeuroStar as a first-line add-on treatment for adolescent depression, expanding the addressable market by 35% and supporting future growth. The consensus price target of $5.5 implies 22.77% upside. Neuronetics, Inc. (NASDAQ:STIM) stock is up 178.26% year-to-date. Overall, STIM ranks 5th on our list of healthcare stocks that are surging in 2025. While we acknowledge the potential of STIM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STIM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
05-03-2025
- Business
- Yahoo
Neuronetics Inc (STIM) Q4 2024 Earnings Call Highlights: Revenue Growth Amidst Rising Expenses ...
Total Revenue: $22.5 million, an increase of 11% over the fourth quarter of 2023. NeuroStar System Revenue: $3.8 million with 46 systems shipped. U.S. Treatment Session Revenue: $12.9 million, a decrease of 14% year-over-year. U.S. Clinic Revenue: $4.4 million, representing Greenbrook's revenues post-acquisition. Gross Margin: 66.2%, down from 77.6% in the prior year quarter. Operating Expenses: $25.8 million, an increase of 28% compared to the fourth quarter of 2023. Net Loss: $12.1 million or $0.33 per share, compared to a net loss of $5.4 million or $0.19 per share in the prior year quarter. EBITDA: Negative $10.5 million, including $10.6 million in non-recurring expenses. Cash and Cash Equivalents: $18.5 million as of December 31, 2024. Debt Facility: Secured up to $90 million, with $60 million accessed by year-end. Capital Raise: $18.9 million in net proceeds from a public offering. Guidance - Q1 2025 Revenue: Expected to be $28 million to $30 million. Guidance - Full-Year 2025 Revenue: Expected to be $145 million to $155 million. Guidance - Full-Year 2025 Gross Margin: Approximately 55%. Guidance - Full-Year 2025 Operating Expenses: Expected to be $90 million to $98 million. Warning! GuruFocus has detected 8 Warning Signs with STIM. Release Date: March 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Neuronetics Inc (NASDAQ:STIM) reported a total revenue of $22.5 million for Q4 2024, marking an 11% increase over the same period in 2023. The acquisition of Greenbrook TMS has transformed Neuronetics into a vertically integrated mental health care provider, enhancing its market position. The Better Me Provider (BMP) program has been a success, with participating sites treating three times more patients per quarter than non-participating sites. Neuronetics received FDA clearance for the NeuroStar system to treat adolescent patients, expanding its addressable market. The company has captured over 90% of the identified $22 million in annualized cost synergies from the Greenbrook acquisition, surpassing initial targets. Gross margin decreased to 66.2% from 77.6% in the prior year quarter, primarily due to the inclusion of the Greenbrook Clinic business. Operating expenses increased by 28% to $25.8 million, largely due to professional fees and the inclusion of Greenbrook's expenses. Net loss for the fourth quarter was $12.1 million, compared to a net loss of $5.4 million in the prior year quarter. EBITDA was negative $10.5 million, with non-recurring expenses associated with the Greenbrook acquisition impacting results. Cash and cash equivalents decreased significantly to $18.5 million as of December 31, 2024, from $59.7 million the previous year. Q: How long will it take to implement the BMP and standardize operations at Greenbrook sites, and what impact has been observed so far? A: Keith Sullivan, President and CEO, stated that training for RAMs and technicians has been conducted, with ongoing virtual education for providers. Changes will continue throughout the year, with improvements in efficiencies being identified and implemented. Q: Can you provide details on the revenue guidance of $145 million to $155 million and the expected operating expenses? A: Steve Furlong, CFO, explained that $65 million to $70 million is expected from standalone Neuronetics, with $80 million to $85 million from Greenbrook TMS. The programs need to continue working, but no heroic efforts are required. Operating expenses are expected to be between $90 million and $98 million, with significant cost synergies already realized. Q: What opportunities exist to improve the margin profile of Greenbrook, and what is the expected impact on consolidated margins? A: Steve Furlong noted that Greenbrook's clinic margins are expected to improve to mid-30s from 27%-28% due to the elimination of underperforming clinics. Consolidated margins are projected at 55%, with ongoing efforts to improve both NeuroStar and clinic margins. Q: How is the SPRAVATO rollout progressing, and what are the capital requirements for this initiative? A: Steve Furlong mentioned that SPRAVATO is offered in 63 clinics, with 35 capable of buy and bill. The capital outlay is minimal, with infrastructure already in place. Inventory commitments could reach $5 million, but distribution partners offer 120-day terms to manage cash flow. Q: What is the current productivity level at Greenbrook sites, and what improvements are expected? A: Steve Furlong stated that Greenbrook is averaging four patients per day per system, with expectations to increase to five or six patients per day through training and education. This could add approximately $10 million in annualized revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
