NEURONETICS INC (NASDAQ:STIM) Stock Plummets 22% on Q3 2025 Revenue Miss

Financial Performance Overview

NEURONETICS INC (NASDAQ:STIM) reported its third-quarter 2025 financial results, delivering a mixed performance against analyst expectations. The company's revenue showed notable growth, though it fell short of market forecasts, while its earnings per share loss was slightly narrower than anticipated.

• Reported Revenue: $37.3 million
• Estimated Revenue: $38.6 million
• Reported Non-GAAP EPS: -$0.13
• Estimated Non-GAAP EPS: -$0.13

The company highlighted an 11% adjusted pro forma revenue growth compared to the same quarter in 2024. A significant driver of this performance was its Greenbrook clinic operations, which generated $21.8 million in revenue—a 25% increase on an adjusted pro forma basis year-over-year.

Market Reaction and Price Action

The market's immediate response to the earnings release was decisively negative. In pre-market trading, the stock experienced a sharp decline, reflecting investor disappointment primarily with the revenue miss.

• Pre-Market Performance: -22.4%
• Weekly Performance: -10.4%
• Monthly Performance: -2.1%

This substantial pre-market drop indicates that investors were focused on the company's failure to meet top-line revenue estimates, overshadowing the fact that the per-share loss was essentially in line with expectations. The negative momentum contrasts with the stock's relatively flat performance over the previous two weeks, suggesting the earnings report introduced new concerns.

Strategic Developments and Leadership Transition

Beyond the financial figures, the earnings announcement contained significant corporate news. The company revealed a CEO transition plan, indicating forthcoming leadership changes at the executive level. Such transitions often create uncertainty among investors as they await the strategic direction of the new leadership. The press release emphasized the company's continued focus on its NeuroStar Advanced Therapy system and the expansion of its treatment capabilities, including the offering of Spravato for treatment-resistant depression.

Forward-Looking Expectations

Looking ahead, analyst estimates provide a benchmark for NEURONETICS INC's future performance. The company did not provide specific financial guidance in the press release materials, leaving investors to rely on existing market expectations for the coming periods.

For the full year 2025, analysts project:

• Estimated Sales: Approximately $154.1 million
• Estimated EPS: Approximately -$0.58

For the fourth quarter of 2025, expectations are:

• Estimated Sales: Approximately $43.9 million
• Estimated EPS: Approximately -$0.10

The absence of company-provided outlook in the press release means the market cannot compare management's confidence against these analyst projections, which may contribute to the cautious investor sentiment reflected in the stock's decline.

For a detailed breakdown of historical earnings, future estimates, and analyst revisions, you can review the dedicated earnings page for NEURONETICS INC (STIM).

Disclaimer: This article presents factual information based on recent earnings reports and market data for informational purposes only. It does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.