Neuronetics, Inc. (STIM): Marketing Mix Analysis [Dec-2025 Updated]

Honestly, you're looking at a fascinating pivot point for Neuronetics, Inc. as we close out 2025; they are defintely executing a tough vertical integration strategy, trying to balance high-margin capital equipment sales with the recurring, but lower-margin, service revenue from their own Greenbrook clinics, all while targeting full-year revenue between $147 million and $150 million. The tension is real: Q3 saw $21.8 million from those clinics, which is why the gross margin dipped to 45.9%, but this move is supported by recent wins like the New York Medicaid expansion. Let's dive into the four P's-Product, Place, Promotion, and Price-to see exactly how this complex marketing mix is designed to deliver on that revenue target.

Neuronetics, Inc. (STIM) - Marketing Mix: Product

You're looking at the core offering from Neuronetics, Inc. (STIM), which centers on the NeuroStar Advanced Therapy System. This is their flagship product, a non-invasive Transcranial Magnetic Stimulation (TMS) device designed to treat specific neurohealth disorders. It uses focused magnetic pulses to stimulate brain neurons, offering a non-drug alternative for patients who haven't found relief with medication alone. The system is built around a versatile coil design, meaning existing providers can treat multiple indications without needing to purchase additional hardware, which is a key product feature for adoption.

The product's value proposition is heavily tied to its regulatory approvals. As of late 2025, the NeuroStar system has secured several critical clearances from the U.S. Food and Drug Administration (FDA), expanding its total addressable market significantly. For instance, the addition of the adolescent indication increased the total addressable market for Major Depressive Disorder (MDD) by approximately 35% to 29.3 million patients, based on data from early 2025.

• FDA-cleared for Major Depressive Disorder (MDD) in adults, first authorized in 2008 for treatment-resistant depression.
• FDA-cleared as a first-line adjunct therapy for MDD in adolescent patients aged 15-21.
• FDA clearance received as an adjunct therapy for Obsessive-Compulsive Disorder (OCD) in May 2022.
• FDA clearance received to treat anxiety symptoms for adult patients with MDD, commonly known as anxious depression, in July 2022.

Neuronetics, Inc. has also integrated its product delivery through its subsidiary, Greenbrook Mental Wellness Centers, which was acquired effective December 9, 2024. This vertical integration allows the company to offer both the NeuroStar treatment and complementary therapies. Greenbrook treatment centers offer SPRAVATO® (esketamine) Nasal Spray, indicated for treatment-resistant depression (TRD) and depressive symptoms in MDD with acute suicidal ideation or behavior. As of the third quarter of 2025, management reported that 84 of 89 eligible Greenbrook clinics were live with the SPRAVATO rollout. This combination of offerings enhances the overall treatment portfolio available to patients within the network. The Greenbrook clinic revenue for the three months ended September 30, 2025, was $21.8 million.

The company is actively working on the next evolution of its product delivery through research and development. Specifically, Greenbrook Mental Wellness Centers initiated a trial program evaluating the feasibility of personalized qEEG-informed protocols for delivering TMS therapy using the NeuroStar TMS System. Initial outcomes reported in June 2025 demonstrated operational feasibility and the successful application of these tailored protocols using the commercially available system. This focus on personalization aims to optimize treatment efficacy further. Here's a quick look at the system sales performance through the first three quarters of 2025:

Furthermore, the company is expanding its reach through strategic partnerships that leverage the Greenbrook operational model. Neuronetics, Inc. announced an exclusive three-year agreement with Elite DNA Behavioral Health to become the sole provider of TMS devices across Elite DNA's 30+ locations, starting with a pilot launch in the fourth quarter of 2025. This move operationalizes the Greenbrook acquisition strategy by offering systemized support services to other organizations. To date, the NeuroStar platform has treated over 229,429 global patients, accumulating more than 8.2 million treatment sessions as of the third quarter of 2025.

Neuronetics, Inc. (STIM) - Marketing Mix: Place

You're looking at how Neuronetics, Inc. gets its NeuroStar system and related services to the people who need them. Place, or distribution, is definitely a hybrid model here, blending direct sales with a significant vertically integrated service component. This setup lets the company control the patient experience more closely, especially through its clinic network.

The distribution strategy hinges on two main U.S. channels. First, there's the direct sales channel for the NeuroStar system itself to medical practices. This focus shifted in 2025; management realigned the capital team to concentrate on strategic, higher-volume accounts. This focus resulted in shipping 40 NeuroStar Advanced Therapy Systems in the third quarter of 2025, which generated $3.5 million in U.S. NeuroStar System revenue for that period. That system revenue was down 15% compared to Q3 2024, reflecting that strategic shift.

Second, and perhaps more central to current revenue, is the vertically integrated service delivery. This is executed through the Greenbrook TMS treatment centers, which number over 95 in the U.S.. This channel is critically important; U.S. Greenbrook clinic revenue hit $21.8 million in Q3 2025, marking a 25% adjusted pro forma increase over Q3 2024. Honestly, this clinic revenue makes up the bulk of the total $37.3 million in worldwide revenue for the quarter.

Internationally, the distribution channel is showing strong momentum, seeing a 73% revenue increase in Q3 2025 over Q3 2024. That's a significant growth rate, even if the absolute dollar amount isn't broken out here. Anyway, the overall picture shows a company leaning heavily on its owned/operated clinical footprint for service delivery while selectively placing capital equipment.

Here's a quick look at the key Place metrics from Q3 2025:

The operational focus within Place is clearly about maximizing utilization within the existing footprint, which is why cash used in operations improved to just $0.8 million in Q3 2025.

The distribution strategy emphasizes specific account types and channel integration:

• Direct sales prioritize strategic, higher-volume accounts for system placement.
• Vertically integrated delivery through over 95 Greenbrook TMS centers.
• International channel showing 73% Q3 revenue growth year-over-year.
• Clinic revenue ($21.8 million in Q3 2025) is the primary revenue driver.
• System placements are managed to align with strategic account focus, shipping 40 units in Q3 2025.

Neuronetics, Inc. (STIM) - Marketing Mix: Promotion

Neuronetics, Inc. employs a multi-faceted promotional strategy centered on clinical validation, payer access advocacy, and provider enablement to drive adoption of the NeuroStar Advanced Therapy System.

Scientific Marketing and Data Dissemination

The foundation of Neuronetics, Inc.'s promotion rests on the TrakStar® database, which is cited as the world's largest depression outcomes registry. This real-world evidence is crucial for both clinical credibility and regulatory support. Data from this registry supported the U.S. Food and Drug Administration clearance in March 2024 for NeuroStar Advanced Therapy as a first-line, adjunct treatment for major depressive disorder (MDD) in adolescents aged 15-21. The supporting data showed that 78% of adolescent patients treated with NeuroStar achieved clinically meaningful improvement in their depression severity. Furthermore, a study drawing from the TrakStar Clinical Database, which included over 1,200 patients aged 12-21, revealed nearly 70% experienced clinically meaningful improvement, with less than 1% reporting worsening symptoms.

Neuronetics, Inc. actively presents this scientific evidence at key industry events. For instance, the company participated as a Silver Sponsor at the 13th Annual Clinical TMS Society (CTMSS) Meeting in June 2025 in San Diego, CA. At this meeting, presentations derived from the TrakStar data set included an analysis on late-life depression in adults aged 70 and older and a direct comparison of clinical outcomes between NeuroStar's proprietary coil and Brainsway's H-coil in Greenbrook centers.

Advocacy and Public Relations for Payer Access

A significant promotional effort involves publicizing and securing expanded insurance coverage, which directly impacts patient access and utilization. As of late 2025, this advocacy yielded substantial results:

• New York State Medicaid began covering TMS therapy for adults effective October 1, 2025, for fee-for-service members and November 1, 2025, for managed care, expanding access to over 5 million members statewide.
• TRICARE, through its regional administrator TriWest, updated its medical policy effective November 12, 2025, to cover TMS for adolescents aged 15 and older across 26 states.
• The adolescent FDA clearance in 2024, bolstered by this coverage expansion, increased the total addressable market for MDD by approximately 35% to 29.3 million patients.
• Other major insurers noted to cover adolescents 15+ include Evernorth Health Services (Cigna), Humana, Aetna, and BlueCross BlueShield Health Care Service Corporation (BCBS-HCSC).

The company highlights its cumulative patient reach, noting over 229,429 global patients treated with 8.2 million treatment sessions as of the third quarter of 2025.

Provider Enablement: The Better Me Provider (BMP) Program

Neuronetics, Inc. launched the Better Me Provider (BMP) program nationally in July 2024 to standardize and enhance patient care accessibility. This program focuses on training and operational support for practices committed to rigorous standards. The program demonstrated tangible operational improvements for participating sites:

At the time of its national rollout, the program had over 350 active sites, with over 125 more committed to adhering to the standards. This program is a key component of the sales and adoption strategy, directly influencing provider efficiency.

Clinical Presence and Targeted Sales Focus

Clinical presence at medical meetings serves to reinforce the scientific narrative. Neuronetics, Inc. attended the 13th Annual Clinical TMS Society (CTMSS) Meeting in June 2025 as a Silver Sponsor. The company also announced management participation in the Piper Sandler 37th Annual Healthcare Conference on December 4, 2025.

The company has also focused its commercial efforts following internal realignments. For the third quarter of 2025, U.S. NeuroStar Advanced Therapy System revenue was $3.5 million, with 40 systems shipped. This system sales figure, alongside the clinic revenue of $21.8 million for Q3 2025, reflects the integrated commercial focus post-acquisition.

Finance: draft 13-week cash view by Friday.

Neuronetics, Inc. (STIM) - Marketing Mix: Price

You're looking at how Neuronetics, Inc. prices its NeuroStar Advanced Therapy system and the recurring revenue stream, which is key to understanding its market accessibility and perceived value. Pricing strategy here isn't just about the sticker price; it's deeply tied to payer environments.

System pricing is capital equipment-based; Q3 2025 system revenue of $3.5 million from 40 units implies an average selling price around $87,500. That's the upfront cost for a provider to acquire the capital equipment necessary to offer the therapy. This pricing power, however, is heavily influenced by third-party payer reimbursement rates and coverage decisions, which dictate whether a patient can actually access the treatment without paying the full capital cost out-of-pocket.

Revenue is increasingly driven by recurring treatment session revenue, totaling $10.5 million in Q3 2025. This recurring component is where the long-term value capture happens for Neuronetics, Inc., as it reflects the utilization of the installed base of systems. For context, U.S. treatment session revenue specifically was $10.54 million in Q3 2025.

The margin structure reflects this mix shift. Gross margin declined to 45.9% in Q3 2025 compared to 75.6% in the prior year quarter due to the inclusion of the lower-margin Greenbrook clinic business. This lower margin on the clinic side pressures the overall profitability, even as the clinic revenue itself grew significantly.

Here are the key financial metrics from Q3 2025 that frame the pricing discussion:

The external environment provides a significant catalyst for future pricing realization and volume. New York State Medicaid expanded coverage for NeuroStar as of October 1, 2025, a key pricing catalyst.

This payer expansion directly impacts accessibility and, therefore, the effective realized price for a large population base. Specifically, this decision expands access to:

• Nearly 1 million fee-for-service Medicaid members starting October 1, 2025.
• More than 4.4 million individuals enrolled in Medicaid Managed Care Organizations starting November 1, 2025.

The company is also focused on operational improvements to offset margin pressures. For instance, management noted that for the first time, they collected more cash in the quarter than they booked as revenue, aided by check-in kiosks and revenue cycle improvements, with cash used in operations falling to $0.8 million in Q3 2025. Finance: draft 13-week cash view by Friday.