Q2 2025 Neuronetics Inc Earnings Call
Financial and operating results.
At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 1, 1 on your telephone. You will then hear an automated message. Advising your hand is raised to withdraw your question. Please press star 1 1 again.
Please be advised that today's conference is being recorded. I would now like to hand the call over to Mark Klausner. Please go ahead.
Good morning and thank you for joining us for the neuronetics. Second quarter 2025 conference call.
Joining me on today's call are neuronetics president and chief executive officer, Keith Sullivan and Steve Faneuil neuronetics recently appointed Chief Financial Officer.
Before we begin, I would like to caution listeners that certain information discussed by management. During this conference call will include forward-looking statements covered under the Safe Harbor. Provisions of the private Securities. Litigation Reform, Act of 1995 including statements related to our business strategy, financial and revenue Guidance. The Greenbrook integration and other operational issues in metrics.
Actual results can differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the company's business.
For a discussion of risks and uncertainties associated with neuronetics business. I encourage you to review the company's filings with the Securities and Exchange Commission, including the company's quarterly report on form 10q, which will be filed later today.
The company, disclaims, any obligation to update, any forward-looking statements made during the course of this call. Except as required, by law.
During the call, we'll also discuss certain information on a non-gaap basis, including ibida.
Management believes that non-gaap financial information. Taken in conjunction with us gaap Financial, measures provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of Trends in our operating results.
Management uses non-gaap Financial measures to compare our performance relative to forecast and strategic plans. The Benchmark, our performance externally against competitors and for certain compensation decisions,
Reconciliations between us gaap and non-gaap results are presented in the tables are competing. Our press release which can be viewed on our website with that. It's my pleasure to turn the call over to neuronetics president and chief executive officer Keith Sullivan.
Thanks, Mark. Good morning, everyone. And thank you for joining us today, I'll begin by providing an overview of our second quarter performance and our key operational updates. Steve fansteel will then provide a brief introduction and review our financial results. All conclude with our outlook before turning to Q&A.
We had a strong second quarter at neuronetics both in terms of our ability to drive accelerated, Topline growth and progress towards cash flow positivity.
While we still have some fine-tuning to do to optimize the efficiency of the Greenbrook operations. We are excited about the strength in the underlying business, and feel the early results, validate our thesis for the combination.
Total revenue was 38.1 million.
And 18% year-over-year increase on an adjusted proforma basis.
Revenue from the neurostar. Business was 15.1 million comprised of neurostar system, revenue of 3.5 million with 41 system shift,
Us treatment session revenue of 10.8 million up, 13% on a ProForm of basis and other revenue of 375,000.
Us Clinic Revenue was 23 million. Our largest quarterly Clinic Revenue to date and only the second time. Greenbrook generated over twenty million dollars in a single quarter.
Beyond the revenue performance, we made progress on our path to cash flow positivity.
Cash used in operations was 3.5 million.
Better than the previously guided Target of under 5 million and a significant improvement from the first quarter.
As we move through 2025, we continue to focus on 3, clear strategic priorities.
First executing on our Greenbrook growth strategy.
Second continuing to scale, our better me provider or BMP program.
Third continuing to improve operating efficiencies and optimize cash collections.
Our Greenbrook growth strategy continues to exceed expectations. The optimization of our Regional Account Manager (RAM) program is delivering strong results.
We have seen significantly improved patient conversion rates, through the implementation of our enhanced patient connection capabilities including automated patient transfer processes QR codes and the coordinated intake team that engage patients while they are still at the referring Physicians office.
During a recent awareness campaign, we scheduled over 350 meetings for our Ram team.
With Physicians anxious to learn how the Greenbrook clinics, can provide care for their patients and help them experience relief from their depression.
These meetings are taking place this quarter and next, and should have an impact on the referrals to our clinics going forward.
We know that a direct referral from a trusted provider, has a much higher conversion into treatment than a marketing lead.
We also continue to improve our operational standardization by placing patient. Coordinators across. Most Greenbrook clinics to enable more efficient, in-person consultations.
Our sperato rollout continues, its strong momentum with 77 of 83 spado eligible clinics now. Offering therapy
Up from 75 in q1.
Keeping us on track for a full rollout across all eligible clinics by year end.
Additionally, we are taking a thoughtful approach to our buy and Bill model expansion.
Based on key learnings from Q2.
As pioneers in the rollout of SPADs and the buying bill model, we are navigating a reimbursement landscape that is not well traveled.
Creating valuable learning for both us and the payers in the space.
What we have learned is that the payers reimburse bravado at a significantly different rates with different timings
With the knowledge we now have we are taking a more analytical approach to buy and Bill expansion.
Focusing on opportunities that deliver good margins.
As we balance, our mix of buy and Bill and administer, and observe our revenue and gross margins should increase.
Building off of the momentum from q1. The collective execution of these initiatives across the Greenbrook Network led us to achieving the strongest Greenbrook, Clinic Revenue quarter in the history of the business. A performance Trend. We expect to continue as our operational initiatives are more widely implemented in the business.
Turning to our second Focus area, our betterme provider program, expansion remains a key driver to our business.
Currently we have 395 active BMP sites with another 113 sites working towards qualification.
The performance metrics of the program continue to validate. Its Effectiveness the MP sites treat 3 times more patients in need per site per quarter than a non- BMP practice and these sites respond to patients approximately 2 times faster than non-participating sites.
These strong BMP performance metrics have fine-tuned our broader marketing approach as we have learned What patients want.
This led us to refocus our marketing strategy around, educating Physicians about the neurostar treatment and the benefits of referring their patients.
What we learned from the Greenbrook is powerful, a referral from a medical provider, is 10 times more likely to result in a new patient start relative to traditional marketing.
We have expanded our Outreach Beyond psychiatrists to include primary care, physicians gynecologists. And other health care providers. Who treat large populations of patients suffering from depression.
We are educating these providers about our services and help them evaluate whether to refer their depressed. Patients for neurostar treatment.
Care for the majority of patients battling depression.
Leveraging the learnings from that program, we conducted a similar campaign for our PDMS.
Through this effort we systematically identified providers surrounding our neurostar accounts and secured meetings with over 210. New Primary Care practices in just a few days.
The level of interest in these educational meetings has been high.
And we have already seen referrals to our neurostar accounts and BMP providers in particular.
Going forward. I am confident that this will be an effective use of our marketing dollars.
And time. Well, spent for our PDM team.
We are calling this comprehensive approach, our provider connection program.
And it works because patients are receiving referrals from their trusted Health Care Providers, and primary care. Physicians are particularly excited about what BMP accounts offer.
We have found that community. Physicians prefer to send patients to BMP sites, based on their commitment to the patient responsiveness and education. Standards
This provider connection program, complements, our other marketing efforts, including our successful TV campaigns and our Co-op marketing program, that continue to drive results.
Our digital marketing efforts continue to drive brand search impression growth.
And we are pleased with the overall marketing efficiency improvements, we are achieving AC the combined organization.
Turning to our third Focus area continuing to improve operational. Efficiencies and optimized cash collections.
Since the closing of the Greenbrook acquisition, we have made significant strides, in driving operational efficiencies across the network, but there are still more opportunities in front of us. For example, in June, we successfully rolled out a self-check-in program. Using kiosks at 4 pilot locations.
Which allow patients to check in for their appointment and pay their co-pay independently.
The implementation was so seamless that we quickly expanded it to 7 additional locations, and we are now planning a full Network rollout.
We have also integrated this through our AMD system.
Which will streamline room management and improve overall patient flow efficiency.
This system not only improves the patient experience but optimizes the time spent by our technicians and intake coordinators, allowing them to help care for more patients on a daily basis without the need for additional headcount.
Beyond the self-check-in program. We have engaged a consultant to conduct a comprehensive review of our operations team structure across the Greenbrook Network. This review will identify additional cost savings and optimization opportunities that we expect to implement through the remainder of 2025.
Further, improving our operational efficiencies and cost structure.
Turning to cash collections.
The initiatives we have put into place are delivering meaningful results.
Claims are being paid more quickly and more reliably than ever. As we continue to systematically address Legacy issues with payers, including the resolution of historical challenges with prepayment audits,
we have also implemented processes to identify and resubmit previously, uncollected claims
Most importantly, we have analyzed. Why claims have been denied in the past, mostly due to incorrect, billing submissions,
We are putting fixes in place to ensure correct information is submitted the first time which should reduce rejections and accelerate cash flow going forward.
Beyond these 3, strategic priorities. We continue to focus on driving growth amongst adolescent patients.
we have seen 25% growth in adolescent, new patient starts in the first half of 2025, compared to 2024
driven by a 2.6 times increase among 15 to 17 year olds.
In the first half of 2025, we treated more than double the number of adolescent, patients treated in all of 2023.
Coverage for adolescent treatments over the past year remains an important growth opportunity for us.
I am also proud to announce the publication of realworld clinical data in the Journal of the American Academy of Child and Adolescent Psychiatry open.
demonstrating the effectiveness of the neurostar TMS system in adolescence and young adults, with major depressive disorder,
Drawing from the neurostar trakstar clinical database.
The world's largest depression, outcome database.
The study included 1200 patients ages, 12 to 21 and revealed nearly 70% experience clinically meaningful improvement with less than 1% reporting worsening symptoms.
With depression, affecting 1 in 5 adolescence and limited safe treatment options available.
We offer a much-needed therapy for these patients.
Overall, I am extremely pleased with the second quarter results.
We delivered strong financial performance that exceeded our expectations while making meaningful progress on our key strategic initiatives.
The operational momentum. We have built gives me confidence that we are successfully executing on the significant value creation, potential of the combined business.
Before we run through the financials, I'd like to take a moment to introduce Steve fansteel.
Who joined us as Chief Financial Officer on July 15th.
Steve brings over 2 Decades of health care experience and has already made valuable contributions to our team. In the first few weeks, I am confident, he will be an excellent leader for our finance organization.
Steve, would you like to say a few words about your first few weeks with the company?
Thank you, Keith and good morning everyone.
It's a pleasure to be here today, I'm excited to be a part of the neuronetics team.
Throughout my career, I have always had a passion for healthcare specifically in delivering solutions that make a difference in patients lives.
I was drawn to neuronetics by the significant opportunity in mental health care, where there continues to be a profound and growing need to improve patients lives.
Neuronetics has built a unique and significant position in the space to its combination of the leading TMS treatment system in neurostar, and through the breadth of its clinical presence with the Greenbrook Network.
In just a few short weeks, I've been able to see the dedication, which Keith and the whole NX team bring every day to helping patients. And it's an honor to be part of this team.
I will now turn to reviewing the financial results.
Unless otherwise noted all performance comparisons are being made for the second quarter of 2025 versus the second quarter of 2024.
In the quarter, total revenue was 38.1 million and increase of 132% compared to revenue of 16.5 million. In the second quarter of 2024, primarily driven by the inclusion of Greenbrook operations, following our acquisition,
on an adjusted ProForm of basis. Adjusting for the impact of the green book, acquisition and Cy closures Revenue, increased 18%.
Revenue from our neurostar business representing our system Revenue as well as us treatment session. Revenue was 15.1 million.
Us neurostar system, Revenue was 3.5 million and we shipped 41 systems.
This represents our second consecutive quarter of system, ASP greater than 85,000, demonstrating the value of our system and its features in an increasingly competitive market.
Us treatment session Revenue was 10.8 million at 13%, increase compared to 9.6 million in the prior year quarter on a pro forma basis.
Us Clinic Revenue, which represents revenue generated by treatment centers from the Greenbrook. Acquisition was 23 million for the 3 months, ended June 30th, 2025 representing the strongest Greenbrook, quarterly Clinic performance to date and a 23% sequential increase over the first quarter.
Gross margin was 46.6%. Compared to 74% in the prior year quarter.
This change in gross margin was primarily a result of the inclusion of green Brooks Clinic business, which operates at a lower margin, as well as a higher mix of Clinic Revenue associated with the buy and bills Privado treatments.
Operating expenses during the quarter, were 25.8 million and increase of 5.1 million or 25%, compared to 20.7 million in the second quarter of 2024.
The increase was primarily attributable to the inclusion of green Brooks. General and administrative expenses were $6.1 million, partially offset by savings in sales and marketing expenses.
Net loss for the quarter was 9.8 million or 15 cents per share as compared to a net loss of 9.8 million or 33 per share in the prior year quarter.
IA was -7.2 Million as compared to -8 million in the prior year quarter.
Turning to the balance sheet as of June 30th. 2025 total cash was 17.5 million. Consisting of cash and cash, equivalents of 11 million and restricted cash of 6.5 million.
This compares to Total cache of 19.5 million as of December 31st 2024 which consists of cash and cash equivalents of 18.5 million and restricted cash of 1 million.
The 5.5 million increase in restricted cash in the second quarter of 2025, was related to establishing a cash collateral account, to support our spread operations.
Our distributor first Privado provides us with 120 day payment terms for purchases, which we had backed by placing 5.5 million of cash into a designated interest-bearing collateral account.
additionally, I'm pleased to report that in August 2025 we became eligible for and received an additional 10 million of funding on our existing debt agreement with perceptive advisors
We became knowledgeable for these funds. As a result of achieving required Revenue conditions under the tranche 2 Funds.
We also remain eligible for an additional 5 million of tranche 2 funding subject to conditions described in the agreement.
Furthermore, the existing 2 million. Minimum liquidity requirement has been extended from September 2025 through September 2026 after which, the requirement becomes 5 million
This enhanced Financial flexibility. Strengthens our position as we execute our strategic initiatives and progress towards positive cash flow from operations,
our cash used in operations for the second. Quarter was 3.5 million better than our previously guided Target of under 5 million and significantly improved from 17 million in the first quarter which as a reminder included steps to settle green. Book's Legacy, vendor payment plans, and the pull forward of certain expenses to secure favorable, vendor concessions.
Now turning to guidance.
For the third quarter, we expect net revenue of between 37 million to 39 million.
For the full year 2025, we continue to expect total revenue of between 149 million and 1555 million.
For gross margin. We, now expect our full year to be between 48% and 50% versus our prior guidance of approximately 55%.
The key driver of the change is the shift in Revenue mix with Clinic Revenue representing. A greater percentage of total revenue than previously expected.
In addition, margin will be impacted by the Mix-Ups, bravado Bill, and by Revenue, which carries a lower gross margin versus the ano model.
and the balance of the year we anticipate gross margin Improvement, relative to Q2 as we optimize the spread of buy and Bill roll out relative to our AO business and leverage our fixed infrastructure through continued growth
To reiterate the point, Keith made. Earlier in his remarks, we are looking to maximize the overall profitability of our SPV offering.
Operating expenses are now projected to be between 100 and 105 million for the full year versus the prior guidance of 90 to 98 million.
The updated guidance reflects approximately 20 million in realized annual cost savings, from our efforts in 2024 and associated with the Greenbrook integration.
The changing guidance for 2025 reflects, the need to augment some critical areas, including our claims collections team, which is crucial to our cash management and additional time needed to fully assess and Implement other synergies.
This guidance includes approximately 6 million of non-cash stock based compensation expense for the full year.
We continue to make progress in our cash flow and we are charting cash flow from operations to be in the range of negative 3 million to break, even in the third quarter. And then turning positive in the fourth quarter of 2025
This compares to our prior guidance of positive, cash flow from operations. Beginning in the third quarter of 2025, which has been impacted by updated expectations for gross margin mix, and the Strategic investments in operational capabilities. I just described
We further project year-end 2025 total cash, inclusive of cash, cash equivalents, and restricted cash, to be in the range of $25 million and $28 million, inclusive of the recent perceptive funding.
I'll now turn it back to Keith for his closing remarks.
As we look forward to the remainder of 2025, I'm confident that we are. Well, positioned to continue. Executing on the 3, straight priorities.
And to drive sustainable growth for our shareholders.
Our Greenberg integration and growth strategy exceeded our expectations in Q2, demonstrating the significant value creation potential for this combination.
Going forward. We will continue the systematic roll out as forbat and the buy and Bill model. Advance our operational Improvement initiatives while simultaneously expanding our BMP program across our customer base.
Importantly, we remain focused on achieving cash, flow, positive from operations in 2025.
Our strong second quarter performance. Combined with our learnings on billing of spado ongoing, operational improvements and cost Synergy realization gives us the confidence and reaching this important milestone in the fourth quarter.
The integration of neuronetics and Greenbrook is creating exactly the value. We anticipated, when we announced this transaction, a vertically, integrated organization capable of providing broad access to Innovative mental health treatments while driving sustainable, growth and profitability.
With that overview. I will now open the call for questions, operator.
Thank you.
At this time, we will conduct the question and answer session. As a reminder to ask a question, you will need to press star 1 1 1 on your telephone,
And wait for your name to be announced to withdraw your question. Please press star 1 1 1 again.
1 moment while we compile the Q&A roster.
Our first question comes from Bill Bill ponek your from canaccord genuity. Your line is now open
All right, great. Thanks. Good morning. Can you hear me? Okay.
We can good morning Bill.
Hey, good morning. Um, so a couple of things 1, you know, obviously Greenbrook is doing uh, very well. Uh, you've done a, a great job integrating that I'm, I'm just kind of curious as we look at the, uh, traditional, um, stim business, kind of maybe a little slower than what we were looking for. Can you help us understand the Dynamics, are the referrals being pushed to the Greenbrook centers from the Physicians? Because the BMP and and they just have better. Um, kind of efficiencies or is there anything specific going on? That's that's maybe making the traditional neurodex platform, maybe not as successful as the Greenbrook.
No, thanks for the question, bill.
You know, after our analysis of the ram referral approach to patient education and awareness, it became clear to us that the more efficient use of the marketing dollar and the time of our pdms was to use both to follow up on the provider connection path.
So under this program, our marketing dollars goes towards educating of the pcps through our digital and social media platform. So once we have these educational meetings with the pcps and their staff set up and we deploy the conduits to for the referrals,
Uh, to our neurostar customers and to primarily our BMP sites.
So which uh we then have a simple way for patients to go from 1 office uh, to the providers.
So we know from the ram program that this shift in strategy would take a few months to gain traction and we felt that this quarter was the best time to start it. We were able to deliver 13% growth in spite of the shift but we believe that the provider connection program is way more efficient and will uh eventually turn to a higher conversion rate for our patients.
Okay, and then so it's basically you've shifted the strategy, uh, to the referrals versus maybe just driving patients and conversions any uh, traditional accounts. If I read that correctly. I'm just what type of impact on your marketing dollars? Does this have longer term? It seems it would be, you know, it's a, it's a human focus and maybe less spend on external kind of marketing.
Is that a right way to think about it?
I I think, as I said, it'll make our marketing dollars more efficient, which you know, may give us an opportunity to to lower that dollar volume. But, you know, in, in going to primary care physicians, we do have to go to some additional trade shows, associated with it. Um, we are, uh, providing educational meetings in localities. So, you know, we still have a marketing, spend to help educate them, but
Example.
They're following that same Playbook um, for the BMP accounts.
Okay. And then uh for Stephen um, welcome aboard just on the resubmitted claims. How much dollars are we talking about? What's the age of those? What's the um, you know percentage belief that you'll uh uh collect on those and then just on the optimizing the spread by and Bill it just sounds like to me, you know, layman's terms, you're going to Halt kind of expanding that program for now until you get uh the the the the the actual dollar reimbursement and timing of getting that cash flow in the door. And thanks for taking my questions.
You mentioned, see, um, the Aged are, um, but we're also doing, uh, a much better job. And, and I'm looking at, say January versus June of this year. In terms of our time to collect on that initial claim where in, uh, when we look at June, we're collecting 10% more of that revenue from June in the first month after those, uh, treatments happen. So, we're getting very efficient on just collecting, what's due to us on time. Um, but yes. Um, we've got still, um, open, um, are from 2024 and earlier this year, that as we've gotten more efficient, um, we're catching.
Up on that piece. I think the problem is as you have any errors or issues with the submissions you have to resubmit that's a longer um kind of time um commitment there but I think as the team is fixed, that we're getting first, pass we go back and we know what we need to do on those other pieces. So
I expect this will continue to be a Tailwind both catching up on on H claims, um, but also just improving on that time to collect of, you know, recent treatments. Um, and I think that gives us a flip through the balance of year, um, and into 2026 as well. In terms of BNB, you know, I I would make 2 comments there, I think the BNB offering, um, has a potential kind of in 2 places 1. Is it, it allows us to, um, increase the number of patients we have access to there are plans where, um, they're asking for both A, and B, and B. Um, to be a part of that program to be, to be able to offer AO, um, other places where, you know, only B and B is an offering. Um, so that's a that's an opportunity for us to seek out. Um, and drive additional treatments access to patients. Um, we didn't have with that said, we have to make sure that the reimbursement is adequate. Um, so that, you know, we're getting appropriate profit, um, on those treatments. Um, and I think there's a couple ways to look at that. Certainly that um, throughout cost
When you think about B&B is a pretty significant increase. Um, so we may not get the same GP percent margin when we think about B&B versus a&o, but on a per treatment basis, we would want those GP dollars, um, to be incremental or higher. Uh,
Because of, You Know, The increased burden that we have of buying that drug. So that that's how we think about it. Giving us access to incremental patients and driving growth but also um it shouldn't be a step backward in terms of profitability on a per treatment basis.
Right. Thanks take my question.
Thank you.
Comes from Adam.
Adam Adam Mater from Piper Sandler. Your line is now open.
1 moment for our next question.
Our next question comes from Dan's daughter of citizens. JP jmpp. Your line is now open.
Yeah, thanks for the questions. Um, just first on Greenbrook, the clinical sales per site
It was 196,000 last quarter this quarter, I think it was closer to 240,000 if I did that math, right. But you know I just want to ask your opinion or get any commentary high level on how we should be thinking about this metric. More steady state.
You know, it should be ramping up this year with spado and some of the other optimization initiatives you're implementing but you know, long term, what's a normalized level we should think about in our models.
Yeah, yeah. And and
let me make sure.
And so you were asking about um just what you think kind of it is on a per um clinic or per site basis um on the Green Brook side.
Sites on the total Clinic Revenue.
Yeah, I I, I, I don't think we've, um, you know, put out a a target for that. I think, you know, I would just continue to look at the total all total, um, Revenue Trends, um, for the business. And what we've seen first half the second half. Um, I mean, right now, when we look at, um, first half year to date performance overall, it's been about um, 60% Clinic Revenue business. We expect that will continue to remain about that 60% level. Um, and you know, we provided guidance for the full year so that that kind of gives you an ability to track into what we see that green broke Revenue. Um, looking like for the full year, I think on a site basis, um, where where it can be a little challenging to say there's a Target there? Certainly we can add beds, we can expand um, you know, the size of some of these sites. Um, so you know, I think there's upward potential there and we're seeing you know, very nice, volume growth. Um, on the Green Brook side of the business, we saw that as we talk about the neuros our business on the treatment side as well, 13% on adjusted Proform and basis. So, um, you know, I think that site number can go up, um, um, you know, continue,
To go up at at a pretty high level.
Great, appreciate that and then just uh, 1 follow up on the adolescence adolescent indication.
You know, great to see the progress here, as well as the positive updates on the clinical and reimbursement side. Uh, but just as far as patient Outreach, I imagine the marketing strategy here has to be a little bit more nuanced. So could you just give us any color on your approach and how, how are you? Driving awareness and adoption. And you know what? What's driving that on on your end? Thank you.
Yeah, we had uh, we have uh the data for each 1 of our providers and so we know which are uh taking care of uh adolescent patients.
And we have targeted those folks through our uh, provider connection program and our educating them both, uh, by going to trade shows that they attend. But uh primarily in their offices and uh it gives us a more intimate opportunity to explain to them the benefits that TMS can provide to those patients. So we've seen a, a very nice uplift from uh the provider connection program when we when we can identify exactly who those providers are.
Great, thank you very much.
As a reminder.
To ask a question. Please press star 1, 1 on your telephone.
And wait for your name to be announced.
Our next question comes from.
Adam mater of Piper Sandler. Your line is now, open.
Hey, can you guys hear me?
We can Adam, how are you?
This is this is actually Kyle Kyle on, for Adam. Uh, thanks for taking the questions. Sorry about the technical difficulties there. Um, no problem. I just wanted to ask, I guess, just 1 on, um, kind of the Cadence for
Um, the guidance here and how we're thinking about the back half. So, um,
I guess if if my math is right, just kind of looking at the Q3 guidance, I think we're kind of, kind of contemplating a steep ramp here in Q4. So just kind of trying to get an idea between uh, kind of Q3 and Q4 for for revenue and the different pieces there. Thanks.
Yeah, Kyle I mean maybe the the first point to make is we had a, a strong Q2 sales result. So, we went from 32 million in sales in q1 to over 38 million. I mean, we we were very pleased with that we exceeded the guidance and and the consensus for the quarter. I think in Q3 we just have seasonality in the business. That's a result of the July 4th holiday summer vacation season that generally impacts the overall treatments. Um just driving slower growth um for that first half of of the third quarter here. Um you know I think what we expect to see is and what we've seen historically
It's pretty significant increase as we go from Q3 to Q4 um where we see the offsetting benefits. Um,
The Tailwind of that seasonality coming back in Q4, so, uh, you know, that that's how we we kind of look at this. That's
Where the guidance is set up. Um, so having a 6 million increase from q1 to Q2 and then having a similar increase to Q3 to Q4. I think that's um, consistent with what we're seeing in the business, and then just the seasonality piece, driving that
Combined business, kind of kind of on this trend.
Yeah and we we haven't provided any, any specific 2026 guidance, but I would say um, the mix is really going to be the the biggest product of of of Revenue, right? And that that difference between neurostar and Greenbrook. Uh you know if you look when we are Standalone the nearest our margins we're around, you know, mid 70%, you know, 74 75% and nothing's fundamentally changed in that cost structure. Um Greenbrook if you just do the math on our our 48% year to date the Greenbrook, um you know gross profit margins around 30%. I I think that the biggest thing we have going. You know, once you account for that that next piece we do have upside, I think especially on the Greenbrook side just leveraging that fixed clinical infrastructure. The more efficient the more um, treatments per share, you do. Um, and those Greenberg clinics, you are leveraging that, that fixed overhead, I think that's going to help us, um, on a continual basis, even even throughout 2026. And then I think the, um, optimizing the BMV piece, um, to, to drive incremental, but we know versus Q2 we're going to op.
Um, where we make that offering and ensure we've got, you know, adequate reimbursement and pricing.
So I think we'll be able to optimize relative to what I would consider a lower Q2 base on the the, the the billing. Bye. Bye. And Bill, uh, portion of provider.
Super helpful, thanks.
Thank you.
This concludes the question and answer session, I would now like to turn the call over to Keith Sullivan for closing remarks.
Thank you for your interest in neuronetics. We look forward to updating you on our next quarterly. Call have a great day.
This concludes, um, the conference today. Thank you for your participation.
you may now disconnect