MeritValue

Neuronetics, Inc.

STIMdata completeness 100%10 fiscal years on file

Data notes: no data for concept 'incomeTaxExpense'

The thesis, from the filings

Neuronetics, Inc. earns about -104% on equity, but has diluted owners by 159% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$55.3M1$65.2M2$71.3M3$74.9M3$149.2M3
Net income−$31.2M4−$37.2M5−$30.2M6−$43.7M6−$39M6
Operating cash flow−$28M7−$30.7M8−$32M9−$31M9−$20.4M9
Capital expenditure$2.35M10$3.27M11$2.37M12$1.47M12$801,00012
Free cash flow (derived)−$30.3M7−$34M8−$34.4M9−$32.5M9−$21.2M9
Total debt$70.7M13$71.9M14$118.6M15$110.3M16$131.6M16
Cash & equivalents$94.1M17$70.3M18$59.7M19$18.5M19$28.1M19
Diluted shares25.5M26.9M28.7M31.7M66.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$3.39
your share of equity
Profit it earned you last year
−$5.91
Free cash flow it threw off
−$3.21
Debt you’d be carrying
$19.96

10 shares is a claim on $3.39 of net worth that earned you −$5.91 and generated −$3.21 of cash last year, against $19.96 of debt.

iii. Is this a good business?
Moat signal · return on equity
-104% avg · 5y
FY21 -37%FY22 -65%FY23 -88%FY24 -158%FY25 -174%

It earned an average -104% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+159% shares · 5y

Share count is up 159% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 86% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-002772 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-25-003833 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001104659-26-029004 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-002772 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001558370-25-003833 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001104659-26-029004 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-24-002772 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-25-003833 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001104659-26-029004 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001558370-24-002772 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2022-12-31 · accession 0001558370-25-003833 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2023-12-31 · accession 0001104659-26-029004 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2021-12-31 · accession 0001558370-23-003044 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001558370-24-002772 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001558370-25-003833 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001104659-26-029004 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001558370-23-003044 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001558370-25-003833 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001104659-26-029004 (CashAndCashEquivalentsAtCarryingValue)