Neuronetics, Inc. Segments Disclosure
22. SEGMENT INFORMATION
The Company reports the results of our operations as two segments in our consolidated financial statements: (i) medical device and (ii) clinic services.
The determination of our reporting segments was made based on our strategic priorities, which corresponds to the way our CODM reviews and evaluates operating performance to make decisions about resources to be allocated. For our operating segments, the CODM uses segment gross profit and segment loss before unallocated general and administrative as the primary measure of segment performance because it reflects results that are directly attributable to each reportable segment and is the measure most consistent with the Company’s consolidated results prepared in accordance with U.S. GAAP. The CODM does not regularly review any other measures of segment profit or loss for purposes of assessing segment performance or allocating resources.
On a monthly basis, the CODM considers month-to-month and budget-to-actual variances for both measures when allocating resources to segments. The accounting policies of its segment are the same as those described in the summary of significant accounting policies. The CODM is regularly provided information on total consolidated assets and liquidity; however, the CODM is not provided asset information at the reportable segment level. Accordingly, segment assets have not been disclosed.
Significant segement expenses regularly reviewed by CODM for both segments include directly attributable cost of revenues, selling, general and administrative and research and development expenses. Unallocated general and administrative costs include corporate support functions such as executive management, corporate accounting, information technology, legal human resources and Board of Directors fees. Additionally, unallocated general and administrative costs may also include expenses such as litigation and merger and related acquisition-related costs, which are not specific to a segment and thus not allocated to the reportable segments.
Segment information for prior periods has been recast to conform to the current year reportable segment structure. There were no intercompany transactions between the Company’s reportable segments during the years presented. Reportable segment information is presented below (in thousands):
Year ended December 31, 2025 | Med Device | Clinic Service | Total | |||||
Revenue | $ | 62,180 | $ | 86,977 | $ | 149,157 | ||
Cost of revenues | 16,464 | 60,385 | 76,849 | |||||
Segment gross profit | $ | 45,716 | $ | 26,592 | $ | 72,308 | ||
Significant Segment Expense | ||||||||
Selling, General and Administrative | ||||||||
Direct | $ | 36,120 | $ | 29,528 | $ | 65,648 | ||
Research and development | ||||||||
Direct | 6,353 | 231 | 6,584 | |||||
Segment profit/(loss) | $ | 3,243 | $ | (3,167) | $ | 76 | ||
Unallocated expenses | ||||||||
General and Administrative | $ | 31,512 | ||||||
Other income, net | (716) | |||||||
Interest expense | 8,415 | |||||||
Net loss | $ | (39,135) | ||||||
Year ended December 31, 2024 | Med Device | Clinic Service | Total | |||||
Revenue | $ | 70,445 | $ | 4,445 | $ | 74,890 | ||
Cost of revenues | 17,516 | 3,213 | 20,729 | |||||
Segment gross profit | $ | 52,929 | $ | 1,232 | $ | 54,161 | ||
Significant Segment Expense | ||||||||
Selling, General and Administrative | ||||||||
Direct | $ | 44,777 | $ | 854 | $ | 45,631 | ||
Research and development | ||||||||
Direct | 12,758 | 13 | 12,771 | |||||
Segment profit/(loss) | $ | (4,606) | $ | 365 | $ | (4,241) | ||
Unallocated expenses | ||||||||
General and Administrative | $ | 30,322 | ||||||
Other income, net | (2,549) | |||||||
Interest expense | 7,286 | |||||||
Loss on extinguishment of debt | 4,427 | |||||||
Net loss | $ | (43,727) | ||||||
Year ended December 31, 2023 | Med Device | Clinic Service | Total | |||||
Revenue | $ | 71,348 | $ | — | $ | 71,348 | ||
Cost of revenues | 19,643 | — | 19,643 | |||||
Segment gross profit | $ | 51,705 | $ | — | $ | 51,705 | ||
Significant Segment Expense | ||||||||
Sales and marketing | ||||||||
Direct | $ | 47,318 | $ | — | $ | 47,318 | ||
Research and development | ||||||||
Direct | 9,515 | — | 9,515 | |||||
Segment loss | $ | (5,128) | $ | — | $ | (5,128) | ||
Unallocated expenses | ||||||||
General and administrative | 25,426 | |||||||
Other income, net | $ | (5,789) | ||||||
Interest expense | 5,424 | |||||||
Net loss | $ | (30,189) | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 17, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 8, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.