STIM

The headline +99.2% revenue growth to $149M is not organic — it is the December 2024 Greenbrook acquisition consolidating a low-margin clinic business. The MD&A makes this explicit: clinic revenue jumped from 6% to 59% of U.S. revenue while higher-margin system sales fell from 21% to 10%. Stripping the deal out, the legacy device business had crept from $55.3M (FY2021) to $74.9M (FY2024) and never once turned a profit across five years. So STIM is buying scale, not earning it, and the merger dilutes gross margin (48.5%) rather than improving the economics.

The balance sheet is the disqualifier. Stockholders' equity is down to $22.4M (-19.2%) against $115M of liabilities — a 5.15x leverage ratio — with long-term debt up 19.3% to $65.8M and a $459M accumulated deficit. Operating cash flow was -$20.4M against just $28.1M of cash, implying roughly one to one-and-a-half years of runway before another raise. Management is already funding the gap dilutively: the 10-K discloses ATM sales during 2025 at an average $3.68, and shares are up 5.3% — yet the stock now trades at $1.36, far below both that ATM price and the $17 IPO. New equity at these levels is brutally dilutive, and at a sub-$2 handle Nasdaq listing maintenance becomes a live concern.