BrainsWay Reports First Quarter 2026 Financial Results and Operational Highlights
Rhea-AI Summary
BrainsWay (NASDAQ:BWAY) reported strong Q1 2026 results, with revenue up 35% year-over-year to $15.5 million and net income more than doubling to $2.3 million. Adjusted EBITDA rose 117% to $2.8 million, operating income reached $2.0 million, and gross margin held at 75%.
Remaining performance obligations increased 25% to $75 million, and a record 117 Deep TMS systems shipped, lifting the installed base to about 1,820. Cash totaled $58.9 million. BrainsWay reiterated 2026 guidance for $66–$68 million revenue, 13%–14% operating margin, and $12–$14 million Adjusted EBITDA.
Positive
- Q1 2026 revenue grew 35% year-over-year to $15.5 million
- Q1 2026 net income rose to $2.3 million from $1.1 million
- Q1 2026 Adjusted EBITDA increased 117% to $2.8 million
- Q1 2026 operating income grew to $2.0 million from $0.6 million
- Remaining performance obligations rose 25% year-over-year to $75 million
- Record 117 Deep TMS systems shipped in Q1 2026, up 44% year-over-year
- Total installed base reached approximately 1,820 Deep TMS systems
- Gross margin maintained at 75% in Q1 2026
- Cash, cash equivalents and restricted cash totaled $58.9 million at March 31, 2026
- 2026 revenue guidance of $66–$68 million, implying 27%–30% growth over 2025
- 2026 operating income targeted at 13%–14% of revenue
- 2026 Adjusted EBITDA guidance of $12–$14 million, 86%–100% growth over 2025
- First insurer coverage secured for accelerated SWIFT Deep TMS protocol
- Growing U.S. payer support for nurse practitioner–administered TMS treatments
- Milestone-based $6 million convertible loan to Neurolief following FDA approval, total $11 million investment
- Minority investments in BrainStim Health and Axis Management to expand strategic portfolio
Negative
- None.
News Market Reaction – BWAY
In the May 13 session, BWAY declined 2.57%, reflecting a moderate negative market reaction. Argus tracked a trough of -4.9% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. Trading volume was above average at 1.5x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 11 | Q4/FY 2025 earnings | Positive | +8.3% | Strong Q4 and full-year growth with raised 2026 guidance and higher EBITDA. |
| Nov 11 | Q3 2025 earnings | Positive | -5.8% | Robust Q3 growth and margin strength but shares sold off post-report. |
| Aug 13 | Q2 2025 earnings | Positive | +4.2% | Record quarterly revenue, higher EBITDA, and expanding Deep TMS installed base. |
| May 13 | Q1 2025 earnings | Positive | +11.1% | Record Q1 sales, sharp profit improvement, and reiterated 2025 guidance. |
| Mar 11 | Q4/FY 2024 earnings | Positive | +4.7% | Record 2024 revenue, return to profitability, and new 2025 growth guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have generally been strong and often met with positive reactions; 4 of the last 5 earnings events saw gains, with one notable selloff despite positive fundamentals.
Over the past five earnings cycles, BrainsWay has reported consistent double‑digit revenue growth, expanding Adjusted EBITDA, and stable 75% gross margins. Q4 2024 revenue reached $11.4M, rising to $13.5M in Q3 2025 and $14.5M in Q4 2025, with full‑year 2025 revenue of $52.2M. Guidance has steadily increased, including $66–68M for 2026. Today’s Q1 2026 report, with $15.5M revenue and doubled profitability metrics, continues this trajectory of scaling revenue, improving profitability, and growing remaining performance obligations.
Key Terms
adjusted ebitda financial
deep tms medical
ifrs regulatory
premarket approval regulatory
non-ifrs financial
net profit financial
income taxes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenue grew approximately 35% year-over-year to
Net income increased by over 100% year-over-year to $2.3 million for Q1 2026
Adjusted EBITDA for Q1 of 2026 more than doubled year-over-year to
Remaining performance obligations grew 25% year-over-year to approximately
Shipped a record total of 117 Deep TMS Systems, indicating significant demand and further strengthening of relationships with enterprise accounts
Reiterates full-year 2026 financial guidance, including revenue of
Conference call to be held today at 8:30 AM ET
BURLINGTON, Mass. and JERUSALEM, May 13, 2026 (GLOBE NEWSWIRE) -- BrainsWay Ltd. (NASDAQ & TASE: BWAY) (“BrainsWay” or the “Company”), a global leader in advanced noninvasive neurostimulation treatments for mental health disorders, today reported first quarter 2026 financial results and provided an operational update.
Recent Financial and Operational Highlights
- Revenue in the first quarter of 2026 increased
35% to$15.5 million , compared with the first quarter of 2025. - Remaining performance obligations (RPOs) increased to
$75 million as of March 31, 2026, up25% compared to the prior year period. - Shipped a net total of 117 Deep TMS™ systems during the first quarter of 2026, representing a
44% increase compared to the same period last year. Total installed base reached approximately 1,820 systems. - Gross margin for the first quarter of 2026 was
75% , steady with the prior year period. - Operating income for the first quarter of 2026 was
$2.0 million , compared with$0.6 million for the prior year period. - Adjusted EBITDA for the first quarter of 2026 increased
117% to$2.8 million , compared with$1.3 million for the prior year period. - Net income for the first quarter of 2026 increased over
100% to$2.3 million , compared with$1.1 million for the prior year period. - As of March 31, 2026, cash and cash equivalents, and restricted cash totaled
$58.9 million . - Secured the first insurer coverage for accelerated SWIFT™ (Short‑course with Intrinsic Field Targeting) Deep TMS protocol following FDA clearance.
- Growing U.S. payer support for psychiatric mental health nurse practitioners administered TMS, with commercial insurers, Medicare Administrative Contractors, and government payers expanding coverage to include trained nurse practitioners.
- Advanced with patient recruitment for the Company’s multicenter study of Deep TMS for alcohol use disorder (AUD), a major unmet need affecting approximately 29 million Americans.
- The Company plans to submit an FDA filing in the second quarter of 2026 for the use of Deep TMS in treating PTSD symptoms in patients with MDD, potentially expanding the Company’s clinical pipeline into a large and underserved market with significant unmet need.
- Completed a
$6 million milestone-based convertible loan to Neurolief following FDA Premarket Approval of ProlivRx system; bringing the Company’s total convertible loan investment in Neurolief to$11 million . - Completed an initial
$1 million minority stake investment into BrainStim Health Inc., as well as an additional$1 million revenue milestone-based investment in Axis Management Company, supporting the continued execution and expansion of BrainsWay’s minority position investment strategy.
Reiterates Full-Year 2026 Financial Guidance
- The Company expects full-year 2026 revenue of
$66 million to$68 million , which represents growth of27% to30% compared with revenue for 2025. - The Company anticipates continued profitability and positive cash flow, targeting operating income of
13% -14% of revenue and Adjusted EBITDA of$12 million to$14 million , representing anticipated growth of86% to100% over 2025.
“We are off to an excellent start in 2026, delivering
“With a strong foundation in place and multiple catalysts ahead, we are well positioned to continue expanding access to Deep TMS and driving sustainable long-term growth. Looking ahead, we remain on track to deliver our full-year 2026 guidance of
Call and Webcasts
BrainsWay’s management will host a conference call in English on Wednesday, May 13, 2026, at 8:30 a.m. Eastern Daylight Time (EDT) to discuss these results and answer questions, followed by a webinar hosted in Hebrew on Thursday, May 14, 2026, at 11:00 AM Israel Daylight Time (IDT). All details to access these events are listed below.
In English:
Date: Wednesday, May 13, 2026
Time: 8:30 AM EDT
Dial-In (United States / International): 1-877-300-8521 / 1-412-317-6026
Conference ID: 10208547
A simultaneous webcast of the conference call held in English will be available on the BrainsWay website at investors.brainsway.com and through this link: https://viavid.webcasts.com/starthere.jsp?ei=1760244&tp_key=9c697b1af2
In Hebrew:
Date: Thursday, May 14th
Time: 11:00 AM IDT
To register for this webinar, please click here: BrainsWay Q1 2026 IL Investor Webinar
Non-IFRS Financial Measures
In addition to our results determined in accordance with International Financial Reporting Standards (IFRS), including in particular operating profit and net profit, we believe that Adjusted EBITDA, a non-IFRS measure, is useful in evaluating our operating performance. We define Adjusted EBITDA as net profit adjusted for depreciation and amortization, finance income, finance expenses, income taxes, cost of share-based payments, and one-time restructuring and litigation expenses.
In addition to operating income (loss) and net income (loss), we use Adjusted EBITDA as a measure of operational efficiency. We believe that this non-IFRS financial measure is useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:
- Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expenses, depreciation and amortization, finance expenses, income taxes, and certain one-time items such as restructuring and litigation expenses, that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired.
- Our management uses Adjusted EBITDA in conjunction with IFRS financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and Adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-IFRS or non-GAAP financial measures to supplement their IFRS or GAAP results.
Adjusted EBITDA, however, should not be considered as an alternative to operating profit (loss) or net profit (loss) for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under IFRS and may not be comparable to other similarly titled measures for other companies. A reconciliation between the Company’s net profit (loss) and Adjusted EBITDA is presented in the attached summary financial statements.
Because of these and other limitations, you should consider Adjusted EBITDA along with other IFRS-based financial performance measures, including net profit (loss) and our IFRS financial results.
About BrainsWay
BrainsWay is a global leader in advanced noninvasive neurostimulation treatments for mental health disorders. The Company is boldly advancing neuroscience with its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS™) platform technology to improve health and transform lives. BrainsWay is the first and only TMS company to obtain three FDA-cleared indications backed by pivotal clinical studies demonstrating clinically proven efficacy. Current indications include major depressive disorder (including reduction of anxiety symptoms, commonly referred to as anxious depression), obsessive-compulsive disorder, and smoking addiction. The Company is dedicated to leading through superior science and building on its unparalleled body of clinical evidence. Additional clinical trials of Deep TMS in various psychiatric, neurological, and addiction disorders are underway. Founded in 2003, with operations in the United States and Israel, BrainsWay is committed to increasing global awareness of and broad access to Deep TMS. For the latest news and information about BrainsWay, please visit www.brainsway.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words, and also includes any financial guidance and projections contained herein. These forward-looking statements and their implications are based on the current expectations of the management of the Company only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In addition, historical results or conclusions from scientific research and clinical studies do not guarantee that future results would suggest similar conclusions or that historical results referred to herein would be interpreted similarly in light of additional research or otherwise. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks relating to the Company’s ability to consummate, finance and close proposed or potential investments, inadequacy of financial resources to meet future capital requirements; changes in technology and market requirements; delays or obstacles in launching and/or successfully completing planned studies and clinical trials; failure to obtain approvals by regulatory agencies on the Company’s anticipated timeframe, or at all; inability to retain or attract key employees whose knowledge is essential to the development of Deep TMS products; unforeseen difficulties with Deep TMS products and processes, and/or inability to develop necessary enhancements; unexpected costs related to Deep TMS products; failure to obtain and maintain adequate protection of the Company’s intellectual property, including intellectual property licensed to the Company; the potential for product liability; changes in legislation and applicable rules and regulations; unfavorable market perception and acceptance of Deep TMS technology; inadequate or delays in reimbursement from third-party payers, including insurance companies and Medicare; inability to commercialize Deep TMS, including internationally, by the Company or through third-party distributors; product development by competitors; inability to timely develop and introduce new technologies, products and applications, which could cause the actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements.
Any forward-looking statement in this press release speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission.
Contacts:
BrainsWay:
Ido Marom
Chief Financial Officer
Ido.Marom@BrainsWay.com
Investors:
Brian Ritchie
LifeSci Advisors LLC
britchie@lifesciadvisors.com
| BRAINSWAY LTD. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||
| U.S. dollars in thousands | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | (Unaudited) | (Audited) | |||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 58,636 | $ | 67,700 | |||
| Restricted cash | 251 | 251 | |||||
| Trade receivables, net | 7,530 | 4,111 | |||||
| Inventory | 7,078 | 6,523 | |||||
| Other current financial assets | 1,138 | 1,432 | |||||
| Other current assets | 3,993 | 3,807 | |||||
| 78,626 | 83,824 | ||||||
| Non-Current Assets | |||||||
| System components | 1,799 | 1,584 | |||||
| Leased systems, net | 4,897 | 4,860 | |||||
| Other property and equipment | 880 | 788 | |||||
| Right-of-use assets | 5,334 | 5,548 | |||||
| Other long-term assets | 2,306 | 1,931 | |||||
| Other non-current financial assets | 23,156 | 14,656 | |||||
| 38,372 | 29,367 | ||||||
| $ | 116,998 | $ | 113,191 | ||||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Trade payables | $ | 2,928 | $ | 2,428 | |||
| Deferred revenues | 9,912 | 10,551 | |||||
| Liability in respect of development grants | 1,776 | 1,679 | |||||
| Current maturities of lease liabilities | 1,105 | 1,075 | |||||
| Other accounts payable | 7,834 | 6,762 | |||||
| 23,555 | 22,495 | ||||||
| Non-Current Liabilities | |||||||
| Deferred revenues | 7,841 | 6,762 | |||||
| Liability in respect of development grants | 4,204 | 5,029 | |||||
| Lease liabilities | 5,601 | 5,742 | |||||
| 17,646 | 17,533 | ||||||
| Equity | |||||||
| Share capital | 439 | 430 | |||||
| Share premium | 163,855 | 162,221 | |||||
| Reserve for share-based payment | 2,207 | 3,506 | |||||
| Currency Translation Adjustments | (2,188 | ) | (2,188 | ) | |||
| Accumulated deficit | (88,516 | ) | (90,806 | ) | |||
| 75,797 | 73,163 | ||||||
| $ | 116,998 | $ | 113,191 | ||||
| BRAINSWAY LTD. AND SUBSIDIARIES | |||||
| CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | |||||
| U.S. dollars in thousands (except per share data) | |||||
| For the three months ended March 31, | |||||
| 2026 | 2025 | ||||
| (Unaudited) | |||||
| Revenues | $ | 15,531 | $ | 11,536 | |
| Cost of revenues | 3,856 | 2,926 | |||
| Gross profit | 11,675 | 8,610 | |||
| Research and development expenses, net | 2,881 | 2,332 | |||
| Selling and marketing expenses | 4,930 | 4,162 | |||
| General and administrative expenses | 1,859 | 1,540 | |||
| Total operating expenses | 9,670 | 8,034 | |||
| Operating Income | 2,005 | 576 | |||
| Finance income | 724 | 1,274 | |||
| Finance Expense | 319 | 586 | |||
| Income before taxes on income | 2,410 | 1,264 | |||
| Taxes on income | 120 | 157 | |||
| Net income | $ | 2,290 | $ | 1,107 | |
| Basic net income per share | $ | 0.06 | $ | 0.03 | |
| Diluted net income per share | $ | 0.06 | $ | 0.02 | |
| BRAINSWAY LTD. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| U.S. dollars in thousands | |||||||
| For the three months ended March 31, | |||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| Cash flows from operating activities: | |||||||
| Total comprehensive profit | $ | 2,290 | $ | 1,107 | |||
| Adjustments to reconcile net profit to net cash provided by operating activities: | |||||||
| Adjustments to profit or loss items: | |||||||
| Depreciation and amortization | 167 | 191 | |||||
| Depreciation of leased systems | 298 | 203 | |||||
| Impairment and disposal of inventory and system components | (252 | ) | 208 | ||||
| Finance income, net | (556 | ) | (688 | ) | |||
| Cost of share based payment | 342 | 325 | |||||
| Income taxes | 119 | 157 | |||||
| Total adjustments to reconcile profit | 118 | 396 | |||||
| Changes in asset and liability items: | |||||||
| Increase in inventory | (100 | ) | (73 | ) | |||
| Increase in trade receivables | (3,455 | ) | (2,349 | ) | |||
| Increase in other current assets | (152 | ) | (78 | ) | |||
| Decrease in other financial assets | 420 | - | |||||
| Increase (decrease) in trade payables | 526 | (740 | ) | ||||
| Increase (decrease) in other accounts payable | 563 | (384 | ) | ||||
| Increase in deferred revenues | 440 | 6,312 | |||||
| Total changes in asset and liability | (1,758 | ) | 2,688 | ||||
| Cash paid and received during the period for: | |||||||
| Interest paid | (108 | ) | (98 | ) | |||
| Interest received | 629 | 913 | |||||
| Income taxes received | - | 4 | |||||
| Total cash paid and received during the period | 521 | 819 | |||||
| Net cash provided by operating activities: | 1,171 | 5,010 | |||||
| Cash flows from investing activities: | |||||||
| Purchase of property and equipment and system components, net | (769 | ) | (1,043 | ) | |||
| Purchase of financial assets measured at fair value | (8,500 | ) | - | ||||
| Investment in deposits | - | (923 | ) | ||||
| Withdrawal of short-term deposits | 3 | - | |||||
| Investment in Commission asset | (61 | ) | - | ||||
| Net cash used in investing activities | (9,327 | ) | (1,966 | ) | |||
| Cash flows from financing activities: | |||||||
| Repayment of liability in respect of research and development grants | (733 | ) | (638 | ) | |||
| Repayment of lease liability | (168 | ) | (117 | ) | |||
| Net cash used in financing activities | (901 | ) | (755 | ) | |||
| Exchange rate differences on cash and cash equivalents | (7 | ) | (33 | ) | |||
| Increase (decrease) in cash and cash equivalents | (9,064 | ) | 2,256 | ||||
| Cash and cash equivalents at the beginning of the period | 67,700 | 69,345 | |||||
| Cash and cash equivalents at the end of the period | $ | 58,636 | $ | 71,601 | |||
| (a) Significant non cash transactions: | |||||||
| Right-of-use asset recognized with corresponding lease liability | $ | 7 | $ | 27 | |||
| BRAINSWAY LTD. | |||||||
| A reconciliation of Adjusted EBITDA to net income, the most directly comparable IFRS measure, is set forth below: | |||||||
| U.S. dollars in thousands (except share and per share data) | |||||||
| For the three months ended March 31, | |||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| Net Income | $ | 2,290 | $ | 1,107 | |||
| Finance income, net | (405 | ) | (688 | ) | |||
| Income taxes | 120 | 157 | |||||
| Depreciation and amortization | 167 | 191 | |||||
| Depreciation of leased systems | 298 | 203 | |||||
| Cost of share based payment | 342 | 325 | |||||
| Adjusted EBITDA | $ | 2,812 | $ | 1,295 | |||
