Record second quarter 2026 revenue increased 35% to $17.1 million, compared with Q2 2025
Adjusted EBITDA more than doubled year-over-year to $3.5 million, with margin expanding to 20%
Remaining performance obligations grew 30% year-over-year to $80.4 million
Shipped a record total 125 Deep TMS systems in Q2 2026, a 42% increase year-over-year
Raises FY 2026 revenue and EBITDA guidance
BURLINGTON, Mass. and JERUSALEM, Aug. 12, 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 its second quarter 2026 financial results and provided an operational update.
Recent Financial and Operational Highlights
- Revenue in the second quarter of 2026 increased 35% to $17.1 million, compared with $12.6 million in the second quarter of 2025.
- Remaining performance obligations (RPOs) rose to $80.4 million as of June 30, 2026, a 30% increase compared with the same period last year.
- Shipped a record total 125 Deep TMS™ systems during the second quarter of 2026, a 42% increase compared with the same period last year. Total installed base now stands at approximately 1,949.
- Operating income for the second quarter of 2026 increased more than 300% to $2.4 million, compared with $0.6 million for the prior year period. Operating margin for the quarter expanded to 14% from 5% for the prior year period.
- Adjusted EBITDA for the second quarter of 2026 increased 141% to $3.5 million, compared with $1.5 million for the prior year period. Adjusted EBITDA margin for the quarter expanded to 20% from 11% for the prior year period.
- Net income for the second quarter of 2026 increased 34% to $2.7 million, compared with $2.0 million for the prior year period.
- As of June 30, 2026, cash and cash equivalents and restricted cash totaled $62.4 million, an increase of approximately 6% compared with March 31, 2026.
- Generated $6.3 million of cash flow from operations during the second quarter of 2026.
- Continued expansion of insurer coverage for the SWIFT™ (Short-course with Intrinsic Field Targeting) accelerated Deep TMS protocol.
- Presented real-world data in patients with comorbid post-traumatic stress disorder (PTSD) and major depressive disorder (MDD), demonstrating an 83.5% response rate in PTSD symptoms, with a mean 52% reduction in PCL-5 scores.
- Presented the first prospective 12-month durability data for the SWIFT accelerated Deep TMS protocol at the 14th Annual Clinical TMS Society (CTMSS) Meeting, demonstrating sustained clinical improvement through one year following treatment.
- Continued expanding the Company's growing minority investment portfolio through strategic investments in Hopemark Health and Radial Health, with several previous portfolio investment targets indicating significant growth in patient access to care due to the growth capital afforded under the program.
Updated Full-Year 2026 Financial Guidance
The Company now expects to report for the full-year ended December 31, 2026:
- Revenue of $68 million to $70 million, compared to the previous range of $66 to $68 million. The updated revenue guidance represents anticipated growth of approximately 30% to 34% compared with revenue for 2025.
- Operating income of 13.5% to 14% of revenue, compared to the previous range of 13%-14%.
- Adjusted EBITDA of $13 million to $14 million, compared to the previous range of $12 million to $14 million. The updated Adjusted EBITDA guidance represents anticipated growth of approximately 90% to 100% over 2025.
“This quarter marked our second consecutive quarter of approximately 35% revenue growth and further expansion in operating leverage. Revenue reached a record $17.1 million, Adjusted EBITDA more than doubled to $3.5 million, and we generated more than $6.0 million of operating cash flow. Record system shipments and RPO of $80.4 million further strengthen our visibility into continued growth,” said Hadar Levy, Chief Executive Officer of BrainsWay. “We are seeing strong momentum across the business, which is fueled by expanding reimbursement coverage and increasing utilization throughout our installed base. As a result, we are raising our full-year financial guidance for 2026.”
Call and Webcast
BrainsWay’s management will host a conference call in English on Wednesday, August 12, 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, August 13, 2026, at 11:00 AM Israel Daylight Time (IDT). All details to access these events are listed below.
In English:
- Date: Wednesday, August 12, 2026
- Time: 8:30 AM EDT
- Dial-In: 1-877-269-7751 (U.S) / 1-201-389-0908 (International)
- Conference ID: 13761391
- The U.S. conference call will be broadcast live and will be available for replay for 30 days on the Company’s website at investors.brainsway.com and through this link: https://viavid.webcasts.com/starthere.jsp?ei=1768433&tp_key=0923ccd15a
In Hebrew:
- Date: Thursday, August 13, 2026
- Time: 11:00 AM IDT
- To register for this webinar, please click here: BrainsWay Q2 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
[email protected]
Investors:
Brian Ritchie
LifeSci Advisors LLC
[email protected]
2025
ASSETS (Unaudited)(Audited)Current Assets Cash and cash equivalents $62,108 $67,700 Restricted cash 251 251 Trade receivables, net 7,032 4,111 Inventory 7,310 6,523 Other current financial assets 1,060 1,432 Other current assets 3,663 3,807 81,424 83,824 Non-Current Assets System components 2,073 1,584 Leased systems, net 5,153 4,860 Other property and equipment 868 788 Right-of-use assets 5,294 5,548 Other long-term assets 2,163 1,931 Other non-current financial assets 25,000 14,656 40,551 29,367 $121,975 $113,191 LIABILITIES AND EQUITY Current Liabilities Trade payables $2,503 $2,428 Deferred revenues 10,232 10,551 Liability in respect of development grants 1,854 1,679 Current maturities of lease liabilities 1,239 1,075 Other accounts payable 6,845 6,762 22,673 22,495 Non-Current Liabilities Deferred revenues 9,826 6,762 Liability in respect of development grants 4,393 5,029 Lease liabilities 5,894 5,742 20,113 17,533 Equity Share capital 440 430 Share premium 164,187 162,221 Reserve for share-based payment 2,556 3,506 Currency Translation Adjustments (2,188) (2,188)Accumulated deficit (85,806) (90,806) 79,189 73,163 $121,975 $113,191
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
U.S. dollars in thousands (except per share data)
For the three months ended June 30, For the six months ended June 30, 2026
2025
2026
2025
(Unaudited) (Unaudited)Revenues $17,107 $12,632 $32,638 $24,168Cost of revenues 4,341 3,133 8,197 6,059Gross profit 12,766 9,499 24,441 18,109 Research and development expenses, net 3,219 2,344 6,100 4,676Selling and marketing expenses 4,852 4,940 9,782 9,102General and administrative expenses 2,304 1,637 4,163 3,177Total operating expenses 10,375 8,921 20,045 16,955 Operating Income 2,391 578 4,396 1,154 Finance income 1,406 2,303 2,130 3,414Finance Expense 879 784 1,198 1,207Income before taxes on income 2,918 2,097 5,328 3,361Taxes on income 208 70 328 227Net income $2,710 $2,027 $5,000 $3,134 Basic net income per share $0.07 $0.05 $0.13 $0.08 Diluted net income per share $0.07 $0.05 $0.12 $0.07
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
For the three months ended June 30, For the six months ended June 30, 2026
2025
2026
2025
(Unaudited) (Unaudited)Cash flows from operating activities: Total comprehensive profit$2,710 $2,027 $5,000 $3,134 Adjustments to reconcile net profit to net cash provided by operating activities: Adjustments to profit or loss items: Depreciation and amortization 239 180 406 371 Depreciation of leased systems 203 208 501 411 Impairment and disposal of inventory and system components 55 (40) (197) 168 Finance income, net (287) (1,443) (843) (2,207)Cost of share based payment 667 227 1,008 552 Income taxes 208 70 328 227 Total adjustments to reconcile profit 1,085 (798) 1,203 (478)Changes in asset and liability items: Decrease (increase) in inventory (137) 498 (237) 425 Increase (decrease) in trade receivables 534 3,176 (2,921) 827 Decrease in other current assets 182 746 30 264 Decrease in other financial assets 309 - 729 - Increase (decrease) in trade payables (452) (950) 74 (1,690)Increase (decrease) in other accounts payable (519) (454) 44 (838)Increase in deferred revenues 2,305 8,379 2,745 14,691 Total changes in asset and liability 2,222 11,395 464 13,679 Cash paid and received during the period for: Interest paid (239) (32) (350) (54)Interest received 656 835 1,285 1,748 Income taxes paid (127) (640) (127) (636)Total cash paid and received during the period 290 163 808 1,058 Net cash provided by operating activities: 6,307 12,787 7,475 17,393 Cash flows from investing activities: Purchase of property and equipment and system components, net (884) (1,166) (1,653) (2,209)Purchase of financial assets measured at fair value (1,625) (5,000) (10,125) (5,000)Investment in short-term bank deposits - (10,000) - (10,000)Investment in short-term deposits (17) - (17) - Withdrawal of short-term deposits 4 - 7 - Withdrawal of restricted cash - 20 - 20 Investment in Commission asset (122) (117) (183) (636)Net cash used in investing activities (2,644) (16,263) (11,971) (17,825) Cash flows from financing activities: Repayment of liability in respect of research and development grants - (3) (730) (641)Repayment of lease liability (158) (261) (326) (378)Net cash used in financing activities (158) (264) (1,056) (1,019)Exchange rate differences on cash and cash equivalents (33) 51 (40) 18 Increase (decrease) in cash and cash equivalents 3,472 (3,689) (5,592) (1,433)Cash and cash equivalents at the beginning of the period 58,636 71,601 67,700 69,345 Cash and cash equivalents at the end of the period$62,108 $67,912 $62,108 $67,912 (a) Significant non cash transactions: Right-of-use asset recognized with corresponding lease liability$170 $170 $177 $197
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 June 30, For the six months ended June 30, 2026
2025
2026
2025
(Unaudited) (Unaudited)Net Income $2,710 $2,027 $5,000 $3,134 Finance income, net (527) (1,519) (932) (2,207)Income taxes 208 70 328 227 Depreciation and amortization 239 180 406 371 Depreciation of leased systems 203 208 501 411 Cost of share based payment 667 227 1,008 552 Restructuring and litigation Cost - 258 - 258 Adjusted EBITDA $3,500 $1,451 $6,311 $2,746