Press Release: BrainsWay Reports Second Quarter 2026 Financial Results and Operational Highlights

Dow Jones
08/12

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$(TM)$ 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(TM) (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(TM)) 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 
 
                                         June 30,       December 31, 
                                           2026             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 
                                           ========       ========= 
 
 
 
BRAINSWAY LTD. AND SUBSIDIARIES 
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS 
U.S. dollars in thousands (except per share data) 
 
                       For the three 
                     months ended June   For the six months ended 
                            30,                  June 30, 
                     2026       2025      2026          2025 
                    -------  ----------  -------  ---------------- 
                        (Unaudited)      (Unaudited) 
  Revenues          $17,107   $  12,632  $32,638   $        24,168 
  Cost of revenues    4,341       3,133    8,197             6,059 
    Gross profit     12,766       9,499   24,441            18,109 
                     ------      ------   ------      ------------ 
 
 
  Research and 
   development 
   expenses, net      3,219       2,344    6,100             4,676 
  Selling and 
   marketing 
   expenses           4,852       4,940    9,782             9,102 
  General and 
   administrative 
   expenses           2,304       1,637    4,163             3,177 
    Total 
     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             3,414 
  Finance Expense       879         784    1,198             1,207 
  Income before 
   taxes on 
   income             2,918       2,097    5,328             3,361 
  Taxes on income       208          70      328               227 
Net 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 
 
 
 
BRAINSWAY LTD. AND SUBSIDIARIES 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
U.S. dollars in thousands 
 
                    For the three months ended    For the six months ended 
                             June 30,                     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 
 
 
 
                      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 June   For the six months 
                          30,            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 
                    -----    ------    -----    -- 

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