Brainsway Q2 2026 Earnings Call Transcript

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August 13, 2026

Key Takeaways

  • Positive Sentiment: Strong second-quarter growth and profitability: Revenue increased 35% year over year to $17.1 million, while operating income rose more than 300% to $2.4 million and adjusted EBITDA grew 141% to $3.5 million. This marked BrainsWay’s 12th consecutive quarter of positive adjusted EBITDA.
  • Positive Sentiment: Raised 2026 guidance: Management increased full-year revenue guidance to $68 million–$70 million, implying 30%–34% growth, and expects adjusted EBITDA of $13 million–$40 million, representing approximately 90%–100% growth over 2025.
  • Positive Sentiment: Growing demand and revenue visibility: The company shipped 125 Deep TMS systems during the quarter, bringing its installed base to approximately 1,950 systems, while remaining performance obligations rose 30% to $80.4 million. Management cited strong demand for the accelerated SWIFT protocol and increased reimbursement, with approximately 57 million U.S. covered lives currently eligible.
  • Positive Sentiment: Clinical and platform expansion: One-year data supported the durability of SWIFT treatment benefits, while a real-world study of comorbid PTSD and major depressive disorder showed more than 83% of patients experienced a meaningful PTSD response. A potential FDA clearance for this indication could expand utilization of existing systems.
  • Neutral Sentiment: Strategic investments remain an execution variable: BrainsWay has made six minority investments in behavioral-health platforms and is evaluating additional opportunities, while Neurolief’s home-use Proliv™Rx launch is still in an early “soft launch” phase. Any future acquisition or expanded investment in Neurolief will depend on commercial growth and profitability milestones.
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Earnings Conference Call
Brainsway Q2 2026
00:00 / 00:00

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Operator

Good morning, everyone. My name is Sachi, and I will be your conference operator today. At this time, I would like to welcome everyone to BrainsWay's second quarter 2026 financial results conference call. All lines have been placed on mute to prevent any background noise. With us today are BrainsWay's Chief Executive Officer, Hadar Levy, and Chief Financial Officer, Ido Marom. The format for today's call will be a discussion of recent trends and business updates from Hadar, followed by a detailed discussion of the financials. Then we will open up the call for your questions. Earlier today, BrainsWay released its financial results for the three and six months ended June 30, 2026. A copy of the press release is available on the company's investor relations website, www.brainsway.com.

Operator

Before I turn the call over to management, I would like to remind you that this conference call, including both management's prepared remarks and the question and answer session, may contain projections or other forward-looking statements regarding, among other topics, BrainsWay's anticipated future operating and financial performance, business plans and prospects, and expectations for its products and pipeline, which are all subject to risks and uncertainties, including shifting market conditions resulting from geopolitical, supply chain, and other factors, as well as the use of non-GAAP financial information. Additional information regarding these and other risks are available in the company's earnings release and in its other filings with the SEC, including the Risk Factors section contained in BrainsWay's Form 20-F. Finally, please note that the company's 6-K will be filed tomorrow at approximately 6:00 A.M. Eastern Time in accordance with the SEC's operating schedule.

Operator

I would now like to turn the call over to Hadar.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Thank you. Welcome, everyone, and thank you for joining us today. We entered the second half of 2026 from a position of strength with accelerating growth, expanding profitability, and increasing visibility into future revenue. More importantly, we believe BrainsWay is entering the next phase of its evolution from a leading Deep TMS company into a broader platform for interventional psychiatry. Our second quarter results provide further evidence that the foundation of this platform is getting stronger. Revenue grew 35% to $17.1 million for the second quarter, compared with $12.6 million in the prior year period. We achieved this level of growth while maintaining operational discipline, resulting in expanded margin and increased profitability. In the second quarter, operating income increased over 300% to $2.4 million, compared with $0.6 million for the prior year.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Adjusted EBITDA increased 141% to $3.5 million, compared with $1.5 million for the same period last year, with adjusted EBITDA margin expanding to 20% from 11%. This also marked our 12th consecutive quarter of profitability, underscoring the scalable nature of the business model. These results matter not only because of the growth they represent today, but because every system we install, every reimbursement expansion we achieve, and every new clinical indication we develop strengthens the platform and expands our long-term opportunity. Let me take a minute to walk you through a few key metrics that we monitor each quarter to measure our continued growth. During the second quarter of 2026, we shipped 125 Deep TMS systems, a 42% increase over the same period last year, bringing our install base to approximately 1,950 systems. Every system represents more than an initial placement.

Hadar Levy
Hadar Levy
CEO at BrainsWay

It creates potential for multi-year recurring revenue, additional utilization, new indications and protocols, deeper provider relationship, and greater clinical data. Importantly, as we expand the capabilities of the platform, we increase the potential value of systems that are already in the field. Remaining performance obligations have increased to $80.4 million as of June 30, 2026, a 30% increase compared with the same period last year. We believe the continued growth in remaining performance obligations over the past several quarters demonstrates the strong market demand for Deep TMS, as well as the success of our leasing strategy focus on servicing enterprise customers. This is an important evolution in our business model. As the install base grows, we believe revenue visibility, recurring revenue, and operating leverage can increasingly compound.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Our strategy is built around what we believe is a powerful growth flywheel with a series of reinforcing growth drivers that build on one another over time. We believe the expanding clinical evidence for Deep TMS drives broader reimbursement, which in turn supports greater physician confidence and adoption. As adoption grows, our install base expands, creating a large recurring revenue stream and increasing operating leverage. The resulting operating leverage cash flow enable us to reinvest in additional clinical studies, reimbursement initiatives, and strategic partnership. At the foundation of our strategy is the strength of the Deep TMS platform itself. Our systems are supported by one of the industry's most extensive bodies of peer-reviewed clinical evidence, demonstrating efficacy across a broad range of neuropsychiatric disorders, including major depressive disorder, anxious depression, late-life depression, obsessive-compulsive disorder, and smoking addiction.

Hadar Levy
Hadar Levy
CEO at BrainsWay

This growing body of evidence has resulted in multiple FDA clearances, increasing physicians' confidence, broader reimbursement support, and ultimately accelerated adoption of Deep TMS. One of the clearest examples of our momentum is the continuing expansion of reimbursement for TMS. Commercial payers increasingly recognize the clinical value of this therapy. While prior authorization requirements continue to become less burdensome. Perhaps just as important for us, we have also seen reimbursement continue to expand to include accelerated treatment protocol, which we called SWIFT. We currently estimate there are approximately 57 million covered lives in the U.S. with access to our SWIFT for accelerated Deep TMS protocol. Every reimbursement expansion lowers barrier to treatment, increases provider confidence in investing in Deep TMS systems, expands patient access, and supports higher utilization across our growing install base. We believe SWIFT represents an important long-term growth opportunity for BrainsWay.

Hadar Levy
Hadar Levy
CEO at BrainsWay

By reducing treatment from several weeks to just a few days, SWIFT has the potential to improve convenience for patients, increase treatment capacity for providers, and further strengthen the value proposition for payers. During the quarter, we presented the first prospective 12-month durability data for the SWIFT accelerated Deep TMS protocol. The study demonstrated that patients maintain meaningful clinical improvement through one year following treatment, including sustained remission rates and continued improvements in functional outcome. Importantly, these findings help address one of the key questions surrounding accelerated treatment protocol, not simply whether patients improve quickly, but whether those improvements are durable over time. We believe these findings further strengthen the clinical evidence supporting SWIFT and the case for broader reimbursement adoption, an important driver behind broader adoption of Deep TMS. Beyond expanding adoption within our existing indication, we continue seeking to broaden the clinical utility of Deep TMS platform.

Hadar Levy
Hadar Levy
CEO at BrainsWay

During the quarter, we presented results from the largest real-world study to date evaluating Deep TMS in patients with comorbid PTSD and major depressive disorder, which is one of the most challenging psychiatric population to treat. Across 462 patients treated at 11 clinical sites, more than 83% experienced a meaningful response in PTSD symptoms, while substantial improvement were also observed in depression symptoms. We believe these findings further strengthen the growing body of evidence supporting Deep TMS across complex psychiatric disorder and reinforce our recent FDA submission seeking clearance for comorbid PTSD and MDD. If cleared, this would represent another important opportunity to expand the clinical utility of Deep TMS platform, increasing the value proposition for every system already installed in the field without requiring providers to purchase additional capital equipment.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Taking together, these clinical regulatory advances are occurring against the backdrop of an interventional psychiatry market that we believe is entering into an important period of long-term growth. Payers are steadily expanding reimbursement for neuromodulation therapies. Demand for non-pharmacologic treatment options continue to grow among both providers and patients, and awareness condition such as treatment-resistant depression, OCD, and PTSD continue to expand. We believe BrainsWay is well-positioned to benefit from these tailwinds, given our clinical evidence base, pipeline strategy, reimbursement infrastructure, and install base of Deep TMS systems. Capturing these opportunities require more than innovative technology. It also required expanding patients' access in investing in providers as they scale their practices. That is one of the key objectives of our strategic minority investment program. This initiative is designed to do much more than efficacy deploy capital in promising investment targets.

Hadar Levy
Hadar Levy
CEO at BrainsWay

It allows us to partner with leading behavioral health providers and to align ourselves with organizations that have a plan to grow and succeed by accelerating patient access to care and building awareness of cutting-edge interventional psychiatric treatment approaches. During the quarter, we continued to execute against this strategy with a strategic investment in Hopemark Health, a growth-oriented behavioral health platform serving multiple clinic in the greater Chicago area. Following the close of the quarter, we continued with this strategy through investment in Radial Health, an innovative mental health service platform combining clinical infrastructure, reimbursement capabilities, and AI-guided decision support, as well as in Sound Minds Behavioral, a leading growth-oriented outpatient behavioral health platform with locations across the Mid-Atlantic and Northeast.

Hadar Levy
Hadar Levy
CEO at BrainsWay

This minority stake investment reflects our strategy of partnering with leading providers organization and expanding our presence within the broader behavioral health ecosystem while allowing BrainsWay to remain focused on advancing our technology, clinical evidence, and commercial execution. Looking ahead, we continue to assess a pipeline of investment opportunities and remain disciplined in identifying partners that can generate both financial growth and meaningful strategic value. Another important part of our long-term platform strategy is extending neuromodulation beyond the clinic. Today, Deep TMS anchors treatment in the clinical setting. Over time, we see an opportunity to extend the patient's journey into the home and ultimately connect treatment with the data and digital monitoring. That is the strategic context behind our investment in Neurolief. Following the FDA approval for its Prolivâ„¢Rx system in March, the commercial launch has begun and progressing.

Hadar Levy
Hadar Levy
CEO at BrainsWay

While it remains early in the launch, we are encouraged by the progress being made by Neurolief and the execution discipline that they roll out. International expansion represent another important layer of our long-term opportunity. Across our current partner market, we estimate there are more than 170 million untreated patients. Importantly, we are not starting from zero. We are building on established commercial partnership and existing infrastructure, providing what we believe is an attractive and capital-efficient path to scale. As interventional psychiatry expands globally, we believe our international footprint can become an increasingly important contributor to BrainsWay's growth. In closing, we are pleased with our performance this quarter, but we believe we are still in the early stage of much larger opportunity. For many years, BrainsWay has been known as a Deep TMS company. Today, we are building something broader, a global platform for interventional psychiatry.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Every system we install, every reimbursement expansion, every new indication, and every strategic partnership strengthen that platform, and we are building it from a position of increasing financial strength with a strong growth, expanding profitability, and greater revenue visibility. One platform, millions of patients, decades of growth. With that, I will now turn the call over to Ido for his review of our second quarter 2026 financial results. Ido.

Ido Marom
Ido Marom
CFO at BrainsWay

Thank you, Hadar. During the second quarter of 2026, we continued to execute on our growth strategy, which drove a 35% increase in revenue to $17.1 million compared with $12.6 million for the same period last year. During the quarter, we placed 125 Deep TMS systems, bringing our total installed base to approximately 1,950 systems as of June 30, 2026. Gross profit for the quarter was $12.8 million, up 34% from $9.5 million in the prior year period, while gross margin remained stable at 75%. Turning to operating expenses. Sales and marketing expenses for the second quarter of 2026 totaled $4.9 million, steady with the second quarter of 2025. This reflects continued operating leverage and improved efficiency across our sales organization, enabling us to support our commercial activities while maintaining a disciplined cost structure. Research and development expenses were $3.2 million, compared with $2.3 million last year.

Ido Marom
Ido Marom
CFO at BrainsWay

The increase was primarily driven by investments in clinical development and research, including our ongoing PTSD and alcohol use disorder research initiatives. General and administrative expenses were $2.3 million, compared with $1.6 million in the prior year period, an increase of approximately $0.7 million driven by higher professional fees and administrative costs. Operating income was approximately $2.4 million, compared with $0.6 million reported for the second quarter of 2025, with operating margin expanding to 40% of revenue from 5%. This performance reflects the scaling of operations, the strength of our recurring revenue model and disciplined cost management. For the second quarter ended June 30, 2026, we reported net income of $2.7 million, up 34%, compared with $2 million in the same period of 2025. Adjusted EBITDA was $3.5 million, an increase of 141%, comparing with $1.5 million in the second quarter of 2025.

Ido Marom
Ido Marom
CFO at BrainsWay

Adjusted EBITDA margin expanded to 20% from 11%. As Hadar mentioned earlier, this is the 12th consecutive quarter of positive adjusted EBITDA, and we are very excited by our progress in scaling our growth and profitability. Remaining performance obligations grew to $80.4 million as of June 30, 2026, a 30% year-over-year increase. We believe the steady increase of our RPOs reflect the strength of our business and execution against our long-term strategy. Cash flow from operation was $6.3 million in the second quarter of 2026, compared with $1.2 million in the first quarter, reflecting the strong payment term structure related to certain strategic deals. The capital structure of the company remained debt-free, giving us significant flexibility to pursue strategic growth initiatives, including our minority investment program. We reported cash and cash equivalents of $62.4 million as of June 30, 2026.

Ido Marom
Ido Marom
CFO at BrainsWay

We believe our strong capital position will support the continued growth of our core scientific and technology operations, as well as our strategic investment program, which aims to increase patient access to innovative treatments while also building long-term value for our shareholders. Looking ahead, based on our strong first half performance and continued momentum, we are raising our full year 2026 guidance from a range of $66 million to $68 million to a range of $68 million to $70 million for the full year 2026. This new guidance range, if achieved, will represent a year-over-year expected growth rate of 30%-34%. In addition, we are narrowing our ranges for operating margin to 13.5%-40% of revenue and adjusted EBITDA to $13 million to $40 million, representing anticipated growth of approximately 90%-100% over full year 2025.

Ido Marom
Ido Marom
CFO at BrainsWay

This concludes my prepared remarks, and I will now turn the call back to the operator to please open up the call for questions. Operator?

Operator

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. The first question is from Sam Eiber from BTIG. Please go ahead.

Sam Eiber
Sam Eiber
Analyst at BTIG

Hi. Good morning. Thanks for taking the questions here. Maybe I want to start on the guidance raise. Obviously implying sustained 30% growth in the back half of the year. Maybe you can talk about some of the trends you're seeing into Q3 so far and generally the confidence to sustain this premium growth rate.

Ido Marom
Ido Marom
CFO at BrainsWay

Yeah. Hi, Sam. Thank you for the question. We are very high confidence based on what we are seeing based on the growing remaining performance obligation that gives us very good visibility toward the second half of the year and also into 2027. There is definitely a very strong demand across the board for Deep TMS product for the MDD, OCD, and specifically, the SWIFT protocol that is today one of the main drivers for the demand. We continue to see some very strong demands for new systems and new orders toward the end of the year, and that's what's really increasing our confidence by raising the guidance.

Sam Eiber
Sam Eiber
Analyst at BTIG

Okay. Very helpful. Then maybe, if I could use my follow-up here on the SWIFT protocol. I guess, generally, what are you hearing from providers that have adopted it so far? Are they generally aware that it exists? How much education do you need to do on the marketplace? Just generally, those that have adopted it, are they starting to see better throughput, better patient demand because of the reduced treatment burden? Generally, what are you hearing from those who have started to use it?

Ido Marom
Ido Marom
CFO at BrainsWay

Yeah, absolutely. The feedback is very strong and very good. Look, at the end of the day, it's just a matter of better convenience for the patients, but also for the clinic. A busy clinic can really increase their utilization by using this SWIFT protocol, and they can see much more patients on a daily basis and even complete the whole 30 sessions protocol with a few days. There is definitely lots of interest, both from providers and patients. But the main feedback is really about the convenience of those patients that are seeking to get a better treatment in such a shorter time. The economics works very good for the clinic. That's what I think what really drive also some of the pairs

Hadar Levy
Hadar Levy
CEO at BrainsWay

To continue and extend reimbursement because the demand is growing for the SWIFT protocol.

Sam Eiber
Sam Eiber
Analyst at BTIG

Okay, very good. Thanks for taking the questions, and congrats again on the good quarter.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Thank you, Sam.

Operator

The next question is from Jeffrey Cohen from Ladenburg Thalmann. Please go ahead.

Jeff Cohen
Jeff Cohen
Analyst at Ladenburg Thalmann

Good morning, Hadar, Anita. A couple questions from our end. Firstly, I wanted to jump back into the SWIFT protocol. Could you give us a sense of the payer environment, and give us a sense of percent of new cases that are falling under the protocol, and then maybe give us a little bit of a sense of types of patients that are falling under that protocol, whether they be MDD or PTSD or OCD, et cetera?

Hadar Levy
Hadar Levy
CEO at BrainsWay

Yeah. Currently we're only speaking about MDD patients. Obviously, we are looking to get FDA approval for comorbidity patients with PTSD and MDD. But currently, we're only focusing on MDD patients, which are all kind of drug-resistant. They are the ones that are seeking for a better treatment. They're not responding well for medications or maybe to some other treatment modalities. The percentage, as I said, we have today 57 million people that are eligible for this treatment. I think reimbursement is a key initiative for the adoption of this treatment. But if you're not specifically for psychiatrists that are just not submitting their cases to payers, we definitely a very high growth of this SWIFT protocol. The ones that are still looking for reimbursement, there is a good adoption, but it depends on the local payer in each one of those territories.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Overall, I would say once you have reimbursement in your territory, I would say that you can see a significant increase in the adoption of the SWIFT protocol, getting close to 50% of the total population in the local area.

Jeff Cohen
Jeff Cohen
Analyst at Ladenburg Thalmann

Okay, Got it. As follow-up, you spoke about the ILS 80.4 million performance obligations. I am assuming that is lease systems, and I am assuming that is a 2- to 3-year period. Could you tie that in also to some of the minority investments that you have made so far and how that pipeline may look or what we should anticipate for the back half of the year?

Hadar Levy
Hadar Levy
CEO at BrainsWay

Yeah, look, I mean, the backlog is growing, and we are very proud with this 30% increase in the backlog. Remember, these are all orders that we still did not recognize the revenue. It is a backlog of orders that the revenue will be recognized going forward. One of the main driver for supporting this growth is definitely the minority investment that we are making in those growing platforms. Each one of them are expanding. They are not only buying some new locations, but they are also growing organically and expanding the utilization of TMS inside their business. Most of them will most likely going to have more than one system in each location. Based on that, and based on the demand and the growing demand of patients, they will continue to order a bulk of systems from us as utilization grows, since the interventional psychiatry market continue to grow.

Hadar Levy
Hadar Levy
CEO at BrainsWay

I do not anticipate this number will continue to grow toward the end of the year. That is what really gives us good visibility when we are entering into 2027.

Jeff Cohen
Jeff Cohen
Analyst at Ladenburg Thalmann

Perfect. Thanks for taking our questions. Congrats on the quarter.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Thank you, Jeff.

Operator

As a reminder, to ask a question, please press star 1. The next question is from Ahmed Mahmood from H.C. Wainwright. Please go ahead.

Ahmed Mahmud
Ahmed Mahmud
Analyst at H.C. Wainwright

Thank you for taking our question. This is Ahmed on for Ram. Could you give us some color on how Prolivâ„¢Rx sales are ramping, and when do you expect to decide whether to acquire Neurolief and what factors will determine that decision?

Hadar Levy
Hadar Levy
CEO at BrainsWay

Thank you for taking this question. I think as I said in my script, Neurolief is a very important factor for our future platform to extend our outreach also for home use care. Currently, Neurolief are running a launch mainly with the VA channel. I think I said in the last call, they already got reimbursement from the VA channel and they are now deploying some of the first commercial stage within the VA channel, but also in some private clinics. The progress are going very well, but what we would like to monitor is in the next 90 days, what we call as a soft launch, is just to see what are the main KPIs that will help us to accelerate the growth when you are going to do a full launch of this. Today, we still have only minority investment in Neurolief. It is a convertible loan.

Hadar Levy
Hadar Levy
CEO at BrainsWay

We will decide whether we would like to continue and invest or acquire Neurolief based on some commercial milestone, which relates to growth and profitability. There is still time for that. Right now, we are very encouraged with the commercial progress and the soft launch that they are making in the U.S. More to come, and I believe that I will report and give much more details on some of those important metrics toward the end of the year.

Ahmed Mahmud
Ahmed Mahmud
Analyst at H.C. Wainwright

Thank you. If I could just follow up on the minority investments. Could you give us some color on the cadence and the number of minority investments you plan on making for the second half of this year? When do you expect them to begin accelerating BrainsWay's revenue growth? On a separate follow-up, how might the optimized Deep TMS protocol be elevated earlier in the treatment continuum for major depressive disorder? Thank you.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Yeah. Look, on the minority investment, we have done today six minority investment. I believe we are expecting, and we still have a pipeline of minority investment that we are reviewing very carefully in some very thorough due diligence process. There is definitely a good interest. Look, my expectation is to invest in a growing business with the right management team and a profitable business. I would like to make sure that I am investing in the right portfolio that has the ability to grow their business in interventional psychiatry. When they are growing, which means that there is a growing demand by patients. When there is a growing demand by patients, you can assume that there will be also a growing demand for the Deep TMS platform.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Again, my expectation is to have at least more than one system in each one of those locations, specifically due to the adoption of the SWIFT protocol. As long as each one of them will continue to grow, and based on their projections, each one of them can expand to 10 to 15 locations every year. If they will execute very well, and they are executing very well, I am expecting to continue and see a very nice demand on and use of the Deep TMS platform. What was the other question?

Ahmed Mahmud
Ahmed Mahmud
Analyst at H.C. Wainwright

The other question? Yeah. I was asking how might the optimized Deep TMS protocol be elevated early in the treatment continuum.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Yeah. I think on the continuum of care, once you've failed in one or two medications, you have several good options. We believe that a very good option is the non-invasive treatment of the Deep TMS, specifically with the SWIFT protocol. There's some other options like psychedelic that are very popular today. Where I'm seeing the continuum of care and in terms of growing the business, we are growing with one of the most growing market, which is interventional psychiatry. I do believe that the future of this business will be offering options to patients, which will be a combination of a few treatment modalities. It could be psychedelic, it could be Deep TMS, and it could be also med management. On the continuum of care, Deep TMS is definitely reaching to an inflection point where exactly it should be.

Hadar Levy
Hadar Levy
CEO at BrainsWay

We're seeing some better results and better demands due to that.

Ahmed Mahmud
Ahmed Mahmud
Analyst at H.C. Wainwright

Thank you.

Operator

There are no further questions at this time. I would like to turn the floor back over to Hadar Levy for closing comments.

Hadar Levy
Hadar Levy
CEO at BrainsWay

Thank you. With that, we conclude our remarks for today. I want to thank, again, all the investors and the analysts for following the company. Thank you, and that is it for today. Have a good one.

Operator

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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