Brainsway NASDAQ: BWAY reported a strong start to 2026, with first-quarter revenue rising 35% year over year as the company expanded placements of its Deep TMS systems and continued to build its recurring revenue base.
Chief Executive Officer Hadar Levy said on the company’s earnings call that revenue for the three months ended March 31, 2026, totaled $15.5 million, compared with $11.5 million in the prior-year period. The company shipped 117 Deep TMS systems during the quarter, a 44% increase from the same period last year, bringing its total installed base to approximately 1,820 systems.
Levy said the quarter marked BrainsWay’s 11th consecutive quarter of profitability, supported by margin expansion and the company’s recurring model. Net income rose to $2.3 million from $1.1 million a year earlier, while adjusted EBITDA increased 119% to $2.8 million from $1.3 million.
Recurring Contracts and Backlog Continue to Expand
BrainsWay reported remaining performance obligations of $75 million as of March 31, 2026, up 25% year over year. Levy said most new contracts signed during the quarter were multi-year agreements, which he described as evidence of demand for the company’s technology and the success of its focus on enterprise customers.
Chief Financial Officer Ido Marom said gross profit increased 35% to $11.6 million, compared with $8.6 million in the first quarter of 2025. Operating income was approximately $2 million, up from $0.6 million a year earlier.
Operating expenses increased as BrainsWay invested in commercial expansion, research and strategic initiatives. Sales and marketing expenses rose to $4.9 million from $4.2 million, research and development expenses increased to $2.8 million from $2.3 million, and general and administrative expenses rose to $1.8 million from $1.5 million.
Marom said cash flow from operations was positive during the quarter and that the company remained debt-free. BrainsWay ended the period with $58.9 million in cash and cash equivalents, despite making approximately $9 million in strategic investments during the quarter.
Company Reiterates 2026 Guidance
BrainsWay reaffirmed its full-year 2026 revenue outlook of $66 million to $68 million, representing expected year-over-year growth of 27% to 30%. The company also expects operating income to equal 13% to 14% of revenue and adjusted EBITDA of $12 million to $14 million, which would represent growth of 86% to 100% over 2025.
SWIFT Protocol and Reimbursement Updates
Levy highlighted growing interest in BrainsWay’s six-day acute phase SWIFT protocol, which he said reduces acute phase clinic visits by approximately 70% without compromising efficacy. The company recently published data on the protocol in the peer-reviewed journal Brain Stimulation.
During the question-and-answer session, Levy called SWIFT a “game changer” for the field, contrasting the six-day approach with the standard protocol of 20 to 30 days. He said previously announced results showed an 88% response rate and a 78% remission rate after six days of treatment.
Levy said the company is speaking with more than 20 payers about SWIFT reimbursement and expects coverage for 40 million to 50 million lives by the end of the year. He said BrainsWay is seeing early payer adoption and expects further momentum later in 2026.
The company also cited broader reimbursement progress for Deep TMS, including coverage expansion for adolescent depression following an FDA label expansion for patients ages 15 to 21. Levy said more than 10 payers have added coverage for adolescent depression. He also noted that Evernorth Behavioral Health eliminated prior authorization requirements for TMS across Evernorth and Cigna plans.
BrainsWay said reimbursement policies are also expanding to allow trained nurse practitioners to order, supervise or administer TMS where permitted by regulations and scope-of-practice rules. Levy specifically cited Optum’s policy update covering nearly 35 million lives, along with similar moves by other major payers, the VA and TRICARE.
PTSD Filing Planned and Alcohol Study Underway
Levy said BrainsWay plans to submit an application to the U.S. Food and Drug Administration in the next several weeks seeking clearance to treat PTSD symptoms in patients with major depressive disorder. In response to an analyst question, he said the proposed use involves patients with comorbid PTSD and depression and does not require patients to stop taking medications.
Levy said the protocol is similar to the company’s depression protocol, using the same H1 Coil and targeting areas associated with anxiety and depression. He said BrainsWay expects an initial FDA response within about 90 days after submission and anticipates potential clearance before the end of the year, though he noted there may be back-and-forth with the agency.
The company also said patient recruitment is underway for a multi-center study of Deep TMS for alcohol use disorder. Levy described alcohol use disorder as a major unmet need affecting approximately 29 million Americans, with relapse rates of up to 60% within three to six months despite available treatments.
Strategic Investments and Neurolief Partnership
BrainsWay continued to expand its strategy of taking minority equity stakes in mental health providers. Levy said the company has completed minority investments in five mental health networks and recently signed another agreement with Hopemark, an Illinois group with multiple locations in the Chicago area. The agreement includes an initial $1.5 million investment and up to an additional $1.5 million tied to future milestones in exchange for a preferred minority stake.
Levy also said BrainsWay is close to signing another minority stake transaction with an East Coast provider operating in New York, New Jersey, Pennsylvania and Connecticut. He said the company has identified more than 200 qualified clinics as potential candidates for the program.
BrainsWay also updated investors on its relationship with Neurolief, developer of ProlivRx, a wearable, non-invasive, multi-channel neuromodulation platform designed for home use. Following FDA pre-market approval of ProlivRx for treatment-resistant major depressive disorder, BrainsWay made an additional $6 million milestone-based convertible loan to Neurolief in late March, bringing its total convertible loan investment to $11 million.
Levy said Neurolief has secured a VA Federal Supply Schedule contract and received approved pricing of $11,800 per unit. He said Neurolief’s near-term commercial focus is VA penetration, limited market release through selected BrainsWay enterprise accounts and potential contracts with large integrated delivery networks.
Levy said the company sees ProlivRx as complementary to Deep TMS, with Deep TMS serving patients in clinical settings and ProlivRx aimed at home use for patients who cannot easily reach a clinic. He said the combination could expand BrainsWay’s addressable market and support its broader goal of increasing access to non-pharmacological mental health treatments.
Asked about international operations and the situation in the Middle East, Levy said BrainsWay has not seen disruption and has sufficient inventory to support demand. He said international momentum remains strong, with demand from distributors across Asia Pacific, Canada and Europe.
About Brainsway NASDAQ: BWAY
Brainsway Ltd is a medical device company specializing in non-invasive neuromodulation therapies. Publicly traded on the NASDAQ under the symbol BWAY, the company develops and commercializes deep transcranial magnetic stimulation (Deep TMS) systems designed to treat a range of neuropsychiatric and neurological disorders. Brainsway's technology aims to offer an alternative or complement to traditional pharmacological therapies by targeting precise brain regions with its patented coil designs.
The company's flagship Deep TMS platform utilizes proprietary H-coil arrays engineered to reach deeper cortical structures than conventional TMS devices.
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