Brainsway (NASDAQ:BWAY) Releases Earnings Results, Misses Estimates By $0.07 EPS

Key Points

• Brainsway reported quarterly EPS of $0.05, missing the $0.12 consensus estimate by $0.07, while revenue of $18.15 million topped expectations of $17.80 million.
• Third-quarter revenue grew 34% year over year, system shipments rose 44%, and the installed base exceeded 2,000 systems. Profitability and cash generation also improved, with gross margin at 78% and operating cash flow of $6.2 million.
• Management expects 2026 results at the upper end of its prior guidance, potentially modestly above it, and sees further margin-expansion potential. Reimbursement coverage for the SWIFT protocol now exceeds 70 million U.S. lives, and management said it is driving close to half of new customer demand.

Brainsway (NASDAQ:BWAY - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.07), FiscalAI reports. Brainsway had a return on equity of 12.74% and a net margin of 15.65%. The company had revenue of $18.15 million for the quarter, compared to analysts' expectations of $17.80 million.

Here are the key takeaways from Brainsway's conference call:

• Third-quarter revenue rose 34% to $18.1 million, while system shipments increased 44% year over year and the global installed base surpassed 2,000 systems. Remaining performance obligations grew 31% to approximately $85 million.
• Profitability and cash generation improved: gross margin expanded to 78%, operating income more than doubled to about $2.6 million, adjusted EBITDA rose 92% to $3.9 million, and operating cash flow reached $6.2 million. Management said operating expenses included about $1 million in additional one-time costs.
• Management expects full-year 2026 results to land at the upper end of prior guidance, with potential to modestly exceed it, and sees room for further margin expansion. The CFO said operating expenses may grow 15%–20% in 2027 while the company aims to sustain revenue growth.
• BrainsWay said more than 70 million U.S. covered lives now have reimbursement for its SWIFT protocol, and OCD coverage reaches approximately 180 million lives. Management said SWIFT is already driving close to half of new customer demand, though broader adoption depends on continued coverage expansion.
• The company is pursuing growth through provider partnerships, international markets, and new indications; management expects partner-related system orders to build further in 2027. Alzheimer’s findings remain preliminary, and the company said it plans to complete feasibility work by the end of 2027 before considering a larger trial; Deep TMS is not FDA-cleared to treat Alzheimer’s disease.

Brainsway Stock Performance

Shares of BWAY stock traded down $1.23 on Tuesday, hitting $10.41. The stock had a trading volume of 148,528 shares, compared to its average volume of 146,361. The firm has a market capitalization of $418.84 million, a price-to-earnings ratio of 24.48 and a beta of 1.36. The stock's 50 day moving average is $12.56 and its 200-day moving average is $13.92. Brainsway has a 52-week low of $7.14 and a 52-week high of $17.40.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on BWAY. Wall Street Zen upgraded Brainsway from a "hold" rating to a "buy" rating in a report on Sunday, August 2nd. HC Wainwright reaffirmed a "buy" rating on shares of Brainsway in a research report on Friday, October 30th. Weiss Ratings downgraded shares of Brainsway from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, October 29th. LADENBURG THALM/SH SH increased their price objective on shares of Brainsway from $18.00 to $18.80 and gave the stock a "buy" rating in a research report on Thursday, August 13th. Finally, BTIG Research reissued a "buy" rating and issued a $20.00 target price on shares of Brainsway in a research note on Thursday, September 10th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Brainsway currently has an average rating of "Moderate Buy" and a consensus target price of $18.20.

Brainsway Company Profile

BrainsWay Ltd. NASDAQ: BWAY is a medical technology company that develops and commercializes noninvasive therapies for brain disorders. Its core technology, Deep Transcranial Magnetic Stimulation (Deep TMS), uses a helmet-like device to deliver magnetic stimulation to targeted areas of the brain.

The company's Deep TMS systems are used in the treatment of major depressive disorder and obsessive-compulsive disorder, and have also received regulatory clearances for certain additional indications, including smoking cessation.

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