Brainsway ((BWAY)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for BrainsWay painted a positive picture of the company’s financial health and strategic direction. The sentiment was buoyant, driven by strong revenue growth and strategic investments. The company reported increased shipments and a solid recurring revenue model, despite facing challenges such as rising operating expenses and regulatory dependencies. The overall business outlook remains optimistic, with raised revenue guidance underscoring confidence in future performance.
Record-Breaking Quarterly Revenue
BrainsWay achieved a record quarterly revenue of $12.6 million for the second quarter of 2025, marking a 26% increase compared to the same period last year. This impressive growth highlights the company’s robust sales performance and market demand for its products.
Increase in Deep TMS System Shipments
The company shipped 88 Deep TMS systems during the quarter, a significant 35% increase from the previous year. This brings the total installed base to 1,522 systems, reflecting the growing adoption of BrainsWay’s technology in the market.
Strong Gross Margin and Recurring Revenue Model
BrainsWay reported a gross profit of $9.5 million with a stable gross margin of 75%. The company’s recurring revenue model is strengthened by multiyear lease agreements, which constitute approximately 70% of customer engagements, ensuring a steady income stream.
Strategic Investment and Expansion
As part of its strategic expansion efforts, BrainsWay invested $5 million in Stella MSO, a management services organization for mental health clinics. This move is part of a broader strategy supported by a $20 million equity investment from Valor Equity Partners, aimed at enhancing the company’s market presence.
Positive Net Profit Growth
The company reported a net profit of $2 million for the quarter, a substantial increase from $0.6 million in the same period of 2024. This growth in net profit underscores the company’s improved operational efficiency and profitability.
Increased Full-Year Revenue Guidance
BrainsWay has raised its full-year 2025 revenue guidance to a range of $50 million to $52 million, representing a 22% to 27% growth over 2024. This upward revision reflects the company’s confidence in maintaining its growth trajectory.
Increased Operating Expenses
Operating expenses saw an increase, with sales and marketing expenses rising by $1.1 million and research and development expenses increasing by $0.6 million compared to the previous year. These investments are crucial for sustaining growth and innovation.
Dependence on Regulatory Approvals
BrainsWay’s future growth is heavily reliant on obtaining FDA approval for new treatment protocols. This dependency introduces regulatory risk and uncertainty, which the company must navigate to achieve its strategic objectives.
Forward-Looking Guidance
During the earnings call, BrainsWay provided forward-looking guidance, highlighting a record quarterly revenue of $12.6 million and a 35% increase in system shipments. The company has a backlog of signed agreements with a remaining performance obligation of approximately $62 million. With a net profit of $2 million and $78.3 million in cash and equivalents, BrainsWay is well-positioned to achieve its revised full-year revenue guidance of $50 million to $52 million, indicating a promising outlook for the remainder of 2025.
In summary, BrainsWay’s earnings call conveyed a positive sentiment, driven by strong financial performance and strategic initiatives. The company reported record-breaking revenue, increased shipments, and a solid recurring revenue model. Despite challenges such as rising operating expenses and regulatory dependencies, BrainsWay’s raised revenue guidance and strategic investments signal a confident outlook for future growth.