Brainsway Ltd (BWAY)
NASDAQ:BWAY
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Brainsway
(NASDAQ:BWAY)
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Rating:74Outperform
Price Target:
$15.00
▲(4.24% Upside)
Action:ReiteratedDate:04/10/26
The score is driven primarily by improving fundamentals: strong profitability turnaround, high gross margins, and a conservatively financed balance sheet, with robust (though somewhat volatile) cash generation. Technicals are mixed (below the 20-day but above longer-term averages), and valuation appears reasonable at ~14.8x earnings.
Positive Factors
High gross margins & profitability
Sustained mid-70s gross margins combined with a recent shift to sustained profitability indicate durable unit economics and pricing power in Deep TMS hardware and consumables. This margin base supports operating leverage as revenue scales and underpins long-term free cash flow generation even as the company reinvests to grow.
Negative Factors
Volatile cash flow generation
While cash conversion improved in 2024–2025, historical swings and a year‑over‑year FCF decline highlight sensitivity to working capital and capex/timing. This volatility can complicate capital planning for growth investments or acquisitions and may force episodic external financing during expansion phases.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & profitability
Sustained mid-70s gross margins combined with a recent shift to sustained profitability indicate durable unit economics and pricing power in Deep TMS hardware and consumables. This margin base supports operating leverage as revenue scales and underpins long-term free cash flow generation even as the company reinvests to grow.
Read all positive factors
Brainsway (BWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$578.65M
Dividend YieldN/A
Average Volume (3M)189.14K
Price to Earnings (P/E)14.8
Beta (1Y)1.40
Revenue Growth27.37%
EPS Growth269.84%
CountryUS
Employees120
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.07
Shares Outstanding40,033,028
10 Day Avg. Volume170,897
30 Day Avg. Volume189,141
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)2.48
Price to Sales (P/S)3.45
P/FCF Ratio11.06
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue10.25
Enterprise Value/Gross Profit13.60
Enterprise Value/Ebitda53.61
Forecast
1Y Price Target
$15.00Price Target Upside4.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.18
Revenue Forecast (FY)$66.43M
Brainsway Business Overview & Revenue Model
Company Description
Brainsway Ltd. develops and sells noninvasive neurostimulation treatments for mental health disorders in the United States, Europe, Israel, and internationally. It offers Deep Transcranial Magnetic Stimulation platform technology for the treatment...
How the Company Makes Money
BrainsWay primarily generates revenue by commercializing its Deep TMS medical devices and associated components and services. Key revenue streams include: (1) System sales: selling Deep TMS platforms to hospitals, outpatient psychiatry practices, ...
Brainsway Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
BrainsWay's Q3 2025 earnings call indicated strong growth and positive developments, including record revenue, increased system shipments, and successful strategic investments. Despite increased operating expenses and a delay in FDA clearance for Neurolief, the company's performance and raised guidance reflect a generally optimistic outlook.Positive Updates
Record Quarterly Revenue
BrainsWay reported a record quarterly revenue of $13.5 million for Q3 2025, representing a 29% increase compared to the same period last year.
Negative Updates
Increased Operating Expenses
Sales and marketing expenses increased to $4.7 million from $4.1 million, and research and development expenses increased to $2.4 million from $1.8 million, reflecting increased investment in commercial expansion and ongoing clinical trials.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Quarterly Revenue
BrainsWay reported a record quarterly revenue of $13.5 million for Q3 2025, representing a 29% increase compared to the same period last year.
Read all positive updates
Company Guidance
During BrainsWay's Third Quarter 2025 Earnings Conference Call, the company reported record quarterly revenue of $13.5 million, marking a 29% increase from the previous year. Additionally, 90 Deep TMS systems were shipped, reflecting a 43% year-over-year growth. As a result, the company raised its full-year revenue guidance to a range of $51 million to $52 million, an increase from the prior $50 million to $52 million. Operating profit is now expected to be between 6% and 7% of revenue, up from the previous 4% to 5%, while adjusted EBITDA is projected to be in the range of 13% to 14%, an improvement from the initially anticipated 12% to 13%. BrainsWay's strategic focus on multiyear lease agreements has led to approximately 70% of recent customer engagements being lease-based, contributing to high customer retention and a book-to-bill ratio of 1.3x. The company also reported a remaining performance obligation of $65 million and mentioned a positive cash flow from operations.Brainsway Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 52.64M | 41.02M | 31.79M | 27.18M | 29.66M |
| Gross Profit | 39.70M | 30.58M | 23.48M | 20.05M | 23.06M |
| EBITDA | 5.91M | 5.36M | -2.56M | -11.45M | -4.67M |
| Net Income | 7.69M | 2.92M | -4.20M | -13.35M | -6.46M |
Balance Sheet | |||||
| Total Assets | 112.92M | 94.32M | 62.97M | 64.48M | 75.73M |
| Cash, Cash Equivalents and Short-Term Investments | 67.95M | 69.34M | 45.98M | 47.58M | 57.35M |
| Total Debt | 6.82M | 5.62M | 471.00K | 488.00K | 754.00K |
| Total Liabilities | 34.67M | 32.00M | 21.39M | 19.08M | 18.41M |
| Stockholders Equity | 73.22M | 62.31M | 41.58M | 45.40M | 57.33M |
Cash Flow | |||||
| Free Cash Flow | 16.40M | 6.50M | -1.10M | -9.76M | -1.35M |
| Operating Cash Flow | 18.16M | 10.30M | 1.28M | -9.76M | 884.00K |
| Investing Cash Flow | -17.63M | 30.31M | -37.41M | 42.17M | -42.22M |
| Financing Cash Flow | -2.23M | 18.26M | -1.03M | -1.55M | 41.52M |
Brainsway Technical Analysis
Positive
14.39
Price Trends
12.62
Positive
11.16
Positive
9.20
Positive
Market Momentum
0.30
Negative
60.33
Neutral
81.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWAY, the sentiment is Positive. The current price of 14.39 is above the 20-day moving average (MA) of 13.49, above the 50-day MA of 12.62, and above the 200-day MA of 9.20, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 81.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWAY.
Brainsway Risk Analysis
Brainsway disclosed 67 risk factors in its most recent earnings report. Brainsway reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
The price of our ADSs may rely on the research and reports of equity research analysts Q4, 2023
2.
We may be unable to manage our anticipated growth effectively, which could make it difficult to execute our business strategy and we may even be unable to forecast our future growth accurately. Q4, 2023
Brainsway Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $374.06M | 19.35 | 10.87% | ― | 18.90% | 29.22% | |
74 Outperform | $578.65M | 14.77 | 12.01% | ― | 27.37% | 269.84% | |
62 Neutral | $533.04M | 34.75 | 9.26% | ― | 9.28% | 21.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $148.08M | 10.46 | -141.56% | ― | 40.89% | -749.65% | |
50 Neutral | $266.68M | -6.74 | 137.18% | ― | 49.52% | 19.34% | |
46 Neutral | $500.96M | -23.54 | -105.67% | ― | 24.08% | 24.08% |
* Healthcare Sector Average
BWAY
Brainsway
14.97
10.80
258.56%
SNWV
Sanuwave Health
17.51
-11.79
-40.24%
TCMD
Tactile Systems Technology
25.06
11.71
87.72%
VMD
Viemed Healthcare
9.71
3.10
46.90%
TLSI
TriSalus Life Sciences
4.40
-1.12
-20.29%
NPCE
NeuroPace
15.35
5.01
48.45%
Brainsway Corporate Events
BrainsWay Invests Additional $6 Million in Neurolief After FDA Nod for Proliv Rx
Mar 26, 2026
On March 26, 2026, BrainsWay announced it had completed an additional $6 million milestone-based convertible loan investment in neuromodulation specialist Neurolief, triggered by U.S. FDA Premarket Approval for Neurolief’s Proliv Rx system f...
BrainsWay Completes Milestone Investment in Axis Integrated Mental Health
Mar 19, 2026
On March 19, 2026, BrainsWay announced it had completed a $1 million milestone‑based investment in Axis Integrated Mental Health, a management services organization supporting several mental health clinics in Colorado. The payment was trigge...
BrainsWay Maps 2026 Growth After Strong 2025 ARR and Profitability Surge
Mar 17, 2026
BrainsWay reported that by year-end 2025 it had fully transitioned to a high-margin, recurring-revenue model anchored in multi-year Deep TMS system leases, delivering 2025 revenue of $52.2 million, up 27% year over year, with gross margin at 76%, ...
BrainsWay Posts Record 2025 Results and Issues Bullish 2026 Outlook on Deep TMS Momentum
Mar 11, 2026
On March 11, 2026, BrainsWay reported strong fourth quarter and full‑year 2025 results, with Q4 revenue up 27% year over year to a record $14.5 million and operating income rising to $1.9 million. Full‑year 2025 revenue climbed 27% to ...
BrainsWay Unveils Landmark Data on Accelerated Deep TMS for Depression
Mar 5, 2026
On March 4, 2026, BrainsWay reported landmark clinical data validating its exclusive FDA-cleared SWIFT accelerated Deep TMS protocol for major depressive disorder, which cuts the acute treatment phase from 20 visits to six half days plus four week...
BrainsWay Takes Minority Stake in Canadian Mental Health Provider BrainStim Health
Feb 19, 2026
On February 19, 2026, BrainsWay announced a strategic equity financing agreement to take a minority stake in BrainStim Health Inc., a British Columbia-based interventional psychiatry provider serving a growing network of Canadian mental health cli...
BrainsWay Highlights Evernorth Move to Drop Prior Authorization for TMS Coverage
Feb 18, 2026
On February 18, 2026, BrainsWay highlighted a policy change by Cigna Group’s Evernorth Behavioral Health, which will eliminate prior authorization requirements for transcranial magnetic stimulation coverage for contracted providers, effectiv...
BrainsWay to Implement 1-for-1 ADS-to-Ordinary Share Ratio in March 2026
Feb 17, 2026
On February 17, 2026, BrainsWay announced that its board approved a change in the ratio of its American Depositary Shares listed on Nasdaq to its ordinary shares traded in Tel Aviv, shifting from a 2‑to‑1 ordinary share‑to‑...
BrainsWay Wins Draft Highmark Coverage for Accelerated Deep TMS Depression Protocol
Jan 21, 2026
On January 21, 2026, BrainsWay announced that Highmark Blue Cross Blue Shield, which covers more than seven million members primarily in Pennsylvania, Delaware, West Virginia and parts of New York, has issued a draft medical policy to expand cover...
BrainsWay Highlights FDA Approval of Neurolief’s At-Home Proliv Rx Device for Treatment-Resistant Depression
Jan 12, 2026
On January 12, 2026, BrainsWay Ltd. reported that the U.S. Food and Drug Administration granted Premarket Approval for Neurolief’s Proliv Rx neuromodulation system, a Class III device indicated as an adjunctive treatment for adults with majo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.