Brainsway (BWAY)
NASDAQ:BWAY
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Brainsway
(NASDAQ:BWAY)
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Rating:74Outperform
Price Target:
$19.00
▲(20.18% 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 and profitability turnaround
BrainsWay has sustained very high gross margins (~74–78%) while moving from losses to positive net income in 2024–2025. That margin base underpins durable operating leverage: it improves the company's ability to fund reinvestment, support pricing power, and convert incremental sales into lasting profitability.
Negative Factors
Volatility in cash flows and recent FCF decline
Despite recent positive FCF, historical swings and a YoY FCF decline in 2025 indicate sensitivity to working-capital timing and investment cadence. Persistent volatility can strain operational planning and makes longer-term forecasting less reliable, increasing execution risk during growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and profitability turnaround
BrainsWay has sustained very high gross margins (~74–78%) while moving from losses to positive net income in 2024–2025. That margin base underpins durable operating leverage: it improves the company's ability to fund reinvestment, support pricing power, and convert incremental sales into lasting profitability.
Read all positive factors
Brainsway (BWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$694.13M
Dividend YieldN/A
Average Volume (3M)185.96K
Price to Earnings (P/E)14.8
Beta (1Y)1.44
Revenue Growth27.65%
EPS Growth140.87%
CountryUS
Employees120
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.28
Shares Outstanding40,037,530
10 Day Avg. Volume177,700
30 Day Avg. Volume185,964
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 Cap0.91
Enterprise Value/Revenue12.11
Enterprise Value/Gross Profit16.06
Enterprise Value/Ebitda63.30
Forecast
1Y Price Target
$15.00Price Target Upside-5.12% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 | 69.13M | 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
15.81
Price Trends
12.94
Positive
11.48
Positive
9.38
Positive
Market Momentum
0.67
Negative
66.26
Neutral
85.95
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 15.81 is above the 20-day moving average (MA) of 13.84, above the 50-day MA of 12.94, and above the 200-day MA of 9.38, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 66.26 is Neutral, neither overbought nor oversold. The STOCH value of 85.95 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $694.13M | 14.77 | 11.10% | ― | 27.65% | 140.87% | |
72 Outperform | $578.57M | -83.60 | 9.70% | ― | 17.18% | 34.07% | |
70 Outperform | $342.73M | 34.27 | 10.66% | ― | 23.10% | 22.75% | |
53 Neutral | $622.99M | -46.28 | -105.67% | ― | 25.13% | 29.55% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $133.81M | 10.46 | -141.56% | ― | 34.98% | ― | |
50 Neutral | $272.07M | -8.38 | 137.18% | ― | 53.41% | -37.31% |
* Healthcare Sector Average
BWAY
Brainsway
17.17
12.76
288.90%
SNWV
Sanuwave Health
15.57
-14.98
-49.03%
TCMD
Tactile Systems Technology
25.65
15.93
163.89%
VMD
Viemed Healthcare
8.94
2.43
37.33%
TLSI
TriSalus Life Sciences
4.43
-0.68
-13.31%
NPCE
NeuroPace
18.35
4.98
37.25%
Brainsway Corporate Events
BrainsWay Cites Expanding U.S. Payer Support for Nurse Practitioner‑Led Deep TMS
Apr 15, 2026
On April 15, 2026, BrainsWay reported a growing shift in U.S. reimbursement policies that now allow appropriately trained psychiatric mental health nurse practitioners to administer TMS therapies, including its Deep TMS treatment, under state scop...
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‑...
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.