Brainsway (BWAY)
NASDAQ:BWAY
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Brainsway
(NASDAQ:BWAY)
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Rating:73Outperform
Price Target:
$17.00
▲(7.53% Upside)
Action:Reiterated
Date:05/23/26
Score is driven primarily by improving fundamentals (profitability, strong margins, and a low-leverage balance sheet) and a constructive earnings outlook with robust FY2026 guidance. Offsetting factors are mixed near-term technical momentum and a valuation that is not clearly cheap (P/E ~27.7) with no dividend support, plus some cash-flow and execution/reimbursement risks to monitor.
Positive Factors
High gross margins & profitability
Sustained mid‑70s gross margins and a swing to positive net income provide durable operating leverage. High product margins support reinvestment in sales, clinical studies and service infrastructure, enabling profitable scale as installed base and recurring revenue grow.
Negative Factors
Reimbursement & regulatory dependency
Long‑term commercial traction depends on broader payer coverage and regulatory approvals for new indications and protocols. Delays or restrictive policies would slow clinic adoption, constrain utilization growth, and postpone realization of projected recurring revenue and margin gains.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & profitability
Sustained mid‑70s gross margins and a swing to positive net income provide durable operating leverage. High product margins support reinvestment in sales, clinical studies and service infrastructure, enabling profitable scale as installed base and recurring revenue grow.
Read all positive factors
Brainsway (BWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$581.70M
Dividend YieldN/A
Average Volume (3M)140.49K
Price to Earnings (P/E)63.1
Beta (1Y)1.49
Revenue Growth30.18%
EPS Growth109.31%
CountryUS
Employees120
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.37
Shares Outstanding40,087,600
10 Day Avg. Volume130,638
30 Day Avg. Volume140,494
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.48
Price to Sales (P/S)3.47
P/FCF Ratio11.06
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue10.89
Enterprise Value/Gross Profit14.42
Enterprise Value/Ebitda48.70
Forecast
1Y Price Target
$17.00Price Target Upside7.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.19
Revenue Forecast (FY)$67.17M
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:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlights strong operational execution and solid financial momentum: 35% revenue growth, 11th consecutive profitable quarter, substantial increases in net income and adjusted EBITDA, meaningful unit shipments (117 systems, +44% YoY), and expanding remaining performance obligations ($75M, +25% YoY). Management also presented attractive clinical advances (SWIFT results: ~70% reduction in clinic visits; 88% response, 78% remission) and clear strategic initiatives (Neurolief investment, minority stakes in provider networks, positive VA pricing). Key risks noted include higher operating expenses due to growth investments, reliance on payer adoption and FDA timing for new indications and protocols, and ongoing investments that increase near-term capital deployment. Overall, positives materially outweigh the challenges, with strong guidance for continued growth but some execution and reimbursement risks to monitor.Positive Updates
Strong Revenue Growth
Revenue increased 35% year-over-year to $15.5 million in Q1 2026 from $11.5 million in Q1 2025, driven by core business execution and expanded market penetration.
Negative Updates
Rising Operating Expenses
Operating expenses increased in Q1 2026: Sales & Marketing rose to $4.9M from $4.2M (~+17%), Research & Development increased to $2.8M from $2.3M (~+22%), and General & Administrative rose to $1.8M from $1.5M (+20%), reflecting higher investments to support growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue increased 35% year-over-year to $15.5 million in Q1 2026 from $11.5 million in Q1 2025, driven by core business execution and expanded market penetration.
Read all positive updates
Company Guidance
Management guided full-year 2026 revenue of $66–$68 million (implying +27% to +30% YoY), operating income of 13%–14% of revenue, and adjusted EBITDA of $12–$14 million (an +86% to +100% increase versus 2025). That outlook is supported by Q1 results—revenue $15.5M (+35% YoY), net income $2.3M (>100% YoY), adjusted EBITDA $2.8M (+119% YoY), 117 systems placed (installed base ~1,820), remaining performance obligations of $75M (+25% YoY), positive operating cash flow and $58.9M of cash and equivalents—and management also reiterated a debt‑free balance sheet. Management expects payer coverage expansion for the SWIFT 6‑day protocol to reach roughly 40–50 million covered lives by year‑end and indicated an FDA interaction on the PTSD filing within ~90 days with potential clearance before year‑end.Brainsway Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.22M | 52.23M | 41.02M | 31.79M | 27.18M | 29.66M |
| Gross Profit | 42.45M | 39.39M | 30.58M | 23.48M | 20.05M | 23.06M |
| EBITDA | 12.57M | 11.46M | 5.36M | -2.56M | -11.45M | -4.67M |
| Net Income | 8.82M | 7.63M | 2.92M | -4.20M | -13.35M | -6.46M |
Balance Sheet | ||||||
| Total Assets | 117.00M | 112.92M | 94.32M | 62.97M | 64.48M | 75.73M |
| Cash, Cash Equivalents and Short-Term Investments | 59.77M | 69.13M | 69.34M | 45.98M | 47.58M | 57.35M |
| Total Debt | 6.71M | 6.82M | 5.62M | 471.00K | 488.00K | 754.00K |
| Total Liabilities | 41.20M | 39.70M | 32.00M | 21.39M | 19.08M | 18.41M |
| Stockholders Equity | 75.80M | 73.22M | 62.31M | 41.58M | 45.40M | 57.33M |
Cash Flow | ||||||
| Free Cash Flow | 12.72M | 16.40M | 6.50M | -1.10M | -9.76M | -1.35M |
| Operating Cash Flow | 14.19M | 18.16M | 10.30M | 1.28M | -9.76M | 884.00K |
| Investing Cash Flow | -24.87M | -17.63M | 30.31M | -37.41M | 42.17M | -42.22M |
| Financing Cash Flow | -2.37M | -2.23M | 18.26M | -1.03M | -1.55M | 41.52M |
Brainsway Technical Analysis
Neutral
15.81
Price Trends
15.14
Negative
13.64
Positive
10.90
Positive
Market Momentum
-0.05
Positive
40.14
Neutral
52.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWAY, the sentiment is Neutral. The current price of 15.81 is below the 20-day moving average (MA) of 15.81, above the 50-day MA of 15.14, and above the 200-day MA of 10.90, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 52.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $581.70M | 63.09 | 12.28% | ― | 30.18% | 109.31% | |
72 Outperform | $550.60M | 27.13 | 9.70% | ― | 17.18% | 34.07% | |
72 Outperform | $363.43M | 24.46 | 10.66% | ― | 23.10% | 22.75% | |
55 Neutral | $129.76M | 8.08 | -450.56% | ― | 22.49% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $555.39M | -25.47 | -120.74% | ― | 18.06% | 21.86% | |
45 Neutral | $204.82M | -6.29 | 162.57% | ― | 39.64% | -25.99% |
* Healthcare Sector Average
BWAY
Brainsway
14.56
9.47
185.77%
SNWV
Sanuwave Health
15.09
-13.23
-46.72%
TCMD
Tactile Systems Technology
24.41
14.13
137.45%
VMD
Viemed Healthcare
9.48
2.69
39.62%
TLSI
TriSalus Life Sciences
3.34
-1.86
-35.74%
NPCE
NeuroPace
16.29
2.75
20.31%
Brainsway Corporate Events
BrainsWay Takes Minority Stake in Hopemark Health to Expand Deep TMS Footprint
May 18, 2026
On May 18, 2026, BrainsWay announced a strategic equity financing agreement to take a minority stake in Hopemark Health, an integrated mental health provider that manages multiple clinics in the greater Chicago area through APS Innovations and Adv...
BrainsWay Highlights Q1 2026 Surge in Revenue and Profitability as Deep TMS ARR Model Scales
May 13, 2026
On May 13, 2026, BrainsWay filed a Form 6-K and released a May 2026 investor deck highlighting its evolution into a fast-growing, recurring-revenue business centered on Deep TMS technology. The company reported that by Q1 2026 it had delivered ove...
BrainsWay Posts Strong Q1 2026 Growth and Reaffirms Outlook on Deep TMS Momentum
May 13, 2026
On May 13, 2026, BrainsWay reported that first quarter 2026 revenue rose 35% year over year to $15.5 million, while net income more than doubled to $2.3 million and Adjusted EBITDA jumped 117% to $2.8 million, supported by steady 75% gross margins...
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...
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.