Brainsway Q2 Earnings Call Highlights

BrainsWay reported strong Q2 results, with revenue up 35% to $17.1 million, adjusted EBITDA up 141% to $3.5 million, and its 12th consecutive profitable quarter. The company shipped 125 Deep TMS systems, expanding its installed base to approximately 1,950. Demand and revenue visibility improved, with remaining performance obligations rising 30% year over year to $80.4 million. Broader reimbursement for the accelerated SWIFT protocol now reaches an estimated 57 million U.S. covered lives, while clinical data showed sustained benefits and strong responses among patients with comorbid PTSD and depression. BrainsWay raised its 2026 revenue outlook to $68 million-$70 million, representing expected growth of 30%-34%. The company ended the quarter debt-free with $62.4 million in cash and is continuing strategic investments in behavioral-health providers and Neurolief.

BrainsWay NASDAQ: BWAY reported second-quarter revenue growth of 35% and raised its full-year 2026 revenue outlook, citing continued demand for its Deep TMS systems, expanding reimbursement for its accelerated SWIFT treatment protocol and growth in its installed base. Revenue for the three months ended June 30 rose to $17.1 million from $12.6 million a year earlier. Operating income increased to $2.4 million from $0.6 million, while net income rose 34% to $2.7 million. Adjusted EBITDA increased 141% to $3.5 million, and adjusted EBITDA margin expanded to 20% from 11%, according to the company.

Chief Executive Officer Hadar Levy said the quarter marked BrainsWay’s 12th consecutive quarter of profitability and reflected the company’s effort to evolve beyond a Deep TMS device provider into a broader interventional psychiatry platform.

System placements and revenue visibility BrainsWay shipped 125 Deep TMS systems during the quarter, a 42% increase from the prior-year period, bringing its installed base to about 1,950 systems as of June 30. Levy said each placement can create opportunities for multiyear recurring revenue, greater utilization, additional clinical indications and closer relationships with providers. Remaining performance obligations reached $80.4 million at quarter-end, up 30% year over year. The company said the increase reflected demand for Deep TMS and its focus on leasing systems to enterprise customers.

“The backlog is growing, and we are very proud with this 30% increase in the backlog,” Levy said during the question-and-answer session. He said the obligations represent orders for which revenue has not yet been recognized and provide visibility into the second half of 2026 and into 2027. Gross profit increased 34% to $12.8 million, while gross margin remained at 75%. Sales and marketing expense was unchanged from a year earlier at $4.9 million. Research and development expense rose to $3.2 million from $2.3 million, driven primarily by clinical development and research initiatives involving post-traumatic stress disorder and alcohol use disorder. General and administrative expense rose to $2.3 million from $1.6 million, reflecting higher professional fees and administrative costs.

SWIFT reimbursement and clinical evidence Management highlighted reimbursement progress for the company’s SWIFT accelerated Deep TMS protocol, which is designed to reduce treatment duration from several weeks to a few days. BrainsWay estimates that about 57 million covered lives in the United States now have access to reimbursement for SWIFT. Levy said the protocol is currently focused on patients with major depressive disorder who have not responded well to medication or other treatment approaches. He said adoption can approach 50% of the relevant patient population in local mark...