BrainsWay Q3 revenue rises 34%; operating income climbs to about $2.6M

By Tom Whitfield

Third-quarter 2026 revenue reached $18.1 million, up 34% from $13.5 million, as BrainsWay’s operating income more than doubled to approximately $2.6 million.

What did the quarter show?

BrainsWay shipped 130 Deep TMS systems, up 44% year over year, while its global installed base exceeded 2,000 systems. Revenue growth came as shipments increased and reimbursement coverage expanded for the company’s accelerated treatment protocol.

CFO Ido Marom said full-year results should land at “the upper end of its previously issued guidance ranges” and might “modestly exceed” them. Management did not provide the numerical ranges, so the potential upside remains unquantified.

• Gross profit rose 39% to $14.1 million, and gross margin widened to 78% from 75%.
• Operating income increased to approximately $2.6 million from $1.3 million; operating margin rose to 14% from 9%.
• Operating expenses increased to $11.5 million from $8.9 million, including about $1 million of additional one-time costs for share-based compensation and other nonrecurring payments compared with the prior year.
• Net income rose 42% to $2.2 million. Marom said finance expenses tied to the periodic valuation of the company’s loan affected reported net income but did not reflect core operating performance.
• Adjusted earnings before interest, taxes, depreciation and amortization rose 92% to $3.9 million.
• Operating cash flow reached approximately $6.2 million, compared with $1.4 million a year earlier; cash totaled $63.4 million at the end of September.
• Remaining performance obligations reached approximately $85 million, up 31% year over year.

CEO Hadar Levy partly attributed the gross-margin improvement to lower manufacturing costs as production volume increased and to reduced royalty payments. He expects those benefits to remain in place into 2027.

BrainsWay expects operating expenses to rise 15% to 20% next year while continuing to pursue margin improvement. The company has not issued formal 2027 guidance, leaving the scale and timing of planned investment against those expected benefits unstated.

The quarter improved operating economics, but management’s 2027 cost outlook remains incomplete.

How far has reimbursement expanded?

After the quarter, BrainsWay announced that more than 70 million people in the United States had reimbursement policies covering its SWIFT accelerated protocol. Levy said reimbursement coverage for obsessive-compulsive disorder treatment reached approximately 180 million lives.

Levy said the coverage was ahead of company expectations and that SWIFT “accounted for close to half of new customer demand and requests.” He also identified OCD as a deployment driver and said BrainsWay had passed 1,000 deployed OCD systems.

Those figures establish broad access and substantial deployment, but the call did not disclose how much revenue either category produced.

Broader reimbursement improves BrainsWay’s sales opportunity, but its revenue conversion remains undisclosed.

What do the clinical programs show?

Levy discussed a peer-reviewed secondary analysis of a randomized trial comparing SWIFT with standard once-daily Deep TMS. Among 89 patients with major depressive disorder, the number experiencing suicidal ideation fell from 20 at baseline to six after six weeks; improvements appeared across both protocols.

Because both protocols recorded improvements, the analysis did not establish a SWIFT-specific advantage.

Levy also cited a 12-patient pilot study involving depression and early-stage Alzheimer’s disease that reported an 83% response rate and a 50% remission rate in depressive symptoms. BrainsWay described the findings as preliminary. Deep TMS is not FDA-cleared for suicidal ideation or for treating Alzheimer’s disease.

For post-traumatic stress disorder among patients with coexisting depression, BrainsWay remains in regulatory review, Levy said. He expects an Alzheimer’s-related feasibility study to conclude around the end of 2027; the company may then seek a strategic partner for a potential multicenter U.S. trial. Those development targets remain subject to further evidence, review and financing.

The clinical program adds reach, but preliminary results and uncleared indications limit what investors can treat as established revenue.

What do partnerships and expansion add?

BrainsWay invested $3 million in Radial Health’s Series A financing during the quarter. After the quarter, it announced a commercial collaboration with Inland Psychiatric Medical Group that included a multi-system order.

Levy said BrainsWay had made close to 10 minority investments, follow-on investments or partnerships and expected to disclose more about their progress in 2027. He warned that partner system orders may take time as partners secure locations, credentials and staff.

BrainsWay also has an $11 million convertible loan investment in Neurolief. Neurolief’s FDA-approved Proliv Rx home-use system remains in early commercialization; because Neurolief is private, BrainsWay does not consolidate its results.

Levy cited demand across Asia-Pacific, Europe and Israel, as well as expansion into Latin American markets. He identified Japan, where reimbursement has been established, as a potential growth driver. The call did not quantify revenue or order timing for these markets.

The deals widen BrainsWay’s reach, but most financial contributions and partner-order schedules remain undisclosed.

What does BrainsWay do?

BrainsWay Ltd. (NASDAQ:BWAY) is a medical technology company that develops and commercializes noninvasive therapies for brain disorders. Its core Deep Transcranial Magnetic Stimulation technology uses a helmet-like device to deliver magnetic stimulation to targeted areas of the brain. Systems treat major depressive disorder and obsessive-compulsive disorder and have regulatory clearances for additional indications, including smoking cessation.

The cleared treatment base is established, while the newer indications still require further evidence and regulatory progress.