BrainsWay’s Earnings Call Highlights Robust Growth and Strategic Advancements

Brainsway ((BWAY)) has held its Q1 earnings call. Read on for the main highlights of the call.

The latest earnings call from BrainsWay painted a picture of robust growth and strategic advancements, with a generally positive sentiment prevailing throughout the discussion. The company highlighted its strong revenue growth and system shipments, underscoring the increasing demand for its Deep TMS systems. However, the call also acknowledged rising operating expenses and potential geopolitical risks that could impact future performance.

Significant Revenue Growth

BrainsWay reported a notable $11.5 million in revenue for the first quarter of 2025, marking a 27% increase compared to the same period last year. This impressive growth underscores the company’s successful market strategies and the increasing adoption of its innovative Deep TMS systems.

Increased System Shipments

The company achieved a 42% increase in system shipments, delivering 81 Deep TMS systems in the first quarter of 2025. This surge in shipments reflects the growing demand for BrainsWay’s cutting-edge technology and its expanding footprint in the mental health treatment market.

Strong Backlog and Future Visibility

BrainsWay’s backlog and remaining performance obligations now total nearly $60 million, providing the company with clear visibility into future growth. This strong backlog indicates sustained demand and positions the company well for continued success in the coming quarters.

Clinical Advancements

The company has made significant strides in clinical advancements, with its TMS therapy being the first approved for OCD and the first device cleared by the FDA for anxious depression. These advancements have resulted in over a 60% positive response rate for OCD patients, showcasing the efficacy of BrainsWay’s treatments.

Solid Financial Performance

BrainsWay reported a gross margin of 75% and increased operating income, alongside an adjusted EBITDA margin, with positive cash flow from operations. These financial metrics highlight the company’s strong financial health and operational efficiency.

Positive Financial Guidance

For the full year 2025, BrainsWay has reiterated its revenue guidance of $49 million to $51 million, representing a 20% to 24% growth over 2024. The company anticipates operating income of 3% to 4% and an adjusted EBITDA of 11% to 12%, reflecting confidence in its growth trajectory and strategic initiatives.

Increased Operating Expenses

The earnings call also highlighted increased operating expenses, with sales and marketing expenses rising to $4.2 million from $3.8 million in Q1 2024, and research and development expenses increasing to $2.3 million from $1.6 million. These increases are attributed to the company’s efforts to expand its market presence and enhance its R&D capabilities.

Geopolitical and Tariff Uncertainties

BrainsWay is closely monitoring potential geopolitical and tariff uncertainties that could affect international trade. While no material impact is currently expected, the company remains vigilant in assessing these risks to mitigate any potential adverse effects.

In summary, BrainsWay’s latest earnings call conveyed a strong sense of optimism and strategic growth, with significant achievements in revenue and clinical advancements. Despite some concerns over rising expenses and geopolitical risks, the company’s positive financial guidance and robust backlog provide a solid foundation for future success.