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Brainsway
(NASDAQ:BWAY)
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Rating:75Outperform
Price Target:
$13.00
▼(-9.91% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improved profitability and a conservative balance sheet, reinforced by a broadly positive earnings call with raised guidance and strong Q2 growth/margin performance. Offsetting factors are cash-flow volatility and a stretched valuation (high P/E), while technicals are supportive but not a major incremental catalyst.
Positive Factors
Revenue and profitability growth
Strong revenue growth alongside sharply higher EBITDA and a 20% margin indicates operating leverage as demand scales. If sustained, this combination can improve internally funded expansion, reinforce commercial execution, and support durable earnings growth over the next several quarters.
Negative Factors
Volatile cash conversion
Positive cash generation is encouraging, but the sharp decline in trailing free cash flow shows that reported earnings have not converted consistently into cash. Persistent volatility could constrain self-funded investment and make results more sensitive to working-capital movements.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profitability growth
Strong revenue growth alongside sharply higher EBITDA and a 20% margin indicates operating leverage as demand scales. If sustained, this combination can improve internally funded expansion, reinforce commercial execution, and support durable earnings growth over the next several quarters.
Read all positive factors
Brainsway (BWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$478.59M
Dividend YieldN/A
Average Volume (3M)108.88K
Price to Earnings (P/E)49.1
Beta (1Y)1.44
Revenue Growth31.63%
EPS Growth65.86%
CountryUS
Employees129
SectorHealthcare
Sector Strength45
IndustryMedical - Specialties
Share Statistics
EPS (TTM)0.46
Shares Outstanding40,252,990
10 Day Avg. Volume113,919
30 Day Avg. Volume108,881
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 Cap1.19
Enterprise Value/Revenue9.30
Enterprise Value/Gross Profit12.35
Enterprise Value/Ebitda46.56
Forecast
1Y Price Target
$19.50Price Target Upside35.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.32
Revenue Forecast (FY)$69.16M
Brainsway Business Overview & Revenue Model
Company Description
BrainsWay Ltd. develops and distributes non-invasive neurostimulation therapies that address a broad spectrum of mental health and neurological conditions. The company operates globally, with a presence in the United States, Europe, and Israel, am...
How the Company Makes Money
BrainsWay primarily makes money by selling and placing its Deep TMS systems and associated components with healthcare providers (e.g., psychiatrists, clinics, hospitals) and generating recurring revenue tied to ongoing use. Key revenue streams inc...
Brainsway Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company delivered strong top-line growth (35% YoY), significant margin and profitability expansion (operating income +300% YoY; adjusted EBITDA +141% YoY), increased installed base and RPOs, raised full-year guidance, and presented supportive clinical/reimbursement data (SWIFT durability and PTSD+MDD real-world results). Noted risks relate to increased R&D/G&A spending, dependence on payer adoption and local reimbursement variability, early-stage nature and timing of contributions from minority investments (including Neurolief), and the timing of backlog revenue recognition. Overall, the positives—robust growth, margin expansion, strengthened cash position, and clinical momentum—significantly outweigh the operational and timing risks discussed.Positive Updates
Strong Revenue Growth
Revenue grew 35% year-over-year to $17.1 million in Q2 2026 compared with $12.6 million in Q2 2025.
Negative Updates
Rising Operating Expenses in R&D and G&A
R&D increased to $3.2 million from $2.3 million (≈+39% YoY) and General & Administrative rose to $2.3 million from $1.6 million (≈+44% YoY), reflecting higher clinical development and professional costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue grew 35% year-over-year to $17.1 million in Q2 2026 compared with $12.6 million in Q2 2025.
Read all positive updates
Company Guidance
Management raised full‑year 2026 revenue guidance from $66–68M to $68–70M (implying ~30–34% YoY growth), and narrowed operating margin guidance to 13.5%–40% of revenue and adjusted EBITDA guidance to $13M–$40M (representing ~90%–100% growth vs. 2025); management cited strong Q2 results — revenue $17.1M (+35% YoY), gross profit $12.8M (gross margin 75%), operating income $2.4M (operating margin 14%), net income $2.7M (+34% YoY), adjusted EBITDA $3.5M (+141%, adjusted EBITDA margin 20%) — and leading indicators that support the raise, including 125 Deep TMS systems shipped in Q2 (+42% YoY) for an installed base of ~1,950 systems, remaining performance obligations of $80.4M (+30% YoY), Q2 operating cash flow of $6.3M (vs. $1.2M in Q1), cash and cash equivalents of $62.4M and a debt‑free balance sheet.Brainsway Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.99M | 52.23M | 41.02M | 31.79M | 27.18M | 29.66M |
| Gross Profit | 45.94M | 39.39M | 30.58M | 23.48M | 20.05M | 23.06M |
| EBITDA | 12.18M | 11.46M | 5.36M | -2.56M | -11.45M | -4.67M |
| Net Income | 9.55M | 7.63M | 2.92M | -4.20M | -13.35M | -6.46M |
Balance Sheet | ||||||
| Total Assets | 121.97M | 112.92M | 94.32M | 62.97M | 64.48M | 75.73M |
| Cash, Cash Equivalents and Short-Term Investments | 62.36M | 69.13M | 69.34M | 45.98M | 47.58M | 57.35M |
| Total Debt | 7.13M | 6.82M | 5.62M | 471.00K | 488.00K | 754.00K |
| Total Liabilities | 42.79M | 39.70M | 32.00M | 21.39M | 19.08M | 18.41M |
| Stockholders Equity | 79.19M | 73.22M | 62.31M | 41.58M | 45.40M | 57.33M |
Cash Flow | ||||||
| Free Cash Flow | 5.69M | 16.40M | 6.50M | -1.10M | -9.76M | -1.35M |
| Operating Cash Flow | 8.16M | 18.16M | 10.30M | 1.28M | -9.76M | 884.00K |
| Investing Cash Flow | -11.74M | -17.63M | 30.31M | -37.41M | 42.17M | -42.22M |
| Financing Cash Flow | -2.26M | -2.23M | 18.26M | -1.03M | -1.55M | 41.52M |
Brainsway Technical Analysis
Negative
14.43
Price Trends
13.44
Negative
14.25
Negative
13.93
Negative
Market Momentum
-0.51
Negative
36.39
Neutral
56.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWAY, the sentiment is Negative. The current price of 14.43 is above the 20-day moving average (MA) of 12.15, above the 50-day MA of 13.44, and above the 200-day MA of 13.93, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 36.39 is Neutral, neither overbought nor oversold. The STOCH value of 56.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $478.59M | 49.12 | 12.69% | ― | 31.63% | 65.86% | |
74 Outperform | $532.78M | 21.36 | 11.49% | ― | 17.22% | 74.89% | |
67 Neutral | $371.36M | 25.85 | 10.30% | ― | 25.21% | 6.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $45.94M | 3.20 | 1728.10% | ― | 12.02% | ― | |
50 Neutral | $463.72M | -22.83 | -119.68% | ― | 11.59% | 31.90% | |
46 Neutral | $225.36M | -2.82 | 273.71% | ― | 25.25% | -9.85% |
* Healthcare Sector Average
BWAY
Brainsway
11.44
3.13
37.58%
SNWV
Sanuwave Health
5.30
-26.07
-83.10%
TCMD
Tactile Systems Technology
23.54
8.59
57.46%
VMD
Viemed Healthcare
9.92
3.09
45.24%
TLSI
TriSalus Life Sciences
3.66
-1.47
-28.65%
NPCE
NeuroPace
13.14
2.59
24.55%
Brainsway Corporate Events
BrainsWay Sets November 25, 2026 Annual Shareholder Meeting With Auditor, Board and Equity Votes
Oct 21, 2026
On October 21, 2026, BrainsWay filed a Form 6-K announcing its annual general meeting of shareholders to be held at its Jerusalem headquarters on November 25, 2026. Shareholders of record as of October 26, 2026, including ordinary share and ADS ho...
BrainsWay Strikes Strategic Deep TMS Partnership With Southern California’s Inland Psychiatric Medical Group
Oct 19, 2026
On October 19, 2026, BrainsWay announced a strategic collaboration with Inland Psychiatric Medical Group, a multidisciplinary behavioral health provider serving patients across Southern California. The deal includes a multisystem order of BrainsWa...
BrainsWay Expands U.S. Coverage for SWIFT Deep TMS to Over 70 Million Lives
Oct 13, 2026
BrainsWay Ltd., a global leader in advanced noninvasive brain stimulation technologies, reported on October 13, 2026 that U.S. medical policy coverage for its SWIFT accelerated Deep TMS protocol has expanded to more than 70 million covered lives. ...
Brainsway Files Interim H1 2026 Financials with SEC
Sep 29, 2026
On September 29, 2026, Brainsway Ltd. filed a Form 6-K with the U.S. Securities and Exchange Commission, furnishing its condensed consolidated unaudited interim financial statements for the six-month period ended June 30, 2026. The filing also inc...
BrainsWay Announces Strong Pilot Results for Deep TMS in Depression with Early-Stage Alzheimer’s
Sep 8, 2026
BrainsWay has reported peer-reviewed pilot study results published on September 8, 2026 in the Journal of Geriatric Psychiatry and Neurology, evaluating its Deep TMS technology in 12 patients suffering from both major depressive disorder and early...
BrainsWay Study Highlights 70% Drop in Suicidal Ideation With Deep TMS in MDD Patients
Aug 27, 2026
BrainsWay Ltd. reported on August 27, 2026 that a peer‑reviewed secondary analysis of a multisite randomized clinical trial showed Deep TMS can substantially reduce suicidal ideation in patients with major depressive disorder. The analysis, ...
BrainsWay Showcases Platform Strategy and Scaling Deep TMS Market in August 2026 Investor Deck
Aug 12, 2026
BrainsWay Ltd. is an Israel-based medical technology company focused on interventional psychiatry, providing Deep Transcranial Magnetic Stimulation (Deep TMS) systems to treat mental health conditions such as depression and obsessive-compulsive di...
BrainsWay Lifts 2026 Guidance After Record Q2 Revenue and Deep TMS Growth
Aug 12, 2026
On August 12, 2026, BrainsWay reported record second-quarter 2026 revenue of $17.1 million, up 35% year over year, alongside sharp profitability gains as adjusted EBITDA more than doubled to $3.5 million and operating margin rose to 14%. The compa...
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.