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Brainsway (BWAY) AI Stock Analysis
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Brainsway
(TASE:BWAY)
The score is driven primarily by improved financial fundamentals (profitability turnaround, strong gross margins, low leverage) and a notably positive earnings update with raised guidance and accelerating margins. These strengths are tempered by cash-flow volatility in 2026 TTM, a neutral-to-mixed technical picture, and a high P/E valuation that offers little margin for error.
Brainsway (BWAY) vs. iShares MSCI Israel ETF (EIS)
- Market Cap
- ILS 1.50B
- Dividend Yield
- ―
- Average Volume (3M)
- 80.20K
- Price to Earnings (P/E)
- 49.2
- Beta (1Y)
- 0.60
- Revenue Growth
- 14.06%
- EPS Growth
- 44.16%
- Country
- Israel
- Employees
- 129
- Sector
- General
- Sector Strength
- 55
- Industry
- Medical - Specialties
Brainsway Business Overview & Revenue Model
Company Description
Established in Jerusalem, Israel, in 2003, BrainsWay Ltd. specializes globally in creating and distributing advanced, non-invasive neurostimulation therapies designed to address a wide array of mental health and neurological conditions. The company's...
How the Company Makes Money
BrainsWay primarily makes money by selling and/or leasing its Deep TMS systems to healthcare providers (such as psychiatry and neurology clinics) and generating ongoing revenue tied to the installed base of systems. Key revenue streams typically incl...
Brainsway Earnings Call Summary
The call portrayed strong operational and financial momentum: robust revenue growth (+35%), substantial margin and profitability expansion (operating income >300%, adjusted EBITDA +141%, margin expansion to 20%), growing installed base (+42% systems placed) and a larger, more visible backlog (+30% RPO). Clinical and reimbursement progress (SWIFT durability data, 57M covered lives, >83% PTSD response in a 462‑patient study) and strategic minority investments support a multi‑year growth thesis. Notable cautions include rising R&D and G&A spend, uneven reimbursement adoption across markets, conditionality/uncertainty around Neurolief and wide forecast ranges for margins/EBITDA, and revenue timing risk from backlog. On balance, positive operational trends, cash strength and improved visibility outweigh the highlighted risks.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management raised full‑year 2026 revenue guidance to $68–70 million (up from $66–68M), implying ~30–34% year‑over‑year growth, and narrowed targets for operating margin to 13.5%–40% of revenue and adjusted EBITDA to $13–40 million (roughly +90% to +100% vs. 2025). The raise reflects strong first‑half momentum including Q2 revenue of $17.1M (+35% y/y), operating income of $2.4M (up >300%), net income of $2.7M (+34%), adjusted EBITDA of $3.5M (+141%) with a 20% adjusted EBITDA margin (vs. 11% prior year), gross margin of 75%, and operating margin of 14% (vs. 5% a year ago). Management cited growing visibility from an installed base of ~1,950 systems (125 shipped in Q2, +42% y/y), remaining performance obligations of $80.4M (+30% y/y), $62.4M cash, and Q2 operating cash flow of $6.3M as the basis for the higher guidance.
Brainsway Financial Statement Overview
Summary
Strong operating turnaround with meaningful revenue growth and sustained profitability (strong ~74–75% gross margins) plus a conservatively financed balance sheet (low leverage, expanding equity). The main drag is cash-flow quality: 2026 TTM shows a sharp free-cash-flow step-down and weaker cash conversion versus 2025, indicating volatility despite improved earnings.
Income Statement
78PositiveBalance Sheet
84Very PositiveCash Flow
62Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.77M | 56.53M | 41.02M | 31.79M | 27.18M | 29.66M |
| Gross Profit | 48.80M | 42.63M | 30.58M | 23.48M | 20.05M | 23.06M |
| EBITDA | 6.82M | 6.22M | 5.36M | -2.56M | -11.45M | -4.67M |
| Net Income | 9.46M | 8.26M | 2.92M | -4.20M | -13.35M | -6.46M |
Balance Sheet | ||||||
| Total Assets | 121.97M | 112.94M | 94.32M | 62.97M | 64.48M | 75.73M |
| Cash, Cash Equivalents and Short-Term Investments | 61.94M | 69.13M | 69.34M | 45.98M | 47.85M | 57.35M |
| Total Debt | 7.13M | 6.82M | 5.62M | 471.00K | 488.00K | 754.00K |
| Total Liabilities | 42.79M | 34.67M | 32.00M | 21.39M | 19.08M | 18.41M |
| Stockholders Equity | 79.19M | 73.24M | 62.31M | 41.58M | 45.40M | 57.32M |
Cash Flow | ||||||
| Free Cash Flow | 5.46M | 16.27M | 6.50M | -1.10M | -7.82M | -1.35M |
| Operating Cash Flow | 7.12M | 18.02M | 10.30M | 1.28M | -9.76M | 884.00K |
| Investing Cash Flow | -11.40M | -17.49M | 30.31M | -37.41M | 42.17M | -42.22M |
| Financing Cash Flow | -2.23M | -2.21M | 18.26M | -1.03M | -1.55M | 41.52M |
Brainsway Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BWAY, the sentiment is Neutral. The current price of 3733.00 is above the 20-day moving average (MA) of 3625.10, below the 50-day MA of 4014.82, and below the 200-day MA of 4205.50, indicating a neutral trend. The MACD of -115.22 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 62.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:BWAY.
Brainsway Peers Comparison
Overall Rating
IL:SOFW76Outperform- IL:BWAY69Neutral
Financial Indicators
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IL:BWAY | Brainsway | 3733.00 | 882.00 | 30.94% | |
| IL:ILX | ILEX Medical Ltd. | 4782.00 | -1485.05 | -23.70% | |
| IL:ALMD | Allmed Solutions Ltd. | 31.80 | -0.20 | -0.62% | |
| IL:EPIT | EPITOMEE MEDICAL LTD | 336.30 | -409.30 | -54.90% | |
| IL:SOFW | Sofwave Medical Ltd. | 3629.00 | 501.00 | 16.02% | |
| IL:PLSM | Pulsenmore | 533.40 | -3475.37 | -86.69% |
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.
Date of analysis: Aug 18, 2026