Want to see IL:BWAY full AI Analyst Report?
Top Page
Brainsway
(TASE:BWAY)
Select Model
Select Model
Rating:69Neutral
Price Target:
4,258.00
▼(-1.16% Downside)
Action:Downgraded
Date:08/18/26
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.
Positive Factors
Revenue Growth
Strong revenue growth and higher full-year guidance indicate expanding demand for Deep TMS and improving commercial execution. If sustained, this scale can support greater operating leverage, strengthen market presence, and provide a durable foundation for continued investment in clinical and commercial development.
Negative Factors
Cash-Flow Volatility
Recent cash-flow deterioration weakens the quality and predictability of the company’s improving earnings. Working-capital movements or higher cash costs could limit internally funded expansion and make reported profitability less directly convertible into financial resources over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Strong revenue growth and higher full-year guidance indicate expanding demand for Deep TMS and improving commercial execution. If sustained, this scale can support greater operating leverage, strengthen market presence, and provide a durable foundation for continued investment in clinical and commercial development.
Read all positive factors
Brainsway (BWAY) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪1.57B
Dividend YieldN/A
Average Volume (3M)69.03K
Price to Earnings (P/E)52.2
Beta (1Y)0.55
Revenue Growth14.06%
EPS Growth44.16%
CountryIL
Employees129
SectorGeneral
Sector StrengthN/A
IndustryMedical - Specialties
Share Statistics
EPS (TTM)0.24
Shares Outstanding40,252,990
10 Day Avg. Volume72,026
30 Day Avg. Volume69,025
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)5.11
Price to Sales (P/S)6.62
P/FCF Ratio23.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 compan...
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 i...
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 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.Positive Updates
Strong Revenue Growth and Upgraded Guidance
Revenue grew 35% year-over-year to $17.1M in Q2 2026 (vs. $12.6M LY). Company raised full-year 2026 revenue guidance to $68M–$70M (implying ~30%–34% Y/Y growth).
Negative Updates
Rising R&D and General & Administrative Costs
R&D increased to $3.2M from $2.3M (≈+39% YoY) driven by clinical development (PTSD, alcohol use disorder). G&A rose to $2.3M from $1.6M (≈+44% YoY), driven by higher professional fees and administrative costs — increasing operating expense pressure despite margin expansion.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth and Upgraded Guidance
Revenue grew 35% year-over-year to $17.1M in Q2 2026 (vs. $12.6M LY). Company raised full-year 2026 revenue guidance to $68M–$70M (implying ~30%–34% Y/Y growth).
Read all positive 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
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
62
Positive
| 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 | 6.34M | 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
Negative
4308.00
Price Trends
4463.00
Negative
4465.46
Negative
4137.21
Negative
Market Momentum
-128.31
Positive
35.35
Neutral
23.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BWAY, the sentiment is Negative. The current price of 4308 is above the 20-day moving average (MA) of 4157.40, below the 50-day MA of 4463.00, and above the 200-day MA of 4137.21, indicating a bearish trend. The MACD of -128.31 indicates Positive momentum. The RSI at 35.35 is Neutral, neither overbought nor oversold. The STOCH value of 23.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:BWAY.
Brainsway Peers Comparison
UnderperformOutperform
Sector (55)
IL:BWAY
Brainsway
3,889.00
1,317.00
51.21%
IL:ILX
Ilex Medical
5,155.00
-1,018.28
-16.49%
IL:ALMD
Allmed Solution
32.40
-1.30
-3.86%
IL:EPIT
Epitomee Med
436.00
-350.20
-44.54%
IL:SOFW
Sofwave
3,340.00
641.00
23.75%
IL:PLSM
Pulsenmore
688.00
-3,071.12
-81.70%
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.