Revenue increased 29% to $13.5 million in Q3 2025 as compared with Q3 2024
Operating income totaled $1.3 million and Adjusted EBITDA rose approximately 80% to $2.0 million in Q3 2025, as compared with Q3 2024
Remaining performance obligations increased to $65 million
FDA cleared an accelerated protocol for Deep TMS treatment of patients with major depressive disorder (MDD)
Raised midpoint of full-year 2025 Revenue and EBITDA guidance
Conference call to be held today at 8:30 AM ET
BURLINGTON, Mass. and JERUSALEM, Israel, Nov. 11, 2025 (GLOBE NEWSWIRE) -- BrainsWay Ltd. (NASDAQ & TASE: BWAY) ("BrainsWay" or the "Company"), a global leader in advanced noninvasive neurostimulation treatments for mental health disorders, today reported third quarter 2025 financial results and provided an operational update.
Recent Financial and Operational Highlights
-- Revenue in the third quarter of 2025 increased 29% to $13.5 million,
compared to the third quarter of 2024.
-- Approximately 70% of recent customer engagements are structured as
multi-year lease agreements.
-- Currently have $65 million in remaining performance obligations from
customers under multi-year contracts.
-- Shipped a net total of 90 Deep TMS$(TM)$ systems during the third quarter
of 2025, a 43% increase compared to the same period last year. Total
installed base now stands at more than 1,600 systems.
-- Gross margin for the third quarter of 2025 was 75%, compared to 74% in
the prior year period.
-- Operating income for the third quarter of 2025 was $1.3 million, compared
with $0.3 million for the prior year period.
-- Adjusted EBITDA1 for the third quarter of 2025 increased 81% to $2.0
million, compared to $1.1 million for the third quarter of 2024.
-- Net profit for the third quarter of 2025 increased 137% to $1.6 million,
compared to $0.7 million for the third quarter of 2024.
-- As of September 30, 2025, cash, cash equivalents, and restricted cash
totaled $70.7 million.
-- The U.S. Food and Drug Administration (FDA) cleared BrainsWay's
Accelerated Deep TMS(TM) protocol for the non-invasive treatment of Major
Depressive Disorder (MDD), including patients with comorbid anxiety
symptoms.
-- The NIH has awarded a $2.5 million, five-year R01 grant to researchers at
Stanford University and the Palo Alto Veterans Institute for Research to
study the mechanism and efficacy of an accelerated Deep TMS protocol,
using BrainsWay's device for the treatment of Alcohol Use Disorder (AUD).
-- Announced four new minority equity investments in 2025, expanding
strategic presence across the mental health treatment ecosystem.
-- Announced an initial $5 million strategic investment in Neurolief Ltd., a
developer of the world's first wearable, non-invasive, multi-channel
brain neuromodulation platform for home use, with an option to acquire
the company.
Full-Year 2025 Financial Guidance
-- With results continuing to trend toward the high end of expectations and
improved visibility into the remainder of the year, the Company is
raising the midpoint and narrowing its full-year 2025 financial outlook:
including:
-- Revenues of $51 million -- $52 million, up from the previous
guidance of $50 million -- $52 million;
-- Operating income of 6% -- 7%, up from the previous guidance of 4%
-- 5%; and
-- Adjusted EBITDA of 13% -- 14%, up from the previous guidance of
12% -- 13%.
"Market dynamics continue to align in our favor as we maintained strong top-line growth and increased profitability. Our Deep TMS system drove record demand in the third quarter of 2025, with meaningful adoption among both existing and new customers. Looking ahead, we see significant opportunities to extend our leadership through new therapeutic indications, accelerated treatment protocols, and broader market adoption initiatives, including potential strategic collaboration involving complementary technologies such as the at-home solutions offered by Neurolief following our recent investment in that company" said Hadar Levy, BrainsWay's Chief Executive Officer.
"With much of our revenue derived from multi-year customer agreements, we believe we have built a solid foundation for sustainable growth. In line with this, we continue to take deliberate steps to generate long-term value for shareholders. To this end, over the past year, we have gained significant momentum with our strategic initiative to invest in high-performing mental health providers through minority equity investments. To date in 2025, we have announced four such investments and are evaluating additional opportunities. In addition to our potential as equity investors, we believe this initiative has the potential to support our core business by accelerating awareness of therapies like Deep TMS with these mental health clinics and their patients," concluded Mr. Levy.
Call and Webcast
BrainsWay's management will host a conference call on Tuesday, November 11, 2025, at 8:30 a.m. Eastern Time to discuss these results and answer questions.
Tuesday, November 11, 2025, at 8:30 AM Eastern Time:
United States: 1-877-300-8521 International: 1-412-317-6026 Israel: 1-80-921-2373 Conference ID: 10203968 Webcast: Link
The conference call will be broadcast live and will be available for replay for 30 days on the Company's website, https://investors.brainsway.com/events-and-presentations/event-calendar. Please access the Company's website at least 10 minutes ahead of the conference call to register.
Non-IFRS Financial Measures
In addition to our results determined in accordance with International Financial Reporting Standards (IFRS), including in particular operating profit and net profit, we believe that Adjusted EBITDA, a non-IFRS measure, is useful in evaluating our operating performance. We define Adjusted EBITDA as net profit adjusted for depreciation and amortization, finance income, finance expenses, income taxes, cost of share-based payments, and one-time restructuring and litigation expenses.
In addition to operating income (loss) and net income (loss), we use Adjusted EBITDA as a measure of operational efficiency. We believe that this non-IFRS financial measure is useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:
-- Adjusted EBITDA is widely used by investors and securities analysts to
measure a company's operating performance without regard to items such as
stock-based compensation expenses, depreciation and amortization, finance
expenses, income taxes, and certain one-time items such as restructuring
and litigation expenses, that can vary substantially from company to
company depending upon their financing, capital structures and the method
by which assets were acquired.
-- Our management uses Adjusted EBITDA in conjunction with IFRS financial
measures for planning purposes, including the preparation of our annual
operating budget, as a measure of operating performance and the
effectiveness of our business strategies and in communications with our
board of directors concerning our financial performance; and Adjusted
EBITDA provides consistency and comparability with our past financial
performance, facilitates period-to-period comparisons of operations, and
also facilitates comparisons with other peer companies, many of which use
similar non-IFRS or non-GAAP financial measures to supplement their IFRS
or GAAP results.
Adjusted EBITDA, however, should not be considered as an alternative to operating profit (loss) or net profit (loss) for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under IFRS and may not be comparable to other similarly titled measures for other companies. A reconciliation between the Company's net profit (loss) and Adjusted EBITDA is presented in the attached summary financial statements.
Because of these and other limitations, you should consider Adjusted EBITDA along with other IFRS-based financial performance measures, including net profit (loss) and our IFRS financial results.
About BrainsWay
BrainsWay is a global leader in advanced noninvasive neurostimulation treatments for mental health disorders. The Company is boldly advancing neuroscience with its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS(TM)) platform technology to improve health and transform lives. BrainsWay is the first and only TMS company to obtain three FDA-cleared indications backed by pivotal clinical studies demonstrating clinically proven efficacy. Current indications include major depressive disorder (including reduction of anxiety symptoms, commonly referred to as anxious depression), obsessive-compulsive disorder, and smoking addiction. The Company is dedicated to leading through superior science and building on its unparalleled body of clinical evidence. Additional clinical trials of Deep TMS in various psychiatric, neurological, and addiction disorders are underway. Founded in 2003, with operations in the United States and Israel, BrainsWay is committed to increasing global awareness of and broad access to Deep TMS. For the latest news and information about BrainsWay, please visit www.brainsway.com.
Forward-Looking Statements
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