Brainsway (NASDAQ:BWAY) reported second-quarter revenue growth of 35% and raised its full-year 2026 revenue outlook, citing continued demand for its Deep TMS systems, expanding reimbursement for its accelerated SWIFT treatment protocol and growth in its installed base.
Revenue for the three months ended June 30 rose to $17.1 million from $12.6 million a year earlier. Operating income increased to $2.4 million from $0.6 million, while net income rose 34% to $2.7 million. Adjusted EBITDA increased 141% to $3.5 million, and adjusted EBITDA margin expanded to 20% from 11%, according to the company.
System placements and revenue visibility
BrainsWay shipped 125 Deep TMS systems during the quarter, a 42% increase from the prior-year period, bringing its installed base to about 1,950 systems as of June 30. Levy said each placement can create opportunities for multiyear recurring revenue, greater utilization, additional clinical indications and closer relationships with providers.
Remaining performance obligations reached $80.4 million at quarter-end, up 30% year over year. The company said the increase reflected demand for Deep TMS and its focus on leasing systems to enterprise customers.
“The backlog is growing, and we are very proud with this 30% increase in the backlog,” Levy said during the question-and-answer session. He said the obligations represent orders for which revenue has not yet been recognized and provide visibility into the second half of 2026 and into 2027.
Gross profit increased 34% to $12.8 million, while gross margin remained at 75%. Sales and marketing expense was unchanged from a year earlier at $4.9 million. Research and development expense rose to $3.2 million from $2.3 million, driven primarily by clinical development and research initiatives involving post-traumatic stress disorder and alcohol use disorder. General and administrative expense rose to $2.3 million from $1.6 million, reflecting higher professional fees and administrative costs.
SWIFT reimbursement and clinical evidence
Management highlighted reimbursement progress for the company’s SWIFT accelerated Deep TMS protocol, which is designed to reduce treatment duration from several weeks to a few days. BrainsWay estimates that about 57 million covered lives in the United States now have access to reimbursement for SWIFT.
Levy said the protocol is currently focused on patients with major depressive disorder who have not responded well to medication or other treatment approaches. He said adoption can approach 50% of the relevant patient population in local markets where reimbursement is available, though utilization depends on individual payer coverage and whether psychiatrists submit cases to payers.
Providers have responded positively to the protocol’s potential to improve patient convenience and increase clinic capacity, Levy said. “A busy clinic can really increase their utilization by using this SWIFT protocol,” he said, adding that providers can treat more patients daily and complete a 30-session treatment protocol within several days.
During the quarter, BrainsWay presented prospective 12-month durability data for SWIFT. Levy said the study showed patients maintained meaningful clinical improvement through one year after treatment, including sustained remission rates and continued improvement in functional outcomes.
The company also presented results from a real-world study of Deep TMS among patients with comorbid PTSD and major depressive disorder. Across 462 patients treated at 11 clinical sites, more than 83% experienced a meaningful response in PTSD symptoms, while depression symptoms also improved substantially, Levy said. BrainsWay has submitted an application to the Food and Drug Administration seeking clearance for Deep TMS in patients with comorbid PTSD and MDD.
Provider investments and Neurolief launch
BrainsWay continued its strategic minority investment program during and after the quarter. The company invested in Hopemark Health, a behavioral health platform serving clinics in the Chicago area, and later announced investments in Radial Health and Sound Minds Behavioral.
Levy said the investments are intended to align BrainsWay with provider organizations that are expanding patient access to interventional psychiatry. He said BrainsWay has completed six minority investments and continues to evaluate additional opportunities, focusing on profitable, growth-oriented providers with experienced management teams.
The company also discussed Neurolief, in which BrainsWay holds a minority interest through a convertible loan. Neurolief began commercializing its FDA-approved ProlivRx system following its March approval. Levy said the launch is initially focused on the Department of Veterans Affairs channel and select private clinics.
BrainsWay plans to monitor commercial performance during the next 90 days of what Levy described as a soft launch before determining whether to make additional investments in or acquire Neurolief. The decision will depend on commercial milestones related to growth and profitability, he said.
Outlook raised
Chief Financial Officer Ido Marom said the company generated $6.3 million in operating cash flow during the second quarter, compared with $1.2 million in the first quarter, reflecting payment terms related to certain strategic deals. BrainsWay ended the quarter debt-free with $62.4 million in cash and cash equivalents.
Based on first-half performance and continued momentum, BrainsWay raised its 2026 revenue guidance to $68 million to $70 million, from prior guidance of $66 million to $68 million. The new range would represent expected annual growth of 30% to 34%, the company said.
Marom also said the company narrowed its operating-margin outlook to 13.5% to 40% of revenue and its adjusted EBITDA outlook to $13 million to $40 million, representing anticipated growth of roughly 90% to 100% from 2025.
About Brainsway (NASDAQ:BWAY)
Brainsway Ltd is a medical device company specializing in non-invasive neuromodulation therapies. Publicly traded on the NASDAQ under the symbol BWAY, the company develops and commercializes deep transcranial magnetic stimulation (Deep TMS) systems designed to treat a range of neuropsychiatric and neurological disorders. Brainsway’s technology aims to offer an alternative or complement to traditional pharmacological therapies by targeting precise brain regions with its patented coil designs.
The company’s flagship Deep TMS platform utilizes proprietary H-coil arrays engineered to reach deeper cortical structures than conventional TMS devices.
